Burning Man 2018 Financial Analysis

2012 2013 2014 2015 2016 2017

2018 Burning Man Project IRS Form 990

The Burning Man juggernaut smashes on. Since they declared the business a “non-profit”, it sure has become profitable.

Commodification Camps are running rampant, and Black Rock City has become one of the world’s most sought-after selfie destinations. BMorg even has its own private airline now to bring in the “high” rollers.

Sales were $46.6 million, up $2.1m from 2017. A cash surplus after expenses of $2.6m was generated.

A record of $2.2m in grants was given out; offset by $1.75m in donations and government grants received. About a third of the grants went outside the United States.

The Org ended the year with net assets of $26.26 million. Cash at bank was $8,981,108 with additional savings and temporary cash investments of $5,468,564 – call it $14.5 million.

It’s not enough, of course: ticket prices must still be increased every year.

We predicted that top-tier tickets would be above $2000 by 2020. We’re pretty close – adding in vehicle pass, handling fees and taxes, VIP tickets that were $390 when we started this blog in 2012 are now going for $1760.86.


Financial Comparison – 2018 to 2014

The organization employed 946 people and approximately 10,000 volunteers.

They have 16 directors; 11 of those are “independent”.

In 2018 Dennis Bartels was appointed Chairman of the Board. He was formerly the director of the SF Exploratorium.

One thing that I was highly skeptical of has now come to pass, and I’m pleased to report that BMorg did the right thing:

Finally, in 2018 we completed the transfer of Burning Man’s trademarks from Decommodification LLC to Burning Man Project. These marks include “the Man” logo and the names “Burning Man” and ‘“Black Rock City,” among others. The LLC was established to temporarily protect these words and symbols of Burning Man culture, in order to limit their commercial use and comport with our Decommodification Principle, while our new nonprofit got off the ground (more info here). With the Project well-established by 2018, the trademarks transferred on schedule in April.

Source: burningman.org

Perhaps the intense scrutiny from this site helped to keep everyone honest.

BMorg are grumbling about a 2-cent per gallon water increase which would see the local town of Gerlach making $25,000 from water sales instead of $18,000.

“Unnecessarily increasing the price to consumers will drive business away,” said Burning Man Associate Director Chris Neary in a statement at a Dec. 5 meeting with the Gerlach General Improvement District, an 8-person board.

The money earned from Burning Man for water would help to pay off the loan that the town had to take out for the federally mandated water treatment facility, which cost about $1 million to construct, Jackson said. It costs another $40,000 or so each year to maintain the treatment facility, not including labor, Jackson said. 

“I thought maybe Burning Man could add $1 per ticket for Gerlach. That would be great,” said Jackson, who suggested the dollar could go toward infrastructural improvements. “But they said no.” Burning Man representatives at the December meeting said that they were grateful for Gerlach’s resources, but it seemed unfair for the expense of a municipal water system to fall on Burning Man’s nonprofit. 

Source: Reno Gazette-Journal

The hypocrisy of these people knows no bounds. “An increase in ticket price of $1 will drive consumers away”, when it comes to the local town of Gerlach that they invade every year. Yet an increase in price of hundreds of dollars over the last few years has only led to record population counts in Black Rock City, and record revenues for BMorg. $1 per ticket would be 0.17% of revenues – less than a tenth of what they spend sending their staff around the world.

The Org are also suing the Federal Government in an attempt to reduce their permit fees.

They still haven’t figured out what to do with Fly Ranch, which they acquired in 2016 for $7 million of Other Peoples’ Money. There’s a new contest for Burners to come up with ideas.


Other Statistics

Thanks very much to our Pershing County source who provided these graphs. Some of the information is available thanks to their FOIA requests.

Note: there is 2019 and even 2020 data included here. The financials above are from 2018.

Maybe a tiny slice of those bumper profits could be shared with the local communities that have to deal with the year-round consequences of this rave in the desert. You know…to make the world a better place.

[Featured image: Rene Smith]

BURNILEAKS: Sexual Assaults, Missing Kids and Violent Crime

Something that BMorg are always attempting to hush up are the details of the annual arrests. It used to be reported every year in the Reno Gazette-Journal, but since they appointed dedicated Burning Man beat reporter Jenny Kane that type of coverage has stopped. We have to try to piece the information together however we can.

I filed a FOIA request in January to get the 2017 arrest data from the Pershing County Sheriff’s Office, but so far they haven’t even acknowledged it. Thanks very much to our source DS who sent us the 2015, 2016, and some 2017 information below. The information we received includes the names of all people arrested in 2015 and 2017 and what they were charged with, compiled from the local paper. Don’t panic! We won’t be publishing the names. We hope to get more 2017 information soon.

The official reports confirm a shockingly large number of sexual assaults – 15 in 2015, 11 in 2016 – and way more missing children than were previously reported. The rapes, not prosecuted; the children (thankfully) all found. No wonder BMorg wanted this hushed up. Sexual offenders who fail to register are a recurring problem. Kidnapping, attempted murder, assault with a deadly weapon, domestic violence, jailbreaks, and celebrities with armed bodyguards are all issues at Black Rock City. Don’t think that just because you’re “home”, that means you are safe – and don’t think for a moment that having a rule “no guns” means there are no guns there.

In fact, the Sheriff specifically states that he does not believe he can provide for the safety of Burners.

hot girl back

Image: Steemkr


BMorg vs PCSO

This has been an ongoing battle for many years. The cops think they should get more money as the festival gets bigger and goes for longer, BMorg thinks they should keep all the money for themselves to give to artists and make the world a better place. BMorg has big lawyers and political clout, they tell the Sheriff where to stick it, so to meet the budget required the Sheriff’s Office feels compelled to arrest and cite more Burners – to make their side of the argument stronger. “Look at all these criminals, our budget’s not big enough!”. Burners who pay $500-$1200 a ticket are thus used as pawns in an argument that people with $40 million per year of ticket money are having with local officials over 50 grand.

Screenshot 2018-05-07 14.13.52

Pershing County normally has a population of approximately 6,800 people within the County.  This population includes approximately 1,600 inmates incarcerated at the [gated community of the] Lovelock Correctional Center.  For this population, the Pershing County Sheriff’s Office has 13 full time Sworn Law Enforcement Deputies, including the Sheriff, to perform all of the duties statutorily mandated for the Sheriff’s Office.  This equates to approximately 1 Deputy for every 400 persons permanently residing in Pershing County, minus those incarcerated. 

During the approximate 10-12 days of the active portion of the Burning Man Festival, the population of just the Festival balloons to upwards of 80,000+ persons.  Still with only the 13 Sworn Full-Time Deputies within the Pershing County Sheriff’s Office.  Based on this population, it would appear the Pershing County Sheriff’s Office would need to have approximately 200 Deputies to provide similar staffing for the visitors to the Burning Man Festival. However, Burning Man provides approximately 800+ ‘Black Rock Rangers’.  These employees of Burning Man are mostly made up of volunteers, some of whom have very limited training, to interact with the population and attempt to mitigate issues before they rise to the level of a Law Enforcement Response.  Some of the Rangers are trained enough to provide a force multiplication, to a limited extent, for Law Enforcement. 


The Problem, In a Few Charts

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2015 Report – Highlights

  • 1 death before the event
  • 15 sexual assaults reported
  • sex offender failed to register
  • 6 children went missing – all found
  • incident with nude man and his nude 4 year old child at adult event
  • 1 arrest for kidnapping
  • celebrities bringing armed bodyguards
  • an inmate tried to escape from the temporary jail
  • event ran for 9 days, previous discussions were around 7
  • big load on Sheriff’s office while construction/tear down happening
  • year end load processing all criminal cases, court dates etc
  • “the comradery [sic] which was built during this event will extend through the state” – from cops, Feds, agencies working together
  • integration with Humboldt Medical Team, who were kicked out for CrowdRX

 

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You are more likely to get a citation from the BLM than the Pershing County Sheriff’s Office. The cops issued 143 citations and 175 verbal warnings. That makes 677 citations total for 2015, plus 43 arrests

Screenshot 2018-05-07 14.09.53


2015 Sheriff’s Report:

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2016 Sheriff’s Report – Highlights

The Sheriff actually says that after consulting with “entities” about Burning Man’s ability to deal with a critical incident like a mass casualty event, the results were “extremely dismal” and that he cannot in good conscience provide adequate safety to citizens attending the event.

Screenshot 2018-05-07 15.41.15

9 people including Burning Man organization employees were arrested on the site before the event began, charged with “possessing trafficking levels of narcotics”

Screenshot 2018-05-07 15.45.00

Other highlights

  • 46 arrrests (43 in 2015)
  • 152 citations (+326 BLM, total 478)
  • sex offenders failing to register
  • 11 sexual assaults reported
    • 1 arrest on playa
    • 2 reports after the festival, after victim returned to Reno and went to hospital for treatment – started by Reno PD
  • several reports of missing or lost children – not just the single Amber Alert we were told about, that closed exodus for 8 hours

2016 Sheriff’s Report

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2016 Burning Man Response

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2017 Crime Scorecard

Crime Statistics for previous years:

2016   2015   2014   2013   2012


Thanks to Anonymous Burner who sent this in on January 1st – not a day I am usually reading much email, so it slipped through the cracks. Thank you for the reminder, and thanks to One Who Wants To Know for asking if I’d run out of things to complain about – sometimes a bit of motivation helps, particularly in these dark days of Facebook shadow-banning.

Pershing County are not the biggest fans of Burning Man, as you will see from the Lovelock Review-Miner article below. A quarter of the county’s population are incarcerated in the correctional facility, including (until just recently) OJ “The Juice” Simpson.

Most of the time, Pershing County is a safe place with a low crime rate. But in August and September, their crime rate spikes to amongst the worst in the country. Burners make the whole County look bad. Burners might think “well they should be happy to have us, we are great for the economy” but this is only true for Washoe County, where Reno is.

We used to be able to read about arrests at Burning Man in the Reno Gazette-Journal, but ever since they appointed  Jenny Kane (of Chocotaco scoop fame) as their dedicated Burning Man beat reporter, stories like this seem to get hushed up.

Pershing County smashed through all previous records with a whopping 179 arrests in August and September 2017. Other than FOIA, there is no way to tell how many were for Burners, but based on the average for the remaining months of 4.9 we can safely assume it is 97%.

2017 pershing county unified crime report

What sort of things were Burners getting up to? 1 forcible rape, 2 larceny (theft), 6 arson…the rest drugs – selling them, or possessing hard drugs. The Sheriff says they have confiscated guns from within Black Rock City and are concerned that the event organizers are not able to prevent guns coming in.

2017 pershing county crime types

Looks pretty safe for stoners, you’re more likely to get a citation than an arrest. Be careful, though: even though marijuana is legal in Nevada, Burning Man takes place on Federal land – and we all know how much Attorney General Jeff “Smoke” Sessions loves weed.

The Cannabist: Can You Bring Weed To Burning Man?

Pershing County wants more money to cover the costs, which they incur longer than just for the period the gates are open. In a case of Allen vs Allen, BMorg says “$182,221 is enough” – ie, stick it where the sun don’t shine, Sheriff!

Burning Man’s spin-meisters made the argument that the legalization of weed would lead to reduced costs for the Pershing County’s Sheriffs Office. Looks like the cops responded with a record number of arrests – almost quadruple last year’s record setting 46, which was up 600% on the year before.

Once again, BMorg tries to pinch pennies from the LEOs, and the LEOs take it out on the Burners. A familiar pattern by now in this decade-long dispute.


From the Lovelock Review Monitor, story by Debra Reid (emphasis ours):

BLM requests public input on Burning Man

Thursday, December 28, 2017 1:00 AM

Pershing County residents and other concerned citizens are reminded that January 15, 2018 is the Bureau of Land Management’s deadline for public comment on the Burning Man festival.

The BLM must gather public input as it prepares an Environmental Impact Statement on the event. The EIS is required before the agency can issue another ten year Special Recreation Permit for the festival in the spring of 2019. The current SRP expires after the 2018 festival.

Black Rock City LLC, organizer of the event, is requesting that the new SRP allow expansions beyond the current maximum of 70,000 paid participants to a maximum population from 80,000 to 100,000 people on the playa, including ticket-holders, staff, contractors and volunteers.

To accommodate the larger crowd, BRC is also asking the BLM to expand the closure area. Some of the festival’s main attractions are the burning of massive structures, including a giant wooden effigy during the climax of the event. One Burning Man participant died at the 2017 event after he broke through multiple lines of security and leaped into the conflagration.

Nudity and drugs are not uncommon, making the event controversial in a conservative, rural county. Urban areas in Washoe and Lyon County benefit economically from the event while Pershing County supplies much of the law enforcement, incarceration and other services.

The 2013 Comprehensive Festival Ordinance Waiver, Law Enforcement and Settlement Agreement between BRC and Pershing County limits BRC’s costs for county services according to event attendance and integrated versus separate law enforcement command.

The ten-year agreement has become an ongoing source of contention between county law enforcement and festival officials. Even as the festival expands in 2019 and beyond, law enforcement payments to the county are restricted until the agreement expires in 2023.

Pershing County Sheriff Jerry Allen contends that the festival requires year-round attention and much more than eight days of county law enforcement services due to accidents and crime that occur during the weeks of set up, tear down and clean up before and after the event.

BRC officials respond that law enforcement activities outside the eight day festival are not included in the settlement agreement and are part of the normal costs of county government.

BRC has refused to pay an invoice for $39,959.20 submitted to the county by Sheriff Allen for county law enforcement costs due to activities before and after the 2016 Burning Man event. BRC General Counsel Raymond Allen argued that those expenses were covered in a total payment to the county of $243,964.92, per the settlement agreement.

“The decision to allocate $182,221.83 to the Sheriff out of the total amount that BRC paid to the County in 2016 was an exercise of the County’s sole and absolute discretion under Section 4.1 of the Agreement and was presumably based on what the Commissioners determined to be the cost of supplying ‘reasonable law enforcement services needed’ for the 2016 event,” Ray Allen stated in a letter to the county. “If the Sheriff’s Office disagreed with the Commission and decided to spend more than the amount that was allocated by the Commission, that decision had no effect whatsoever on BRC’s payment obligations under the Agreement.”

Sheriff Allen and other county law enforcement officials say they have confiscated guns inside the festival and question the ability of BRC’s gatekeepers to keep weapons out of the event.

Now that recreational marijuana is legal in Nevada, that should reduce citations issued at the event, Burning Man Political Affairs Manager Marnee Benson said in a letter to the county.

In 2016, 62 of the 152 PCSO citations issued in connection with the Burning Man event were for possession of less than an ounce of marijuana,” Benson stated in a February 1, 2017 letter.

“That is to say, 41 percent of Pershing’s citations were issued for conduct that is now legal in Nevada. We expect this will free up a significant amount of time and budget for PCSO in 2017.” [the arrest statistics for 2017 indicate otherwise – Ed.]

In his written comments on the event submitted to the BLM, Lovelock resident David Skelton said if Burning Man expands, it will be an increasing burden on Pershing County taxpayers.

As Burning Man provides no economic benefit to Pershing County, to the contrary, if Burning Man left Pershing County and went elsewhere, there would then be an economic benefit, due to cost reduction,” Skelton said. “There are multiple locations the event can be held on either public or private lands outside of Pershing County.”

Written comments on the Burning Man SRP should be emailed by Jan. 15, 2018 to blm_nv_burningmaneis@blm.gov or mailed to the following address:

Attention: Burning Man Event SRP EIS

BLM Winnemucca District Office, 5100 E. Winnemucca Blvd., Winnemucca, NV 89445.