Well, that and incompetence. I came across the company's Glassdoor page last night, a site where employees can rate their employer and share their experiences. 


The Real

"Avoid at all costs," one former employee titled their review of SFX helmed by CEO and Chairman Robert Sillerman, while another called the place a "total shit show."

"Everything is about pumping up the stock artificially through nonsense press releases," one person wrote, while another said, "The CEO repeatedly said SFX would never go bankrupt."

SFX did go bankrupt, filing for Chapter 11 protection Feb. 1 with yet another bizarre press release that tried to spin the flop as "an expression of confidence from our lenders,” and a “testimonial to the vibrancy and potential of our business."

More spin from a CEO that has never been upfront about the health of the flailing company. Examine SFX’s bankruptcy filing and it’s clear that two things killed SFX.

One was Sillerman’s failure to pay for the companies he had acquired, and the other was-out-of-control spending. Beginning late last year, SFX began defaulting on the payouts it had promised the promoters it had acquired.

SFX still owes Totem OneLove Group $11 million for its purchase of the Australian EDM promoter and the Stereosonic festival in Melbourne.

SFX still owes $10 million to Mike Bindra and Laura Depalma with Made Events, creators of the Electric Zoo festival in New York.

The company’s largest unsecured creditor is Dutch EDM firm Alda Events. Allan Hardenberg and David Lewis sold SFX a 50 percent stake in their company in 2014 and are stilled owed $23.4 million.

SFX is also leaving a lot of private companies on the hook, owed millions of dollars because of Sillerman and his team’s lavish spending.

SFX is leaving behind $450,000 in unpaid credit cards and $350,000 for rental cars that were never paid. And while Sillerman was made into a meme from a picture of him exiting a private jet and flipping off the camera, he might as well have turned around and gave the bird to the plane’s crew, too. According to the bankruptcy filing, Sillerman is walking away from more than $1 million in unpaid bills to private jet operator Vista Jet.

Sillerman really enjoyed spending other people’s money, but he wasn’t actually that good at delivering a return. Even though he’s stepping down as CEO, he’ll still have an outsized role as chairman.

Whether SFX has any other chance of surviving depends on how quickly they can leave his legacy behind.