Folk on the Rocks Faced $274K Deficit Ahead of 2025 Festival — But Organizers Say There’s a Path to Recovery
YELLOWKNIFE — One of Canada’s most iconic northern music events, Folk on the Rocks (FOTR), was facing a daunting $274,087 deficit before launching this year’s festival. But despite the stormy forecast — both financial and literal — organizers believe there’s still a path to recovery.
“We’ve had a couple of challenging years,” said Teresa Horosko, executive director of the festival. “The number can be shocking. But I fully believe that we’re going to be able to make it through it.”
Storms, Setbacks, and a Pandemic Hangover
The festival’s opening night was cancelled due to a thunderstorm, a move Horosko called a “devastating financial loss” since Friday typically brings in about one-third of on-site sales. That blow added to a multi-year struggle following COVID-19 shutdowns, shrinking arts grants, and general rising costs.
While FOTR ended the pandemic’s 2020 fiscal year with a $17,000 surplus, things quickly deteriorated. The festival recorded a $21,000 deficit in 2021, which nearly doubled in 2022. In 2023, after changing accounting methods and settling a legal dispute with a former executive director, the festival’s deficit ballooned to $391,000 by March 2024.
What Went Wrong in 2023?
Although the pandemic was largely over, legal complications lingered. Documents revealed former executive director David Whitelock, who once sued the festival for wrongful dismissal, reached an out-of-court settlement in 2022. While terms remain confidential, Horosko acknowledged the agreement carried “financial ramifications.”
Breaking Down the Budget
Despite its deficit, the 2025 festival saw strong ticket revenue — $412,000, the highest in years. Grants and donations brought in over $480,000, while food and drink sales added nearly $121,000 more.
But the festival’s spending was just as robust:
- Personnel: $284,000
- Performers: $192,000
- Sound: $74,000
- Food and drink supply: $71,000
- Marketing: $56,000
- Merchandise: $50,000
Even the merchandise — which earned $45,000 — couldn’t balance the cost of running the event.
A Long Road to Recovery
Horosko says the deficit doesn’t need to be erased immediately. Payment plans are in place extending into 2028, and the organization is looking to fundraising events, sponsor partnerships, and community support to make up ground.
The team is also offering refunds for Friday tickets, but they’ve asked fans to consider donating that money back if they’re able.
“We’ve done a lot of great work in a year, but there’s a lot of work that needs to be done,” Horosko emphasized.
Support Still Needed
Folk on the Rocks isn’t alone — other Canadian festivals like the Regina Folk Festival have folded under similar pressures, and even larger events like Vancouver Island Music Festival paused in 2023.
Despite the uphill battle, Horosko says transparency and community support will be critical in keeping FOTR alive.
“We aren’t out of the woods yet.”
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