Huge Nashville Music Festival Borrows Truckloads Of Money To Put On An Even Bigger Concert

We have learned that Bonnaroo is in the midst of raising debt financing, which we estimate to be between $10-$20 Million. We believe the financing is most likely for physical expansion and diversifying into other genres.

In 2007 the producers of the festival, Superfly Productions and AC Entertainment bought most of the land where the festival is held, but still lease almost 300 acres for parking and camping.  We believe there is a strong chance the organisers would like to own all of the land where the festival is produced. Given the growing number of stages at the festival we believe the organisers could want to expand the land where it is held. The main stages have always been “What Stage,” “Which Stage,” “This Tent,” “That Tent,” “The Other Tent,” and “of course “Centeroo.”  But in recent years the number of stages has grown tremendously with names like “Solar Stage” and “Lunar Stage” and many more.

The types of acts that have played Bonnaroo over the years has changed too. At first the festival was a showcase for jam bands. However, over the years the types of acts have expanded to rock, hip-hop, and electro. Acts that have played the festival recently include Arcade Fire, Kanye West, Nine Inch Nails, and Eminem. This year they added comedy acts Lewis Black, Cheech Marin, and John Waters.

We believe the festival is able to raise debt instead of selling equity for cash because financially it is thriving. For example, in 2009 it generated about $12 Million in profit on $30 Million in revenue, according to Businessweek. We expect it likely grew revenue since then. In addition, according to a study from Middle Tennessee State University’s Business and Economic Research centre the festival pumps about $14 Million in revenue into the county each year.

If that’s the case why doesn’t the festival try to get the county to help with some of the financing?

Bonnaroo was another smash this year with one of its most anticipated lineups ever. Check out a clip from Arcade Fire playing “Wake Up” with the full lineup below.

* Eminem
    * Arcade Fire
    * Widespread Panic
    * The Black Keys
    * Buffalo Springfield feat Richie Furay
    * Stephen Stills
    * Neil Young
    * Rick Rosas
    * Joe Vitale
    * My Morning Jacket
    * Lil Wayne
    * String Cheese Incident
    * Robert Plant & Band of Joy
    * Mumford & Sons
    * The Strokes
    * The Decemberists
    * Ray Lamontagne
    * Bassnectar
    * Iron & Wine
    * Girl Talk
    * Primus
    * Dr. John and The Original Meters performing Desitively Bonnaroo
    * Alison Krauss and Union Station
    * Pretty Lights
    * Florence & the Machine
    * Superjam ft. Dan Auerbach and Dr. John Explosions in the Sky
    * STS9
    * Gogol Bordello
    * Beirut
    * Big Boi
    * Scissor Sisters
    * Gregg Allman
    * Ratatat
    * Global Gypsy Punk Revue curated by Eugene Hütz
    * Robyn
    * Warren Haynes Band
    * Deerhunter
    * Opeth
    * Atmosphere
    * Old Crow Medicine Show
    * Bootsy Collins & the Funk University
    * Wiz Khalifa
    * Matt & Kim
    * Grace Potter & the Nocturnals
    * The Del McCoury Band and the Preservation Hall Jazz Band
    * Mavis Staples
    * Béla Fleck & the Flecktones
    * Chiddy Bang
    * Javanotti
    * Bruce Hornsby & the Noisemakers
    * Loretta Lynn
    * Cold War Kids
    * The Walkmen
    * Devotchka
    * Wanda Jackson
    * Neon Trees
    * Portugal. The Man
    * Sleigh Bells
    * Amos Lee
    * Best Coast
    * Dãm-Funk
    * The Sword
    * The Drums
    * The Black Angels
    * School of Seven Bells
    * J. Cole
    * Nicole Atkins & the Black Sea
    * Wavves !!!
    * Junip
    * Freelance Whales
    * Justin Townes Earle
    * Ryan Bingham
    * Deer Tick
    * Band of Skulls
    * Sharon Van Etten
    * Abigail Washburn
    * Omar Souleyman
    * Twin Shadow
    * Kylesa
    * Man Man
    * The Low Anthem
    * Alberta Cross
    * Railroad Earth
    * Jessica Lea Mayfield
    * Smith Westerns
    * The Head and the Heart
    * Karen Elson
    * Beats
    * Antique
    * 22-20s
    * Phosphorescent
    * Clare MaGuire
    * Hayes Carll

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.