NSW: Mardi Gras in doubt again after backer pulls out
SYDNEY, August 1 AAP - Sydney's Gay and Lesbian Mardi Gras could be placed in administrationafter a private backer pulled out of a deal to provide up to $400,000 for the financiallytroubled event.
Sydney Gay and Lesbian Mardi Gras chief executive Kelly Gardiner said efforts wereunderway to find a new sponsor by late today, when a crisis board meeting would be heldto discuss the event's future.
"We're only talking about administration at this point as a possible option," she said,saying all efforts would be made to keep the tourism drawcard on the calendar.
Last month, the event's board of directors approved an arrangement to raise the moneyneeded to stage next year's event through a $250,000 bank overdraft guaranteed by eventsupporters.
But it requires funding to replace an individual's private loan that was offered, andhas since been withdrawn.
"The lender has received new legal advice which has led him to withdraw," Ms Gardiner said.
"So we are now attempting, in the next 24 hours, to replace that."
She said renewed efforts were focused on raising $200,000 - the minimum amount neededfrom a new source.
In June, officials said they expected the Mardi Gras to post a $500,000 debt, but theamount was reduced to $250,000 through fund-raising.
Representatives were to approach the government for help today, as they did when itfirst became clear the event was in financial strife due to low turnouts at two majorparties that fund the signature Mardi Gras parade.
Ms Gardiner said it was surprising the government had not offered assistance beyondwhat was normally provided.
"If the Mardi Gras was to fall it would have a serious effect on the economy of thestate," she said.
She said she did not believe the community would allow the parade to disappear, evenif the Sydney Gay and Lesbian Mardi Gras - an incorporated company that is also a not-for-profitorganisation - folded.
Ms Gardiner said the parade cost about $300,000-a-year to stage, with additional costsincurred by keeping membership teams running year round, bringing the total annual billto around $450,000.
Most of the parade costs were met by the proceeds of two parties - the Sleaze Ball,held in September last year, and the after-party following the Mardi Gras parade.
She said figures were well down at the post-parade party on March 3 this year as aresult of the global tourism downturn after September 11.
"We cut our budget by $1 million over that time-frame and we thought we'd cut expenditureenough to cope with the decrease in the size of the party but we were wrong," she said.
Other reasons behind funding crisis are understood to include the falling sponsorshipmarket, over-extension of festival activities and rising insurance costs.
Ms Gardiner said she was confident the event still had a strong business case.
"If we go into administration, it will be up to the administrator to see whether ornot there is a viable business to move forward. We are confident that is the case," shesaid.
AAP tnf/was
KEYWORD: MARDI
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