Anti-Burner Judge Gets Spanked by Appeals Circuit for the SEVENTH Time

0511-0709-0620-2149_Judge_With_His_Gavel_clipart_imageBurning Man announced today they won their appeal. Burners were left scratching their heads, without Propaganda Czar Will Chase there to put the usual spin on things. What does it all mean? Who’s suing whom? And will this affect ticket prices?

Here is the full text of the ruling. And here’s a summary in one paragraph:

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Basically, Pershing County wanted Burning Man to pay for their police presence. BMOrg said no, we pay the Feds, we pay Washoe. Pershing said pay up, and we don’t like nudity around children. Burning Man said “fuck you! free speech! We demand nudity!” and sued Pershing. Pershing responded by making life very difficult for Burners, partnering with the Feds for an unprecedented police crackdown. Sniffer dogs were brought in from the Mexican border. This was the beginning of “we’ll pull you over for the slightest thing and the dogs will search your car”. Burners were understandably pissed. Some of the more vocal DPW crew formed a group called RIOT and threatened to strike. BMOrg decided that maybe they should just pay the extra hundred grand or so to the cops. They agreed a deal, and both parties took it to the judge. The judge went apeshit and threw it out of court, telling the prosecutor to go back to law school. Near the end, romors of a negligence and malpractice law firm in Chicago getting involved pro bono, but the case settled before it could get that far.  It seemed like it was all sorted it out, but it obviously wasn’t because of this appeal. The one judge sounds a little loco, and his Boss Judges in the Ninth Circuit Court of Appeals seem to agree.

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This has nothing to do with Burning Man’s other matter, objecting to the Live Entertainment Tax. So no effect on ticket prices. They will probably keep going up, and new things like Vehicle Passes and handling fees on Vehicle passes will be introduced to drive revenues further.

Here’s our previous commentary on what’s been going on in the case, in reverse chronological order. The headlines kind of speak for themselves:

http://burners.me/2014/02/04/radio-interview-with-pershing-da/

http://burners.me/2014/02/03/reno-gazette-journal-covers-pershing-county-cops-settlement/

http://burners.me/2014/01/13/judge-backs-off-pershing-roadblock-deal-is-done/

http://burners.me/2013/11/29/absurd-illegal-mealy-mouthed-more-on-judges-ruling-on-burning-manpershing-dispute/

http://burners.me/2013/11/29/go-back-to-law-school-judges-nukes-pershing-deal/

http://burners.me/2013/11/14/associated-press-misreports-pershing-county-fees/

http://burners.me/2013/11/11/breaking-burning-man-reaches-deal-with-pershing-county/

http://burners.me/2013/08/23/pershing-county-cops-and-federal-agents-integrated-and-synchronized/

http://burners.me/2013/08/22/busting-man-riot-calls-for-general-strike-at-burning-man/

http://burners.me/2013/05/07/failed-to-even-make-a-facial-pershing-county-claims-huge-defeat-over-burning-man/

http://burners.me/2012/10/11/pershing-county-hits-back-at-burning-man/

http://burners.me/2012/08/17/county-cops-duke-it-out-with-feds-for-burning-man-buck/

Today’s coverage by Scott Sonner (AP) in the Sacramento Bee was much better than the BJ or Burning Man in-house reporter Jenny Kane’s sales pitch for Will’s job piece at the RGJ.

The 9th U.S. Circuit Court of Appeals has overturned another ruling by the same conservative federal judge in Nevada, criticizing his unorthodox handling of a Burning Man lawsuit and taking the extraordinary step of ordering him off a case for the fifth time in two years.

U.S District Judge Robert Clive Jones had no legal basis to reject a deal lawyers for Burning Man and Pershing County reached in 2013 to settle a dispute over security costs and First Amendment rights at the annual counter-culture celebration in the desert about 100 miles north of Reno, the appellate court ruled on Wednesday.

Jones — who recently shifted to senior status on the Reno bench — inappropriately mocked the lawyers during a hearing, accused both sides of malpractice, described one lawyer’s comments as “mealy-mouthed,” suggested another should return to law school and “noted his own laughter on the record,” the three-judge panel said.

“We have in the past expressed concern over the district’s court’s handling of a number of cases that have reached this court, and we unfortunately must do so again here,” Chief Circuit Judge Sidney Thomas wrote in a unanimous four-page memo issued Wednesday in San Francisco.

Thomas said in granting the Burning Man lawyers’ appeal that he was remanding the case back to district court and instructing Nevada’s chief U.S. district judge to assign the case to a different judge. He listed six cases in which the 9th Circuit reluctantly has issued similar orders involving Jones since 2012 — five in just the last two years.

Read the rest of the story at the Sac Bee.
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Although the case has to go before a different judge again, given that both parties have agreed a settlement and are getting along swimmingly in the new integrated Tier 1 Unified Command and Control structure, that should be just a formality.
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How can this Judge tell lawyers to “go back to law school” when he gets slapped down unanimously by the Appeals Court – 7 times in 4 years? He must have some powerful friends in the Wild West of Northern Nevada. Pantsless Santa tells me that Federal Judges are appointed for life, and it would be no surprise if one was part of the old boys network.
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Masks in the Cibolo Creek hunting lodge, where Bohemian Grove spin-off the Order of St Hubertus hosted Burning Man-connected Judge Antonin Scalia's mysterious demise. Image: Wayne Madsen Report, via Fellowship of the Minds

Masks in the Cibolo Creek hunting lodge, where Bohemian Grove spin-off the Order of St Hubertus hosted Burning Man-connected Supreme Court Justice Scalia’s mysterious demise.
Image: Wayne Madsen Report, via Fellowship of the Minds

Victory for the Little Guy! [Updates]

bm tm

Over the last couple of years, we’ve been following with keen interest a lawsuit in Canada. The plaintiff was Decommodification, LLC – a private company the founders set up, which owns all the Intellectual Property assets of Burning Man and is paid royalties by the Burning Man Project for their use. The defendants were Napalm Dragon and Burn BC – a Vancouver-based arts collective co-operative that has been participating in Burning Man and other burn events since the early 90’s.

Here is some of our previous coverage

Canada Draws Battle Lines for Burner Culture May 14

BURNILEAKS: Bullying the Burners Sep 14

Embattled Burners Ask for Support Sep 14

Help Canada Sep 14

South Bhak Oct 14

Quick Update from Canada Nov 14

Burn BC Admits Defeat in Battle for Public Domain Jan 15

The lawsuit saw some eye-brow raising moves from BMOrg, including a claim by founder Crimson Rose that she invented fire dancing.

A year ago, it seemed that BMOrg had won – Burn BC couldn’t raise enough money for a lawyer, and was forced into a default judgement.

Napalm Dragon explained how he was prevented from even mounting a defense in our Jan 2015 story Burn BC Admits Defeat:

A couple of months ago the Lawyers for Decommodification LLC (The new American Corporation that now owns the American Burning Man Trademark) blocked Burn BC from defending itself.

They would not allow the directors of Burn BC to submit a defence, suppressing a very lengthy defence I’d put together for the organisation.

(I was hospitalised with a major panic attack from the stress of dealing with this).

The judge gave 30 days for Burn BC to find a lawyer. If Burn BC could have found a lawyer, we have mountains of evidence that could have easily defended Burn BC.

So without a lawyer, the flimsy claims against Burn BC went to default judgement. Without a reasonable defence for Burn BC, the Judge was forced to rule based on weak claims by the plaintiff.

Decommodification LLC didn’t just stop at $10,000 plus $25,000, they also wanted the Burn BC website. There’s NO need for the website.

The Judge ruled $10,000 damages (based on one sided claims, and no defence), and turning over our Burn BC website to Decommodification LLC. I can’t blame the judge, he had limited information, and Burn BC was completely unable to defend itself.

The judge ordered them to cease using the trademark, they agreed – so BMOrg got what they want, right?

It seems this small victory wasn’t enough. Decommodification LLC – apparently using the Burning Man Project’s extensive legal resources – had to burn the villages too. They pursued Napalm Dragon personally for damages. No matter that the guy has no money, and they take in $32 million a year. He needed to be taught a lesson, publicly shamed, ruined. How dare he be throwing burns and contributing to the community for 20+ years! How dare he try to defend himself against outrageous claims and character attacks! Destroy! Exterminate! Humiliate!

Well, karma can be a bitch: it looks like this strategy backfired. Since Decommodification LLC was going directly after Napalm Dragon personally, he was able to represent himself in court without a lawyer, something which was not possible the way the original case had been structured. It seems the Court did what courts do, looked at the facts, looked at the history, heard the arguments from both sides, and made a ruling based on the law – resulting in a total defeat for the American Decommodification company, and vindication for Canadian Burn BC.

Here is Napalm Dragon’s initial report on his victory:

Burn BC Founder and Champion of Burner Rights, Bhak Jolicouer

Burn BC Founder and Champion of Burner Rights, Bhak Jolicouer

The final paperwork came back today.
I WON!!!
I ROASTED the lawyer, and he caved. He very literally cowered before the courts.

The Burn BC Arts Cooperative is alive and well, I am in the clear, and I forced Decommodification LLC to, not only back off of me, but to leave me alone and relinquish any attempted claims to otherwise very important sacred cultural domain I’ve been intimately involved with for over 20 years.

I briefly thought about going all the way with it; pushing “Burning Man” finally and completely (and undoubtedly) back into the Public Domain where it is and belongs (and could have without a lawyer). I was very literally one Court Motion away from doing it.

But, instead I roasted the Lawyer, and demanded respect, and demanded some clear terms, and got EXACTLY what I wanted and had declared for over a decade.

I was able to do this because Decommodification LLC was not satisfied with destroying Burn BC by forcing it into an undefended default judgement and just leaving me alone.

No, the vengeance of one greedy sadistic and highly duplicitous and domineering woman, and her asinine arrogance, nearly led to her complete downfall by one punk from Canada and his little prank.

[Metaphorically speaking] I had her, and her entire plot by the balls, I squeezed tightly to get her attention, then said “Leave me the F**K alone, I am free to do and say what I please, and if you push me any further you lose every exaggerated claim”.

When Decommodification LLC came after me personally they screwed up. They gave me the opportunity to finally defend myself; and when this finally came before the courts, I completely ROASTED the lawyer. He was very literally cowering before the “judge”, and went pale.

All the egregious demands disappeared.

I then turned it around and said (metaphorically) “This is what’s going to happen, and this is what you are going to do.”

So now it’s done and I’m moving on, and I am free to do and say what I please; as has ALWAYS been my right, as an Artist, Prankster, Empresario, and Sacred Clown.

F**** You!!!…and your Burning Man too.
Keep that dead lie far away from me, and anyone I love.

Now I can finally get back to what I really want to do before this giant stinking pile of bull dung distracted me.

BMOrg have not had their Propaganda-spun statements tested in a court very often. There were a couple of big cases in 2007. Founder John Law tried to keep the Burning Man name in the public domain for all Burners to use, saying “If Burning Man is really a movement, the name should belong to everyone, not three guys who don’t get along anymore”. Although the case got a lot of media attention, and raised the hopes of many Burners, it was settled for an undisclosed sum before going to trial. In the Paul Addis arson trial, BMOrg controversially provided muddled information that ensured a mischievous prank in the Cacophonist spirit was treated as a terrible, malicious felony. Addis got jail time, lost his legal career, then became yet another Burner whose exit from this “movement” was a horrific public suicide.

I asked Napalm Dragon if he had any further comments for Burners.me readers. He said:

I want nothing to do with Marian Goodell or her “Contractually Obliged Brand Cult”.
Anyone who “volunteers” for any project, group, or event, “controlled directly or indirectly by Decommodification LLC” through the use of the so called trademark “Burning Man™” is being taken for a ride by a private American corporation that wants to join the Billionaires Club on the backs of the wide eyed and naive, lost in a labyrinth of past relevance.

The last Great Cultural Emergence of the 20th Century is moving on, leaving behind an empty calcified echo of a spectacle.
The culture created Burning Man; “Burning Man™” did not create the culture.
There is no longer a home for the culture under this so called trademark “Burning Man™”.

When it comes to Burners.me, know that I forced Decommodification LLC to agree to make no claim to “The Burn”. SO the culture has a place to go, freely, and of its own free will and accord, and it’s beyond the reach of Decommodification LLC. (IN WRITING).

Fuck “Burning Man™”, that term missed its opportunity to have a profound, respectful, and positive relationship with relevance, and instead chose to suffocate an agonising and slow retreat into obscurity.

When Decommodification LLC went after me personally, the lawyers could not block me from defending myself (like they did with Burn BC)
I waited for someone who understood the significance of this to hand me a lawyer, and when it didn’t materialise. I played my cards wisely.

Unable to block me from defending myself, I decided to turn it in my favour and completely roasted the lawyer before the Canadian Federal Courts. All the egregious demands faded in the presence of the courts.

I protected some sacred terms, protected Burn BC, and protected myself.
I’m bowing out of this stinking saga with this last prank; and letting Marian Goodell and her American Corporation Decommodification LLC fester in the pursuit of a meaningless trademark in Canada.

Anyone is free to oppose the application with CIPO, I will not be participating in any opposition.
I’ve lost interest. I have nothing but disdain for Decommodification LLC and the words “Burning Man™”.

I’m now going to take some time to consider the most epic prank of my life, and think about the love of my son, and the love of my wife, and our rights to be the creative people we are; unfettered by the looming shadow of a “Contractually Obliged Brand Cult”, or the American Corporation that claims to control it.

I was right all along, and I feel at peace with a clear conscience.
I hope this prank offers some peace to Paul Addis, Caleb Schaber, and Howler (Rest well in your afterlife).

This is my parting gift to those I inadvertently led astray, and those who have inadvertently led us astray.
With Love,

Bhak Jolicoeur (AKA) Napalm Dragon
Avant-garde Artist, Impresario, Prankster, and Sacred Clown.
(Now, to get busy with the good stuff.)

Maybe now BMOrg will accept that Burners create this culture and event, not them. The point of Burning Man, and burns in general, is to create a temporary city together for entertainment –  not to cook everybody’s souls using a cauldron called The Devil so they have a Transformational Experience™. The culture has been developed from the bottom-up, grass roots if you like. Replacing it with top-down legal control from a tax-exempt entity and a board of 1%-ers is not going to make our culture flourish for the next hundred years under their Burning Man™ corporate banner.


[Update 1/14/16 1:29pm PST]

Napalm Dragon wanted us to be clear that Burn BC is a co-operative, not a collective. Sorry about that!

He also points out that the owners of Decommodification LLC, mostly are in no ways the founders of the Burning Man event. He has a good point: Larry Harvey is the only one of the 6 who was at the first one; Michael Mikel the only other one who was there at the Beach and Desert; Crimson Rose and Harley Dubois came to the second desert event, Will Roger arrived in 1994 and Marian Goodell 1995. Black Rock City LLC was incorporated in 1997, after the disastrous Helco burn.

Are the 6 owners of Decommodification, LLC, the same as these 6 “Founders”?

Again, it looks like Napalm Dragon is right. We don’t know very much about this private company. It was spun off before the donation to the non-profit, and the main assets of the business were transferred to it. Supposedly, the “6 Founders” each have an equal share, and have to unanimously vote against a transfer to the Burning Man Project in 2018 to stop it. Does it earn royalties from the Spark movie, the newspaper photo rights, music soundtracks, art sales, or anything else? Or does it simply get $75k per year from the Burning Man Project, and nothing else – everything else goes to Burning Man? We don’t know, and I’d love to think it was the latter – but if so why don’t they just be transparent about it? Why are we only going to find out what is going on with all these LLCs and assets and inter-group relations AFTER many years?

Here’s the official story, as of about a month ago:

Screenshot 2016-01-14 14.10.32

Here’s what Corporation Wiki says:

Screenshot 2016-01-14 12.33.06

 

Doug Robertson is listed in the Burning Man Project IRS Form 990 as the organization’s CFO. Ray Allen is the Burning Man Project’s in-house General Counsel. Nanci Elliot is better known by her alias Crimson Rose.

Screenshot 2016-01-14 12.59.32

The address listed here in 3rd street is also associated with Black Rock Arts Foundation, Black Rock Solar, and Tomas McCabe. From CorporationWiki:

Screenshot 2016-01-14 13.43.25

 

Justia lists trademarks owned by Decommodifcation, LLC. Interestingly, the Ranger logo is here, but the name Burning Man and the regular )'( dude are not.

 

Screenshot 2016-01-14 12.54.57

Trademarkia only has one trademark associated with Burning Man: the main one, which proves beyond any shadow of a doubt that Burning Man is a festival. It was last renewed in 2014, with Decommodification, LLC as owner.

Screenshot 2016-01-14 12.57.05

Of course, “organizing community festivals featuring…live music, art displays, and participatory games; conducting entertainment exhibitions” is not even remotely close to Live Entertainment – what are they smoking in Nevada?

Bizstanding lists Larry, Marian, and Harley as the three “Managing Members” of Decommodification LLC. It also lists Brooke Oliver, who claims to have been the legal architect of Burning Man’s non-profit transition.

Screenshot 2016-01-14 13.56.02

 

 

Where’s Will, where’s Danger Ranger? Both of those guys only got paid $70k or so in 2014. Why’s that?

Did donation money given by Burners to support art projects end up going to this lawsuit in Canada? Or did Decommodification, LLC pay for it?

I don’t expect we’ll hear answers to these questions – although it would be a lovely surprise if we do. Simply to ask them, doesn’t make me a “conspiracy theorist”. They are quite reasonable questions, the kind of thing I would ask any $30 million non-profit that wanted me to give them money.


Napalm Dragon has cemented his place in Burner history, along with other eclectic and eccentric figures like Chicken John, Paul Addis, John Law, Caleb Schaber, and (IMHO) myself, who have risked a lot simply to fight for what’s right. A movement that came from a community, not a corporation.

Bhak reached out to the community to help raise funds to get a lawyer. They raised $1650, he wants to wish a big thanks to everyone who donated. If more Burners had stepped up in support, perhaps “Burning Man” might be a free term in Canada today.

The idea that BMOrg need to protect the Burning Man name from anyone else ever using it because people might get confused is kind of ludicrous in 2016, when it’s on Oprah and The Simpsons. Dude. We get it. It’s BURNING MAN™. A name that is now MASSIVELY COMMODIFIED after years of saturation promotion in mainstream media. You need these lawsuits because people might sell t-shirts, really? There are 30,000 merchants on Etsy selling Burning Man products and nearly 8,000 on eBay. Let’s stop kidding ourselves, stop pretending that this is somehow “against Burning Man” or “ruining Burning Man”. This event was built on selling t-shirts. If anything, it’s the “hey it’s cool if we jump the shark, we want new people anyway, doesn’t matter if they’re self-reliant or participants” attitude that is “ruining Burning Man”.

burning man 98 tshirt list

We want to go to officially sanctioned events that are based on the Ten Principles. So why not enable thousands of those around the world, get royalties from all of the franchises, donate generously to art and the environment, and really see if we can make a difference with this culture? Take the royalty money from the 30,000 Etsy vendors, and use it to do some good?

They have enough Burners for that…but do they have enough lawyers? It seems to me that is what is holding our growth back the most right now.

Why is “Burning Man: The Board Game” (free, made by 20-years Burners to entertain other Burners) bad, but “Burning Man: The Musical“, (commercial, by a Google employee who’s never been to Burning Man) good?

Why does Decommodification, LLC feel it has to own Decommodification Itself? What would be the point of that, in a temporary company created only to safeguard Burning Man’s brands for a couple of years? 

Here is Napalm Dragon’s Christmas Day message (and Gift) to those of us who did support him.

2279639_1451186923.317_updates

I submit this with a heavy heart.

Yet, I submit this with a burden released from my conscience, after enduring a long, distressing, and frivolous process.

Signed on the longest night of the year (December 21), in sacred concert with the ages, I part ways with the empty spectacle, and protect the integrity of a sacred domain of the arts, and the ancient rites.

My signature ends an era of open cultural relationships with what was once the most relevant cultural event of the 20th century; made relevant by the gathering tribes of the last great cultural emergence of the 20th century.

Until December 21, 2015 I held in my hand the last flickering flame of the Original Burning Man Culture that created the event, created the city, and created the communities.

We created Burning Man.
Burning Man did not create us.
This is the truth, and the truth has set me free.

My submission today, and my signature on this document ends the name of our culture. It ends our relationship with the secret American corporation (Decommodification LLC) that secretly makes questionable claims to what was once the public domain name of a culture, and the public domain iconography of a culture.

In Canada, this secret American Corporation (Decommodification LLC) will soon take control of a trademark based on our Public Domain Culture and Public Domain Iconography in order to steal control of what little remains of our independently developed communities.

I will not be taking part in any opposition to this, that window has passed for me. I held that window open and the loud cries of the vain were all that were heard.

I will not participate in this deceptive practice in any way, or with any organisation, group, or individuals who are blindly mislead by this contractually obliged brand cult.

Our culture and it’s association with what was once our name has lost all relevance. What remains is an illusion, a deception, a mere figment that exploits misconceptions.

What remains is not our culture.
It’s the synthesised echoes of how we express our culture.

It’s a calcified and degraded, proprietary facsimile of the expressions of our culture. It looks like culture, but it’s little more than the exploitation of those of us seeking to connect with our culture.

Our Culture has moved on, and no longer exists within the domain of what Decommodification LLC vainly and arrogantly claims to control.

Pushed to the very brink, I stood next to justice with my back held straight against the wall of truth. I held to my convictions, my rights, my honour, and trusted in my faith that the truth prevails.

In the face of intimidation, being ostracised, slandered, my reputation all but destroyed, and my friends deceived, I stood by the truth and trusted in the power of justice to perceive the truth.

Very literally under the scrutiny of our Canadian judicial system, this deception and intimidation fell apart. What remained was a compromise.

I accepted this compromise and demanded concessions to this compromise that might respect my artistic rights, my integrity, my honour, and my self respect (the only things left to me in this fiasco)

I was failed by the very people who so grandiosely stand on the backs of the artists and declare themselves “the community”. These people loudly proclaimed to support my position, but did little to step up to “Radical Self Reliance”, and offer what mattered. Their words fell to the floor, the empty ashes of an illusion; those of us believing in this illusion vainly grasping at it.

Yet, despite my challenges, I faced the truth on my own accord, and the truth prevailed through the wise mediation of the honourable Prothonotary Milczynski.

I can now lay to rest this deplorable action by Decommodification LLC and move on with my life, as I asked before, and have asked many times before that.

The integrity of my culture now remains relativity intact by other means; holding back the looming shadow over our culture, and out of reach of this secret and deceptive corporation.

I have taken responsibility for my part in being mislead over the last 10 years, and inadvertently misleading others who respected my reputation and good will over the last 25 years.

I can now get on with my life with a clear conscience. My last gift to this community being the truth.

I submit my settlement agreement with a heavy heart, a clear conscience, and a clear perspective on the heinous actions that have transpired over the last 20 years.

I choose today (December 25th) to submit this document to the Plaintiff and the Courts, not as a gesture of good will, but as a reminder of what it really means to offer a gift to the world.

To remind the Plaintiff that a gift was offered to the world, and it was tossed aside like a dirty worthless bone.

I pick up that bone and bury it with grace and respect.

It was a sincere, heartfelt, gift to the community; something we (our culture) offered to the world. Something taken from us, perverted, and tossed away; then synthesized and sold back to our peers with the intent of making the profound; proprietary, mundane, and superficial; something to easily consume from the bucket list of past notoriety, a minor novelty exploiting the good will of vague references to an obfuscated past.

With this settlement, there is no going back.
It is done.

The desert has lost it’s last hope to be anything more than just a misguided, shameful and shallow expression of excess and delusional cultural exploitation; a spectacle cut off from the profound depths of an open culture.

It is no longer a maze of possibilities to transcend the madness, it’s a labyrinth of madness that has no exit.

It’s a culture trap.

A gift is something offered without obligation, and the obligations demanded by the Plaintiff throughout these proceedings with Burn BC and myself were deplorable. They were both egregious and vitriolic. They only served to destroy what remains of the beauty and grace we offered this Culture and Cultural Iconography, and the independent communities that have given (very literally) their love, and their lives to our culture.

Many of us have very literally given our lives to the gifts we offer to our community. We had no intention of giving our gifts to greedy, exploiting corporations. Many of us who could not face our complicit assistance to this deception committed suicide, or died by the symptomatic obfuscation that confuses the profound.

People took their lives, and have died for this culture.
– Caleb Shaber walked into his room in Gerlach Nevada and killed himself with a gun.
– Paul Addis threw himself in front of the San Francisco Bart Train.
– Hours after visiting with my wife and I in Austin Texas, a man went home and shot himself.
– Another close friend swam to his death, and drowned himself.
– Another hung himself in Vancouver.
– Others were murdered by a crazed gunman in Seattle.
– One man hung himself in the Nevada Desert.
– Another recently walked into the fires of an event in the United States.
– A famous CBC radio host died.
– A woman was killed while riding an Art Car.

People died for this culture and because of this deceptive cultural appropriation. These deaths are now empty, sad statements to the deceptive cultural appropriation this corporation has committed with absolute callous disregard for the very culture they claim to have created “from a ceremony on Baker Beach”.

My conscience weighed heavy, it is now clear, and I remember these lives with dignity as I move forward with the rest of my life.

I close this heinous chapter in disgust. I open a new chapter alleviated by taking responsibility. I move forward with a light and clear conscience to live with joy, share in charity, and love with honour, dignity, and respect.

I have fulfilled my obligations.

The intentions of our culture, and our lives, were to offer a gift to the world, and offer a gift to our communities by creating spaces for our communities to flourish unhindered by mediated consumerism, and the marketing exploitation that turns people into predictable products to be repackaged and sold back to us as a limited set of archetypes that we adhere to without question or Critical Thought.

The very foundation of our culture was deeply undermined in the name of pure greed. We were deceived, and as I faced the obfuscation that surrounds this deception, a most egregious realisation was revealed by this frivolous litigation.

It is no longer my concern, this is for others to contemplate.

I am irrevocably done with the words: Burning Man™

What has transpired here with this document I submit, and my signature, is no less than the “end of an era”, not because I have the power to end it, but because I’m willing to recognise the significance of this settlement agreement in relation to the dark shadow that looms over it.

I have been blessed to witness and participate in the last great cultural emergence of the 20th century which emerged around the world throughout the 90’s. It gave profound power and meaning to a name, and cultural iconography.

Now with the stroke of my pen, a cultural relevance is gone forever. It is truly the end of an era. This sad end forced by the unyielding and arrogantly uncompromisingly deceptive greed of one woman and her secret corporation.

When given the opportunity to share in an incredibly significant opportunity to continue respecting the independent nature of our cultural relationships; this was not only rejected, but crushed with brutal dominating vengeance; I realised that the best course of action was to walk away from possibly the most damaging relationship I have ever encountered.

Questionable claims were made by Decommodification LLC under frivolous litigation. There was no reason to waste the precious time of the courts.

The Burn BC Arts cooperative was prevented from defending itself; and even after the matter was clearly resolved, intimidation, and callous technicalities were exploited to undermine justice and force an undefended default judgement against Burn BC.

What remains is a lie, a deception of cultural proportions, a system of exploitation that sullies the very idea of the founding culture here in Canada that gave the last great cultural emergence of the 20th century its power and relevance, and opened a door to beauty, grace, kindness, and the sincerity of The Gift.

A gift is given without obligation. Yet under the guise of a gift, one greedy woman and her secret corporation have taken the greatest gift we could offer to the world, and turned it into a farce, a façade, a lie. She forced those of us afraid to challenge this injustice into obligations that robbed us of hope.

Twenty years of my life have been taken from me, exploited, and destroyed; My reputation ruined by slander, and blindness, and the rewriting of a profoundly beautiful history to wipe the truth from the pages of relevance in a vain and arrogant attempt to own a delusional messianic nightmare based on an outright lie.

My contributions to the history of my culture and my local community developed in British Columbia; and the real significance of it’s impact on the greater cultural evolution have been vainly and disrespectfully wiped from the history books, and replaced by a superficial lie.

I have nothing but disdain for Decommodification LLC (et al), and will never be party to it’s deplorable deception. I will not be party to the death of a once beautiful cultural relationship, and cultural relevance.

Yet, a compromise has been reached.

An agreement has been forged that protects the ancient rites from the delusional claws of this sadistic attempt to “own the exclusive rights to a culture”.

I hold hope in my heart, and feel at peace moving forward. After years of enduring the stunning realisations of what is happening, why it’s happening, and how it transpired, I have found a compromise that can let me live with my conscience cleared and in relative peace.

I can close this ugly chapter and concentrate on what matters. The love of my son, the love of my wife, and the unfettered joy we will have without the looming shadow of this American Corporation and it’s domineering, vengeful, and deceptive practices.

We are no longer party (in any way) to the cultural exploitation of this “contractually obliged brand cult”.

I leave you with this on Christmas Day, the day of The Gift, to remind Decommodification LLC of the vitriolic and divisive darkness they have spread under the guise of “gifting”, and the heavy conscience they must live with on what should be a day of peace, forgiveness, and kindness.

Before this transpired they were given the greatest opportunity to have a dignified and mutually respectful relationship with Canada.

They choose greed, and get the empty remains of the fading echo of the past. The greatest gift slipping through their fingers, greased by money, and replaced by ignorance.

Good bye forever to this deception.
Napalm Dragon
Avante-Garde Artist, Impresario, and Sacred Clown.

[Source: Gofundme]

 


[Update 1/14/16 2:00pm PST]

Anon wanted links to the court documents. Here’s one. If anyone else has any, please share.

Analysis: 2014 Burning Man Project Financials [Updates]

sherlock_1870625

Image: Burning Man Project

Image: Burning Man Project

BMOrg have finally released the financial information for the Burning Man Project for 2014, beating our estimate that we’d have to wait until 2016 by a whole 2 weeks. They have provided a lot of commentary and analysis to go with the IRS Form 990. They are required by law to share this form with the public now that they are a tax exempt non profit. This has always meant that we the Burners would get access to some information about the inner workings of Burning Man that we had never seen before – in particular, revenue numbers and salaries of high-level insiders.

The IRS 990 data is accompanied by an Annual Report.This is in addition to the 2014 Afterburn Report.

This combination of legally required form, commentary, and an annual report is a step in the right direction of transparency. It is certainly much more than many non-profits provide. BMOrg should be applauded and encouraged for moving in this direction, as they told us they would in 2011 and promised again in March 2014 when they revealed the mysterious Decommodification, LLC company that owned everything and was/is still private.

So how transparent is it? How accurate is the commentary? And are there any juicy details?
Here is our previous coverage of the 2013 and 2012 financials.

Some quick 2014 stats:

Population 65,992

Volunteers: 7,500

Paid Burners: 896

Registered art projects: 311

Honoraria art grant funded projects: 61

Mutant Vehicles: 652

Regionals participating in the Souk: 24

Regional Events in 2014: 65

Placed Theme Camps: 975

Walk-up volunteers: 902

Volunteer Departments: 32

Attendance has slipped, down from 69,613 in 2013 to 65,992 in 2014. There was a minor change in the interpretation of “paid participants” in the permit, if you add in the 896 people who get paid to do Burning Man and the 7,500 volunteers we’re up to a city size of 74,388. Plus cops, dogs, robots, and kids.

In the previous financial charts, shared in the Afterburn reports, we did not get Revenue information. We had to ask pros from companies like the North Shore Advisory to decifer spending patternes and other information, we had to infer that from ticket sales, a task made easier with an allegedly sold out event. So that is a positive step for transparency – one that was required by the IRS. We also did not get a detailed list of the salaries of Founders and senior executives before now.

We did get quite a detailed breakdown of expenses: 42 categories.

This has now been reduced to 19 categories.

The effect of this has been to greatly reduce transparency. How, you ask? Well, let’s look at some of the more glaring anomalies.

  • We can no longer see how much gets spent on Fire Safety and Medical Services
  • We can no longer see how much is spent supporting the Regionals.
  • We don’t know how much was spent on The Man
  • Donations to Local Schools in Nevada seems to have been totally eliminated.
  • The cost of fuel is no longer tracked separately.
  • Utilities, Internet, and Phone are now all lumped together, and thus less visible. This is not aligned with the “be more environmental” post we got last week.
  • Food costs have greatly reduced, and the cost of sales for ice and the cafe seem to be lumped in with that too.
  • There is no sign that any money spent on ice and coffee is given to charities.
  • We can’t see how much gets paid to local agencies, and how much to the BLM. The Permit fees of $3.65 million were less than expected from the Chocotacogate numbers.

These are just a few examples, there are many more expenses that have also been hidden. Basically, 23 expense categories that we now can’t see because they’ve been eliminated by lumping them together with other expenses.

Some new information has been revealed, but only because it is legally required. Other information that we used to get every year, that would indicate to us that the pool of Burner money being collected by this group of companies was being well spent – that has been obscured.

We now get to see who the true big-wigs are on the payroll:

Marian Goodell $276,913

Larry Harvey $232,381

Harley Dubois $212,671

Crimson Rose $171,069

Doug Robertson (CFO) $167,267

Ray Allen (general counsel) $158,574

Charlie Dolman (runs Burning Man event) $150,673

Heather Gallagher (IT) $136,384

Heather White (Managing Director) $130,535

Stuart Mangrum $130,045

Will Roger Peterson $79,604

Michael Mikel $76,072

Total: $1,922,188

plus Board of Directors

Terry Gross (legal services) $192,153

Jennifer Raiser (annual report) $34,605

Kay Morrison (art grant) $8,500

Insider Total $2,157,446 (6.7% of revenues)

CFO Jennifer Raiser got paid $34,605 for producing the annual report. That would be quite a lot of money just for a single IRS form, but it seems all of that work was done by others – this contract is presumably for writing the report that accompanies the form. Total accounting costs to count the money and fill the form out were ten times that, $319,363.

Screenshot 2015-12-17 22.07.43

Board member Terry Gross got paid $192,153 for legal fees, on top of Ray Allen’s salary and about a third of the $518,931 total legal expenses. He generously gave them a 20% discount to his usual super-lawyer rate.


Here is a comparison of the financial charts of the last 3 years. 2013 and 2012 Burning Man event revenues are estimates.

2014 bmp comparison financials 2013 2013 burnersdotme 2

We can see the Medical services from the list of 5 largest contractors:

Screenshot 2015-12-18 00.44.40

Bruno’s makes $400,000 a year in revenue from Burning Man, and is still for sale.

There is another contradiction, with the $1,415,645 bill to Spectrum Catering for Food Service listed in the tax return, and the $1,199,534 reported in the Annual Report.

Lawyers and Accountants has gone – I’m assuming that has moved to “Contractors”. The information is separated out in the 990, the 2014 total is $838,294 – back to around 2012 levels.

Costumes has gone, there is a new category “Performance Supplies” – I’m assuming that is the same.

The royalties is to Decommodification, LLC, for licensing the Burning Man trademark.

Taxes, License Fees, Interest – as a 501(c)3 non-profit, they don’t pay tax; they don’t seem to have a lot of long-term debt, so what is this for? It’s about half a million a year.

“Toilets” I’m assuming is now part of “Safety Equipment/Services” and not “Heavy Equipment Rental”

“Medical Services and Supplies” is now “Safety Equipment/Services”


Contradictions in BMOrg’s Version

Here’s what they say:

Some highlights from 2014:

  • Black Rock City, our primary annual event and largest program, brought 65,992 participants together from 80 countries for 8 days of mind blowing creativity and participatory community building.
  • Burning Man Arts supported the creation of more than 100 artworks on and off playa through over $1.1 million in grants and support services.
  • In terms of Civic Engagement, Burners Without Borders celebrated its 123rd grassroots initiative and has 17 active chapters nationwide.
  • And our Global Network of over 250 Regional Contacts hosted the 8th annual Global Leadership Conference and our first ever European Leadership Summit.

And straight away, we find a contradiction between the form and the narrative.

It was not $1.1m of grants – according to the tax return, a total of $911,955 was paid in Grants. If $200k of in kind support is there somewhere, I can’t find it.

And what about the 80 countries? A contradiction with the CEO’s Letter, which says 68 countries:

Screenshot 2015-12-17 22.59.23

In their FAQ and tax return, they say

Screenshot 2015-12-17 21.11.33

But their own expense chart says

Screenshot 2015-12-17 21.10.05

So there is $172,135 gone missing somewhere. [see Update below – there are some adjustments with BRAF]

$23,227,579 was spent on programming costs related to Black Rock City. Another $7,634,810 was used to support management and general expenses of Black Rock City and our off playa programs. Funds remaining after covering the cost of producing Black Rock City stay in the community and are used to fund Burner projects and initiatives (for more detail check out our 2014 Annual Report). This includes year-round staffing and infrastructure to support the administration and management of our Black Rock City Honoraria and Global Art Grants, Burners Without Borders projects, the annual Global Leadership Conference for Regional Contacts and community leaders, and the annual leadership summit in Europe for the growing Burner community there. What do we not spend money on? Advertising and promotion (not a dime).

These numbers don’t add up either. $23,227,579 + $7,634,810 is $30,862,389. A different number again, one that appears nowhere else in their calculations or mine, or in the IRS Form 990.

Screenshot 2015-12-17 21.19.29

The IRS Form 990 says total expenses of $30,013,511, and a “profit” of $2,350,498. My spreadsheet, and Burning Man’s, says expenses of $30,185,646, which would leave a profit of $2,178,363.
Screenshot 2015-12-17 21.25.29

You’d be forgiven for thinking, having read this, that $25,118,300 is how much the Burning Man Project spent directly on programming in 2014. But didn’t they just say it was $23,227,579?

Looking at this another way: Burning Man the event brings in $30,679,219, and it cost $23,227,579. If that was all the Burning Man Project did (throw Burning Man), then it would make $7,451,640 profit. Having “BMOrg” there to do all the things they do year round AS WELL as the event, costs another $7,634,810. So we’re actually behind. Luckily, donations and other revenue came in.


What are they doing with the surplus? Either this means something different from how it reads, or they are spending more than half of it on lobbying politicians. For what?

Screenshot 2015-12-17 21.30.44

$33,000 of the $911,955 grant money was spent on 4 overseas projects:

Screenshot 2015-12-17 21.33.17

The bulk of the overseas money, $24,000, went to David Best’s Temple in Ireland.

Screenshot 2015-12-17 21.35.23

Two grants of $15,000 were also in support of Best:

Screenshot 2015-12-17 22.01.52

Burners Without Borders got support for 8 projects in the Phillippines. I guess money goes a long way down there, because the total grant to all the projects was $4,000.

Screenshot 2015-12-17 22.04.32

As regular readers of this blog will know, they also have been out there saving the world through speeches and panel discussions.

Screenshot 2015-12-17 22.05.59

35, to be exact:

Requests for speakers and panelists from the organization continued to increase across geographical lines and sectors of interest. Leaders from the organization represented Burning Man in 35 speaking engagements, introducing aspects of Burner culture to a broad cross-section of professional and public audiences. These included two TEDx talks from CEO Marian Goodell, presentations by Chief Transition Officer Harley K. Dubois at The Feast and DLD Cities, a presentation at the Long Now Foundation by Chief Philosophical Officer Larry Harvey, and a keynote by Black Rock City Event Operations Director Charlie Dolman at the Project Management Institute’s annual conference.

Burning Man culture and methodology has proven to be of great interest to diverse audiences including municipalities, nonprofits, corporations, and organizations devoted to civic engagement, the arts, volunteerism, and process management. Burning Man representatives participated in conferences and public events — teaching and sharing the Burning Man story — including the Skoll World Forum, the Whole Earth Festival, San Francisco Earth Day, the Commonwealth Club of San Francisco, San Mateo Innovation Week, and South By Southwest Interactive. Burning Man also hosted several outreach events at our offices in San Francisco, including a well-attended panel discussion on pop-up urbanism and temporary spaces

Was this a worthwhile fundraising activity?

Screenshot 2015-12-18 08.47.11

So they used $57k of grants for this – 6.2% of the total. It cost $234,520 and brought in $10,108. No word on how many lives were transformed for that.

Other outreach activities seem to have fared better. They netted $223,501 from the Artumnal, Decompression, and 3 other events.

Screenshot 2015-12-17 21.37.17

What of the “In Kind” contributions to art grants?
Screenshot 2015-12-17 21.38.48

25 BRC artists without LLCs shared $372,600 of cash grants an average of $14,904 each. One community-based project got $7,500. There were no non-cash contributions to any of these, nor to the LLC grant recipients. How BMOrg managed to inflate $827,000 of art grants to $1.1 million of donations is a bit of a mystery.

The big grant recipients were:

art grants 2014

It looks like David Best got a total of $119,000 – about 13% of the whole pie. Other perennial favorite grant recipients like Flaming Lotus Girls, Iron Monkeys, Jen Lewin and Box Shop all got the nod once more. Board Member Kay Morrison got a $8,500 Honoraria art grant.

An interesting tidbit here – BMOrg wants the IRS to know that they get the Intellectual Property transferred or licensed to them…

Screenshot 2015-12-17 21.50.40

…at least the rights are going to the Burning Man Project and not Decommodification, LLC.

Royalties of $75,000 were paid to Decommodification, LLC for use of the Burning Man trademarks. They have reiterated their intention to donate this company to the Burning Man Project in 2018.

Screenshot 2015-12-17 23.01.55

Black Rock City, LLC appears to be the owner of Black Rock City Properties LLC, which owns $1.2 million of real estate.

Screenshot 2015-12-17 22.11.18

There is also Gerlach Holdings LLC, an insider company that the Org rents real estate from:

Screenshot 2015-12-17 23.04.43

Ticket Services Expenses were $768,219. This has been lumped together in BMOrg’s accounts summary with a mysterious charge of $1.34 million in “merchant bank fees”. One reader has suggested this could be “credit card processing fees” – if so, BMOrg or Ticketfly may want to renegotiate their merchant facility, because 4.15% seems a little high.

Screenshot 2015-12-17 22.46.29


Image: Burning Man Journal

Image: Burning Man Journal

So how much of your dollar goes to supporting artists?

Screenshot 2015-12-17 22.15.28

You could be forgiven for thinking, if you read that, that $0.58 of your $1 went directly to supporting artists in the form of grants.

But wait a minute…

Screenshot 2015-12-17 22.17.13

Doesn’t that mean $0.84 out of each $1 goes to support artists?

Sadly, no. This 83.69% number includes Burning Man. They sell tickets – it’s not tax deductible for us buying them. They put on the party, travel around the world doing panel discussions, pay $827,000 towards the art on the Playa, pay themselves around $11 million in salaries. After all this, at the end of the year, there’s a left over pile of about $2.5 million bucks. So about $33 of your ticket money is just going to add to that pile, while only $13.82 gets actually handed out as grants to Artists.

Grants of $911,955 on revenues of $32,364,009 is 2.8% 

So yeah, when you buy a ticket to Burning Man, a lot of the money gets spent putting on Burning Man. That doesn’t make them some kind of philanthropic heroes. The way I calculate it, for every dollar we hand over to the Burning Man Project, 2.8 cents goes out again in the form of Art Grants. That seems more like 97.2% inefficiency, than 84% efficiency.

Another way to look at it, is leaving Burning Man aside, how much of the pure donations went back out to Art Grants? Leaving aside “Other” and “Other Misc” and “Other Program Revenue”, because I don’t know what those are, and just looking at Donations and money from fundraising events and merchandising, gives $1,355,710.

And how much went to non-Burning Man art, and projects spreading the mission of the Project in The Mission?

Well, we get some more contradictory numbers from the 2014 Annual Report (Arts section)

Screenshot 2015-12-17 23.15.13

There is another contradiction here: the arts report says grants went to 80 playa artists, elsewhere in the report it says 61.

Working backwards, $911,955 in grants minus $827,000 of on Playa grants = $84,955 of grants that went to non-Playa artists. That’s 6% of $1,355,710.

Of the surplus generated from revenues less expenses, $2,350,498 according to the first page of the IRS 990 form, the grant amount is 38.8%. Much less than the 84% efficiency they are boasting about.

The $675,000 of in-kind installation and support services mentioned by Burning Man Arts don’t show up in the tax return, and this number doesn’t add up to the $1.1 million of grants claimed.

BMOrg used their resources to promote Jennifer Raiser’s book, making it an Amazon.com best seller and selling 14,000 copies, but this didn’t merit a mention in the “Conflict of Interest” section – just the $34k for putting the annual report together.

Buried in the arts report above is some really good news: they found a non-profit that will provide insurance to artists.


In summary. Is it a step in the right direction? Yes. Is it more transparency? Yes in some ways, no in others. Overall, it is less transparency. It’s harder for us to see what’s going on, and there is a big disconnect between what the numbers say and what the commentary says.

“We’re achieving our mission because Burning Man”…doesn’t work if your mission is to spread Burner values beyond the NV Burn. 2.8% of revenues goes to art grants, that’s the real bottom line here.

Is it a “clean well lighted suite of rooms”? That’s not how I would describe it. Does it reveal any skeletons? Not yet, that I can see. Just more spin from the Propaganda department.  What do you think?


[Update 12/18/15 8:37am]

There is some confusion in that the Black Rock Arts Foundation was only assimilated into the larger Burning Man Project in the middle of 2014. They have filed their own IRS Form 990, but that has not been made public. We will have to wait until it comes up on Guidestar to piece together what really happened. You can read BRAF’s 2014 year in review here, but there is no financial information.

This might be able to explain the discrepancies between 61 funded Honoraria projects and 80; between $911,955 in grants and $1.1 million claimed; and $675,000 of “in kind support” that Burning Man Arts say they provided but I can’t find any evidence of in the tax return.

Screenshot 2015-12-18 08.41.50

The anomaly of $172,135 is explained by this, at the very bottom of their FAQ. I must have missed it last night.

Screenshot 2015-12-18 08.43.01

This means that the higher expense figure we are using in the spreadsheet here is more accurate.

It looks like BRAF made a net contribution of $176,663 and had $633,053 of expenses, including the $287,836 in grants they disbursed. How this matches up with the claims in their pie chart that they spend 75% of their funding on program services is a mystery to me, perhaps someone out there can shed some light.

Was their “total grants awarded” therefore $911,955 + $176,663? It adds to $1,088, 618, they said:

  • Burning Man Arts supported the creation of more than 100 artworks on and off playa through over $1.1 million in grants and support services.

If this is how they came to the figure, then “support services” must have been $11,382 – different from the $675,000 of support services and in-kind contributions claimed in the annual report. If this is the case, then BRAF’s Civic and Global art grants of $287,836 mean the contribution to on-Playa art was actually $812,164, not $827,000.

Cost of Goods Sold looks to have been $521,794, of which $477,770 was for ice.

Screenshot 2015-12-18 09.08.54

Screenshot 2015-12-18 09.14.47


[Update 12/18/15 11:11am]

They are sitting on $6,068,794 in cash and equivalents.

Here’s the 2010 Afterburn Financial Chart, which is no longer available at Burning Man’s web site. 2009 is also hidden.

I have updated an earlier spreadsheet I made tracking BRAF and BMP combined, to add in the Honoraria art grants for previous years. Viewed this way, total grants have either gone down slightly from 2013 (combined $931,836) if you go by the 2014 tax return figure of $911,955; or increased 28% ($1,199,791 combining BMP and BRAF numbers as per the Burning Man Arts Annual Report). Confusing, isn’t it?

Screenshot 2015-12-18 11.08.54

[Update 12/18/15 1:01pm]

Here’s art compared with lawyers and accountants over the past 6 years. Note this assumes that Jennifer Raiser’s fee for preparing the annual report is included under the Accounting total, and Terry Gross’s fees are included in legal (but not Ray Allen, he is payroll/contractors).

Screenshot 2015-12-18 13.00.08


[Update 12/19/15 2:06pm]

Nomad Traveler queried into the $14.2 million in assets the Burning Man Project has, and how it could have grown nearly $7 million in a year, when “only” $2.1 million of profit was generated.

Here’s the Balance Sheet from the IRS form:

Screenshot 2015-12-19 14.10.14

The “net worth” of Burning Man, assets minus liabilities, is $9.62 million.

The Burning Man Project ended 2014 with $14,243,495 in total assets, and $4,620,573 of liabilities.

This year, they are holding $4.2 million in intangible assets. What could this be? The trademarks are owned by Decommodification, LLC – as far as we know. This large asset wasn’t there last year, but another whopper was – investment in securities of $7.4 million.

I can’t find any narrative or explanation in the accounts or the annual report for the change in the nature of these assets. However, their cash at hand did suddenly jump up – from $198,205 at the beginning of the year to $2,080,043 at the end. It looks like a bunch of assets were cashed out, and the Project ended up with some very valuable intangible assets and millions in cash. What those assets were, is up to you to speculate, dear reader – or perhaps someone from BMOrg will be kind enough to explain in the comments.

[Update: A Balanced Perspective thinks the $7.4 million is the donation of Black Rock City LLC to BMP from the Founders; this is now accounted for as Goodwill, being the $7.4 million less the value of the Fixed Assets.]

The assets include $3.4 million of Land, Buildings and Equipment – netted down to $3 million after Depreciation. Specifically:

Screenshot 2015-12-19 14.29.26

Of the liabilities, the $276,000 represents payments of $46,000 to each of the 6 Founders of Burning Man, for their share in Black Rock City LLC. That’s all they got for 20-30 years of work…that plus a couple of million a year in salaries, a tax deduction, royalties for Decommodification LLC, and the typical benefits that accrue to executives of a $30 million corporation like travel and expense accounts.

The biggest liability is Accounts Payable of $2.45 million. Since a company with $2 million cash in the bank and another $4 million close at hand should be able to pay its bills, I suspect most of this is to the BLM for the annual permit fees, some of which are not due until months after Burning Man.

There is a secured mortgage or note to an unrelated third party, of $1.6 million. This is also new. Bank financing related to the $3.4 million of real estate and other assets on the Burning Man Project’s balance sheet, or the related companies Gerlach Holdings LLC and Black Rock Properties LLC? Maybe someone lent them some cash and that’s why they’ve got $2 million in the bank. They also hold on to a list of expert credit repair companies, it seems a little unnecessary when there’s an average of almost $3 million a month flowing into the company.

BMOrg claim “nobody’s getting rich off Burning Man”, and perhaps it’s true that the 6 Founders themselves couldn’t figure that out over three decades. They’ve been surrounded by some of the most successful capitalists in history at the epicenter of wealth creation on the planet; perhaps they were too shy to ask one of the many Billionaire Burners paying them homage over the years for help or advice. As a businessman myself, I look at Burning Man and I see a lot of money being made. Millions in fuel, rental, insurance. $50 million a year estimated spend by Burners just in Nevada – not to mention California, New York, and the rest of the world. I see thousands of places where ads are being sold around Burning Man-related content: Facebook, Google, YouTube, Huffington Post, Business Insider, the Daily Mail, and so on.

Did the Founders miss out on the gold rush? And if so, why? Altruism? Ignorance? Dysfunction? Or perhaps they didn’t actually miss out. We can’t say, because it hasn’t played out yet. For some reason, this handover is taking many years, and it is only now, as we enter 2016, that the simple transparency of a set of accounts is being shared with Burners. Assuming that IRS compliance now, shows that there has been the same transparency for the previous 29 years is a clear sign that you have sipped too much from the Kool Aid dispenser.

We don’t know the full details of the hand-over transaction, and not only that: we don’t know why we don’t know. “Oh we want to assure that the business is in good hands and it won’t all be absorbed by the State if it goes bankrupt” is the party line…but doesn’t explain the secrecy, or the continued wait to 2018 (when this transaction is presently scheduled to happen) and more likely 2020 (when they will perhaps disclose some limited details of the transaction).


[Update 12/19/15 4:08pm]

And another thing…

Where is the Vehicle Pass revenue? Is that just part of “ticket revenue”? There should be 27,000 or more passes at $50, or $1.35 million. That is to say, much more than the entire combined art budget at Burning Man and around the world.

If this were broken out separately, it would be more useful in assessing the environmental performance of the business. Remember when vehicle passes came in? They were sold to us on the basis of BMOrg might have to pay for road repairs. Wonder what ever happened with that?


[Update 12/19/4:36pm]

There’s a shoutout to Burners who have made donations in the Annual Report. There are a few high profile names in there, including 2 Rockefellers,  2 Russells, and a Pritzker.

All these Burners’ names will now be publicly linked with Burning Man forever thanks to Google, hope they were expecting that at the time of Gifting…