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Fight over ICANN’s $400,000 Hollywood party

Kevin Murphy, September 22, 2014, Gossip

Corporate sponsors raised $250,000 to fund a $400,000 showbiz gala for ICANN 51 next month, but ICANN pulled the plug after deciding against making up the shortfall.

Sources tell DI that the lavish shindig was set to take place at Fox Studios in Los Angeles on October 15, but that ICANN reneged on a commitment to throw $150,000 into the pot.

Meanwhile, a senior ICANN source insists that there was no commitment and that a “misunderstanding” is to blame.

ICANN announced a week ago that its 51st public meeting would be the first in a while without a gala event. In a blog post, VP Christopher Mondini blamed a lack of sponsors and the large number of attendees, writing:

One change from past meetings is that there will not be an ICANN51 gala. Historically, the gala has been organized and supported by an outside sponsor. ICANN51 will not have such a sponsor, and therefore no gala. ICANN meetings have grown to around 3,000 attendees, and so have the challenges of finding a gala sponsor.

This explanation irked some of those involved in the aborted deal. They claim that the post was misleading.

Sources say that sponsors including Fox Studios, Neustar and MarkMonitor had contractually committed $250,000 to the event after ICANN promised to deliver the remaining $150,000.

But ICANN allegedly changed its mind about its own contribution and, the next day, published the Mondini post.

“The truth is there were sponsors, the truth is it wasn’t too big,” said a source who preferred not to be named. “There was enough money there for a gala.”

The venue was to be the Fox Studios backlot, which advertises itself as being able to handle receptions of up to 4,000 people — plenty of space for an ICANN gala.

I’ve confirmed with Neustar, operator of the .us ccTLD, that it had set aside $75,000 to partly sponsor the event.

But Mondini told DI that ICANN had not committed the $150,000, and that claims to the contrary were based on a “misunderstanding” — $150,000 was the amount ICANN spent on the Singapore gala (nominally sponsored by SGNIC), not how much it intended to spend on the LA event.

“There was no ICANN commitment to make up shortfall,” he said. “It was misheard as an ICANN commitment.”

More generally, ICANN’s top brass are of the opinion that “we shouldn’t be in the business of spending lots of money on galas”, Mondini added.

“ICANN paying for galas is the exception rather than the rule,” he said.

He added that he stood by his blog post, saying that a failure to find sponsors to cover the full $400,000 tab is in fact a failure to find sponsors.