A potential lack of volunteers, funding and venue space due to the 2007 Canada Winter Games has left the Frostbite Music Society with a difficult decision.

'For next year, we've informally decided that we're not going to do a large-scale festival,' general manager David Prodan said in an interview this week, citing financial concerns as the primary factor.

'We are trying to ensure fiscal accountability of the organization,' he said. 'We've gotten out of a bit of the debt over the last few years and we want to stay out of debt.'

It's believed the Canada Winter Games, which will be held during the same time as the annual February festival, will take away much-needed sponsorship funding and volunteers.

'We're looking at the possibility of a lack of volunteers and we know that there's going to be a lot more business sponsorship dollars put into the games,' Prodan said. 'We're looking at a deficit of resources and we don't want to take the financial risk of putting on a huge festival.'

Instead, Frostbite is looking at the possibility of presenting a series of smaller shows throughout the course of the year. A potential summer event might be called Sunstroke, said Prodan.

'I'm trying to look at it more optimistically than not,' he said. 'We could do an event in February; it's just a risky gamble.

'I don't know what's happening with the (Yukon Sourdough) Rendezvous society, but they're probably getting shafted just as bad.'

Harold Sher, executive director of the Yukon Sourdough Rendezvous Society, said organizers are definitely going to be affected by the Games and are considering their options.

'We went into discussions with the Games, but they have a different concept than us,' he said.

This year's Rendezvous will begin Thursday, with the Cancan Kick-off at 7 p.m. at the Westmark Hotel.

'We don't know what's going to happen next year,' he said. 'In some form or another, there will be a Rendezvous.'

There is also a concern the Games will lead to a lack of venue space for the festival, as Yukon College facilities will be in use for training. Though it was suggested the festival could be held downtown, utilizing bars and other public spaces, this idea was frowned upon by Prodan.

'Frostbite has experimented with that idea in the past, but due to a variety of circumstances, we found it more of a challenge to present in the downtown.'

Eric Epstein, artistic director of both the Yukon Arts Centre and the Guild Hall and a multi-year former manager of Frostbite, said the festival has booked the arts centre for space a week before the Games, but doubts it will be utilized.

'I'd hate to see it not happen,' said Epstein. 'Frostbite has the reputation of catching bands on their way up, though has narrowed its mandate in the last few years.'

He said he has presented Prodan with a proposal, which they could partner on, but is not optimistic.

'My sense is they're probably not going to have the festival,' he said.

That would be a shame, said Music Yukon director Mark Smith.

'We'll be celebrating everything Yukon at the Games,' he said. 'It'd be a shame not to celebrate our music as well.'

Though Music Yukon is not directly involved in the festival, its members greatly benefit from the midwinter opportunity to perform.

'What will there be to replace it?' asked Smith. 'Is the infrastructure going to fall apart if they don't have it? It's more of a philosophical question about what will happen.'

Prodan said they won't make a final decision on the matter until July, but at present it looks unlikely there will be a Frostbite in 2007.

'Competing with the Games is fiscal suicide,' said Prodan. 'It is a shame, a total shame, but we gotta be smart about it.'

This year's festival, which takes place at the college and arts centre, is being held Feb. 17-19 and will feature a variety of music with an emphasis on folk, blues and rock.

Of the three stages, one will be geared toward youth and louder music. Other highlights include workshops, a special children's fest and experimental theatre.