How much is a busted brand really worth?

How much is a brand name worth if it’s well known, but only because of its failures? For the botched music festival Fyre Festival, it’s nearly a quarter of a million dollars.

The Fyre Festival brand sold for $245,300 on eBay Tuesday after 42 bidders made 175 bids. The sale includes rights to all trademarks, intellectual property, and social media assets associated with Fyre Fest, according to the listing. Although Fyre Fest founder Billy McFarland didn’t think the sale price was high enough (“This sucks, it’s so low,” he said on a livestream), it proved that even without actually ever putting on a successful music festival, there was some value in the rights to his trademarks and IP. McFarland congratulated the buyer in a Notes App statement posted to Instagram and said he would “begin the process to finalize the sale.”

As splintering media has made attention harder to capture and scrambled traditional publicity and marketing plans, some have turned to purchasing discounted brand names in hopes of buying themselves a shortcut. Fyre Fest might be a punchline, but since people already know what it is, it’s also a starting point that a new owner can use as a launch pad.

“Someone paid $245k, so that establishes its value,” David Reibstein, a William Stewart Woodside professor of marketing at the University of Pennsylvania, tells Fast Company in an email. One thing Fyre Fest has going for it is “its level of awareness, despite its baggage, and that cannot be overlooked,” he says.

Enron, the energy company that went bankrupt in 2001, was bought by the organizers of “Birds Aren’t Real” to sell a parody product, and in March, an AI company bought Napster for $207 million and used the brand to launch a platform with “AI companions.” McFarland didn’t say who the Fyre Fest buyer is, but he did say, “it’s funny.” Whatever the new owner intends to do with it, they’ll get extra attention at least for the name.

Since Fyre Fest is more meme than a brand, “its value isn’t in social media followers or brand equity,” says Emily Day, a strategist at Mother LA, but cultural shorthand. McFarland said in a letter he put the brand up for sale as part of an attempt to make things right and pay back investors. Rather than go forward with a planned Fyre Festival 2, he said selling the brand for parts was the best way to accomplish that. His brand’s nearly quarter-of-a-million-dollar purchase price, though, isn’t enough to pay off all the $26 million he scammed investors of. Fyre Fest ticket holders also won $7,220 each in a 2021 class-action settlement.

“Fyre is one of the most powerful attention engines in the world,” he wrote, citing the documentaries and headlines the festival inspired. Fyre Fest was no good as a festival. As a meme, though, it was great.