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Lollapalooza Is A Boon For Fans, But Could Be A Financial Bust For Chicago Taxpayers
CHICAGO (CBS) – A new 10-year agreement to keep the popular music festival, Lollapalooza, in Chicago was put together in days behind closed doors under the Lori Lightfoot administration.
A CBS 2 analysis of revenue from past festivals and projections based on the revised Chicago Park District permit revealed a surprising possibility: The event could bring in less money for the Park District and taxpayers over the next decade.
"When these things get done in the dark, it always ends up being a bad deal," said Ald. Brendan Reilly (42nd). Grant Park, where the fest is held, is located in his ward.
Past revenue
Through a public records request, CBS 2 obtained Chicago Park District revenue figures for the last decade. The data show Park District revenues increasing year over year from 2012 through 2019.
The festival was canceled in 2020 due to the COVID-19 pandemic outbreak.
Park District revenues peaked at $7.8 million when the festival relaunched in 2021 but dropped in 2022 to just under $7 million.
The analysis calculated Lollapalooza revenue based on those figures using the previous 11-year permit agreement fee schedule. Since 2016, the year the event expanded from three days to four days, total festival revenue shows a similar bump up and then a post-pandemic decrease.
The average annual festival revenue from 2016 through 2022, excluding 2020, is $60.7 million.
New contract, new calculations
"Lollapalooza is an intrinsic part of who we are as a city. I think it's a great investment for us," said then-Mayor Lori Lightfoot in July 2022 after the Park District negotiated the new deal. The negotiations were done without input from the City Council.
"We weren't given a briefing. No one sat down and asked for our input. Key items to renegotiate. This was simply done in a matter of days by the previous administration," said Reilly.
"Given how successful the event's been, I think that it would have been in the taxpayers' best interest to at least maintain the levels in the previous contract, if not raise them higher so the city would do better."
The new fee terms are based on varying percentages of the festival's overall revenue, which ties the city's fortunes to the festival's.
Using the average annual festival revenue since 2016 and that new fee schedule, it's possible Park District revenue could decrease each year for the next decade.
"It doesn't make a whole lot of sense to me," said Reilly. "Had it been more public, I think there would have been a lot more pressure on the Lightfoot administration and the Park District to get as much as they could out of this 10-year extension."
Loyola University Chicago Finance Professor Sukhun Lee checked the math.
"Under the current agreement, CPD's [Chicago Park District] revenue will decline if the festival total revenue stays the same or declines," Lee said.
Lee agrees that the current contract carries some financial risk, which should have been taken into account during the negotiation process. "They should have thought about the potential decline of revenue so they can eliminate that."
Lee determined, one simple change – no $1 million dollar per year adjustment in the festival revenue segments – could have eliminated the risk of declining revenues. "Park District revenue [would be] more likely to stay the same over time, not decrease."
He also calculated a scenario where the Park District could get more money over the next decade by factoring in a 2% inflation rate. "Then you see upward sloping revenue increasing over time."
Whether you factor in a 2% inflation or not, use an average festival revenue figure or the revenue figure from the festival's best year, the Park District appears to be headed toward making less money over the next six years compared to the last six years a festival was held.
The extras
Reilly said the festival provides another economic shot-in-the-arm, outside of Park District revenue. The boost for hotels, restaurants, post-concert venues, and other businesses is estimated to be more than $300 million each year.
This new permit agreement also added an extra $500,000 to improve tennis and pickleball courts in Grant Park.
"In the grand scheme of the deal, pickleball courts are great, but the Park District needs dollars and cents, so I would say maximizing the revenue opportunity is even more important than that. It should be both to be honest with you."
Some alderpeople – including Reilly–attempted to push through an ordinance last year requiring City Council review and approval for long-term contracts for mega events in Grant Park like Lollapalooza.
That effort stalled. But, Ald. Reilly says he and others will try again in fall 2023 under the new Brandon Johnson administration. "It's an incredibly valuable property that we shouldn't be giving away."
The Park District was shown and did not refute the analysis.
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Every Lollapalooza Line-up Poster Since 1991
Lollapalooza, the musical playground created by Jane's Addiction frontman Perry Farrell in 1991, has evolved into one of America's most notable music festivals. The Chicago mainstay — which is taking place from Aug. 3-6 in Grant Park this year — began as a multi-city farewell tour for Jane's which featured acts like Nine Inch Nails, Rollins Band and Ice-T. Unbeknownst to Farrell at the time, the festival would be an immense success leading to the event becoming a yearly occurrence. Despite being cancelled several times due to financial difficulties, the festival found new life in 2005 and eventually became a four-day event in 2016. Before it officially kicks off this year, let's revisit every epic line-up since Lolla's inception.
1991Lollapalooza's modest but mighty beginnings are laid out perfectly in the inaugural festival line-up. It doesn't get any more legendary than a bill featuring Jane's Addiction, Siouxsie And The Banshees, Living Colour and Nine Inch Nails.
Lollapalooza 1991 line-up CREDIT: Lollapalooza
The second annual Lollapalooza featured Red Hot Chili Peppers, who released their classic album 'Blood Sugar Sex Magik' just one year earlier. Pearl Jam, Ice Cube and Soundgarden also performed.
Lollapalooza line-up 1992 CREDIT: Lollapalooza
Lolla kept pushing boundaries with its talent curation in 1993 by booking the likes of Primus, Alice In Chains, Fishbone, Dinosaur Jr. And Arrested Development.
Lollapalooza 1993 line-up CREDIT: Lollapalooza
Nirvana were scheduled to headline Lollapalooza in 1994, but ultimately withdrew. Instead, the Smashing Pumpkins headlined alongside Beastie Boys, George Clinton and the P-Funk Allstars and A Tribe Called Quest.
Lollapalooza line-up 1994 CREDIT: Lollapaloza
This year's line-up consisted of Sonic Youth as a main-stage headliner as well as Hole (featuring a newly widowed Courtney Love). The late Sinead O'Connor also performed before leaving the tour early, as well as Cypress Hill and Pavement. The late Coolio, Moby and Superchunk appeared on the side stage.
Lollapalooza line-up 1995 CREDIT: Lollapalooza
The festival leaned toward heavier musical stylings, with the likes of Metallica and Rancid gracing the bill in 1996. However, the festival was critiqued by fans for the absence of communal vibes that Lollapalooza was previously lauded for and what they believed was the growing presence of corporate sponsorships.
Lollapalooza line-up 1996 CREDIT: Lollapalooza
This eclectic line-up featured burgeoning talents like The Prodigy, Snoop Doggy Dogg and Julian and Damian Marley. It would also mark the last Lollapalooza for six years due to the festival taking a break for financial reasons.
Lollapalooza line-up 1997 CREDIT: Lollapalooza
Lollapalooza was revived in 2003 with headliners like Jane's Addiction, Audioslave and Incubus. However, fans shied away from the event because of high ticket prices and the festival was cancelled the following year.
Lollapalooza 2003 line-up CREDIT: Lollapalooza
In 2005, Lollapalooza had new financial backers and became a permanent Chicago fixture. Weezer, Arcade Fire and Pixies led the newly rebuilt festival, while acts like Death Cab For Cutie and Dashboard Confessional provided emo vibes.
Lollapalooza 2005 line-up CREDIT: Lollapalooza
Kanye West headlined his hometown festival with surprise appearances from Common, Twista and Lupe Fiasco during his set. My Morning Jacket, Wilco and Sleater-Kinney also performed.
Lollapalooza 2006 line-up CREDIT: Lollapalooza
A two-day format proved so successful in 2006 that in 2007 Lollapalooza transitioned into a three-day format. Farrell raged with his new side-project, Satellite Party, while Daft Punk made a rare appearance and Yeah Yeah Yeahs proved to be a formidable indie facet.
Lollapalooza line-up 2007 CREDIT: Lollapalooza
Kanye West headlined again in 2008, while other acts like Radiohead and Nine Inch Nails were also fan favourites. Cat Power, The Kills and Saul Williams also performed.
Lollapalooza line-up 2008 CREDIT: Lollapalooza
Arctic Monkeys reinforced their promise as indie darlings during this instalment of Lollapalooza, while Tool and the Yeah Yeah Yeahs were the split headliners for the same night. The Killers also brought all their hits to headline.
Lollapalooza 2009 line-up poster
This year brought a merging of multiple genres as pop princess Lady Gaga brought out her legion of loyal fans. Phoenix, The Strokes and Soundgarden also provided an array of fun sets.
Lollapalooza 2010 line-up poster CREDIT: Lollapalooza
While music giants like Foo Fighters and Coldplay were valiant headliners, other acts brimming with promise like Crystal Castles, Cults and The Mountain Goats also put on unforgettable performances.
Lollapalooza line-up 2011
This year's line-up provided an up close and personal look at the enigmatic Frank Ocean while Jack White and Justice battled it out as headliners for the final night. Farrell also devoted a stage almost exclusively to EDM this year.
Lollapalooza 2012 line-up CREDIT: Lollapalooza
The Cure performed for the first time at Lollapalooza, Chance The Rapper brought out the masses, Kendrick Lamar impressed onlookers and Skrillex and Boys Noize teamed up for their join act Dog Blood. An epic line-up, indeed.
Lollapalooza 2013 line-up CREDIT: Lollapalooza
2014 marked a decade of Lollapalooza taking place in Grant Park, with the line-up being more rap-friendly than usual. Eminem headlined while acts like Outkast, Nas and Run The Jewels proved to be impressive additions. Lorde, Interpol and Childish Gambino also performed.
Lollapalooza 2014 line-up poster CREDIT: Lollapalooza
Rock impresario Gary Clark Jr. Showed off his sheer talent while the one and only Paul McCartney closed out the festival. The Weeknd, Florence And The Machine and FKA Twigs were also a pull for festival goers.
Lollapalooza line-up poster 2015 CREDIT: Lollapalooza
This year marked the beginning of Lollapalooza becoming a 4-day festival. LCD Soundsystem, Radiohead and M83 topped the lineup, in addition to acts like Future, Danny Brown and Haim cemented their performative prowess.
Lollapalooza line-up 2016 CREDIT: Lollapalooza
Lollapalooza welcomed back The Killers, Lorde and Chance The Rapper (whose entrance featured a video message from Michelle Obama). Liam Gallagher also performed, although those in attendance believed his attitude marred his performance. There was also the addition of a roller skating rink this year.
Lollapalooza line-up 2017
Bruno Mars made his Lollapalooza debut (excluding an appearance during Eminem's set in 2011) while St. Vincent dialled up the weird during her set. LL Cool J reminded attendees why he's the greatest of all time and Lil Pump's disastrous set–which featured the emcee arriving 30 minutes late and his DJ's laptop overheating–went down in infamy.
Lollapalooza 2018 line-up CREDIT: Lollapalooza
Lil Wayne fans showed up and showed out for their favourite emcee as Ariana Grande–one of pop's biggest superstars–delivered hit after hit during her headlining set. J. Balvin also made history as the first Latino headliner in the history of Lollapalooza.
Lollapalooza line-up 2019
Due to Covid, Lollapalooza at Grant Park was cancelled but offered a digital festival for free instead. Artists like H.E.R., Metallica and Paul McCartney delivered intimate virtual renditions of their most notable songs.
Lollapalooza 2020 line-up CREDIT: Lollapalooza
The first Lollapalooza since 2019 did not disappoint. Miley Cyrus' set was littered with guest appearances (Billy Idol, Juicy J, Wiz Khalifa), while artists like Flo Milli and Kim Petras gained a new legion of followers. Tyler The Creator and Foo Fighters also gave energizing performances.
Lollapalooza line-up 2021 CREDIT: Lollapalooza
Punk gods Green Day closed out the 2022 edition of Lolla with an arsenal of hits that felt neverending. Dua Lipa gave it her all in a sequined jumpsuit during her energetic set, while Big Sean got the crowd going (and brought out then-pregnant girlfriend Jhene Aiko during his set). Metallica, who also headlined, brought out the thrashers again after all these years.
Lollapalooza 2022 line-up CREDIT: Lollapalooza
Lollapalooza returns bigger and better than ever this year–and the line-up is monumental. Kendrick Lamar will bring the stylings of 'Mr. Morale & The Big Steppers' to Grant Park while Red Hot Chili Peppers prove why they are still headliner status four decades after becoming a band. 2023 also marks Tomorrow X Together becoming the first K-pop band to headline the original American festival.
Lollapalooza line-up 2023 CREDIT: Lollapalooza
Lollapalooza 2023 Didn't Miss A Beat
Tems, JID, The Red Hot Chili Peppers and others brought their A game to Lollapalooza
Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Lollapalooza 2023, one of the most anticipated music festivals of the year, lived up to its reputation as a global celebration of music, art, and culture. Held in Grant Park, Chicago, this four-day extravaganza showcased an eclectic lineup of artists spanning various genres.
The festival kicked off on a high note with a dynamic opening night that set the tone for the rest of the event. Attendees enjoyed performances across multiple stages, each offering a unique sonic experience. From the pulsating beats of electronic dance music to the in-your face production of rap, Lollapalooza catered to diverse musical tastes, ensuring there was something for everyone.
Headliners stole the spotlight with electrifying performances that left the crowd in awe. Renowned acts like Billie Eilish, The Red Hot Chili Peppers, and Kendrick Lamar delivered unforgettable sets, each with a distinctive style and stage presence. Billie Eilish's haunting vocals and visually stunning production wowed the audience, while Kendrick Lamar's thought-provoking lyrics ignited conversations about social issues. The Red Hot Chili Peppers closed out Lollapalooza with their rap/rock infused melodies and the legendary bed of baselines from Flea.
Lollapalooza 2023 wasn't just about the headliners, though. The festival's lineup was a treasure trove of emerging talent and hidden gems waiting to be discovered. Up-and-coming artists graced the small stages, earning their spotlights and winning over new fans with infectious energy and creativity. UMI is one of those artists. Her spirit is beautiful, and her voice is pristine. Her set on the Bacardi stage started with meditation and intention and floated after that. Kidd Kenn provided an unapologetic set on the BMI stage that was unforgettable. Zack Fox and his fans fought through the rain for his performance and hilarious punchlines.
Lollapalooza's commitment to sustainability and social responsibility was evident throughout the event. Initiatives to reduce waste, promote eco-friendly practices, and support local communities were seamlessly integrated into the festival experience, reminding attendees of the importance of caring for the planet and each other.
Lollapalooza 2023 was a sensational four-day music, art, and culture celebration. With a star-studded lineup, captivating performances, immersive art installations, and a commitment to sustainability, the festival once again solidified its position as a global musical phenomenon, leaving attendees anticipating the next chapter in its storied history.
Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Kidd Kenn at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Kidd Kenn at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Tems at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Tems at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Tia Corine at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Tia Corine at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Zack Fox at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Zack Fox at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) JID at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) JID at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Lil Yachty at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) UMI at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) UMI at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Joey Bada$$ at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Joey Bada$$ at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) A Boogie Wit Da Hoodie at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Lola Brooke at Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Red Hot Chili Peppers Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre) Red Hot Chili Peppers Lollapalooza 2023 (Photo credit: Eddy "Precise" Lamarre)
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