Sydney Gay and Lesbian Mardi Gras Festival reports record losses of $1.2 million, raising fears for its future

Sydney Gay and Lesbian Mardi Gras Festival has revealed it suffered a huge net operating loss of $1.2 million for the 2023-24 financial year, despite receiving funding from the City of Sydney and the NSW Government.

The figure marks the festival’s first deficit since 2020 and its largest since digital recording began in 2010.

It comes after the City of Sydney provided $250,000 in free rent over the two-year lease term.

The council also teamed up with the state government to give the nonprofit $1.1 million in August to save the festival from a budget shortfall.

The festival, which is run by an elected board of directors, hit a high point in 2023 when it recorded a profit of $1.6 million after a massive program as part of Sydney WorldPride.

The 2025 program will be scaled back to ensure the festival’s financial viability.

A Destination NSW spokesman said the increase in funds was recognition of the significance of the event in the port city.

“The NSW Government’s decision to work with the City of Sydney to deliver a rescue package reflects the festival’s position in the state’s events calendar,” the spokesman said.

“(It) not only celebrates Sydney’s diverse, inclusive and creative community, but is also a key driver for visiting our city.”

The organization’s $1.2 million deficit takes into account this recovery package and comes despite record high revenue of $12.4 million.

City of Sydney Council found that without a recovery package there was “a risk that the organization would no longer be able to deliver its events and festivals to support this important community”.

The announcement of this huge shortage comes just weeks after the organization shared its event plan for the 2025 festival, which begins on February 14 and ends with the Mardi Gras parade on March 3.

The all-night Mardi Gras party will be headlined by Grammy Award-winning American electronic DJ Honey Dijon and English musician Romy from indie band The xx.

The Bondi Beach Party Mardi Gras, a 15,000-person dance event on the shores of Australia’s most famous beach, will not take place in 2025.

The beach event suffered losses of more than $1 million in 2024, according to the organization’s financial report.

New South Wales Police estimated the number of people in attendance at 5,825, which was about a third of the event’s capacity.

The $239-per-person beach dance party in 2024 was held for the first time as part of the tourist-packed 2023 WorldPride.

“The strong performance of the Bondi Beach Party during Sydney WorldPride and the support of key stakeholders has secured investment as a permanent event for SGLMG, which will enable us to continue to develop high quality holiday events for our communities in the future. Our reserves allowed us to take this risk,” a Destination NSW spokesperson said.

Sydney Gay and Lesbian Mardi Gras did not respond to specific questions regarding the success of the Bondi Beach Party, but promised “a more conservative approach to budgeting for 2025, emphasizing sustainability rather than expansion”.

Smaller to mid-scale community-focused events such as the Transgender and Gender Diversity Boat Party will return in 2025, as will Ultra Violet, a daily party for LGBTQIA+ women held at the National Art School.

The organization attributed its 2024 shortage to “a perfect storm for live events, affecting not just Mardi Gras but the wider live events sector in Australia.”

“The weakened Australian dollar, inflation pressures and changes in discretionary spending have created an extremely challenging environment for the entire arts and culture sector,” a Mardi Gras spokesperson said.

A serious setback for the festival was the forced cancellation of the fair, which was announced during preparations for the event.

The cancellation comes as Sydney faces a crisis over asbestos-contaminated mulch across the city, including Fair Day House in Victoria Park.

Mardi Gras said the cancellation of Fair Day “destroyed key revenue streams such as bar sales and donations and undermined the festival’s momentum.

The organization’s financial report attributed the $653,000 loss to the cancellation of the fair, excluding the potential impact of the runoff on other events.

The festival also noted the tragic deaths of community members Jesse Baird and Luke Davis as a challenge.

Other concerns included cost of living pressures and rising production costs, with some costs rising 20 to 40 percent, according to Mardi Gras.

According to the 2024 Mardi Gras financial report, major contingency costs were $3.37 million for personnel, 16 percent more than budgeted, and $1.74 million for infrastructure, 23 percent more than budgeted. .

“Each of these problems individually could have been addressed, but together they have created a series of worsening problems,” a Mardi Gras spokesman said.

The organization stated its commitment to long-term financial viability by implementing a more conservative budget for 2025.

This includes a 20 percent reduction in personnel costs and a more community-focused approach to programming.

The 10,000-person official Mardi Gras party in 2024 also suffered losses, running a $300,000 deficit.

Arts Minister and Minister for Jobs and Tourism John Graham said: “2024 has been a difficult year for Mardi Gras, but it has been great to see the parade continue.”

“The Mardi Gras Parade is an important expression of Sydney’s diverse and welcoming character,” he added.

“The NSW Government has been a proud supporter of the Parade since 2009.”