SFX is Being Sued by Stereosonic Founders

0
100

SFX is in more hot water allegedly. This time around, it’s with the five original promoters of Australia’s Stereosonic festival. Back in 2013, the now dissolved entertainment company went on a spending spree and purchased the large festival down under along with multiple other thriving businesses across the globe. As the original auction price surged to A$75 million (US$54.2 million), a report has surfaced Australia-based The Music Network claiming that they are still owed A$15 million (US$10.84 million).

Hiring Australian entertainment lawyer David Vodicka, principal of Media Arts Lawyers, the five club promoters Richie McNeill, Frank Cotela, Dror Erez, Simon Coyle and Peter Raff set up Stereosonic as Totem OneLove Group in 2008. As the festival has emerged as a major player in the festival scene, taking place in five cities in late November and early December, there are estimates of some events pulling in 45,000 to 60,000 crowds.

With the situation only dealing with the United States, SFX Totem, the new entity of Australian ownership that came out of the sale to SFX stated that these events would not affect Australian operations. However, in April, it was pulled from the schedule (annually hosting big names such as Above & Beyond and Calvin Harris), only for the current calendar year, while SFX Totem went into administration.