Thoughts on life and money

Crushing Financial Aftermath Of The Defunct Fyre Festival

All the outrage and chaos caused by the infamous Fyre Festival appears as though it could have been avoided before it even began. According to documents seen by the Bloomberg News, Fyre organizers attempted to borrow millions of dollars in a last-ditch effort to save the doomed concerts. Unfortunately for the developers, their financial nightmares are only just beginning.

Festival coordinators, including rapper Ja Rule and his partner Billy McFarland are in deep water after last month’s disaster. Promoted as a one of a kind music festival taking place in the Bahamas, Fyre Fest more than failed to live up to expectations. Attendees that spent thousands of dollars each were promised luxurious housing and gourmet food to go along with several high-profile musical performances. Instead, spectators were met with cheese sandwiches and disaster-relief type shelter tents.

Fyre Fest Lawsuits

Needless to say, the backlash against Fyre has been unprecedented. Rule and McFarland are set to appear in court soon, facing a potential $100 million class-action lawsuit. More than one hundred concert-goers are said to be a part of that suit, seeking compensation for the weekend ordeal. Some ticketholders reportedly paid $125,000 to attend the festival.

Fyre Festival Creators Face A Heavy Financial Blow Due To Concert Bust

Festival Creators Apparently Took Out A $7 Million Loan With $1 Million In Funds Still Unaccounted For

Additionally, the organizers have been hit with a single $5 million lawsuit from a distraught attendee, represented by celebrity lawyer Mark Geragos. It appears the coordinators will attempt to fight the suits, but the odds of them winning and saving their reputations, are not very likely. And unfortunately for Fyre Fest, these lawsuits could only be the start of their in-court battles.

Promoters Knew About Issues

Documents show that even the creators believed the festival was in trouble before it took place. They reportedly took out a $7 million loan, with $1 million in funds simply unaccounted for. Fyre Media Inc promised to refund all concerts-goers as well, but that appears to be on hold at the moment as the company prepares for many courtroom clashes.

Earlier this month, McFarland informed all of his employees that payroll had been suspended, but Fyre Media still hopes the failed event doesn’t lead to the company’s demise. After attendees started to flee the scene in the Bahamas, Ja Rule said he was heartbroken. Chances are, the rapper will be even more distraught after the plethora of legal battles he is set to face.

Have your say