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Soundwave booked Australia's rock summer — then cancelled it three weeks out
Soundwave's 2016 edition, headlined by Disturbed and Deftones across three cities, was cancelled on 17 December 2015 amid insolvency and unpaid debts.
Soundwave Festival · Hounds of Hell · 2015-12
What happened
Soundwave had grown over twelve years into one of Australia's biggest touring rock festivals. In December 2015 promoter AJ Maddah had the next edition booked: Disturbed, Deftones, Killswitch Engage, Bullet For My Valentine, Public Enemy, Bring Me The Horizon and NOFX across Brisbane, Sydney and Melbourne, tickets priced over $150.
The money had already collapsed. The festival's previous operating company went into voluntary administration in September 2015 with about $7 million of unpaid debts; the related World Stages entity owed $25.8 million to 186 creditors including artists and production suppliers, and more than $6 million was owed to the Australian Taxation Office. Bands including Bring Me The Horizon and NOFX publicly doubted they would be paid.
On 17 December 2015 Maddah cancelled the festival, citing poor ticket sales and blaming ticketing companies Eventopia and Ticketek for refusing to release advances needed to pay artists; the ticketing firms said the promoter was liable for refunds. Maddah said he was 'done after SW16' and planned to quit the industry. Soundwave never returned.
Why it happened
- Insolvency came before the lineup: $7M in administration, $25.8M owed to 186 creditors, over $6M owed to the tax office.
- The 2016 edition was being funded on ticket advances that the ticketing companies refused to release.
- Poor ticket sales against an expensive international lineup left no margin to absorb the shortfall.
The lesson
Soundwave booked Disturbed and Deftones on a balance sheet already in administration — $25.8M owed to 186 creditors — and when ticket advances stalled, the festival folded three weeks out.
Aftermath
Maddah folded Soundwave Touring; the refund dispute between promoter and ticketing companies went to administrators.
Sources
- triple j Hack (ABC), 17 December 2015 — Soundwave 2016 officially cancelled (announced Thursday 17 December 2015 via AJ Maddah's Twitter; Maddah blamed ticketing companies Eventopia and Ticketek for refusing to release advances on ticket sales needed to fund the event and pay artists; 'done after SW16', no Soundwave 2017, plans to fold Soundwave Touring and quit the music industry; bands including Bring Me The Horizon, NOFX and L7 publicly doubted they would be paid; previous operating company in voluntary administration September 2015 with ~$7M unpaid debts; World Stages Pty Ltd debts of $25.8M to 186 creditors per Deloitte report; over $6M owed to the Australian Taxation Office; tickets over $150)
- Blabbermouth, 17 December 2015 — Australia's SOUNDWAVE Festival Officially Canceled (cancelled 17 December 2015; Maddah cited poor ticket sales, said he was 'devastated' and 'tried my best'; thanked supporters of the last 12 years; lineup Disturbed, Deftones, Killswitch Engage, Bullet For My Valentine, Public Enemy, L7, Bring Me The Horizon, NOFX; 2016 edition planned for Brisbane, Sydney and Melbourne; Eventopia said promoter Hounds Of Hell Pty Ltd was liable for refunds)
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