Jesse Matheson, the chief executive, has described the “challenging decision” as a key step in his mission to revitalize the iconic LGBTQI+ festival.

He explained that the festival had endured “two years of substantial financial setbacks,” with the post-parade party—a $2 million “festival within a festival”—as a primary factor, consistently incurring losses since the onset of the COVID-19 pandemic.

“This decision was reached with considerable deliberation,” Matheson stated in a message shared on the organization’s website today.

“Confronted with a critical threat to Mardi Gras’ future and the uncertain landscape of new sponsorships, it was undeniably the right path forward,” he added.

Matheson announced that all festival events, except for the parade, Fair Day, Laneway, and the Glitter Club, have been called off. However, he praised community producers and cultural institutions for their efforts in reviving several other events.

“The Mardi Gras Party, nevertheless, was always set to be the most formidable hurdle,” Matheson remarked.

“For those unfamiliar with its scale, the Mardi Gras Party is an approximately $2 million event – effectively a festival within a festival. 

“At times, it has cost more to deliver than the Parade and Fair Day, while also being our most expensive ticketed event for the community. It has always been a significant undertaking.”

He pointed to capacity constraints after losing access to the Royal Hall of Industries, the party’s financial performance, community feedback and changing demographics to justify the decision to “pause” the event for the year.

“As CEO, I could not continue to sell expensive tickets to an event I did not believe offered value for our community, honoured the Mardi Gras PARTY’s legacy, or protected the organisation’s financial future,” he said.

The parade, which attracts tens of thousands of people from across Australia to watch more than 10,000 participants and more than 200 floats, and other key parts of the festival will go ahead.

The Sydney Gay and Lesbian Mardi Gras Festival runs from February 13 to March 1.

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