Not if you do the math. The article states he held 6 festivals a year. Let's say he averages 6k a festy for attendance (which is what the article mentions), and according to the article, it's $60/person for the weekend pass.
$60 pass x 6000 people = 360,000 x 6 festivals/year = $2,160,000. If that's one year. Then after 6 years it would be $12,960,000 before taxes and expenses are removed. He only took home $4,600,000 of that. Sounds about right to me. That's 35.5%, and you figure the government is ass fucking him at about a 50% tax rate, and the remainder being expenses. It's there to me.
It sounds like he pretty much got popped for turning a cold shoulder to what was obviously a free for all setting. I def agree it sets a ridiculous precedent, and I also laughed out loud at the TN cops praising Bonnaroo security. That was a good one.