After leading his company from historic hype to bankrupt flop, SFX Entertainment founder Robert FX Sillerman has stepped down as CEO. Sillerman, who attempted to dominate the festival market by buying up EDM events including Awakenings, Sensation, Nature One, Electric Zoo and Rock in Rio, said the firm had “much to be proud of” despite not ending up “where we wanted to be.” Below is Sillerman’s farewell letter to the company’s staff, distributed on March 30.
As most of you are aware Thursday, March 31, will be my last day as CEO of SFX. I will remain as Chairman of the Board. The disappointment I know we all feel should not be the lasting impression that remains. We had a bold vision, a revolutionary one. That we stumbled along the way can never detract from the energy and hope that brought us all together. As we enter this next phase, despite the place we find ourselves, there is much to be proud of. It remains incumbent on all of us to refocus our energies and find the path to success that is out there. I am confident that with renewed discipline combined with passion and creativity that our original goals can and will be met.
As Chairman I remain available to help in any way that I can. I maintain both an emotional and financial interest in our company’s success and intend to participate as and when called upon. As such this is anything but a goodbye; rather a reset of roles with a renewed emphasis on collaborative success. While we aren’t where we wanted to be, and will be, it has been an honor and a pleasure.
According to reports SFX is being forced to pay DJ booking agencies 100% advances for headliners for Spring Awakening in Chicago and Electric Zoo in New York City, meaning that credit is no longer being extended due to the company’s dreadful financial situation. To appease the talent and reps, the company reached a deal to set aside $15 million specifically for performers, which SFX characterized as a “comprehensive solution for a going forward business relationship in these chapter 11 cases between and among the debtors, the artists and the agents,” according to the Wall Street Journal.