SFX Entertainment, the EDM events company that has about as much good fortune as Bad Luck Brian, has been dealt several more blows in the last half of December, including news that Live Nation Head of Electronic Music James Barton will not be joining as CEO as previously speculated, as well as a terminated partnership between Spotify and SFX company Beatport.
The New York Post, which previously had the exclusive on James Barton’s apparent exit of Live Nation to join SFX, is now reporting that the deal is off, citing salary demands unable to be met by SFX as well as concern over the company’s financial standing.
This news comes on the heels of an announced ending of the Beatport/Spotify partnership inked in July, which was to include exclusive video and audio content for the Spotify library from Beatport, as well as live streams of SFX’ events via Beatport Live. The termination includes the repayment of a $10 million advance previously paid by Spotify to SFX, of which $2.5 million has already been paid, with the remaining balance to be paid by no later than July 1, 2016 except in the event of a Beatport sale or a payment default, which will accelerate the repayment schedule.
TMWRK, the company that manages artists such as Diplo, A-Trak, Dillon Francis, and a host of other big names, is also paying SFX $3.6 million as part of a settlement to terminate their previous acquisition. SFX acquired TMWRK in April 2014. The terms of both the TMWRK and Spotify agreements can be found in this SEC document.