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Management in Action Fyre and Fury Imagine a world of surreal experiences and inspired curiosity that touches the sweet spot between imagina- tion and possibility... a place where the tropical sun shines all day, and our celebrations ignite the night This is a snippet from the marketing campaign for Fyre Fest, a luxury concert event that 20-something social ite/entrepreneur Billy McFarland and rapper Ja Rule conceptualized when they discovered the beautiful Bahamas' Exuma Islands in October 2016. McFarland had no experience producing live music festivals, but he had plenty of connections, knew how to raise money, and understood the power of messaging, Fyre Festival took off on social media less than two months later when Kendall Jenner, Bella Hadid, Emily Ratajkowski, and other influencers simultaneously Instagrammed the event's first advertisement. The video featured crystal-blue waters, yachts, and super- models "frolicking and dancing on a beach." Ticket packages ranged from $1.500 to $400,000 and included promises of luxury beach villas, treasure hunts, white- glove concierge services, and the finest gourmet food and drinks from famed restaurateur Stephen Starr-all on the private Exuma island of Fyre Cay that had once belonged to the late drug lord Pablo Escobar. The social media campaign was a massive success, and thousands of adventurous concertgoers quickly cashed in on the chance to be part of the extravaganza. What they got was anything but 251 there was barely service.-256 Attendees who weren't lucky enough to find hotel rooms on the island or transportation back to the airport slept on soaking wet mattresses and dined on sliced bread and cheese. They found their luggage piled inside a giant shipping container and searched for their bags in the darkness with cell phone lights. The event was a complete and utter disaster. Thousands of ticketholders eventually made their way off the island in a mass exodus marked by hunger, exhaustion, bewilderment, and anger. The only direct communication they received from the organizers was a single e-mail saying, "The festival is being postponed until we can further assess if and when we are able to create the high-quality experience we envisioned.257 Fyre organizers took to social media in the days that followed, blaming the weather and the Exumas' poor infrastructure for the fiasco. In reality. McFarland had tried to plan an unprecedented event on an unde- veloped construction lot. He failed his team, vendors, attendees, and the people of the Bahamas WHERE DID THINGS GO WRONG? A big event starts with a big idea-a concept for a theme, audience, and experience. A fairly standard process is then used to plan the event. Organizers first calculate a realistic idea of their financial resources, aligning all subsequent decisions with this budget. Sec ond comes logistics, which include searching for a venue; ensuring that the venue provides a safe and suit able infrastructure; securing any necessary additions, upgrades, and permits, contracting with vendors (cater ers, service staff, security, sanitation companies); and booking talent (musicians, performers). Third, and only after logistics are in place, organizers develop and distribute marketing materials and use those to sell admission. The process requires experience, exper tise, and a constant flow of communication among various stakeholders.29 McFarland did things his own way. He began by paying models and influencers hun dreds of thousands of dollars to advertise a fantasy. sold tickets to said fantasy, and repeatedly ignored in- formation indicating that he didn't have the time, money, or expertise to pull it ofl. The island of Fyre Cay didn't exist, nor did the lay- ish villas people had booked through the festival's web- site, and McFarland had repeatedly failed to find production firms that would execute the event on his terms. One executive recalls a familiar scene: "They [production companies] would say 'It's going to cost, like, 55 million to stage this thing, and the Fyre guys would say, "No, it'll cost $300,000. There was a com- plete detachment from reality. Six weeks before the event, "Nothing had been done.... Festival vendors FYRE FESTIVAL GOES DOWN IN FLAMES On Thursday, April 27, 2017, throngs of excited festi- valgoers began arriving in the Exumas. Organizers had arranged first-class transportation between the airport and the festival and a white glove service to deliver at- tendees' luggage straight to their reserved luxury villas. Instead, attendees rode on packed school buses to an unfinished, gravel-covered development plot speckled with emergency-relief tents. There was nary a villa, concierge, shower, or gourmet meal in sight. There were no celebrity sightings and no musicians because McFarland and his team, seeing disaster ahead, had already secretly alerted them to stay away. McFarland had sent no such messages to the rest of the attendees, who arrived to dashed dreams.15 Event staff told attendees, "It's every man for him sell," as they rushed to grab tents in a free-for-all. 254 "They had no way to communicate with anybody." said one attendee, who remembers McFarland standing atop a table frantically yelling instructions at the crowd.255 Another recalls everyone you spoke to had a different answer and no one knew who was in charge... there were no Iphone chargers or electricity outlets and reputation, saying, "We want to ensure that all stake- holders and guests know of the development and infra- structural capacity of this island" and, "It is our hope that the Fyre Festival visitors would consider returning to the Islands of the Bahamas in the future to truly experience all of our beauty. "265 FOR DISCUSSION Problem Solving Perspective 1. What is the underlying problem in this case from an event planning perspective? 2. What were the causes of this problem? 3. What recommendations would you make to someone trying to execute a similar idea in the future? weren't in place, no stage had been rented, transporta tion had not been arranged, according to former Fyre talent producer Chloe Gordon. Planners warned McFarland and his team that they didn't have the money to put on the event they had advertised and should instead roll tickets over to a 2018 event and begin planning it immediately. Gordon recalls a Fyre executive responding, "Let's just do it and be legends man." She quit a week later.261 Rumors began to circulate among entertainment industry professionals in the weeks before the festival, and on April 2, The Wall Street Journal reported grow- ing concerns about the event. Vendors, contractors, and artists were severing ties when they didn't receive pay- ment, and ticketholders were still in the dark about logistics.52 Maude Etkin, an interior designer and ticketholder from Manhattan, says Fyre hadn't responded to e-mails for weeks. Through it all, McFarland continued to promote Fyre Festival as a top- notch experience through his website and social media platforms, hanging onto his fantasy until the bitter end. TRIAL BY FYRE To date, vendors, employees, and attendees have filed at least nine multi-million-dollar class-action lawsuits against McFarland and the Fyre organization, citing fraud, breach of contract, and negligent misrepresenta- tion. McFarland took a plea deal in March 2018, admit- ting to two counts of wire fraud, forfeiting $27 million, and agreeing to federal prison time 264 The Bahamian Ministry of Tourism issued state- ments after the event in an attempt to salvage its Application of Chapter Content 1. What kinds of vertical and horizontal communica- tion errors did McFarland make while attempting to plan the festival? 2. What do you see as the biggest barriers to communi- cation in this situation? 3. How did McFarland's background and lack of experi- ence affect the way he processed the messages he received during planning? 4. Would you say McFarland was ultimately effective or ineffective at using social media? Explain. 5. Do you think McFarland could have successfully ex- ecuted this event if he had been a better communica- tor? What, specifically, would have to change? Legal/Ethical Challenge Was ESPN Fair in Firing Curt Schilling for His Social Media Post? Curt Schilling is a six-time professional baseball All- Star. His career record of 216-146 and his incredible 11-2 postseason performance earned him legendary status and helped him land a job at ESPN in 2010. He was fired from the network in April 2016 after sharing a Facebook post. Schilling is perhaps as well known for his lack of tact as he is for his ability to command a baseball game, and ESPN seemed to tolerate his often politi- cally charged comments during his tenure. According to Alex Reimer, a Forbes reporter, ESPN did not disci- pline Schilling for railing against the theory of evolu- tion on Twitter or for saying in March that Hillary Just before Schilling made the comment about Clinton, ESPN had issued a companywide e-mail directing employees to abstain from "political editorializing. per- sonal attacks or drive-by' comments regarding the can- didates and their campaigns." Schilling said the e-mail went to his spam folder. ESPN had, however, sus- pended him in 2015 after he tweeted a meme about Muslim extremists and Nazis. Schilling's ultimate firing was due to his sharing an anti-transgender image along with some commentary. The image showed an overweight man wearing a wig and women's clothing with parts of the T-shirt cut out to expose his breasts. It says: "LET HIM IN! to the rest room with your daughter or else you're a narrow-minded judgmental, unloving racist bigot who needs to die.368