MEMPHIS, Tenn — The future of Memphis in May is up in the air, as the non-profit copes with a huge financial loss in 2020, and a $1.4 million damage bill this year.
It’s a decades-old tradition, known around the world. Neil Gallagher started attending the events at 12 years old.
“I started coming down to BBQ Fest in ’91,” said Gallagher. “I fell in love with it, and I looked up at my dad and said, we got to do this one day.”
So, he did, every year for the last two decades, competing with teams in BBQ Fest. For the first time ever, this year his team ‘Too Sauced To Pork’ won 3rd place in Ribs.
“It's something to be proud of,” said Gallagher. “We tried for two decades to get it, and we finally got it.”
But the win is bittersweet for Gallagher, not knowing if his team will be back at Tom Lee Park next year.
“Memphis in May, the soul is that park and that river,” said Gallagher. “It’s soul is tied into that location. It's really heartbreaking to see what's happening.”
In early August, we learned Memphis in May might not be held in Tom Lee Park next year, after the non-profit received a hefty damage bill of $1.4 million.
Randy Blevins with Memphis in May told ABC24 in an email: “The group filed a claim with their insurance company and will have a statement at an appropriate time.”
Memphis Council Chairman Martavius Jones serves as the bridge between the City and Memphis in May. He’s concerned about the financial strain a bill that size could put on Memphis in May, every year.
“That's a nonprofit organization, not a multibillion-dollar enterprise,” said Jones. “To have an annual expense in excess of a million dollars, it's going to be hard for that organization to be viable for any period of time.”
But according to the non-profits 990 tax forms filed with the IRS, the world-renowned festival — itself — hasn’t made much of a profit in years.
In 2018, the non-profit brought in $10,482,631 but spent $10,042,308. The total revenue for that taxable year was $440,323.
2019 was about the same. The non-profit brought in total revenue of $596,195.
And in 2020, the pandemic year when the festival was canceled, the group was in the red for more than $1.8 million.
This year, The Greater Memphis Chamber estimates the Memphis Region made $73 million during Memphis in May from tourism, through hotel bookings and other spending.
But bottom line, if we can’t afford to host the festival, the region could lose millions.
Now a new partnership is hoping to grow the economy even more, through international relationships and the Memphis chamber.
The chamber will pick the honored country for the festival and select the artist who creates the Memphis in May poster.
“The recognition is there. This will create new opportunities for decades to come,” said Ted Townsend, Greater Memphis Chamber President and CEO.
The Memphis in May Board of Directors unanimously voted last week to accept a proposal from Chamber President & CEO Ted Townsend to give the region’s lead economic development organization the authority to coordinate the international affairs of the festival.
In a statement from a news release Memphis in May President wrote: “We are thrilled to partner with the Chamber to expand the international reach of Memphis in May. Fostering economic growth is part of our core mission, and we’re intensely proud of the international relationships we’ve built and the countries we’ve honored over the past 46 years. We look forward to working with the Chamber to carry this legacy into the future and make an even greater economic impact on our region.”
We’ve asked several times to speak directly with Memphis in May. They’ve denied every request.
In the new partnership, Memphis in May will still plan Beale Street Music Fest and BBQ Fest. Meanwhile, the chamber is looking ahead to 2024. They will announce the festival’s new honored country next week.