The RapCaviar Live tour, which will visit six North American cities, kicks off on 12 August with Gucci Mane at the Tabernacle in Atlanta
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SFX will refund the streaming giant its $10 million licensing advance by July 2016
By IQ on 04 Jan 2016
After a less-than-stellar 2015 marked by plummeting share prices, a downgraded credit rating, non-payment of royalties and no end of lawsuits, troubled EDM promoter SFX Entertainment has entered the new year by defaulting on its high-profile content agreement with streaming giant Spotify.
SFX announced the partnership, which would have seen its digital music store and streaming service, Beatport, provide Spotify with exclusive audio and video content, last July. “[Spotify users] will be the first to access the latest need-to-know exclusive electronic music from Beatport, and will also be able to watch to a mix of original festival and event video content,” said Beatport CEO Greg Consiglio at the time.
As part of the contract with Spotify, Sillerman was to purchase US$15m in Spotify preferred stock (shares which pay fixed, regular interest income as opposed to dividends) by 17 October 2015. This didn’t happen, and SFX will now refund the streaming giant its $10 million licensing advance in instalments by July 2016.
A knock-on effect of Sillerman’s failure to make said payment to Spotify is that SFX has defaulted on a $30m credit agreement with Barclays and other unnamed lenders – which could potentially lead to a greater ‘cross-default’ on a $295m loan, reports Billboard, adding to SFX’s already perilous financial situation.
SFX has also parted ways with artist management company TMWRK, which it purchased in 2014. TMWRK, home to Diplo, Dillon Francis and a host of EDM artists, has agreed to pay $3.6 million to buy itself out of SFX ownership.