Budapest’s Sziget Festival may happen next year, but time is running out and a lot depends on politicians

Last week, it became clear that the American investor backing the company organising the Sziget Festival no longer wishes to manage the loss-making event and is withdrawing from the market. There is a potential replacement, but first, the original company must terminate its land use contract with the city. The proposal has already failed twice last week.

Tomorrow, the mayor plans to seek approval from the Budapest City Council, but since the guarantees demanded by the Tisza coalition and Fidesz are still missing, the outcome remains uncertain. Meanwhile, Károly Gerendai, the festival’s founder, has already set up a new organising company and found at least one partner, but time is pressing.

The 2026 Sziget Festival could become impossible

According to 444.hu, a company named FestPro IoF2025 Befektető Kft. was registered on 20 October, created by Gerendai to save Sziget. He currently owns it exclusively, though Budapest Park’s leaders have joined to support the cause. Gerendai is searching for more investors, especially those whose business is intertwined with the festival and who stand to lose huge revenue if it doesn’t happen.

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Europe’s festival scene is facing serious challenges, mainly due to changing habits among festivalgoers, less alcohol consumption, and fewer people willing to engage in multi-day events amid today’s fast-paced, media-saturated world. As a result, the Sziget Festival has accumulated growing losses over the years, which the American-backed KKR investment fund behind the Sziget Cultural Management Office is no longer willing to handle.

The committee has rejected the proposal twice, despite the urgency

For Gerendai’s new company to take over the festival, the city must approve ending the previous organiser’s land use contract and sign a new one with his company. This proposal has failed twice in the city’s ownership committee. The main reason? The Tisza coalition’s representatives did not vote, but instead of switching off their voting devices (which would count as absent and not block the majority), they kept them active without voting, preventing a majority.

The explanation is stranger still: both Fidesz and Tisza communicated that they would only vote to terminate the contract if guaranteed with absolute certainty that the festival will take place next year. Currently, the future of Sziget is unclear, and no festival means the city loses out on hundreds of millions. Mayor Gergely Karácsony countered that under the current setup, the festival definitely won’t happen, so the city would gain no income — beyond cultural and tourism benefits — without terminating the contract first.

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Gerendai was equally perplexed by the committee’s decision and has repeatedly stressed that without a decision from the city, organising the festival will become impossible. For an event of this scale, ticket sales should already be underway and artists booked well in advance. Uncertainty like this puts organisers at a clear disadvantage and threatens future revenues.

Could foreign residents in Budapest also benefit?

Ultimately, tomorrow’s City Council meeting will decide everything. Karácsony called this the last chance to save Sziget, though he admitted on Facebook he cannot guarantee 100% that the festival will go ahead (which is unreasonable to expect). This leaves the votes of Fidesz and Tisza in doubt. Instead of guarantees, the mayor highlighted details in the land lease agreement, including discounts and half-price weekly passes for Budapest’s youth. He also promised to take measures against abuse. It remains to be seen who would qualify — whether this discount would be tied to citizenship or extend to foreign young residents studying or working in the city.

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