Phil Rankine, Adelaide’s biggest concert promoter, is being sued by overseas investors for $4m

Phil Rankine — the promoter who brought major acts such as Phil Collins to Adelaide and is behind the upcoming Elton John concert — faces a new lawsuit seeking nearly $4 million.

Phil Rankine has brought many major music acts to Adelaide in recent years — while other major promoters have been organising Australian tours that skip SA and focus on the eastern states. Picture: Bianca De Marchi

• Phil Rankine’s company loses court battle over debt demand
• Space Touring’s legal stoush involved a prominent SA hotelier
• Singer Amity Dry opens up about her split with Phil Rankine

Adelaide’s foremost concert promoter, who is bringing Elton John to Adelaide in December, is being chased for almost $4 million in debts by overseas investors including the former head of events at Wembley Stadium.

A consortium of eight investors has alleged in Supreme Court documents that Phil Rankine, a former contestant on reality TV juggernaut The Block, owes them $3.975 million, which was put up to finance this year’s Florence and the Machine and Phil Collins concerts.

It is the second debt-related court case Mr Rankine has been involved in recently, with the Federal Court currently considering his company Space Touring’s application to have a statutory demand for debt from Adelaide company Duxton Entertainment set aside.

However, Elton John ticketholders should not be alarmed.

Chugg Entertainment owner Michael Chugg has told The Advertiser: “The shows will go ahead and we’re looking forward to delivering two incredible nights of Elton John to Adelaide in December.’’

The investment consortium in the Supreme Court matter says in its statement of claim that Mr Rankine’s company Space Production was the promoter of the Florence and Phil Collins concerts, and agreements were entered into to fund the two events.

The investors say Mr Rankine also provided, through Production, a “personal guarantee”, meaning he would be personally liable for any debts incurred.

It is stated that the investors and Mr Rankine were to share in any profits, or losses, but it appears from court documents that the investors have not been paid back either the $3.975 million advanced, or any profit share.

“Production was required to pay the investor an amount directly linked to the profit and loss position,’’ the statement of claim reads.

“In the event of a profit, Production was required to pay the investor a percentage of the profits referable to their capital contribution, in addition to the initial capital contribution to be repaid.’’

Florence and the Machine performing at Botanic Park this year. Picture: Simon Cross

If a loss was made, the original capital was to be repaid, minus part of the loss, which would be shared with Mr Rankine’s company.

The payments were meant to be made within 10 days of the concerts, the documents state.

“Production has failed or otherwise refused to make payment of the total amount of $3,975,968.50, which comprises amounts owing to the plaintiffs pursuant to its obligations under the investor agreements for the Phil Collins and Florence and the Machine concerts,’’ the court documents state

The investor owed the most, Stelling Events, is headed up by Jim Frayling, former head of Music and Events at Wembley Stadium in London.

Wembley Stadium in London. Picture: Oli Scarff/Getty Images

Mr Frayling declined to comment while the court case was on foot. The Stelling Events website indicates the company’s involvement in Adelaide-based concerts including Foreigner, Stevie Nicks, Santana and Lionel Richie.

Mr Rankine, in his statement of defence, denies he ever gave personal guarantees and said Space Production was not involved with running events.

“At all material times Production operated solely as a company which accepted funds from investors resident outside of Australia, but did not act as the contracting party to the concert performers,’’ the defence says.

It goes on to say that the “contracting party” for both concerts was Mr Rankine’s other company, Space Events.

Mr Rankine is sole shareholder of both companies.

“The defendant says that he signed the investor agreements in his capacity as a director of Production only, and not in any other capacity,’’ the documents state.

“The defendant denies ... that he was required to personally guarantee the performance of Production with regard to making payments due under the investor agreements.’’

The defence says the plaintiffs served him with statutory demands for debts after Mr Rankine refused to “execute the deed of guarantee”, and those demands were “satisfied”.

Then in late March demands were made for money “that the plaintiffs claimed to be due and owing to them as a consequence of the completion of the successful staging of the Adelaide concerts’’.

“The defendant denies that the plaintiffs, or any of them, are entitled to any relief or orders whatsoever against the defendant.’’

The Florence and the Machine concert was held in Botanic Park on January 16 this year, and Phil Collins at Adelaide Oval on January 24.

Mr Rankine has asked that the Supreme Court proceeding be stayed until the defendants comply with a contractual clause to enter mediation for “dispute resolution’’, along with denying that they are entitled to any relief.

As well as Stelling Events, the investors include Switzerland-based MICA ventures AG, owned by Michael Hartweg — named as “one of the most prominent Fintech specialists in Switzerland”, another Swiss company Piz Ventures Capital AG, and Dirk Wiedmann, who is a director of Adelaide-based, ASX-listed company Duxton Water.

The size of the debt under dispute with Duxton Entertainment is unclear. If Mr Rankine loses that court case, Duxton would be able to proceed with winding up Mr Rankine’s company Space Touring unless the debt was made good within three weeks.

Phil Rankine and his former wife Amity Dry won The Block All-Stars reality TV show in 2017. Picture: Calum Robertson

Mr Rankine’s company Space Touring has filed an interlocutory application in that case which has not been ruled on as yet.

Duxton Entertainment is part of a consortium of companies headed up by international commodities trader, and owner of the Uraidla and Crafers Hotels, Ed Peter.

The Advertiser has attempted to contact Mr Rankine several times in recent weeks, but has not received any response.

A spokeswoman for Duxton has said the company will not comment about matters before the court.

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