Organisers of the Manx Telecom Bay Festival say if this year's event had gone ahead, the cumulative losses of the event would have totalled more than ?2.5 million.
Promoter Jonathan Irving says the inaugural festival in Peel and last year's event in Noble's Park lost a total of ?1.6 million because of a lack of support, and with next month's three-day showpiece set to lose another ?1 million, he was left with no choice but to call it off.
Mr Irving says he hoped this year's festival could have avoided a similar fate to its predecessors (play audio file):
Mr Irving says anybody with tickets for the festival will receive a refund. For information on how to get your money back, you can visit the website bayfestival.im
Sir Elton John's concert on June 16 is going ahead.
Researching your Manx family history can be a very interesting and rewarding hobby. Trace your roots in the Isle of Man with our helpful of guide.
