SFX Entertainment lost its CEO back in March, when founder Robert Sillerman stepped down.
The move was a direct result of the live company filing for Chapter 11 bankruptcy in the US, which some assumed would kill off its challenge to the likes of Live Nation and AEG.
However, recent events have brought cause for a little optimism. SFX, with Sillerman remaining as Chairman, is aiming to spring out of bankruptcy later this year following an intense restructuring.
And, say sources, it will have a new CEO: former AEG music boss Randy Phillips, who left Global Entertainment last year after just seven months in charge.
Phillips previously spent 13 years as CEO at AEG Live, where he promoted world tours by artists such as Justin Timberlake, Bon Jovi, Justin Bieber, Kanye West, Jennifer Lopez, Enrique Iglesias, Rod Stewart, and Prince.
He oversaw the expansion of AEG Live’s Festival Division (Coachella, Stagecoach, New Orleans Jazzfest) and won the NAACP Image Award for producing the prime-time CBS-TV special, Genius: An Evening For Ray Charles.
In February 2015, he joined Ashley Tabor’s Global Entertainment as CEO – primarily an attempt by the UK media business to crack the US live market – but promptly exited the company by September the same year.
In May this year, MBW learned that there had been widespread lay-offs at Global as the Entertainment division was stripped of personnel.
Live magazine Pollstar rumoured earlier this month that Phillips was in contention for the SFX CEO job, and now further sources say he’s got the gig.
When SFX fell into bankruptcy in February, it managed to reach an agreement with an ‘ad hoc group of bondholders’ to significantly restructure its outstanding debt.
This process included the conversion of debt owed to these bondholders into equity as part of the new privately-owned SFX.
It is understood that the company is attempting to emerge from bankruptcy shortly after the summer is over.
Control of its business is believed to then pass to creditors including Axar Capital Management and Allianz SE.
Yesterday, we learned that Beatport had “dramatically improved profitability” since dropping its foray into the world of streaming – itself part of SFX’s cost-saving measures while in bankruptcy.
In addition to digital music service Beatport, dance specialist SFX owns live music brands including Tomorrowland, Mysteryland, Life In Color, Electric Zoo and Sensation.Music Business Worldwide
