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article image'American Idol' company files for bankruptcy protection

By Business Insider     Apr 28, 2016 in Business
Core Media Group, the company behind "American Idol" and "So You Think You Can Dance," has filed for Chapter 11 bankruptcy in New York.
According to court papers, the company says it owes $398 million. That includes money owed for loans, back payments to former employees, and investors, according to The Hollywood Reporter.
"American Idol" was the company's biggest breadwinner. And now that the show has ended at Fox, the company is unable to find a similar source of revenue.
The company has been seeing losses from a decline in "American Idol" ratings for several years now, however. In 2014, "Idol" earnings decreased by $15 million. And in just the first half of 2015, "Idol" revenue decreased by $35.6 million.
Simon Fuller, the creator of "American Idol," is currently owed $3.37 million. The company's biggest unsecured creditor, Fuller left the company in 2010, but was then given a profit share in his shows and a consulting fee. Its second biggest unsecured creditor is former president Marc Graboff. Currently overseeing Discovery's studios, Graboff is owed $1.32 million in severance pay.
Creative Artists Agency, Dick Clark Productions, and Fox Broadcasting also have profit shares in Core Media shows.
Core Media is currently trying to recoup some loss in a suit against Sony Music over revenue from sales and distribution generated by "Idol" artists.
This article was originally published on Business Insider. Copyright 2016.
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