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Budapest’s iconic Sziget Festival is facing an uncertain future following the abrupt withdrawal of its American investors. The decision from private equity firm KKR—owners of Superstruct Holding—comes amid Hungary’s volatile political and economic climate, leading to the termination of Sziget’s land-use agreement with the city. Despite ongoing support from Budapest authorities, a new investor is urgently needed to save one of Europe’s most beloved festivals.

Financial losses totalling over HUF 7.7 billion since 2023 have fuelled investor exit fears, even as US-Hungarian relations have shown signs of improvement. Adding to the challenges are longstanding tensions between Sziget and Hungary’s Orbán government, stemming from the festival’s inclusive values and pro-LGBTQ+ stance. Recent threats from political figures have only worsened the situation.

Former co-owner Károly Gerendai has expressed interest in returning to help stabilise Sziget, stating that he’s seeking investment partners to secure its future. While negotiations are ongoing, experts warn that Sziget must evolve to attract Gen Z and Gen Alpha audiences by offering immersive, experience-driven programming beyond music alone.

With its fate hanging in the balance, the world will be watching to see whether Sziget Festival survives—or vanishes.

Sziget Festival's Future in Jeopardy as American Investors Pull Out

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Sziget Festival at Risk of Shutting Down as American Investors Exit Amid Political Tensions.

British indie rock icons The Kooks have officially joined the Sziget Festival 2025 lineup, bringing their beloved catalogue of sing-along anthems to Óbuda Island in Budapest. Set to perform during the six-day celebration from 6th to 11th August, 2025, the band's energetic live shows are sure to deliver a nostalgic yet electrifying set for festivalgoers.

Their addition comes as the festival announces the unfortunate withdrawal of UK soul artist Michael Kiwanuka, who has cancelled his performance due to health reasons. Organisers have extended well-wishes for his recovery and thanked fans for their understanding. The Kooks' arrival helps fill the gap with a high-profile act that resonates with long-time festival audiences.

In related news, Sziget has also confirmed that it is currently reworking the schedule for the day Kneecap was originally slated to perform. Details surrounding their replacement and timetable changes are expected to be revealed soon, with fans encouraged to monitor the festival app for updates.

Sziget 2025 already boasts a massive and genre-spanning lineup, including Post Malone, FKA Twigs, Charli XCX, Armin Van Buuren, Shawn Mendes, and Justice. With The Kooks now in the mix and more adjustments to come, this year’s edition promises another unforgettable chapter in the island’s vibrant festival legacy.

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The Kooks Added to Sziget 2025 Lineup

The Kooks to Perform at Sziget 2025 Following Michael Kiwanuka Cancellation.

Organisers of Hungary’s flagship Sziget Festival have spoken out following the government’s decision to ban Irish hip-hop trio Kneecap from entering the country. The group were due to perform at the Budapest-based event on 11th August, but have now been removed from the lineup after being formally barred from entering Hungarian territory.

In a statement released after receiving the official notice, Sziget called the move “unprecedented, unnecessary and regrettable”, adding that it could harm both the festival’s reputation and Hungary’s standing internationally. “Over the past 30 years, Sziget has served as a free and safe place for different cultures,” organisers said. “We fear that the government’s decision may not only damage the reputation of Sziget, but also negatively affect Hungary’s standing worldwide.”

Hungarian state secretary Zoltan Kovacs alleged that Kneecap posed a “national security threat”, accusing the group of “antisemitism and glorifying terror”. His statement referenced ongoing legal proceedings involving member Mo Chara, who denies a terror charge related to a flag displayed during a London performance. Kneecap have called the claims a “co-ordinated smear campaign” stemming from their support for Palestine.

Sziget maintained that “cancel culture and cultural boycotts are not the solution”, reiterating its support for artistic freedom while condemning hate speech. The trio have also been dropped from multiple other festivals this season, including TRNSMT and Hurricane. Despite the setback, Sziget will go ahead with performances from Charli XCX, Shawn Mendes, Post Malone, Little Simz, Justice, and more from 6th to 11th August, 2025.

Sziget Responds After Kneecap Banned by Hungarian Government

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Organisers call move “unprecedented” as Irish hip-hop group blocked from entering country.

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Sziget Festival's Future in Jeopardy as American Investors Pull Out

The Kooks Added to Sziget 2025 Lineup

Sziget Responds After Kneecap Banned by Hungarian Government