The flow of unfortunate financials have continued to plague the event promotor, SFX Entertainment. Recently, we’ve reported on the company’s filing for Chapter 11 bankruptcy protection and agreement to restructure. As well as a creditor matrix that outlined outstanding debts to numerous creditors. Now, more has come out that’s revealed the financial information for 2014 and 2015 which was shared with various parties in November when consideration of a restructuring agreement first surfaced. During the bankruptcy proceedings, those parties signed confidentiality agreements and eventually, SFX filed for bankruptcy protection. However, as of February 1st, 2016, those agreements expired.
According to Billboard magazine, “North American live events generated $140 million in revenue in both 2014 and 2015, but losses more than doubled, from $5 million to $13.2 million. Other live events segments, including international live events and ticketing, had positive earnings in 2015.” In addition, Beatport also took quite the hit. Regarded by many as the main online hub for EDM, Beatport was acquired by SFX for a reported $50 million in February 2013. In 2014 revenue for the online streaming and download service was at $46.5 million, then dropping to $39.1 million in 2015. But as revenue decreased, salaries and administrative expenses jumped from $11.2 million to $18.7 million, Beatport’s $7.1 million 2014 earnings became $5.5 million in losses for 2015.
Billboard also indicates that sponsorships were supposed to play a big role in SFX’s plan of business, especially as the obvious reach to demographic of festival goers became apparent to brands. However, the information provided indicates that “global partnerships amounted to just $8 million in 2014 and actually dropped last year, to $7.3 million — 1.8 percent of SFX’s total revenue.”
As more and more is revealed regarding the SFX Entertainment financial struggle, it’s become abundantly clear why the company needed to file for bankruptcy protection. Be sure to follow us to keep up to date with SFX and it’s current status through it’s bankruptcy proceedings!