Sydney’s iconic Mardi Gras has been hit by a major blow, with organisers confirming the cancellation of the festival’s world-famous after-party for 2026.
New chief executive Jesse Matheson announced the news, saying the move was vital to “stabilise” the organisation’s finances after consecutive years of heavy losses. The cancellation makes this year’s event the most scaled-back since the COVID pandemic.
Mr Matheson, who previously ran for the NSW Upper House with the Keep Sydney Open party, told News Corp “Last year, I was appointed CEO and tasked with renewing and reimagining the festival following two years of significant financial loss. A major contributor to that loss has been the Mardi Gras Party, which has run at a deficit every year since 2020.”
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He admitted the call was “heartbreaking” but stressed it was necessary: “Facing an existential threat to the future of Mardi Gras, and with new sponsorship uncertain, it was absolutely the right decision.”
The event’s former major backer, American Express, recently ended its sponsorship deal.
“For those disappointed, from the bottom of my heart, please accept my heartfelt apology,” Mr Matheson said, urging audiences to support the broader program.
He also promised a comeback: “We’re absolutely committed to bringing the main party back in 2027 for sure.”
The main party, a multimillion-dollar production described by Matheson as “effectively a festival within a festival,” has long been a cornerstone of Sydney’s Mardi Gras calendar. But he said rising costs had made it impossible to deliver the same quality event without risking the organisation’s future.
The “Extra Dirty” party scheduled for the same night has also been scrapped.
Despite the loss of the flagship event, the rest of the two-week festival will go ahead as planned from 13 February to 1 March. Popular fixtures including Fair Day, Sissy Ball, the Parade, Paradiso Pool Party, BlakJoy, and Laneway will still take place, with some already sold out.
The after-party has been the festival’s crown jewel for decades, attracting international headliners such as Cher, Dua Lipa, Kylie Minogue, Sam Smith, and Kesha. Its cancellation marks only the third time in recent memory the event won’t go ahead, the others being 2021 and 2022 during the pandemic.
In recent years, however, the party’s challenges have mounted. Ticket prices soared to as high as $220, and capacity issues plagued the 2020 event when 10,000 tickets were sold for a venue that could only host half that number after the Royal Hall of Industries was lost as a hosting option.
“As CEO, I couldn’t continue to sell expensive tickets to an event I didn’t believe offered value for our community, honoured the Mardi Gras Party’s legacy, or protected the organisation’s financial future,” Mr Matheson said.
He added that organisers had twice lost potential headline acts, once over Christmas and again during the January long weekend.
The cancellation doesn’t affect the parade, which will march proudly up Oxford Street on February 28.
