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How much does Austin make for ACL?
The Austin City Limits Music Festival generates about $500 million for the economy. But, the Austin-based company that produces the festival only pays the city $103,000 to use Zilker Park.
AUSTIN, Texas - The Austin City Limits Music Festival generates about $500 million for the economy.
But, the Austin-based company that produces the festival only pays the city $103,000 to use Zilker Park, which is millions of dollars less than what Chicago gets paid for the Lollapalooza festival.
How much does Austin make from ACL?
By the numbers:
In August, Austin Parks and Recreation Department signed a contract with C3 Presents, the company that puts on ACL. This allows C3 to use Zilker Park for the next 15 years, until 2040.
This year, the City of Austin received $103,530 for letting C3 use the park.
Parks Board member Pedro Villalobos says that's just one piece of it.
"In order for us to understand how C3 works and Austin Parks Foundation and the City of Austin work, you have to understand those different layers that go into the financial model, which I think ultimately benefit the city," he said.
Besides, the park use fee, there is a fee C3 pays the city per ticket. That was $1,472,736.00 for the year 0f 2024. Data from 2025 is not available yet.
$196,813.06 was reimbursed to Parks and Rec for staff labor and materials.
$22,500.00 was paid for post-event takedown days.
C3 donated $8.4 million to the Austin Parks Foundation. They've donated $71 million over the past 20 years.
"I think it's a great partnership. It benefits parks, it benefits the community, and it brings a great event to the city of Austin," Villalobos said.
Chicago's agreement for Lollapalooza
Dig deeper:
According to the economic impact report, in 2024, ACL contributed nearly $535 million to Austin's economy.
The agreement the City of Chicago has with C3 for Lollapalooza is a bit different. That festival is locked in at Grant Park until at least 2032.
According to FOX 32 in Chicago, Grant Park makes 5 to 20 percent of revenue, depending on how much the festival makes. The city makes at least $2 million for a four-day festival, and $1.5 million for a three-day festival.
Villalobos says Chicago gets a lump sum, and the city distributes to each department, whereas for Austin, C3 pays each department separately.
"I think the cities of Austin and Chicago are getting the same exact amount of money. I think that it's just a matter of how it's being paid out and how that's happening," he said.
The other side:
Ted Eubanks is also on the Parks and Recreation Board, but says he's speaking as a park professional.
"We should be getting the going market rate," he said.
He says fees for weekends of the festival and the setup/cleanup are different, but Austinites have to deal with the park being closed for a while.
"It adds up to a pretty significant period of time. I think that's one of the issues is that we've displaced the public from the Great Lawn, from the park for that period of time. Are we sure we're getting a good return on that investment?" he said.
He thinks the contract is something the board should've voted on.
"Before I commit to a 15-year plan, I kind of want to know where I am right now with all of this, and is this the best thing for the citizens of Austin? That's the issue for me," Eubanks said.
He thinks there should be more efficiency to know if C3 should be paying Austin more.
"It's time for an audit," he said. "I'm talking about a performance audit. Let's look at every piece. What do we do? How do we do it? Make sure that we can have the absolute best parks department in the country."
Austin Parks and Recreation Department responds
The Austin Parks and Recreation Department released the following statement:
"The current Austin City Limits Music Festival contract between Austin Parks and Recreation and C3Presents focuses solely on items related to the use of Austin Parks and Recreation property and amenities, and covers the next 15 years, eliminating the need for annual renewals. The contract contains a termination clause that allows either party to cancel with 30 days notice if necessary. Each year, specific event details such as dates, operational requirements, and applicable fees will continue to be determined through a scope of work agreement guided by the Event Contract."
Last week, Mayor Kirk Watson proposed a city-wide audit ordinance.
The Source: Information from interviews conducted by FOX 7 Austin's Angela Shen, coverage from FOX 32 in Chicago, and a statement from the Austin Parks and Recreation Department