The annual Sydney Gay and Lesbian Mardi Gras after-party for the upcoming parade on February 28 has been canceled, attributed by the organization's chief executive to significant financial losses over the past two years. This cancellation occurs amidst reported internal disputes between organizational factions and a call from a New South Wales Liberal frontbencher for a review of the event's state government funding, a call which the current government has rejected.
After-Party Cancellation and Financial Performance
Mardi Gras chief executive Jesse Matheson announced the cancellation of the after-party, citing significant financial losses incurred over the past two years and deficits for the party specifically since 2020.
The organization's 2025 annual report showed a net operating surplus of $401,750. This surplus was primarily due to early sponsorship funds received from American Express, whose principal sponsorship concluded ahead of schedule.
The official after-party, traditionally a major revenue stream, recorded ticket sales of $1.36 million against costs of $1.5 million for the 2025 event, resulting in a loss exceeding $143,000.
Matheson attributed the cancellation to financial performance, capacity constraints, community feedback, and changing demographics, stating that the event's traditional format was "no longer fit for purpose."
For 2026, Mardi Gras had contracted Kicks and Bizarro, subsidiaries of Live Nation, to manage the party for five years, representing a significant shift from internal management. Members of Pride in Protest, an activist group within Mardi Gras, criticized this outsourcing, associating it with the party's financial outcomes. Pride in Protest has previously raised concerns regarding Live Nation's perceived support for the IDF.
Internal Organizational Divisions
The Mardi Gras organization has experienced internal conflict, particularly at its November annual general meeting and subsequent board decisions. Tensions have been reported between two main factions:
Pride in ProtestEstablished in 2018, this group advocates for Mardi Gras to return to its "radical roots." They proposed motions at the AGM and in January, which were not adopted by the board. These proposals included advocating for a stronger focus on transgender rights, a boycott of organizations funding former US President Donald Trump, and a ban on NSW Police and corporate sponsors/floats from the parade.
Pride in Protest spokesperson Charlie Murphy stated these motions were consistent with Mardi Gras's founding as a protest.
Murphy also affirmed that Pride in Protest members are part of the LGBT community and express their opinions within a democratic organization, highlighting Mardi Gras's history of advocating for oppressed peoples globally. The group noted support within the queer community for Palestinian rights; in December 2023, the Sydney Gay and Lesbian Mardi Gras released an open letter to the Prime Minister calling for a ceasefire in Gaza.
Protect Mardi GrasFormed last year in response to Pride in Protest, this group's spokesperson, Peter Murphy, described Pride in Protest's approach as "warlike" and potentially alienating.
Protect Mardi Gras advocates for inclusivity for all LGBTQIA+ people, allies, and supporters, arguing that excluding police, sponsors, and politicians threatens the event's scale, nature, and its role as a visible beacon for the LGBTIQA+ community worldwide.
Peter Murphy also mentioned previous allegations from Pride in Protest claiming the Mardi Gras was transphobic or Zionist.
Board Decisions and ConflictThree motions passed at the November AGM were subsequently rejected by the board in January. These motions called for condemning the Trump administration and highlighting trans rights, anti-discrimination reform, and pursuing full public funding over corporate sponsorship.
Board co-chairs Kathy Pavlich and Mits Delisle stated these motions were inconsistent with governance standards, Mardi Gras values, strategic priorities, and long-term sustainability.
They also reported that board members faced "personal and harmful commentary online" and an "email campaign" aimed at influencing decision-making. In late January, directors Luna Choo and Damien Nguyen, who are members of Pride in Protest, were censured and had their official email accounts locked. The co-chairs cited conflict of interest and the use of official accounts for campaigning in their decision.
Political Response to Funding
Chris Rath, a NSW Liberal frontbencher and Shadow Arts Minister, called for a review of state government funding for the Sydney Gay and Lesbian Mardi Gras. Mr. Rath stated that the politics of some board members were impacting the festival's viability, citing the after-party's cancellation as evidence.
He criticized Pride in Protest for pushing to exclude police and the Liberal Party's float, stating such actions "have no place" within the organization.
Rath further alleged that activists were attempting to "hijack" the event and "import foreign conflicts," emphasizing that Mardi Gras should be inclusive for all. He called on the NSW government to review its funding commitment to ensure the organization operates in line with broader community expectations and the interests of Sydney and NSW.
In response, Pride in Protest spokesperson Charlie Murphy stated that the queer community should not take direction from the NSW Liberal Party, citing the party's historical stance on LGBT rights.
The Minns government rejected the opposition's call for a review.
NSW Arts Minister John Graham affirmed that the government would not defund the Mardi Gras parade, stating it would be "devastating to Sydney's reputation around the world."
Environment Minister Penny Sharpe reiterated this, stating the call for a review was based on views that do not represent the entire board or membership.
The parade is expected to proceed as scheduled, though the organization continues to navigate financial and internal governance challenges.