Beatport halts royalty payments as SFX attempts to privatize
As SFX Entertainment undergoes a long-drawn-out privatization process, others, including its subsidiaries and their respective clients, may be hurting. Beatport sent a letter to music rights-holders yesterday evening informing labels that royalties will not be paid for the past quarter, from April through June, until SFX fulfills its ‘going private’ process. According to a number of small labels, payments were due on Thursday, July 30th.
As per Beatport, the operation has “trapped certain earned label payments,” thus interfering with timely compensation to labels and artists.
Morgan Geist, owner of Environ Records, expressed his frustrations on Facebook – caustically commenting that he “Couldn’t seem to find the word ‘sorry’ in this email.”
What’s more: SFX is currently facing a $100 million lawsuit from Robert Sillerman’s former business partner, Paolo Moreno, who claims that he was cheated out of large sums of money despite the heavy lifting he did before the company went public. In light of these financial ideals, many wonder if Sillerman possesses enough capital to purchase the remaining shares in SFX.