New documents reveal SFX purchase agreement with Double JJ owners

Electric Forest 2013 day 1-20
By in Industry, News / February 13, 2014 4:35 am

New documents obtained today suggest the sale of Double JJ Resort — the Electric Forest venue — to SFX Entertainment is further solidified than earlier suspected.

A Memorandum of Purchase and Sale Agreement filed for record in Michigan’s Oceana County on Feb. 6 reveals a deal between Progressive Resorts, LLC and Michigan JJ, LLC, a newly formed Delaware company with direct connections to SFX.

The purchase agreement is signed by Michigan JJ’s Chief Financial Officer Richard Rosenstein, who also holds the position of CFO at SFX.

Double JJ Ranch is currently owned by Antler Bar Amusements, but the property was held by Progressive Resorts prior to a September sale. As part of the sale, a court granted Progressive the opportunity to redeem the property and collateral before May 14 if the company is able to satisfy their $7.6 million debt plus interest.

Enter SFX, whose recent buying spree of other dance music companies illustrates their interest in the festival and financial ability to bail Progressive out of debt.

SEE ALSOElectric Forest files court motion to protect land lease with Double JJ Resort

Electric Forest producers Madison House/AEG signed a 20-year lease agreement with the resort in 2010. While the lease is listed among the property’s assets, specifics of the Progressive/Antler Bar sale allow Progressive to redeem only assets of their choosing.

This gives Progressive — or SFX, if the sale solidifies — the chance to redeem the physical property but not the lease agreement with Madison House/AEG, severing the agreement and potentially leaving Electric Forest without its home in Rothbury.

The lease does allow for renegotiation of terms in the event of an ownership change at Double JJ.

While not an outright sale, a Memorandum of Purchase and Sale Agreement is a legal affidavit stating an agreement has been reached with the owner for the sale of their property and can be used to prevent the seller from entertaining other offers.

Madison House/AEG filed a court motion last week seeking a temporary restraining order and preliminary injunction in hopes of preventing the owners from separating the lease from the property.

Electric Forest has assured fans that the “show will go on” for 2014, but the festival’s ability to utilize Double JJ Resort in the future is unclear. Madison House/AEG claims over 21,000 advance tickets have already been sold prior to any lineup announcements.

In a prepared statement yesterday, SFX said they’re just trying to help the struggling land owners.

“There is absolutely no truth to the rumor that SFX is doing anything to halt Electric Forest,” an unnamed SFX spokesperson told SPIN magazine.

“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 [Electronic Music Culture] fans.”

This isn’t the first time SFX has moved in on another promoter’s turf.

After acquisition of Tomorrowland creator ID&T, SFX convinced Bouckaert Farm owners to sign an exclusive deal to host TomorrowWorld near Fairburn, Ga., forcing out the previously held CounterPoint Music Festival.

The next court hearing in Oceana county is scheduled for Feb. 24.

SEE ALSO: Fans to SFX: Don’t mess with our Forest

Share on Facebook Share on Twitter



Tomorrowland TomorrowWorld

TomorrowWorld reveals 2014 theme: The Arising of Life

With just one month remaining until the second edition of TomorrowWorld kicks off outside Atlanta, organizers today revealed this year’s theme and video trailer. “The Arising of Life” theme coincides with the ...
by Kent Otto

skrillex okc - live edits lab

Skrillex announces dates for fall tour, including 10 central US cities

After his massive “Mothership” tour this spring, Skrillex will hit the road again late next month for a 27-date fall tour. The tour kicks off in Miami on Sept. 26 and criss-cross the country through early November, ...
by EMW Staff


Mystik Sanctuary adds Alvin Risk, AraabMuzik, Danny Avila, Infected Mushroom, more

Mystik Sanctuary — Oklahoma’s first multi-day dance festival — is shaping up to be the most impressive first-year festival of 2014. Set to take over the Oklahoma City Downtown Airpark on Sept. 5 and 6, Mystik ...
by Kent Otto


Lollapalooza Chicago 2013 1

Lollapalooza Party Guide 2014

Lollapalooza weekend is upon us yet again and this year’s dance music lineup is as strong as ever. Among headliners like Eminem, Outkast, Kings of Leon, and Arctic Monkeys, the three-day festival will feature danceable so...
by EMW Staff


Giveaway: Tickets to Summer Set Music & Camping Festival 2014

For the third year in a row, Summer Set Music & Camping Festival returns to Somerset, Wis. this Aug. 15, 16, and 17. The musical lineup includes Bassnectar, Kaskade, Big Gigantic, Wu-Tang, Flux Pavilion, Chromeo, Umphrey&...
by EMW Staff


Disclosure brings Wild Life show to Detroit on Aug. 2

After a successful run in Los Angeles, Berkeley, and Chicago, Disclosure today announced the next edition of their Wild Life series will take over Detroit’s Freedom Hill Amphitheatre on Aug. 2. In addition to a DJ set fro...
by EMW Staff