Staff backlash: On May 30, 13 of 15 Mardi Gras staff signed a letter to the board raising serious concerns about Jesse Matheson’s appointment as interim CEO, warning it posed reputational and governance risks. Gay Sydney News does not suggest that Matheson, personally, poses a reputational or governance risk to Mardi Gras.
Internal alarm: The letter argued that appointing the sitting company secretary as interim CEO created a concerning overlap between operations and governance — and warned the decision could jeopardise Mardi Gras’ ability to pass an audit due between July and September this year.
Editor’s note: Gay Sydney News does not suggest a governance conflict exists, only that staff raised concerns about the potential for one.
Controversial column: Staff cited as a reputational risk a 2012 opinion article Matheson wrote for Star Observer, titled “I’m a sexual racist”, in which he claimed racial preferences in sexual attraction were not discriminatory.
Public apology: In 2016, during his first successful bid for a Mardi Gras board seat – a tenure that ended in 2022 – Matheson publicly apologised for that column and others: “I hurt a lot of people with these articles, including close friends, and I am sorry. The views expressed in those articles, and many others, do not reflect my current views or who I am now.”
Leaked staff letter:
Click to read the full document signed by Mardi Gras staff on May 30.
Facebook post: Staff also raised concerns about a 2023 Facebook comment in which Matheson called First Nations senator Lidia Thorpe an “idiot” for lying in front of the Australian Federal Police float during the Mardi Gras parade – a protest that drew national attention.
Another column: In a separate column, Matheson used explicit language while advocating for equal age of consent laws: “We did, however, ask to have the age of consent equal to that of our heterosexual counterparts. Because, you know, if a girl can take a pounding at 16, why can’t I?” he wrote.
Offensive stereotype: He also wrote in another column that: “Some gay boys are quite honestly as dumb as bread. Buy them a drink and hope to God they shut up.” Staff viewed comments like this as inconsistent with Mardi Gras’ values.
Alleged sponsor risk: The letter warned that such remarks – even if historical – could damage relationships with corporate partners and potentially trigger termination clauses, risking more than $3 million in sponsorship revenue.
Lingering doubts: “While an apology has been issued [in a Star Observer column] for one comment,” staff wrote, “concerns remain about the potential for ongoing reputational impact and stakeholder confidence.”
Editor’s note: Gay Sydney News does not suggest the reputational harm feared by staff has – or will – materialise; only that these concerns were formally raised.
Morale impact: Staff argued in their letter that the appointee’s public image may negatively affect staff morale and lead some to reassess whether they can continue to personally or professionally align themselves with the reputational risk it presents.
Staff exits: In the weeks after Matheson’s appointment and the letter being sent, five operations staff resigned – a third of the team – including senior roles across design, engagement and marketing.
Resignation link unclear: A source close to the organisation said the departures were related to Matheson’s appointment. Gay Sydney News does not suggest a definitive link – only that the timing aligns.
Internal applicants overlooked?: The letter alleged that experienced internal candidates “with stakeholder trust and Mardi Gras experience” were passed over, and that the process to appoint Matheson lacked transparency and consultation, although Gay Sydney News has not independently verified this.
Editor’s note: Gay Sydney News does not suggest Matheson is unqualified for the CEO role.
Timing of upheaval: Matheson’s appointment followed the resignations of CEO Gil Beckwith and director Brandon Bear, deepening instability amid financial strain and public scrutiny.
Financial pressure: Mardi Gras had reported a $1.2 million deficit in its 2024 financial report, despite receiving a $1.1 million emergency funding package during the same period, jointly funded by Destination NSW and the City of Sydney.
Board members silent: All seven board members were contacted for comment. None responded on the record. An external PR firm acting for Mardi Gras issued a statement saying: “Sydney Gay and Lesbian Mardi Gras will not engage in public commentary on internal matters relating to staff or the Board. We will also not respond to speculation or unauthorised disclosures. Please respect the privacy of our staff, Board and volunteers.”
Matheson addresses column: Matheson told Gay Sydney News the “I’m a sexual racist” article was written when he was younger and no longer reflects his views. “It was written at a time in my life when I didn’t fully understand the weight words can carry.”
Matheson on past comments: “Like many people, I’ve said things in my youth that I regret – and I’ve had to reckon with the impact those words had,” he said. “I’m sorry for the hurt it caused.”
On the Thorpe comment: Matheson said the “idiot” remark was made in a personal capacity, not while serving as a Mardi Gras director. “My concern at the time was about safety during the event … I recognise that the language I used was inappropriate and I regret making the comment.”
Board endorsement: Announcing Matheson’s appointment to members on Friday, current board co-chair Kathy Pavlich said he brought “a rare combination of institutional knowledge, strategic thinking, and lived experience” and was well placed to guide the organisation.
Audit oversight: Gay Sydney News contacted all six independent volunteer members of the Sydney Gay and Lesbian Mardi Gras audit and risk committee. In their letter, staff had asked the board to pass the letter on to the committee. Only one independent committee member responded, declining to comment due to confidentiality agreements.
CEO salary history: The last time Mardi Gras publicly disclosed its CEO’s salary was in 2010, when the role paid $169,561 – slightly down from $175,270 the year before. Adjusted for inflation, that 2010 figure would top $245,000 today.
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.
Got a tip? Contact journalist Ben Grubb on Signal, Telegram or WhatsApp: +61 414 197 508
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
