UPDATE 2: SFX has come forth with a statement about the recent developments. According to SFX, Electric Forest promoters initiated the conflict between the two companies. The spokesperson also incorrectly typed “EDM” as “EMC.” Read the statement below:
“There is absolutely no truth to the rumor that SFX is doing anything to halt Electric Forest. In fact we agreed to rescue the property owner and then another party began a legal proceeding much to our surprise. Electric Forest is a great festival held on a great site. We regret the actions of others but we assure all fans of Electronic Music that we only are interested in expanding the offerings available to EMC fans.”
UPDATE: The Electric Forest facebook page has stated that the festival is still set to occur this year. The post also commented upon the court case, saying that the issue will be resolved soon and that the lineup will be released shortly. See the official statement below:
The delay on the lineup for Electric Forest suddenly makes sense now. A tumultuous legal battle has been brewing between Electric Forest promoter AEG and recent EDM-organization conglomerate SFX in regard to the future of the festival. On February 9th, the White Lake Beacon sent out an email to subscribers detailing a court base between the two companies.
The conflict stems from SFX’s initial attempt to buy out Insomniac, one of the other companies in charge of throwing and promoting the festival. After the buy out failed, SFX then set its sights on Madison House, the original promotion company behind Rothbury music festival (the festival that preceded Electric Forest at the Rothbury Forest venue). Madison House merged with AEG in January and SFX’s attempted buy-out failed.
In an attempt to subvert the failed buy-outs, SFX aimed to buy out Double JJ Ranch, the actual resort based in Rothbury Forest. If the buy out succeeded, then SFX could uproot Electric Forest altogether and hold its own festival since AEG, Insomniac, and Madison House would lose its contract with the resort. Interestingly the case was held in court on February 10th but adjourned until February 28th.
This development explains the lack of details regarding the festival, notably the delay of the lineup release. Many questioned the festival’s silence regarding the the court case but the Electric Forest twitter account stated the festival was set still to occur and that an official update would be issued soon. According to the original article, which is outlined below, the festival has sold 21,000 tickets in pre-sales thus far and Madison House has paid $62,082.99 on the lease for the land.
@StevenHlavARK the Festival is still happening! Working on an update for everyone.
— Electric Forest (@Electric_Forest) February 11, 2014
Given the often lengthy processes of the legal system, it is doubtful that Electric Forest would be cancelled this coming year. Despite who the case favors, the losing party would most likely appeal the case and extend it further. If the injunction is filed, the promoters will be able to hold the festival without any problems. The true predicament lies in the long-term future of the festival. If the case favors SFX, the entire festival will likely be re-branded and adjusted to fit the company’s goals. A few years ago Insomniac partnered with AEG to change the Rothbury Festival into the Electric Forest Festival we know today. After this change, the festival lineup balanced a lineup with more recognizable EDM artists and traditional acts found previously on the Rothbury lineup. With the case to be held once more on Febuary 28th, it is doubtful a lineup will be announced very soon. Hopefully Electric Forest comments on the situation soon and calms the fears of many worried festival-goers. We’re still very much looking forward to this year’s gathering, as you all should as well. Original article below:
An Oceana County judge is expected to decide Monday whether to issue a preliminary injunction regarding the Electric Forest music festival lease for the grounds at the Double JJ Resort in Rothbury. Concert promoter AEG Live seeks a temporary restraining order and preliminary injunction regarding the lease first negotiated with concert promoters Madison House Presents in 2010. Madison House Presents merged with AEG Live in January and has been involved as a partner and promoter of the first two ROTHBURY festivals and subsequent the Electric Forest festivals. In November, 27th Circuit Court Judge Terrence Thomas ordered the sale of the Double JJ Resort to Antler Bar Amusements (ABA) LLC after the Wilmington, Del. company last summer gained control of two bank loans made to Progressive Resorts LLC, which bought the ranch and resort for $9.75 million following bankruptcy hearings in 2009. In late September last year, the court awarded Antler Bar Amusements receivership of the resort with respect to operations, then Antler Bar Amusements requested and received court approval to sell the Double JJ collateral to itself as a secured creditor for the $7,628,522.31 balance due. The sale order contained a provision that allows Progressive Resorts to redeem the property and collateral, providing it pay the balance plus any additional advances made by Antler Bar Amusements at 11 percent interest. According to the AEG motion filed last Thursday, the festival lease was included with the resort’s collateral. It indicates ABA would honor the lease, but because an ownership change occurred and ABA was the new owner, it could negotiate amendments to the 20-year lease. It further indicates that ABA and Double JJ have asserted during recent discussions that “although the sale order provided for the sale of all of the collateral, including the festival lease, they had no obligation under the festival lease.” The motion also claims that Progressive has suggested that it might seek to strip AEG of its rights under the lease by seeking to redeem selective portions of the resort assets, including the resort itself, but not redeem the festival lease, thereby severing the lease from the resort. The motion goes on to claim that Progressive is in discussion with AEG competitor SFX Entertainment regarding the resort’s collateral. It points out that under the lease music events with more than 5,000 people cannot be held on the grounds without Madison House Present’s written consent. “Progressive is considering severing the festival lease from the resort by a subsequent sale to SFX of the resort and various other assets, excluding the festival lease,” the motion reads. AEG also claims in the motion that SFX attempted to acquire Madison House Presents, but failed. AEG Live and Madison House have already paid $62,082.99 on the lease toward this year’s event and another $62,082.99 is due Feb. 25. AEG says it’s already sold 21,000 advance tickets without even having announced its music line-up and has various land leases with local property owners and other arrangements with various vendors for this year’s event. It claims if it loses control of the lease it will have to refund the advance sale tickets and its reputation along with that of the resort as a concert destination will be damaged. It wants the court to have all parties appear and show cause as to why a preliminary injunction should not be issued; to temporarily restrain and preliminarily enjoin any of the other involved parties from refusing to honor the lease; to restrain and preliminarily enjoin Progressive and/or its assignees from selectively redeeming only a portion of the resort assets and severing the festival lease and/or refusing to perform under the festival lease. It also asks the court to award all such other and further relief as it deems equitable.
Source: Credit to Reddit user PsychedelicVisions for posting the original article on the Electric Forest subreddit.
You clearly have not read up on this. They have a new lease and everything is settled. We could get 10-15 more years! I also hope they bring an original Rothbury style event a weekend before or after EF.