Mardi Gras reports record losses of $1.2m: What does it mean for the iconic festival?

Sydney Gay and Lesbian Mardi Gras recently revealed a net operating deficit of $1.2m for the 2023-24 financial year. The result marks Mardi Gras’ first deficit since 2020, and their largest since their digital records began in 2010. Mardi Gras is a member-based not-for-profit organisation run by an elected board of directors. The festival marked a high point in 2023, recording a $1.6m profit after a super-sized program as part of Sydney WorldPride. The 2025 program will be scaled-back to ensure the financial viability of the festival. In September 2024, City of Sydney gave Mardi Gras a $250k handout in free rent over a two-year lease. The City of Sydney and NSW Government also contributed $1.1m to the organisation in August to bail them out of a projected budget shortfall. “The NSW Government’s decision to work with the City of Sydney to provide a rescue package reflects the festival’s stature on the state’s event calendar that not only celebrates Sydney’s diverse, inclusive and creative community, but is also a key driver of visitation to our city,” A Destination NSW spokesperson said.The organisation’s $1.2m deficit takes this recovery package into account, and comes despite a record high $12.4m in revenue. City of Sydney council found that without the recovery package, there was “a risk the organisation will no longer be able to deliver its events and festivals to support this important community”. The announcement of this outsized deficit comes just weeks after the organisation shared their slate of events for the 2025 festival, beginning from 14 February and culminating in the Mardi Gras Parade on March 3. The all-night Mardi Gras after-party will be headlined by Grammy award-winning American electronic DJ Honey Dijon and English musician Romy of indie band The xx. Mardi Gras’ Bondi Beach Party, a 15,000 capacity dance event on the foreshore of Australia’s most famous beach, will not go ahead in 2025. According to the organisation’s financial report, the beachfront event suffered a loss of over $1m in 2024. NSW Police estimated attendance at 5825, approximately a third of the event’s capacity. Priced at $239 per head in 2024, the beachfront dance party was held for the first time as part of the tourist-filled 2023 WorldPride. In 2023, the then-$179 per head Bondi Beach Party sold out with 12,000 tickets purchased. “Strong results from Bondi Beach Party during the Sydney WorldPride program and support by key stakeholders warranted investment as an ongoing event for SGLMG, that would allow us to continue to develop high quality celebration events for our communities into the future. Our reserves allowed us to take this risk,” a spokesperson said. Sydney Gay and Lesbian Mardi Gras did not respond to specific questions relating to the success of the Bondi Beach Party, but committed to “a more conservative budgeting approach for 2025, emphasising sustainability over expansion.” Smaller and medium scale community-focused events like a transgender and gender diverse boat party will return in 2025, as well as Ultra Violet, a day-to-night party for LGBTQIA+ women hosted at the National Art School. The organisation explained their 2024 deficit as “a perfect storm for live events, affecting not only Mardi Gras but the broader live events sector in Australia”. “The weakened Australian dollar, inflationary pressures, and shifts in discretionary spending created an extremely challenging environment for the entire arts and culture sector,” a spokesperson for Mardi Gras said. A major setback for the festival was the forced cancellation of Fair Day which was announced during set up for the event. The cancellation was due to Sydney’s crisis of asbestos-contaminated mulch across the city, including Fair Day’s home at Victoria Park. Mardi Gras explained that Fair Day’s cancellation “had a compounding effect on the organisation” resulting in sunk costs, negative media coverage and a reduced capacity for fundraising and marketing. Mardi Gras stated that the cancellation of Fair Day “eliminated key revenue streams, such as bar sales and donations, and disrupted the festival’s momentum. “Not only is Fair Day an iconic day for our community to meet up and celebrate the start of Mardi Gras, traditionally the day generates a surge in ticket sales for other festival events, which was absent this year.” The organisation’s financial report attributed a $653k loss to the cancelled Fair Day, excluding potential run-off impacts on other events. The festival also noted the tragic deaths of community members Jesse Baird and Luke Davies as a challenge. Other challenges included cost-of-living pressures and rising production costs, some of which Mardi Gras notes rose by 20-40%. “While smaller community-focused events performed well, larger-scale events faced slower sales,” the spokesperson said in relation to cost of living pressures. The 10,000 capacity official Mardi Gras after-party in 2024 also took on a loss, operating at a $300,000 deficit.On the financial difficulties faced by the festival, Minister for the Arts and Minister for Jobs and Tourism John Graham said “Mardi Gras had a tough year in 2024, but it was great to see the parade proceed. “The Mardi Gras Parade is an important expression of the diverse and welcoming character of Sydney. The NSW Government has proudly supported the Parade since 2009.” Festivals across the state and the country have similarly been doing it tough in recent years: Splendour in the Grass was cancelled in 2024, with Falls Festival and Hobart’s Dark Mofo both choosing to take a year off. In August, Byron Bay’s Bluesfest announced that without government intervention their 2025 instalment would be the last. According to Mardi Gras’ 2024 financial report, major unexpected costs incurred were $3.37m on personnel, a 16% increase from what was budgeted, and $1.74m in infrastructure, 23% higher than budgeted. “Each of these challenges on its own would have been manageable, but together they converged to create a series of compounding pressures,” a Mardi Gras spokesperson said. The organisation has stated a commitment to long-term financial viability, implementing a more conservative budget for 2025 including 20% reduction in staff costs and a more community-focused approach to programming. In search of financial stability, the organisation has solidified its long-term partnerships and established “co-presentation partnerships with major arts organisations such as Sydney Opera House, City Recital Hall, Qtopia Sydney, and the Art Gallery of NSW.” “These collaborations allow us to share production costs while reaching broader audiences and embeds Mardi Gras in what are seen as more traditional institutions,” the organisation said.On the ongoing financial viability of the festival, a spokesperson from Destination NSW said: “discussions between the NSW Government and the Sydney Gay and Lesbian Mardi Gras about its event program for 2025 are ongoing.” The event will mark its 50th anniversary in 2028, with the organisation working towards this date “as a long term focus to reiterate the historical significance and importance of the LGBTQIA+ community in the rich tapestry of not only Sydney and Australia but in Pride history worldwide.”