The Newport Jazz Festival, currently in the middle of its sixth run in New York, will move to Saratoga Springs in upstate New York next year.
Festival producer George Wein cited financial problems, curfew restrictions and limited acoustical settings as the primary reasons for the move.
However, New York will still have a jazz celebration - called the Big Apple Jazz Festival - at the end of June and beginning of July, said Wein.
"The festival can't make money in New York," he explained. "The best we can do is break even, which we hope to do this year."
Sponsors will underwrite the entire New York festival in future years to guarantee its solvency, Wein said. The present financial arrangement for the fete is made through cash subsidies.
The Newport Jazz Festival Saratoga will be held at the Saratoga Performing Arts Center for four days during the first week in August.
Noon to midnight performances will go on in a covered shell seating 6,000 and on various stages around the festival grounds.
Wein said strict time requirements in New York's concert halls work against the festival. "If you go on one minute over your deadline, it costs $850 to $1,000," he said.
He also said the heavy use of percussion and electronics in contemporary jazz was hard to fit into concert halls. "The acoustics of Avery Fisher Hall and Carnegie Hall are so good that a sound system in relation to the acoustics of the halls cannot be balanced properly," Wein explained.
The Newport Jazz Festival, the world's best known jazz celebration, began in 1954 in the Rhode Island seaside resort town for which it was named. Following youth riots at the festival in 1981, the fete was moved to New York in 1972.