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Hamptons Life

Feb 2, 2016 3:30 PMPublication: The East Hampton Press & The Southampton Press

Robert F.X. Sillerman's SFX Entertainment Declares Bankruptcy

Feb 6, 2016 11:12 AM

SFX Entertainment, a music festival and events promoter led by Chairman and CEO Robert F.X. Sillerman, declared bankruptcy on Monday.

A former chancellor of Southampton College and an owner of pricey Meadow Lane properties in Southampton Village, Mr. Sillerman plans to step down as CEO of SFX Entertainment, but remain as chairman.

Mr. Sillerman founded SFX Entertainment in 2012 and owns 38 percent of its common stock. It is his second concert promotion company of that name—the first was sold in 2000 to Clear Channel Communications and later became known as Live Nation.

The Chapter 11 bankruptcy filing describes the current SFX Entertainment as the “Largest global producer of live events and digital entertainment content focused exclusively on the electronic music culture and other world-class festivals.” Despite the bankruptcy, all of the company’s upcoming festivals and events in the United States and internationally are slated to go on as planned.

The filing states that SFX Entertainment, Inc. and 43 affiliated entities—mostly limited liability companies—have $661.6 million in assets and $490.2 million in total debts. SFX Entertainment’s international operating subsidiaries are not included in the bankruptcy proceedings.

According to a statement SFX Entertainment issued February 1, a restructuring support agreement with an ad hoc group of bondholders will significantly restructure the company’s debt. The deal is said to eliminate more than $300 million in debt from the balance sheet while also providing working capital and taking the company private. SFX Entertainment is currently publicly traded on the NASDAQ stock exchange.

“This expression of confidence from our lenders is testimonial to the vibrancy and potential of our business, and the dedication and professionalism of the over 600 people who make up SFX,” Mr. Sillerman said in the company statement. “Of course this was not where we thought we’d be but with this restructuring we have the opportunity to achieve all that SFX can and will be. I’m looking forward to continuing to be part of the new SFX as Chairman. We will immediately commence a search for a new CEO to lead us as we continue to set the trend in the exploding culture that is electronic music.”

The agreement is subject to bankruptcy court approval.

The filing was signed by the members of the SFX Entertainment board of directors, including Mr. Sillerman, former U.S. Representative Tim Bishop of Southampton, Mitchell Slater, John Miller, Frank E. Barnes III, Michael Meyer, Pasquale Manocchia and Dr. Andrew Bazos.

In December 2015, Mr. Sillerman sold one of his Meadow Lane properties, a 2.4-acre oceanfront estate, for $38 million. In 2014, he sold an adjacent 3.6-acre parcel with a 12,800-square-foot residence for $37.5 million.

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and the rich stay rich
By xtiego (698), bridgehampton on Feb 2, 16 7:07 PM
GOD BLESS THE RICH!!! May they continue to live in our beautiful area, trickle down works.
By bigfresh (4666), north sea on Feb 2, 16 7:51 PM
As the last forty years have proven, "trickle down" does not work and is a bona fide failure not only in practice, but in theory.

It has not only led to the decimation of the American middle class, it has given this country the highest degree of socioeconomic disparity since the Great Depression. It has led to a corrupt campaign finance system, and elected officials who should wear patches on their suits like NASCAR drivers. Only and idiot or a fool would consider the past forty years ...more
Feb 2, 16 8:02 PM appended by Mr. Z
"Again I tell you, it is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God." ~ Matthew, 19:24
By Mr. Z (11847), North Sea on Feb 2, 16 8:02 PM
1 member liked this comment

"Indeed, it is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God."

~ Luke, 18:25

"It is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God."

~ Mark, 10:25
By Mr. Z (11847), North Sea on Feb 2, 16 8:08 PM
This has nothing to do with trickle down economics....and as a matter of facts, there is no authentic school of economics that includes trickle down economics or trickle down theory. It's merely a political term adopted by critics of various policies with different names.

This has more to do with the waning fad of goggle eyed kids taking ecstasy and dancing for 24 hours with a pacifier around their necks. This company owned that space when it was in it's heyday.
By KevinLuss (356), SH on Feb 3, 16 6:24 AM
Actually, the same economic practice has been referred to as "Mellonomics", which led to the Great Depression. It most resembles supply-side economics, and was as much of a failure ninety years ago as it is today. Prior to that, it was referred to as "horse and sparrow". Horse and sparrow posited that somehow, if the horse ate enough oats, enough would pass through it and end up in the streets for the sparrows. Looks like three strikes on this economic fad.

Sequels have pretty much always ...more
By Mr. Z (11847), North Sea on Feb 3, 16 7:36 AM
1 member liked this comment
It's not an economic practice. No matter what you call it. It's a ficticious creation. No such thing.

Don't forget, wealth also "trickles up" through savings and investment. After all, the savings that lower- and middle-class people put into the bank are loaned out to businesses for profit. Similarly, their retirement savings are usually in the form of investments for big business.
Feb 3, 16 8:04 AM appended by KevinLuss
"Trickle-down" economics began as a joke. Seriously. If there’s one person most often associated with the origins of of trickle-down economics, it’s President Ronald Reagan. Few people know, however, that the phrase was actually coined by American humorist Will Rogers, who mocked President Herbert Hoover’s Depression-era recovery efforts, saying that "money was all appropriated for the top in the hopes it would trickle down to the needy." Rogers’ joke became economic dogma within two generations, thanks in large part to Reagan
By KevinLuss (356), SH on Feb 3, 16 8:04 AM
Despite it's "fictitious" nature, it sure has done a hell of a lot of damage...
By Mr. Z (11847), North Sea on Feb 3, 16 6:44 PM
Tim Bishop involved in another financial mess as a board member of this company? Didn't he drive the college into financial ruin as well? Why isn't The Southampton Press bringing this startling fact to readers attention instead of just quietly mentioning him as a board member of this bankrupt company.
By BillWillConn3 (180), Southampton on Feb 2, 16 9:05 PM
Tim only joined the board in December 2015. I doubt he had much to do with the Bankruptcy. Although, it is possible that just by him being named to the board caused kids to reject EDM...
By Draggerman (955), Southampton on Feb 3, 16 8:11 PM
1 member liked this comment