SFX Entertainment, parent company of big name EDM giants such as TomorrowWorld, Sensation, Life In Color and Beatport, was ordered by US Bankruptcy Judge Mary Walrath on Monday to apportion $15 million to their performers for the 2016 summer festival season.
SFX filed for bankruptcy in February of this year with $490 million in debt and artists represented by big name talent agencies AM Only, Paradigm Talent Agency, Windish Agency, and WME have become increasingly concerned over their compensation at SFX Events. The agencies have requested that their artists be 100% paid in full in advance of their performances at SFX Events, terms that are nearly unheard of in this entertainment industry. As the majority of revenue for production firms is generated during the events, and not prior to, these conditions say quite a bit about the current faith in SFX.
Depending on whether or not the artist is a headliner, or if he or she is performing at a club with less than a 10,000 person capacity, a varying percentage of the full payment is made before the announcement of the lineup, 30 days before the event date, and not less than 5 business days prior to the event date.
H/T: EDM.com
