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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.

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.

Basically All North American Arts Organizations Losing Money: Part I

Colin Oettle — Fri, 13 Aug 2010 03:46:54 +0000

Editor’s note: The Sound Post generally avoids covering the recent downturn in arts funding as it does little to help the situation and simultaneously neglects the more important aspect of the industry—the art. But just as the headlines flow about organizations seeing red, there is a similar trickle of news about surfacing grants and endowments. So, this multi-part story will attempt to chronicle the down and up of the music industry; for now we lament the dwindling zeros, but look for updates on how everyone is not only keeping their heads above water, but climbing back into the boat.

As the cooling economy continues to do its number on the numbers of many North American arts organizations, orchestras and opera houses across the US are reevaluating their budgets in an effort to weather the dreary economic climate.

It has touched almost every music organization both in the US and internationally, including the top orchestras. The Philadelphia Orchestra has been consistently under-performing (financially), with a $7 million one-time emergency fund set to ‘bridge’ the gap in its $44 million budget. While most of that money is coming from the board, the Philly still needs to stimulate ticket sales for next year in order to avoid a similar quagmire. While the opening of Verizon hall in 2001 initially prompted more robust attendance, the orchestra has lately been seeing only 2/3 tickets sold. Hopefully the newly overhauled management and music directorship will be able to jump-start the withering income of one of America’s oldest and most revered organizations.

See a detailed explanation of their financial situation at The Philadelphia Inquirer.

Neighboring The Philadelphia Orchestra is the New Jersey State Opera, who currently owes $230k in back pay to contractors and musicians who worked on their production of “Porgy and Bess” in May. While the performance was an exciting rebirth for the company and a welcome endeavor for the city of Newark, even Newark Symphony Hall has been left wanting its fees. The company is diligently seeking to raise money so they might escape impending legal action from the National Labor Relations Board; they fear their next scheduled production might in fact become a fundraiser. One hopes that the company may find its funding and continue to revitalize opera in Newark.

Here’s the article on nj.com detailing the debacle.

While the financial future of some North American arts organizations might be uncertain, they are nonetheless the foundation of music and culture in our continent. While ticket money is now worth more than ever, the music world will certainly bounce back of its own accord, bailout or not.

Utah Symphony Members Donate Own Pay

Colin Oettle — Thu, 08 Oct 2009 16:44:40 +0000

In response to the economic hardship facing the Utah Symphony | Utah Opera organization, Utah Symphony members have agreed to forgo four weeks’ salary, 50 percent of their matched pension payment, and the entirety of their contracted 5 percent annual raise. All together, members will see their income decrease by 19 percent—a donation totaling $1.3 million.

While this will inevitably cause some belts to tighten, members fear what might have happened without the agreement. The measure follows similar actions last year, which brought the budget down to $17 million from $19 million—apparently not enough to avoid trouble. CEO of Utah Symphony | Utah Opera Melia Tourangeau took a 10 percent pay cut, and several administrative positions were eliminated along with matched pension contributions.

The agreement dictates that Utah Symphony must raise an additional $1 million to supplement the $1.3 mil already donated. Should they fail, the organization will be required to pay the original contracted salaries to the musicians. Tourangeau said the prospect is “achievable if the community wants it to be achievable.”

One can only hope that donors are inspired to follow the example of the Utah Symphony musicians. Should you be interested, click for the Utah Symphony website. Source: Salt Lake Tribune

Spokane Symphony Announces Budget Reduction

Colin Oettle — Fri, 17 Jul 2009 01:44:15 +0000

This Just In: Economy Still Sucks

The Spokane Symphony said in a press release Monday that they are taking steps to alleviate a 5% financial deficit predicted for the end of the year. Despite solid financial footing for the last 8 years, the organization began to feel the effects of recession halfway through the 08-09 season. Check the link for an outline of all budget adjustments.

The Spokane Symphony has modified their budget for the 09-10 season, including a 20% pay cut for all staff members—they will only work 4 days a week and are losing 401k benefits. Conductors Eckart Preu and Morihiko Nakahara are also taking pay cuts, and have worked to save money by changing repertoire to divert sheet music costs.

Additionally, the group has canceled several performances and series that proved to be a drain on the budget. Take a look at their press release for full details. The concerts being eliminated include the Classics and Casual Classics series, as well as the Symphony on the Edge concerts. While the reduction of season events paired with less pay for employees is not a happy thought for any classical organization, the Spokane Symphony remains confident in their ability to weather the negative effects of the current economy.