US Promoters Owe Stereosonic Founders Millions

Though it was revealed just days ago that Stereosonic promoters SFX Totem (Totem OneLove Group) have gone into administration, more controversy has engulfed the company as it can be confirmed that five of the original owners of Totem are owed millions from current owners, SFX Entertainment.

Claim numbers obtained from the KCC website can ascertain that Richie McNeill, Frank Cotela, Dror Erez, Simon Coyle and Peter Raftopoulos are together owed $US15 million, just three years after they sold the company to SFX for $US75 million.

The news is the latest hit to SFX Entertainment after they announced the cancellation of the 2016 Stereosonic festival, followed by this week's confirmation of Totem going into administration.

McNeill has gone on to announce that he will be launching two new festivals in the next year, while Cotela will be heading up new events and touring for ONELOVE.

The Music Network have reported that the five owners have employed lawyer Daniel Vodicka to represent them in New York. 

Vodicka says other creditors owed money by SFX include Made Events, React Presents, PRS For Music and Alda Events.