TomorrowWorld catastrophe drags down SFX shares
TomorrowWorld had a bleak ending to its highly anticipated weekend on Sunday when torrential rainfall forced the festival to close its doors and shut the show down for its final day. It was difficult to avoid the influx of complaints and serious anger that most festival goers were quick to share on social media about the debacle. Dozens of photos of attendees sleeping in the mud and trapped miles away from their cars and shelter quickly painted a horrifying story that showed a serious lack of preparation at the hands of TomorrowWorld.
Of course, TomorrowWorld is one of SFX Entertainment’s major festival events, and the company seems to yet again be facing another serious set back, adding to wave after wave of economic woes the company has faced this year.
The news seemed to have spread over to SFX’s shares, which dipped 7.5% on Monday following the shut down and flood of complaints. The cost alone of refunding all non-campers for the third day as well as a serious loss of concession income was likely enough to put a dent in the company’s earnings, and now, it seems as though SFX’s third quarter will definitely be affected by the cancellation.
However, it should also be noted that the stock market faced a large decline on Monday overall. According to Billboard, the Dow dropped 1.9% and Nasdaq fell 3% while other music stocks like SiriusXM Radio, Pandora and Live Nation also fell.