News
Battle over finances erupts in public
A battle over the finances of the Swan Ball, which has thrown the future of the white-tie gala into question, has come to a public head.
In a lawsuit filed Monday, a recently filed nonprofit claims that Cheekwood Estate & Gardens, the ball’s host venue and beneficiary, wrested control of the event from its original organizers.
But in a letter obtained by The Tennessean, Cheekwood’s lawyers explain that Cheekwood’s actions were made to bring the gala’s fundraising in line with national standards. Data in the letter shows that over the past three years, only 32 percent of the Swan Ball’s revenue has gone to Cheekwood, well below what it says is the industry standard for prestigious charity events, which is 60 percent to 70 percent.
“The Swan Ball in its current form is not sustainable,” reads the letter, written by attorney Maia T. Woodhouse of Adams and Reese. “Extravagant spending resulting in such low fundraising efficiency rates is contrary to Cheekwood’s charitable goals and guiding values, and is likely to be shocking to Cheekwood’s donors.”
The lawsuit was filed in the U.S. District Court for the Middle District of Tennessee by a nonprofit organization called the SB Initiative, which identifies itself as the successor to the Swan Ball Committee, whose volunteer members “created, organized and oversaw the production” of the Swan Ball since it was first held in 1963.
The ball raises money to support and preserve the 1930s Cheekwood Estate & Gardens. The annual ball is a high-profile society event, with prominent guests in stunning gowns and formal attire and celebrity musical guests. The 2024 Swan Ball was held on June 1.
Behind the scenes, things were controversial.
The lawsuit says Cheekwood offered to take over the event’s accounting and finances for the first time ahead of the 2024 event.
“Unaware that Defendant was planning a coup to attempt to take over the SWAN BALL, Plaintiff accepted Defendant’s offer,” the lawsuit states.
From there, the lawsuit alleges, Cheekwood “nefariously and secretly assumed full control over the accounting and bookkeeping services” before taking control of other aspects of the event.
Woodhouse’s letter to Cheekwood paints a different picture. According to that letter, the “Swan Ball Committee referenced in (an earlier letter) is a department of Cheekwood from a legal, operational and financial standpoint, reports to Cheekwood leadership and relies on Cheekwood assets (including Cheekwood land and its Swan Ball Office) in its operations.”
In a written statement, Cheekwood’s board of directors said it “will vigorously defend its ownership of the Swan Ball and ensure that it meets nationally recognized standards and best practices for philanthropic fundraising and expense ratios.” Meanwhile, it said it will not plan next year’s event because of the lawsuit.
“Cheekwood has no choice but to postpone and halt all planning for the 2025 Swan Ball until this matter is resolved,” the statement reads in part.
To add to the confusion, both Cheekwood and SB Initiative have filed trademark applications for “SWAN BALL.” The lawsuit, among other things, seeks to establish SB Initiative’s ownership of the trademark.
The Tennessean requested comment from Woodhouse, Cheekwood’s attorney; and Chanelle Acheson, an attorney for the SB Initiative, the group that filed the lawsuit.
This is a developing story. Check back for updates.
Evan Mealins is the justice reporter for The Tennessean. Contact him at emealins@gannett.com or follow him on X, formerly known as Twitter, @EvanMeThelines.