Thanks to a court decision, SFX will still be able to book artists for their summer festivals, despite their ongoing bankruptcy proceedings. Judge Mary Walrath has granted the troubled EDM company permission to spend up to $15 million on artist fees, which will allow it to temporarily continue operations and potentially stop losing money.
"The value of the debtors' estates and their ongoing business depends on their continued successful festivals, events and club shows," argued SFX's lawyer Dennis Meloro, according to Mixmag. "The profitability of these shows hinges, in significant part, on the artists performing and their ability to attract large numbers of fans."
In the wake of SFX's ongoing problems, some nervous artists have been demanding 100% of their fees upfront; the court ruling allows the company to pay headliners 25 per cent of their fee before being added to the lineup, a further 50 per cent thirty days before the event, and the final 25% five days before the gig. If the event ends up being cancelled, SFX are still obligated to pay the artists their full fees.
Benjamin Boles is on Twitter.