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

Comments




 
 

 
Electric Forest 2014

Electric Forest producer Jeremy Stein to participate in Reddit AMA

Jeremey Stein, producer of the annual Electric Forest Festival in Rothbury, Mich., will participate in a rare “Ask Me Anything” conversation on Reddit next week. Set for 4 p.m. EST on Tues., Dec. 16, Stein will answ...
by Kent Otto
 

 
 
Electric Forest

Electric Forest 2015 tickets on sale today

Tickets for the fifth annual edition of Electric Forest go on sale to the public today. Set for June 25-28, 2015, Electric Forest will again take over the Double JJ Ranch in Rothbury, Mich. for four days of music, camping, and...
by Kent Otto
 

 
 
Electric Forest 2014

Electric Forest receives mass gathering permit approval for 2015 festival

Electric Forest organizers received approval by the Grant Township for a mass gathering permit for next year’s festival, set for June 25-28, 2015 in Rothbury, Mich. The Oceana County Press revealed the permit passed with...
by Kent Otto
 

 

 
TomorrowWorld 2014 main stage preview 1

12 fun facts about this weekend’s return of TomorrowWorld

We’re just days away from the kickoff of the second installment of TomorrowWorld outside Atlanta, Ga. Thousands of fans from around the world are flocking to Chattahoochee Hills to experience all the madness found at U...
by Kent Otto
 

 
 
TomorrowWorld 2014 main stage preview 15

20 preview photos of the volcanic TomorrowWorld 2014 main stage

Just over two weeks remain until fans from around the world will flock to Atlanta, Ga. for the second installment of TomorrowWorld, set for Sept. 26-28. This year’s theme — “The Arising of Life” — ...
by EMW Staff
 

 
 
BUKU Float Den Zedd 2013

BUKU Music + Art Festival reveals 2015 dates

BUKU Music + Art Festival organizers today revealed dates for next year’s event, set for March 13 and 14, 2015. Early bird tickets for the fourth annual event in New Orleans will go on sale this Friday, Sept. 5 at 11 a.m....
by EMW Staff