Sydney Mardi Gras makes plea for council to provide free office space amid funding challenges

Sydney Mardi Gras organisers have issued a plea for the City of Sydney council to provide free rent to lease office space in the CBD after receiving more than $1 million in government ‘rescue’ cash due to major financial challenges facing the event’s future.

A Sydney council is set to grant Sydney Mardi Gras organisers more than $250,000 worth of free rent to lease office spaces in the CBD – weeks after approving a six-figure bail out package designed to keep the event afloat in future years.

City of Sydney councillors have been asked to approve a $257,730 free rent subsidy package at the request of Sydney Mardi Gras organisers to lease a council-owned office on Pitt St for the next two years.

The subsidy has been recommended for approval from the council and comes weeks after the City of Sydney approved a separate $550,000 “rescue package” in response to major financial challenges facing Sydney Mardi Gras.

The council’s contribution to the rescue package was matched by the NSW Government – taking the total funding to $1.1 million.

Lord Mayor Clover Moore said the rescue package recognised the significant challenges in staging this year’s Mardi Gras including increased production costs and reduced ticket sales due to the cost-of-living crisis.

City of Sydney Lord Mayor Clover Moore said the event plays an important role in the city’s entertainment offerings.

Latest reports show the Sydney Gay and Lesbian Mardi Gras Ltd had a total projected deficit of $1.095 million as of June this year.

The rescue package sparked backlash from some City of Sydney councillors who claimed they had been left in the dark over the council’s support for the event with the details of the agreement included as a late item at a council meeting in May.

A council report – to be considered at a meeting next week – has now recommended approving a 100 per cent rental subsidy to facilitate event planning for future Mardi Gras events.

The request for the subsidy was made by event organisers “due to the current financial circumstances” facing the organisation.

The event draws large crowds to the CBD.

The council report stated the approval would demonstrate the City of Sydney’s continued commitment to supporting the Gay and Lesbian Mardi Gras which promotes diversity and inclusion.

“The proposal is put forward for support now as Sydney Gay and Lesbian Mardi Gras Ltd wishes to move as soon as possible to reduce operating costs,” the report added.

Sydney Mardi Gras in a statement said the financial situation facing the organisation was in line with a broader crisis impacting arts, culture and major events.

Planning is underway for next year’s event.

“To ensure the longevity of the festival, we have been exploring various cost-saving measures, one of which is seeking subsidised office space through our long-term supporter, the City of Sydney,” a spokesman said.

“We remain committed to delivering a vibrant and unforgettable celebration in 2025 and beyond that continues to champion LGBTQIA+ visibility and inclusion.

“Planning is well underway and we look forward to sharing details of the 2025 program later this year.”

The event’s financial challenges are consistent with broader financial hurdles facing the live entertainment sector that has resulted in a string of recent event cancellations including Falls Festival, Splendour in the Grass Festival and Mona Foma.

This year’s Mardi Gras was also hit with the cancellation of Fair Day due to the unexpected discovery of asbestos at Victoria Park – where the event was due to be held – resulting in around $300,000 worth of lost revenue including from bar sales and stallholder fees.

Mardi Gras estimates it generates $35 million dollars of economic benefit to NSW each year.