Everybody monitoring the SFX financial situation over the past few months knew how much was riding on TomorrowWorld this year. The festival had everything going for it and was ready to finally turn a profit for the company. Sadly, rain and mud meant that defeat was snatched from the jaws of victory. The festival was forced to issue refunds and lost out on plenty of concession revenue in addition to the lost goodwill of its patrons. With SFX losing its ace in the hole, things are looking bleak for the big festival season financial quarter.
Now SFX is considering what is known as a fire sale to shore up finances. The company is looking to quickly sell off unnecessary assets at a low price to focus on core business operations. Luckily, or not so luckily, SFX owns a lot of assets. They have Beatport, Totem OneLove, ID&T who runs TomorrowWorld, Flavorus, Made Events, and more. All of these businesses are now on the chopping block at a heavily discounted price. By the time TomorrowWorld returns, it could possibly be outside of the SFX umbrella once again.
Source: New York Business Journal