Robert F.X. Sillerman
Encyclopedia
Robert FX Sillerman is an American businessman and media entrepreneur. Once on the Forbes 400
list, he also briefly owned the WLAF
's New York/New Jersey Knights
.
. He sold greeting cards door-to-door in middle school
and dissatisfied with the margins set up his own corporation, buying in bulk and getting friends as a commissioned sales force.
After his father went bankrupt in the pioneering of Keystone Radio Network, Sillerman attended Brandeis University
. By day he majored in political science, while by night in 1966 he launched Youth Market Consultants, offering fellow students discount magazine subscriptions while advising marketers on how to target the teen set. He sold the company in 1972 to the Boston ad firm, Ingalls.
bought two radio stations in upstate New York for $1.875 million. They acquired additional radio and TV stations, including
WALL and WKGL
(Middletown, New York
); WJJB (now WCZX
; Hyde Park, New York
); WHMP (Northampton, Massachusetts
); WOCN (South Yarmouth, Massachusetts
); WRAN (Randolph, New Jersey
); WPLR
(New Haven, Connecticut
) and the television station WATL (Atlanta, Georgia
). In 1985 Sillerman entered into a partnership with radio/television industry executive Carl E. Hirsch (known as Legacy Broadcasting) to acquire KJOI-FM, Los Angeles for a then record-setting $44 million, as well as other stations in Denver, Detroit, Minneapolis, Washtington D.C., Houston, Philadelphia, Los Angeles and New York City. The company was merged at the end of 1989 with a unit of Westinghouse Broadcasting in a then record-setting transaction worth $727 million.
In 1993 Sillerman agreed to a deal to buy out Bruce Morrow and formed a partnership with radio industry executive Steve Hicks to take several stations public under SFX Broadcasting. When the United States Telecommunications Act of 1996
allowed for ownership of multiple stations in single markets, they bought up enough stations to become the nation's seventh largest chain. In 1996 Hicks left to become president of Capstar Broadcasting, and with backing from his brother, Tom Hicks (of Texas
buyout firm Hicks, Muse, Tate & Furst), Steve Hicks bought SFX Broadcasting 71 radio stations for $2.1 billion in 1998. The transaction reportedly netted Sillerman $250 million.
Sillerman used this cash to build SFX Entertainment (concert promotion, sports agencies) into Europe
, making money on Broadway
with "The Producers
", and turning SFX Entertainment into the world’s largest producer, promoter and presenter of live entertainment. He sold the company to Clear Channel
for $4.4 billion in 2000.
In addition, through Flag Luxury Properties LLC, Sillerman invested disastrously in a proposed resort/real estate development on the Caribbean Island of Anguilla
, originally slated to be named the Temenos Anguilla, a St. Regis Hotel resort, and incorporating a Greg Norman
golf course to be opened in 2007, but, due to budgetary and quality control issues, St Regis pulled out. Sillerman attempted to rebrand the project as a Baccarat Hotel but this also failed. In May 2009, Credit Suisse
filed a request for summary judgement in New York State Supreme Court, alleging Sillerman had failed to pay the outstanding balance due under a credit agreement with Flag Luxury Properties LLC and that Sillerman defaulted on a series of payments due since April 2008, totaling $21.4 million. The bank alleged that subsequent payments due also remained unpaid and the outstanding principal due under the first lien credit agreement was $137.2 million. The project (and golf course) have closed. In a July 2009 interview with the New York Post
Sillerman admitted failure, stating with reference to the Flag project: "I think I have shown conclusively I'm not knowledgeable enough about the real estate business."
Leading CKX, Inc.
, Sillerman bought majority rights to Graceland
, the Elvis Presley
estate; as well as the assets of Simon Fuller
s 19 Entertainment
, whose assets include TV hit "American Idol
".
Most recently, a new venture was formed on February 8, 2011 when Sillerman announced an agreement to acquire control of Gateway Industries, Inc. (GWAY.PK). The transaction renamed the company to Function (X), Inc. http://www.functionxinc.com and changing its listing on the stock exchange to FNCX http://www.nasdaq.com/aspx/flashquotes.aspx?symbol=FNCX&selected=FNCX. Upon announcement of the venture, GWAY.PK stock rallied from $0.01 to nearly $3 to finish the day at $1.89 +18800%.
of Long Island University
, replacing Angier Biddle Duke
. Sillerman took the job on two conditions: that the college scrap ill-defined liberal arts programs and focus on marine science and creative writing and that he be allowed to handle publicity. In that spirit, he named Kermit the Frog
as the 1996 commencement speaker: 31 newspapers picked up the story, a free marketing bonanza that raised the college's profile and drew hundreds of new admissions. However, after cessation of an agreed capital investment plan by Long Island University
, the school closed its doors in May 2005.
, as well as a resort in Anguilla
.
Forbes 400
The Forbes 400 or 400 Richest Americans is a list published by Forbes Magazine magazine of the wealthiest 400 Americans, ranked by net worth. The list is published annually in September, and 2010 marks the 29th issue. The 400 was started by Malcom Forbes in 1982 and treats those in the list like...
list, he also briefly owned the WLAF
World League of American Football
The World League of American Football was founded in 1990 with support from the National Football League to play professional American football in North America, Europe and later possibly Asia...
's New York/New Jersey Knights
New York/New Jersey Knights
New York/New Jersey Knights was a franchise in the World League of American Football for the 1991 and 1992 seasons. They played in the North American East division, which they won in the 1991 season. They were coached by Mouse Davis, an architect of the Run & Shoot offense.After 1992 the NFL ...
.
Biography
He grew up in the Riverdale section of the BronxThe Bronx
The Bronx is the northernmost of the five boroughs of New York City. It is also known as Bronx County, the last of the 62 counties of New York State to be incorporated...
. He sold greeting cards door-to-door in middle school
Middle school
Middle School and Junior High School are levels of schooling between elementary and high schools. Most school systems use one term or the other, not both. The terms are not interchangeable...
and dissatisfied with the margins set up his own corporation, buying in bulk and getting friends as a commissioned sales force.
After his father went bankrupt in the pioneering of Keystone Radio Network, Sillerman attended Brandeis University
Brandeis University
Brandeis University is an American private research university with a liberal arts focus. It is located in the southwestern corner of Waltham, Massachusetts, nine miles west of Boston. The University has an enrollment of approximately 3,200 undergraduate and 2,100 graduate students. In 2011, it...
. By day he majored in political science, while by night in 1966 he launched Youth Market Consultants, offering fellow students discount magazine subscriptions while advising marketers on how to target the teen set. He sold the company in 1972 to the Boston ad firm, Ingalls.
Business
In 1978 Sillerman and deejay Bruce "Cousin Brucie" MorrowBruce Morrow
Bruce Morrow is an American radio personality known to many listeners as Cousin Brucie.-Radio work:...
bought two radio stations in upstate New York for $1.875 million. They acquired additional radio and TV stations, including
WALL and WKGL
WRRV
WRRV is a modern rock radio station licensed to Middletown, New York and serving the mid Hudson Valley and Catskills of New York state plus nearby areas in New Jersey and Pennsylvania...
(Middletown, New York
Middletown, New York
Middletown is the name of two separate places located in the U.S. state of New York:*Middletown, Delaware County, New York, a town*Middletown, Orange County, New York, a city...
); WJJB (now WCZX
WCZX
WCZX is an hot adult contemporary radio station licensed to Hyde Park, New York and serving the Mid-Hudson Valley of New York state...
; Hyde Park, New York
Hyde Park, New York
Hyde Park is a town located in the northwest part of Dutchess County, New York, United States, just north of the city of Poughkeepsie. The town is most famous for being the hometown of U.S. President Franklin D. Roosevelt....
); WHMP (Northampton, Massachusetts
Northampton, Massachusetts
The city of Northampton is the county seat of Hampshire County, Massachusetts, United States. As of the 2010 census, the population of Northampton's central neighborhoods, was 28,549...
); WOCN (South Yarmouth, Massachusetts
South Yarmouth, Massachusetts
South Yarmouth is an unincorporated village and census-designated place in the town of Yarmouth in Barnstable County, Massachusetts, United States. The population was 11,603 at the 2000 census.-Geography:...
); WRAN (Randolph, New Jersey
Randolph, New Jersey
-Demographics:As of the census of 2000, there were 24,847 people, 8,679 households, and 6,804 families residing in the township. The population density was 1,185.2 people per square mile . There were 8,903 housing units at an average density of 424.7 per square mile...
); WPLR
WPLR
WPLR based out of New Haven, Connecticut, is a rock station owned by Cox Radio....
(New Haven, Connecticut
New Haven, Connecticut
New Haven is the second-largest city in Connecticut and the sixth-largest in New England. According to the 2010 Census, New Haven's population increased by 5.0% between 2000 and 2010, a rate higher than that of the State of Connecticut, and higher than that of the state's five largest cities, and...
) and the television station WATL (Atlanta, Georgia
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
). In 1985 Sillerman entered into a partnership with radio/television industry executive Carl E. Hirsch (known as Legacy Broadcasting) to acquire KJOI-FM, Los Angeles for a then record-setting $44 million, as well as other stations in Denver, Detroit, Minneapolis, Washtington D.C., Houston, Philadelphia, Los Angeles and New York City. The company was merged at the end of 1989 with a unit of Westinghouse Broadcasting in a then record-setting transaction worth $727 million.
In 1993 Sillerman agreed to a deal to buy out Bruce Morrow and formed a partnership with radio industry executive Steve Hicks to take several stations public under SFX Broadcasting. When the United States Telecommunications Act of 1996
Telecommunications Act of 1996
The Telecommunications Act of 1996 was the first major overhaul of United States telecommunications law in nearly 62 years, amending the Communications Act of 1934. This Act, signed by President Bill Clinton, was a major stepping stone towards the future of telecommunications, since this was the...
allowed for ownership of multiple stations in single markets, they bought up enough stations to become the nation's seventh largest chain. In 1996 Hicks left to become president of Capstar Broadcasting, and with backing from his brother, Tom Hicks (of Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
buyout firm Hicks, Muse, Tate & Furst), Steve Hicks bought SFX Broadcasting 71 radio stations for $2.1 billion in 1998. The transaction reportedly netted Sillerman $250 million.
Sillerman used this cash to build SFX Entertainment (concert promotion, sports agencies) into Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, making money on Broadway
Broadway theatre
Broadway theatre, commonly called simply Broadway, refers to theatrical performances presented in one of the 40 professional theatres with 500 or more seats located in the Theatre District centered along Broadway, and in Lincoln Center, in Manhattan in New York City...
with "The Producers
The Producers (musical)
The Producers is a musical adapted by Mel Brooks and Thomas Meehan from Brooks' 1968 film of the same name, with lyrics written by Brooks and music composed by Brooks and arranged by Glen Kelly and Doug Besterman. As in the film, the story concerns two theatrical producers who scheme to get rich...
", and turning SFX Entertainment into the world’s largest producer, promoter and presenter of live entertainment. He sold the company to Clear Channel
Clear channel
A clear-channel station is an AM band Radio station in North America that has the highest protection from interference from other stations, particularly concerning night-time skywave propagation. Usually known as class A stations since 1982, they are occasionally still referred to by their former...
for $4.4 billion in 2000.
In addition, through Flag Luxury Properties LLC, Sillerman invested disastrously in a proposed resort/real estate development on the Caribbean Island of Anguilla
Anguilla
Anguilla is a British overseas territory and overseas territory of the European Union in the Caribbean. It is one of the most northerly of the Leeward Islands in the Lesser Antilles, lying east of Puerto Rico and the Virgin Islands and directly north of Saint Martin...
, originally slated to be named the Temenos Anguilla, a St. Regis Hotel resort, and incorporating a Greg Norman
Greg Norman
Gregory John Norman AO is an Australian professional golfer and entrepreneur who spent 331 weeks as the world's Number 1 ranked golfer in the 1980s and 1990s...
golf course to be opened in 2007, but, due to budgetary and quality control issues, St Regis pulled out. Sillerman attempted to rebrand the project as a Baccarat Hotel but this also failed. In May 2009, Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
filed a request for summary judgement in New York State Supreme Court, alleging Sillerman had failed to pay the outstanding balance due under a credit agreement with Flag Luxury Properties LLC and that Sillerman defaulted on a series of payments due since April 2008, totaling $21.4 million. The bank alleged that subsequent payments due also remained unpaid and the outstanding principal due under the first lien credit agreement was $137.2 million. The project (and golf course) have closed. In a July 2009 interview with the New York Post
New York Post
The New York Post is the 13th-oldest newspaper published in the United States and is generally acknowledged as the oldest to have been published continuously as a daily, although – as is the case with most other papers – its publication has been periodically interrupted by labor actions...
Sillerman admitted failure, stating with reference to the Flag project: "I think I have shown conclusively I'm not knowledgeable enough about the real estate business."
Leading CKX, Inc.
CKX, Inc.
CKX, Inc. is a company founded on February 7, 2005 that owns and develops entertainment content and intellectual property.-Background:The "C" and "K" stand for "Content is King", representing the focus of the company's business strategy to acquire established content, and then to improve, enhance...
, Sillerman bought majority rights to Graceland
Graceland
Graceland is a large white-columned mansion and estate that was home to Elvis Presley in Memphis, Tennessee. It is located at 3764 Elvis Presley Boulevard in the vast Whitehaven community about 9 miles from Downtown and less than four miles north of the Mississippi border. It currently serves as...
, the Elvis Presley
Elvis Presley
Elvis Aaron Presley was one of the most popular American singers of the 20th century. A cultural icon, he is widely known by the single name Elvis. He is often referred to as the "King of Rock and Roll" or simply "the King"....
estate; as well as the assets of Simon Fuller
Simon Fuller
Simon Fuller is a British artist manager, television producer and creator of the Idol franchise, first seen as Pop Idol in the UK. Fuller is also the co-creator and executive producer of the Fox TV reality show So You Think You Can Dance and other U.S...
s 19 Entertainment
19 Entertainment
19 Entertainment, based in Los Angeles, United States, is a creator and producer of entertainment properties based around the areas of Music and Television / Film, including American Idol in the United States, Pop Idol in the United Kingdom as well as versions of the Idol series in more than...
, whose assets include TV hit "American Idol
American Idol
American Idol, titled American Idol: The Search for a Superstar for the first season, is a reality television singing competition created by Simon Fuller and produced by FremantleMedia North America and 19 Entertainment...
".
Most recently, a new venture was formed on February 8, 2011 when Sillerman announced an agreement to acquire control of Gateway Industries, Inc. (GWAY.PK). The transaction renamed the company to Function (X), Inc. http://www.functionxinc.com and changing its listing on the stock exchange to FNCX http://www.nasdaq.com/aspx/flashquotes.aspx?symbol=FNCX&selected=FNCX. Upon announcement of the venture, GWAY.PK stock rallied from $0.01 to nearly $3 to finish the day at $1.89 +18800%.
Southampton College
From 1993 Sillerman served as the Chancellor of the Southampton CollegeSouthampton College
Stony Brook Southampton is a campus location of the State University of New York at Stony Brook, located in Southampton, New York between the Shinnecock Indian Reservation and Shinnecock Hills Golf Club on the eastern end of Long Island. The campus features an innovative curriculum devoted to...
of Long Island University
Long Island University
Long Island University is a private, coeducational, nonsectarian institution of higher education in the U.S. state of New York.-History:...
, replacing Angier Biddle Duke
Angier Biddle Duke
Angier Biddle Duke had a career which included being a diplomat in the United States foreign service.-Biography:Angier Biddle Duke was born November 30, 1915 in New York City....
. Sillerman took the job on two conditions: that the college scrap ill-defined liberal arts programs and focus on marine science and creative writing and that he be allowed to handle publicity. In that spirit, he named Kermit the Frog
Kermit the Frog
Kermit the Frog is puppeteer Jim Henson's most famous Muppet creation, first introduced in 1955. He is the protagonist of many Muppet projects, most notably as the host of The Muppet Show, and has appeared in various sketches on Sesame Street, in commercials and in public service announcements over...
as the 1996 commencement speaker: 31 newspapers picked up the story, a free marketing bonanza that raised the college's profile and drew hundreds of new admissions. However, after cessation of an agreed capital investment plan by Long Island University
Long Island University
Long Island University is a private, coeducational, nonsectarian institution of higher education in the U.S. state of New York.-History:...
, the school closed its doors in May 2005.
Personal life
Married to copywriter Laura Baudo, whom he met when she came to pitch her musical card to him in college, Sillerman and his wife have one child. The couple live on a 15 acres (60,702.9 m²) beachside estate in Southampton, New YorkSouthampton (town), New York
The Town of Southampton is located in southeastern Suffolk County, New York, U.S., partly on the South Fork of Long Island. As of the United States 2000 Census, the town had a total population of 54,712...
, as well as a resort in Anguilla
Anguilla
Anguilla is a British overseas territory and overseas territory of the European Union in the Caribbean. It is one of the most northerly of the Leeward Islands in the Lesser Antilles, lying east of Puerto Rico and the Virgin Islands and directly north of Saint Martin...
.