The Sound Post » Articles of Interest

Stradivarius Sold for Tsunami Relief

Jake DeBacher — Wed, 22 Jun 2011 17:22:47 +0000

One of the world’s most incredible instruments was auctioned yesterday for a jaw-dropping (and record-breaking) $15.9 million, all of which will go to the Japan Earthquake and Tsunami Relief Fun.

The violin, known as the “Lady Blunt” Stradivarius, was made in 1721 and is one of the two best-preserved instruments by 18^th century luthier Antonio Stradivari. Because the winner of the auction has chosen to remain anonymous, it is uncertain whether the violin’s new home will be in a museum or the hands of a player. While such an artifact would be a worthy addition to a museum’s collection, it would be quite a shame for such an incredible instrument to gather dust.

The Lady Blunt was donated by the not-for-profit Nippon Music Foundation, an organization which lends instruments from its collection of Stradivari violins to both renowned professional musicians and promising young musicians. The auction was run by Tarisio, a 3rd-party rare instrument auction website.

Nippon Music Foundation’s President, Kazuko Shiomi, acknowledged that the Lady Blunt was an important part of the Foundation’s collection, but that “the needs of our fellow Japanese people after the March 11 tragedy have proven that we all need to help… The donation will be put to immediate use.”

Speculators Say Philly Forecast Dim

Colin Oettle — Thu, 09 Jun 2011 14:30:04 +0000

Mark Schwartz is a lawyer who believes The Philadelphia Orchestra’s “plodding” bankruptcy court proceedings don’t bode well for the organization. In an article for philly.com, he compares the orchestra’s situation to that of the Barnes Foundation—a case in which he blames a misguided board of directors for prematurely forcing its organization into court. Barnes is an educational art and horticultural institution that sought court approval to move from a suburb of Philadelphia to a more city-accessible site under the pretense of financial hardship. The move would directly violate the organization’s “indenture of trust,” which stipulates its art holdings are not to be relocated.

Schwartz’s criticism is that Barnes claimed an inability to raise $1.5 million for annual costs, but mustered $150 million once the relocation of the gallery was approved. Fearing the Philly Orchestra may be guilty of something similar, Schwartz points out that bankruptcy court is not somewhere organizations should seek to be. Short of a quick in-and-out to “shed obligations and return to business,” prolonged litigation could threaten the orchestra’s stability as well as its reputation. Players are rumored to be coursing the job market for more stable positions, and subscribers share in the frustration of their orchestra’s turmoil. Who is really benefiting when a near-bankrupt orchestra spends hundreds of thousands on legal fees?

Peter Dobrin, Inquirer Music Critic, outlines the issue in black and white. The administration claims the orchestra cannot afford its current financial obligations, which include commitments to the musicians, their pensions, and the Kimmel Center. The board then filed for chapter 11 protection in an attempt to eliminate these obligations, despite holding $140 million in endowments. The court will decide whether any or all of that money can be used to pay off the obligations, or if being “donor-restricted” truly puts the money off limits as the board argues.

Meanwhile, the musicians who make up the world-class orchestra feel scorned. Cellist John Koen wrote an op-ed detailing the players’ contempt for the board’s bankruptcy filing. He says that the players are not responsible for marketing or fundraising—though they help with both—and that they should not suffer for the unaffordable leases signed by the board. Given the high costs associated with the filing, orchestra members wonder if the board isn’t simply attempting to abdicate from contractual obligations it doesn’t like—including pensions. Either way, a looming question still remains, and that is whether the move will cost the orchestra more in its tarnished reputation than it will save in dollars.

See also:
For the Orchestra, Bankruptcy Symphony is a Downer, by Mark D. Shwartz
Bankruptcy Court hears opening statements on Philadelphia Orchestra’s Chapter 11 petition, by Peter Dobrin
Can bankruptcy fix orchestra? No: It damages its reputation, by John Koen

Philadelphia Orchestra Files for Bankruptcy

Colin Oettle — Fri, 22 Apr 2011 22:05:49 +0000

The 111 year old Philadelphia Orchestra became the first world-class orchestra to file for bankruptcy amid the financial morass currently plaguing American orchestras. However, unlike the Syracuse Symphony, the Philadelphia Orchestra did not cancel any performances or order an organization-wide shutdown. The season will continue as planned, but the future of the organization will depend on the proceedings in bankruptcy court.

While the move was expected, many feel it was unnecessary. The orchestra has assets, including an endowment, that total $140 million—three times its current liabilities. Management views the endowment as donor-restricted and therefore unusable, which means the orchestra is currently operating with a deficit. An emergency fundraising campaign is projected to reduce the $13 million budget gap to around $5 million, but the board is hoping to shed millions in liabilities during bankruptcy proceedings.

Only the 5 musicians sitting on the 75 member board voted against the measure despite campaigns by the players to reject the move. Orchestra members handed out leaflets encouraging members to vote “no,” even protesting the meeting with a “play in”—that is, a string quartet serenaded the board members as they gathered to vote. The financial restructuring of the organization could mean less pension funding for orchestra members.

Many people blame poor management for the move, saying that ennui replaced the necessary dedication to raise funds—that expanding the donor pool and reaching out to the community were viable methods of closing the budget gap that were not pursued. Either way, the group is now at the mercy of the bankruptcy court which may decide to dismiss the case if they feel the orchestra has too many assets to warrant the chapter 11 filing.

While players and audience members remain optimistic for the future of the orchestra, they fear the financial crisis will hinder its quality. Cultivated through a rich history of strong leadership and solid players, the orchestra faces a threat that might force musicians to consider taking other auditions. After time without a permanent executive director, music director, or board chair, it is easy to wonder whether it is the economy or simple stagnancy that is to blame for the ensemble’s suffering.

See also:
Philadelphia Orchestra’s board votes to file for bankruptcy
by Peter Dobrin via Philadelphia Inquirer
Philadelphia Orchestra To Seek Bankruptcy Protection
by The Associated Press via NPR
Philadelphia Orchestra Makes Bankruptcy Move
by Daniel J. Wakin and Floyd Norris via New York Times
Board of Philadelphia Orchestra Votes to File for Bankruptcy
by Daniel J. Wakin via New York Times

Syracuse Symphony Closes Doors

Colin Oettle — Tue, 05 Apr 2011 13:18:12 +0000

The Syracuse Symphony Orchestra was forced to shut down in the middle of its 50th season when the Board of Trustees voted to suspend operations on March 29. Citing a $5.5 million deficit and an inability to reach an agreement between the board and the musicians, the organization was forced to cancel all remaining concerts without refunding ticketholders.

The Syracuse Symphony website contains only the image above as a testament to what would have been its 50th season. It is followed simply by an explanation of the orchestra’s plan to suspend operations and layoff both its staff and musicians. Perhaps the most hard hitting line of the paragraph is the declaration that all remaining concerts are canceled, which reads “All concerts have been cancelled for the remainder of this season, including the Yo-Yo Ma concert scheduled for April 27. The SSO is unable to issue refunds for tickets because we have run out of money.”

Along with the disappearance of one of Syracuse’s prominent arts organizations, the operational shut down also means the Syracuse Symphony Youth Orchestra will no longer be allowed to operate. What was once an opportunity for young musicians to participate in an elite group will become merely a fond memory. The one remaining concert has been canceled, negating weeks of preparation on behalf of the students. The group’s 30 seniors particularly lament that they won’t be able to play their ceremonial final concert.

The shutdown of the SSO is a great loss not only for central New York, but for the nationwide arts community. While the Syracuse Symphony explores its options for the future, musical organizations around the country should embrace their ability to make music as one city no longer can.

Editor’s Note: The Sound Post covered the SSO back in August. See the pre-shutdown article here.

Related links:
syracuse.com: SSO Board Votes to Suspend Operations”
syracuse.com: Symphony’s Collateral Damage
Syracuse Symphony

Levine to Resign from Boston Symphony

Colin Oettle — Mon, 28 Mar 2011 18:56:49 +0000

Editor’s note: While it is already old news, I still wanted to acknowledge Maestro Levine’s resignation from the Boston Symphony Orchestra.

On March 2nd, James Levine announce that he will step down from his position as Music Director of the Boston Symphony Orchestra. The decision comes after chronic health issues prevented him from consistently leading the ensemble.

Levine will remain at the Metropolitan Opera, stating that his familiarity with the organization and the dynamic he has created there allow him to maintain his post despite health problems. Not only does he live in New York, but after 40 years with the Met, Levine has created a well oiled machine in which he is but the final cog. Comparatively, the burden of symphonic directorship in a new city requires more than he can commit to consistently provide.

Read the full article at the New York Times

Detroit Symphony on Strike

Colin Oettle — Wed, 06 Oct 2010 05:15:23 +0000

Already $3.9 million in debt, the Detroit Symphony Orchestra is looking to cut musicians’ pay by 33 percent in order to prevent the deficit from reaching $6.5 million. Currently, the ensemble’s starting salary is $105,000 with nine weeks paid vacation. The organization is looking to modify its three year contracts to include a base pay of $70,000 with three weeks vacation, and to reduce pension and benefits. The musicians have stated they will accept a cut of 22 percent, but for now have opted to demonstrate their frustration through a strike. The administration claims that they are willing to meet the musicians at the 22 percent mark, and are hoping to end this strike in time for Friday’s concert. This one even made it to CNN.

BBC Proms Anticipates Record Breaking Attendance

Colin Oettle — Thu, 09 Sep 2010 17:26:28 +0000

A record number of performances sold out at the BBC Proms this year, launching the average attendance per event at Albert Hall to 4,000 concertgoers. 40 of the 76 concerts have experienced a packed house, which The Telegraph suspects might be related to the daily allotment of 1,000 tickets for £5 (~$7.50) each.

Along with programs celebrating the great masters of classical music, there were spotlights for the theatrical works of Rodgers and Hammerstein and Stephen Sondheim. There was also an event featuring the original music from Britain’s hit TV show Doctor Who.

Source: The Telegraph

Montreal, Nashville Symphony Orchestras Receive Mega-Donations

Colin Oettle — Sat, 04 Sep 2010 19:47:58 +0000

As the orchestras around the world continue to tighten their belts, it seems a financial renaissance is taking place among classical institutions. Operations are being streamlined to accommodate smaller budgets, and coffers are being refilled to allay the looming threat of Chapter 11. Read on for a few instances of philanthropy!

Among these organizations is the Nashville Symphony Orchestra, who received $25,000 from Music Rising—an organization geared towards supporting musical communities in the aftermath of hurricane Katrina. After flood waters set back the organization by an estimated $42 million, the donation will help repair the damaged hall and recover a collection of instruments known as the “instrument petting zoo,” used to introduce instruments to children.

Source: broadwayworld.com

The Montreal Symphony Orchestra also received a rather handsome stipend courtesy of Loto-Québec, a Canadian gaming organization. Loto-Québec has taken the orchestra under its wing, instilling the MSO with $10 million initially, and an additional $8.5 million each year until 2014. The total $35.5 million should serve to ensure the MSO avoids financial crisis any time soon.

Source: Montreal Gazette

Stay tuned for more!

BBC Podcast: US Orchestras Surviving Recession

Colin Oettle — Wed, 25 Aug 2010 02:20:33 +0000

Amidst the nebulous financial situation plaguing many US orchestras, BBC’s Matt Wells visited the Boston Symphony Orchestra at Tanglewood to consult both players and administration alike.

The BSO’s managing director, Mark Volpe, indicated that although the orchestra is doing comparatively well, they are still subject to the fiscal erosion straining orchestras nationwide.

“We had to cut $4 million out of our budget,” he said, “to suggest we’re immune is actually not accurate.” He noted that their stable audience and sponsorship base will allow the organization to weather a downturn that some institutions are finding unrecoverable.

One way they have curbed expenditure is through substitutes. While the ensemble admits the culture of the orchestra may be affected by having temporary performers in the group, it allows the orchestra to avoid filling salaried positions while maintaining the overall quality of the music.

For the complete podcast check out the BBC site here.

Breaking: Orchestra Finance Woes Part II, Syracuse Symphony

Colin Oettle — Sat, 14 Aug 2010 04:57:48 +0000

The Syracuse Symphony Orchestra cut its upcoming season from 40 to 34 weeks today in an effort to endure dwindling funds. Meanwhile, the orchestra needs to raise $500,000 to cover the deficit in its $7.4 million budget, says The Watertown Daily Times. Faced with possibility of shutting down for the summer, the SSO managed to keep its doors open with help from an anonymous benefactor.

The orchestra has been operating with deficits since 2007 and, in an attempt to allay further erosion, has shortened its coming season from 40 to 34 weeks after approval from the musician’s union (Syracuse.com). Currently feeling for its bootstraps, the symphony has hired both a branding firm and its old director, Jeffry Comanici, as consultants to tackle the crisis. To date, the SSO has raised $1.93 million in gifts and grants to cover the 2010 season, with that number set to break $2 million in order for the organization to stay solvent.

There have been several attempts to deal with the decrease in income, including a pay cut for music director Daniel Hege and a two year pay freeze beginning in 2009 for the musicians. Now, it is up to donors and the board to support the organization, and give it the time and the chance to overhaul its earning power.

Financially troubled Syracuse Symphony Orchestra faces the music, syracuse.com.
Sweet Sounds May Be Cut, The Watertown Daily Times.