Robert F. X. Sillerman
Robert F. X. Sillerman | |
|---|---|
| Born | 12 April 1948 New York City, U.S. |
| Died | 24 November 2019 (aged 71) |
| Occupation(s) | Entrepreneur, media executive |
| Known for | Founder of SFX Entertainment, Viggle; media and live event promotion |
Robert Francis Xavier Sillerman (April 12, 1948 – November 24, 2019) was a prominent American entrepreneur and media executive. Throughout the 1970s and 1980s, he controlled a variety of television and radio outlets. In 1993, he launched SFX Broadcasting, which evolved into SFX Entertainment, a major concert and live event promoter that he sold to Clear Channel in 2000 for $4.4 billion. He revived SFX Entertainment in 2012 with a focus on electronic music festivals; this company now operates under the name LiveStyle. Sillerman also established Viggle and is honored by The Sillerman Center for the Advancement of Philanthropy at Brandeis University. He was once listed on the Forbes 400 and briefly owned the WLAF's New York/New Jersey Knights football franchise.
Early life and education
Sillerman was born into a Jewish family in New York City and grew up in the Bronx’s Riverdale area. His parents were Estelle (Levande) and Michael McKinley Sillerman, who founded the Keystone Radio Network. After completing his studies at the Collegiate School, he enrolled at Brandeis University, where he majored in political science. In 1966, he initiated Youth Market Consultants, a business providing discounted magazine subscriptions along with marketing research aimed at teenagers. He sold this venture in 1971 before starting I P+E, a marketing and promotion sales company, which he then sold to Boston-based Ingalls advertising agency in 1972. It was during his time at Ingalls that he met his future wife, Laura Baudo, a copywriter.
Radio and SFX
In 1978, together with disc jockey Bruce Morrow, Sillerman acquired two radio stations located in upstate New York for $1.875 million. Their holdings soon expanded to include stations such as WALL, WKGL (Middletown, New York), WJJB (Hyde Park, New York), WHMP (Northampton, Massachusetts), WLOM (Orleans, Massachusetts), WRAN (Randolph, New Jersey), WPLR (New Haven, Connecticut), as well as the television station WATL (Atlanta). By 1985, Sillerman joined forces with industry veteran Carl E. Hirsch of Legacy Broadcasting to purchase Los Angeles’ KJOI-FM for a then-record $44 million. Their portfolio further included stations across key markets such as Denver, Detroit, Minneapolis, Washington D.C., Houston, Philadelphia, Los Angeles, and New York City. In 1989, these assets were merged with Westinghouse Broadcasting in a landmark $727 million transaction.
That same year marked the creation of Capstar Communications by Sillerman, which was among the first companies to own multiple stations within single markets—a strategy that later influenced the Telecommunications Act of 1996. Capstar combined with Command Communications (also founded by Sillerman) and was rebranded as SFX Broadcasting. The company rapidly expanded its station count to become the seventh-largest radio chain in the United States. In 1998, SFX divested 71 stations for $2.1 billion but kept two smaller concert promotion businesses under its umbrella and changed its name to SFX Entertainment. This firm grew to become the world’s leading producer and promoter of live entertainment events. In 2000, Clear Channel Communications acquired SFX Entertainment from Sillerman for $4.4 billion. Additionally, he generated income as an executive producer on Broadway’s Mel Brooks musical The Producers.
CKX
At the helm of CKX, Inc., Sillerman secured controlling interests in the Graceland estate of Elvis Presley and acquired significant assets from Simon Fuller's 19 Entertainment, which included the popular television show American Idol and high-profile clients such as football star David Beckham. The company also maintained investments in Morra, Brezner, Steinberg & Tenenbaum Entertainment, representing talents like Woody Allen, Robin Williams, and Billy Crystal, and took ownership of 80% of Muhammad Ali Enterprises. In 2011, Apollo Management acquired CKX for $512 million.
Flag Luxury Properties
In May 2009, Credit Suisse pursued summary judgment against Sillerman in New York State Supreme Court due to his failure to meet payment obligations amounting to $21.4 million under a credit agreement with Flag Luxury Properties LLC. During a July 2009 interview with the New York Post, Sillerman admitted to the default, attributing it to his limited experience in real estate.
Viggle
On February 8, 2011, Sillerman took control of Gateway Industries, Inc. (GWAY.PK), subsequently renaming it Function (X), Inc., with the stock ticker FNCX. The company’s inaugural product was Viggle, introduced in January 2012—a mobile application that monitors television viewing habits and rewards users with loyalty points redeemable for gift cards. The app also features social media engagement and incentives for competing shows.
Function (X), Inc. rebranded as Viggle on June 7, 2012, updating its stock symbol to VGGL. By the close of 2013, Viggle had amassed roughly 3.7 million users. In December 2013, Viggle acquired Wetpaint for $30 million in stock and shortly thereafter purchased Digit Media, merging its flagship app NextGuide into Viggle’s ecosystem. Collectively, these companies reached an audience of 17 million monthly users by late 2013. By July 2015, total registered users across all platforms surpassed 9.5 million, up from 5.4 million at the end of the previous year.
In May 2012, Sillerman was accused of sexual harassment by an employee at Function X; the issue was resolved privately. Later, in February 2014, a lawsuit claimed that Sillerman misled business partners by promising “founders shares” in SFX that were never issued.
SFX Entertainment
In 2012, Sillerman revitalized SFX Entertainment with a focus on the electronic dance music industry. The company expanded by acquiring promoters, electronic music festivals, and digital properties such as Beatport, ticketing service Paylogic, and digital marketing firm Fame House.
SFX went public on the Nasdaq stock exchange on October 9, 2013. After missing a $3 million interest payment in January 2016 and defaulting on a $10.8 million loan, the company filed for Chapter 11 bankruptcy on February 1, 2016. By December of that year, it transitioned to private ownership and rebranded as LiveStyle, appointing former AEG Live executive Randy Phillips as CEO in place of Sillerman.
Reflecting on the downfall of the company, Sillerman acknowledged there were "no easy answers" and expressed empathy toward employees’ frustrations. Former employees observed that SFX failed to capitalize on its scale effectively due to insufficient centralization and lack of coordination among its various divisions.
Entrepreneurship
Beginning in 1993, Sillerman assumed the position of Chancellor at Southampton College of Long Island University, taking over from Angier Biddle Duke. He accepted this appointment under two primary conditions: to redirect the college's focus towards marine science and creative writing, and to oversee its public relations efforts. A notable decision during his tenure was appointing Kermit the Frog as the commencement speaker in 1996, an unconventional choice that attracted significant media attention and enhanced the institution's visibility and enrollment. In 2000, through The Tomorrow Foundation, he contributed $15 million aimed at enlarging the library facilities and supporting scholarships in marine science.
Philanthropy
In 2008, Sillerman made a $10 million donation to Brandeis University, leading to the creation of The Sillerman Center for the Advancement of Philanthropy—marking the largest gift from an alumnus at that time. He also established The Tomorrow Foundation and dedicated thirteen years as Chancellor of Southampton College. Beyond these efforts, Sillerman played a key role as both a major contributor and fundraiser for the U.S. Democratic Party.
Death
Sillerman passed away on November 24, 2019, at the age of 71, after battling a respiratory illness.