*Essence Fest could be leaving New Orleans. As negotiations with the city drag on, organizers have approached officials in Houston and Atlanta about hosting the 2027 festival, sources told Perdido Street.
The festival has called New Orleans home over the July 4 weekend for more than 30 years. Its city contract expired in September.
Late payments are a major sticking point. For the second straight year, Essence has fallen behind on paying vendors. One out-of-state company owed more than $500,000 emailed Mayor Helena Moreno in October.
“Obviously, we are very concerned at this point as this is an extremely large receivable and we are a small Company,” the vendor wrote.
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Earlier this year, the festival owed the convention center and three local vendors more than $4 million for its 2025 event. It struck deals in March to settle those debts.
“Ensuring vendors are paid has been a consistent focus in every conversation with festival organizers. It’s disappointing that these issues continue to persist,” said Kevin Ferguson, Moreno’s chief of staff.
The city wants proof vendors have been paid and has offered a one-year contract extension. Essence is pushing for a multi-year deal. City officials also rejected its request for $10 million to $12 million in yearly subsidies as “simply unfeasible in this current environment.”
Kirk McDonald, CEO of parent company Sundial Media & Technology Group, said talks continue. He blamed some delays on $200,000 in civic payments still owed to the festival.
“Essence has paid approximately $11 million to Louisiana partners for the 2026 festival, and we are proud of the local businesses that helped build it with us. Many have been with us for years, and every one of them will be made whole,” he said.
If no deal comes together, the city may seek another producer for a July 4 weekend event. Essence says it wants to stay.
As EURweb reported in July, the festival’s future was already in question after a 2026 run headlined by Cardi B and featuring Michelle Obama. Fans made their feelings clear at the time.
“This is not the Essence [Festival] without New Orleans,” festivalgoer Willis said.
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