Exclusive: American Express has withdrawn sponsorship of the 2026 Sydney Gay and Lesbian Mardi Gras, leaving Australia’s most prominent queer organisation with no principal sponsor for 2026 and exposing the cash-strapped non-profit to an estimated $500,000 to $1 million shortfall to fill yearly for future festivals.
The credit card giant first announced a three-year partnership with Mardi Gras in October 2021 ahead of Sydney WorldPride. It then renewed its partnership a further two years for the 2025 and 2026 Mardi Gras festivals.
However, Gay Sydney News can now reveal American Express, one of the festival’s biggest financial backers, pulled its “principal partner” sponsorship of Mardi Gras in June, midway through its two-year contractual agreement, but that it has still fulfilled its financial obligations for 2026.
A source with knowledge of the agreement, who was not permitted to speak publicly about it, said it was correct to report that the American Express’ sponsorship was valued between $500,000 and $1 million per year. With the credit card giant unlikely to return in 2027 and beyond, Mardi Gras now faces the task of filling a major financial shortfall with another sponsor.
Despite this, Mardi Gras clarified in a new statement provided to Gay Sydney News on Saturday that American Express had “fulfilled its contractual obligations, including its financial commitments” during its time as principal partner of the Sydney Mardi Gras festival. This means that regardless of American Express ceasing its formal partnership earlier than expected, Mardi Gras has still received sponsorship money promised until 2026, leaving no sponsorship funding shortfall for 2026.
The key difference for 2026 following the termination of the American Express partnership agreement is that the credit giant’s logo and related festival activations, including its naming rights, will not be included in next year’s festival.
In a statement, Mardi Gras confirmed the partnership had come to an end, saying it was “currently canvassing for a Principal Partner for the 2026 festival”.
“After a successful five years in partnership, Sydney Gay and Lesbian Mardi Gras and American Express agreed to conclude the partnership effective June 2025,” it said.
“Sydney Gay and Lesbian Mardi Gras is grateful for American Express’ partnership and support.”
American Express did not respond to a list of questions from Gay Sydney News requesting comment on why it had terminated its agreement with Mardi Gras. Repeated attempts to reach American Express representatives since Thursday afternoon went unanswered.
In August 2024, Sydney Mardi Gras announced “the return of American Express as Principal Partner of the Sydney Gay and Lesbian Mardi Gras for the 2025 and 2026 Festivals”.
At the time, American Express vice president of brand, marketing and member experience Naysla Edwards said the company had “a long history of proudly backing our colleagues, customers and communities and we are delighted to extend our partnership with the Sydney Gay and Lesbian Mardi Gras into 2026”.
The revelation of American Express terminating the sponsorship comes after the Mardi Gras board appointed Jesse Matheson as its interim chief executive in late May, prompting backlash from staff. He was previously the non-profit’s company secretary and a former board member.
On July 8, Gay Sydney News published a leaked letter to the Mardi Gras board signed by the vast majority of the organisation’s staff that raised concerns about controversial historical comments made by Matheson. Among concerns raised, staff alleged Matheson’s appointment posed a serious reputational and financial risk and would potentially damage its standing with corporate sponsors.
Staff cited Matheson’s public record, including a controversial 2012 opinion article titled “I’m a sexual racist”, in which he argued that racial preferences in sexual attraction were not discriminatory, as conflicting with Mardi Gras’ values. Matheson has previously apologised for the comments.
At the time, Gay Sydney News noted that it was not suggested that staff concerns about Matheson’s appointment and its potential impact on Mardi Gras’ reputation were substantiated – only that they had been raised.
Mardi Gras said it would be incorrect to suggest Matheson’s prior controversial comments were related to American Express’ decision to terminate its sponsorship of Mardi Gras.
Gay Sydney News is not suggesting that the American Express decision to pull out of its partnership with Mardi Gras was connected to Matheson.
Asked why American Express had abandoned the contract, Mardi Gras did not provide a reason, instead saying that it was not “privy to the commercial decisions of another company”.
Within weeks of Matheson being internally named as interim CEO and the letter from staff being sent to the board, Gay Sydney News reported that five employees had resigned – one-third of the organisation’s 15 staff at the time, excluding its outgoing and incoming CEO.
They included senior graphic designer Joel De Sa; head of engagement Dusty Panuccio Hartland; parade producer Emily Santiago; festival marketing and communications executive Georgia Rae; and head of festival marketing and communications Jake Troncone. A sixth employee, Mardi Gras partnerships manager Max Tweedie, left soon after, announcing his departure in a LinkedIn post on July 30.
Gay Sydney News first revealed Matheson’s appointment on June 10, almost a month before it was officially announced on July 4. His appointment in May came before American Express terminated its sponsorship contract in June on an unspecified date.
Mardi Gras’ finances
In its 2024 financial report, released in November last year, Mardi Gras reported sponsorship income of $3,585,423, which was $464,577 less than it expected – attributed to “a slowing economy, the less than expected outcome of the finalisation of the Sydney WorldPride 3-year sponsorship share, and an offset of sponsorship benefits due to the cancellation of Fair Day”.
In the same report it disclosed a $1.24 million deficit despite receiving $1.1 million in emergency funding from the NSW government and the City of Sydney to stay afloat.
Corporate sponsorship of Mardi Gras
Corporate sponsorship of Mardi Gras has become a flashpoint for activist group Pride in Protest, which has two of its members on the Mardi Gras board. The group has previously pushed to exclude corporate sponsors from the festival, including American Express over alleged discrimination against sex workers.
Meanwhile, previous event sponsors Meta – the owner of Facebook and Instagram – and Google were notably absent from this year’s parade. Guardian Australia reported that both companies had chosen not to take part in in the 2025 event, but Mardi Gras told the media outlet that, in any case, the two no longer met the festival’s partnership criteria.
“Partnership values are assessed based on the scale of the festival and an organisation’s commitment to the community,” Mardi Gras said in February. “They are not always monetary in value and are underpinned by the ethical charter process – one that neither Google nor Meta currently meets the requirements of.”
Their non-participation came after both companies scaled back or abandoned their diversity, equity and inclusion programs. Earlier this year, Meta also revised its hateful conduct policy, allowing Facebook and Instagram users to describe transgender or gay people as “mentally ill”.
Coles to stay on
In positive news for Mardi Gras, Coles confirmed to Gay Sydney News that the supermarket giant would continue as a “presenting partner” for the 2026 festival. Coles first announced a three-year partnership with Mardi Gras in September 2022 that went until 2025.
Mardi Gras Party
But in further uncertainty for the festival, it remains unclear whether Mardi Gras will hold its long-running official after party, the Mardi Gras Party, at the Hordern Pavilion next year after the organisation announced in August that it would shift from producing all events itself to working with external promoters and partners on “signature” celebrations, while focusing on “hallmark” events in-house.
Asked if the official party would be going ahead at the Hordern, Mardi Gras told Gay Sydney News that it would be announcing the 2026 festival program on October 30.
Meanwhile, the Bondi Beach Party is next year being run by event producer Fuzzy, with British pop music festival Mighty Hoopla, owned by Fuzzy’s parent company, expected to be involved.
An Instagram account named @mightyhooplawhere surfaced in recent days, with the caption “Your favourite festival. Going global. Location dropping soon.”
Clarification: Sydney Mardi Gras has clarified that the early termination of the American Express partnership does not impact its financials for 2025-2026, as the credit card giant has “fulfilled its contractual obligations, including its financial commitments” originally agreed to as part of sponsoring the 2025 and 2026 festivals. The key difference for 2026 following the termination of the agreement, the reason for which has not been disclosed, is that American Express’ logo and related festival activations, including naming rights, will not be included as part of 2026’s festival.
Editor’s note: Journalist Ben Grubb pays $50 annually for Mardi Gras membership to access discounts, including at retail stores and bars, but does not use the membership’s voting rights.
Ben Grubb is the founder and editor of Gay Sydney News, an independent publication covering LGBTQIA+ news. A journalist with more than 15 years' experience, he has reported and edited for The Sydney Morning Herald, The Age, WAToday, Brisbane Times, The Australian Financial Review, News.com.au, ZDNet, TelecomTimes and iTnews, primarily on the topic of technology. He previously hosted The Informer, a queer current affairs program on Melbourne’s JOY 94.9 radio station, and contributes to LGBTQIA+ media including Stun Magazine. Ben has also appeared as a technology commentator on Channel Ten's The Project, ABC RN’s Download This Show and commercial radio stations 2UE, 2GB and 6PR. Contact Ben: ben.grubb@gaysydneynews.com.au
1 Comment
This action on the part of AMEX is symptomatic of what is happening here in Canada and the US.
As I brought to your attention in a comment sometime ago about the infiltration into gay organizations by certain individuals and groups that have an agenda to undermined the very ideals of gay organizations for their own purposes which in turn weakens these very organizations now coupled with the drive south of our boarder, the US, lead by the TACO, womanizer, orange felon tRump and his MAGA bunch trying to take away any and all right gained over the years by gays all over the world by applying pressure on US based mulit-national companies to do his bidding.
Please don’t be fooled by the cooperate spin, to think that this is some small, isolated situation. It’s not.
Our gay institutions are experiencing increased agenda rot from within combined with external threats and reduced support caused by governments that would rather see us gone.
Remember, their idea is they “gave us rights” and “they can take them away”.