The Business of Broadway - July 2021

ARE WE BEING TOO OPTIMISTIC ABOUT BROADWAY OPENING UP? 

AUSTRALIA: "Sydney Productions of Hamilton, Come From Away, More Shuttered Due to COVID-19 Spike" by Playbill's Dan Meyer - "The Sydney, Australia, productions of Hamilton, Come From Away, and more have been shuttered due to rising coronavirus cases in the area. A two-week stay-at-home order went into effect June 26 for all residents of Sydney, Randwick, Woollahra, and Waverley—along with any employees who were in that area over the past 14 days, which includes cast members and theatre workers who may not live within those four district.”

Chapter 9 -  Selling a Flop

(as of June 4) As Broadway announces reopening dates: "Old shows that are selling tickets are having a tough time. But new shows are finding it even more difficult. ... The only show with sold out dates? “The Music Man” with Hugh Jackman and Sutton Foster."

Chapter 10 -  Producers: DEI and Broadway

"The study, by the Asian American Performers Action Coalition, found that at the 18 major nonprofit theaters examined by the group, 100 percent of artistic directors were white, as were 88 percent of board members. On Broadway, 94 percent of producers were white, as were 100 percent of general managers. …”

Chapter 11-  Unique Financials

   Aware that a large amount of federal aid from the Shuttered Venue Operators Grant Initiative ($10 million for Broadway and $10 million each for 2 tours…so far) going to a megahit could raise eyebrows, the show’s lead producer, Jeffrey Seller, agreed to explain why “Hamilton” qualified for it, and to describe how the money would be used, as intended, to restore the show’s five American companies to financial health.

   The money will be used to remount the shuttered productions, and to reimburse the productions for pandemic-related expenses. No money will be used to pay producers, investors, or royalty participants.

   The reopening expenses are varied — a month of rehearsals to get actors, musicians, stagehands and others ready to perform again, as well as longer workshops for new cast members. Plus there are the costs of repairing and replacing equipment, transporting people and sets, hiring Covid safety personnel, and marketing the shows.

   And the pandemic expenses, incurred throughout the shutdown, included financial assistance, health insurance coverage, and, in some cases, housing aid for those who had been employed by the productions at the time of the shutdown. Seller said “Hamilton” had continued to pay health insurance costs for all former employees throughout the pandemic, and had made emergency cash grants as well.

   There were more mundane expenses as well, including $784,000 in rent for the show’s Broadway theater (yes, Broadway landlords continued to seek rent from producers during the pandemic), as well as warehouse storage for costumes, and flights for cast and crew who needed to get home when the touring stopped.

   “‘Hamilton’ has spent many millions of dollars during a time in which it was earning no income,” Seller said. “Our goal is for ‘Hamilton’ to be in the same financial position it was in when we suspended operations on March 12, 2020.”

Chapter 15 -  Actors

   Off-Broadway contracts are expiring. The existing contract with Equity set 2019-2020 weekly actor minimums starting at $615 for nonprofits with budgets of less $4 million, $650 for nonprofits with budgets of more than $4 million and actor minimums ranging from $646 to $1,150 for commercial productions, depending on the number of seats in the theater. 

   The Off-Broadway League wants to reduce salaries to cover higher expenses (especially for safety and COVID expenses) and the Actors’ union wants to make up for 16+ months of lost wages by increasing salary and benefits. So far, there’s no compromise in sight, not even temporarily extending the pre-pandemic contract.

   “A year ago I think we were all looking around wondering ‘Who is going to be here a year later?” said the artistic director at MCC. “We’re all here a year later and as it turns out, the scary thing is actually the year ahead.” ...

   This does not bode well for Broadway union negotiations (18 unions are potentially involved in new contract “adjustments.”)                                                            

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