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Viagogo given green light to pursue legal action against SFX
By Chris Cooke | Published on Monday 19 September 2016
Secondary ticketing firm Viagogo was recently given the go ahead to pursue legal action against flagging dance music promoter SFX, it has emerged.
Viagogo accuses SFX of failing to deliver on a five-year $75 million sponsorship deal which made the secondary ticketing firm the official resale partner on a stack of events promoted by the dance music company. According to IQ, Viagogo says that SFX “breached various material provisions of the agreement, some of which are not curable, including, among other things, the cancelling of certain major events”.
But SFX, remember, went into administration back in February, and is still stumbling its way towards relaunching as a newer, nimbler EDM powerhouse cut free of many of its former liabilities. And that meant the company got itself chapter eleven bankruptcy protection, which in theory prevents creditors from suing for outstanding debts, those owed money instead needing to participate in the bankruptcy negotiations.
Following a hearing at the end of August, Viagogo has now been permitted by the courts to “assert and prosecute all counterclaims against the debtors”, with the restrictions put in place by the bankruptcy set aside for this one case. Viagogo is seeking over $1.6 million from SFX in its legal action.
