Festival Founders Claim SFX Still Owes Them Millions
The founders of Stereosonic Festival have claimed in a lawsuit that SFX Entertainment still owes them $15 million for the 2013 sale of their company Totem One Love Group to SFX.
The news of this claim comes on the heels of announcements that Stereosonic will not be returning for 2016, and that SFX Totem, the Australian branch of SFX which has organized the festival in recent years, has gone into administration. (For US readers, administration is similar to bankruptcy in the US).
Totem One Love Group and it's festivals were sold to SFX in 2013 for $75 million. And now it seems the five original founders Richie McNeill, Frank Cotela, Dror Erez, Simon Coyle and Peter Raftopoulos are suing SFX for the $15 million still outstanding from that deal.
Though the future of SFX-led Stereosonic is looking grim, both Richie McNeill and Frank Cotela have announced that they will be launching new events in the next year.