Last night, I met with a good friend of mine and we discussed music groups; we are both involved with a number of music groups. One of the issues that we discussed was fundraising, always a challenge for non-profits. During the discussion, I mentioned that even the Metropolitan Opera is facing difficulties. Monday, an article mentioned that New York's venerable Metropolitan Opera is facing a $40 million deficit next season and it is about to start cost cutting. This does give others cause to be concerned. This is a well run organization.
It was the Met that launched the hugely successful high-definition simulcasts to opera fans over the world-including Toronto, where many Cineplex theatres are packed. In December, 21 out of 32 performances in Lincoln Centre were sold out. ( I have friends who are devoted to the performances in the movie houses because they are not able to travel to New York.)
What is the cause of this financial crisis? The Met's $300 million endowment has suddenly shrunk to $200 million and isn't going to yield enough investment income to help with operating expenses.
Peter Gelb, the general manager has decided not to raise ticket prices and cancelled some opera productions for next year. The Met could lose as much as $40 million next season on a budget of $291 million.
The Canadian Opera Company is looking south and examining its own situation and so far so good with a strong subscription base, a home that is paid for and revenue from the underground parking garage the organization is on a good financial footing.
This is going to be a challenging time for many organizations not just the banks and car companies. Hopefully, arts organizations will find ways to survive because it is at times like this that we need them most.
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