The Business of Broadway - September 2021

September 2021

Chapter 11 -  Unique Financials

   The $100 million New York City Musical and Theatrical Production Tax Credit is a two-year program jump-starting the entertainment industry and support tourism in New York City. The Program will offset some of the costs associated with producing a show as New York’s economy recovers from the COVID 19 pandemic. 

   Companies can receive tax credits of 25% of qualified production expenditures. First-year program applicants can receive up to $3 million per production. Companies applying in the second year are capped at $1.5 million, subject to economic indicators assessing the tourism industry’s recovery. If indicators show that the tourism economy in New York City is not fully recovered, the cap would remain at $3 million per production.

   Productions must occur in a qualified production facility in New York City.

   Companies must implement a New York State-approved diversity and arts jobs training plan and take actions to increase access to productions for low-income residents. Highly successful productions, those showing ongoing revenues more than two times their ongoing production costs after receiving a tax credit, will be required to contribute to the NYS Council for The Arts Cultural Program Fund, up to 50% of the tax credit.    

   The Program is a two-year program and companies can receive credits for tax years beginning on or after January 1, 2021 but before January 1, 2024.  Initial applications must be submitted by December 31, 2022 and final applications no later than 90 days after the production closes or 90 days following the program end date of March 31, 2023, whichever comes first.

Chapter 14 -  Press Agents

As of Sept 6, 2021, the new weekly minimum salary for Press Agents is $2,556.65.  Plus vacation pay of 8.5% and health insurance payments of $230.

Chapter 15 -  Actors

   Broadway sets terms for prorated pay for actors, stage managers" by Broadway News' Caitlin Huston - "Actors' Equity and the Broadway League have negotiated additional terms for the industry's reopening, including an allowance for prorated weekly pay. If a Broadway production plays less than the typical eight shows per week, producers are allowed to prorate salaries for actors and stage managers, per the Actors' Equity agreement. However, even if a production plays six or even fewer performances, producers have agreed to pay actors and stage managers for at least seven shows per week. 
   These terms apply to any Broadway productions that begin or resume performances before March 1, 2022 and are in place for the first eight weeks of performances.
There's an exception for the first paid week of performances, in which producers are allowed to pay based only on the number of shows performed. … 
   As it stands, a handful of Broadway productions have set performance schedules with fewer than eight shows per week for multiple weeks. However, schedules have been fluctuating since Broadway was cleared to reopen and returning shows have been gradually adding more performances to their calendars. 
   The agreement between Actors' Equity and the Broadway League also eliminates the practice of 10 out of 12s — in which actors work for 10 hours in a 12-hour tech rehearsal call —  for returning Broadway shows. The rule applies to productions that either began performances or opened before the March 12, 2020 shutdown. 

Chapter 18 -  Managers

As of Sept 6, 2021, the new weekly minimum salary for Company and House Managers is $2,370.77. Plus vacation pay of 8.5% and health insurance payments of $230.

Chapter 22 -  Theatre Owners

Broadway Power Brokers Pledge Diversity Changes as Theaters 

   The agreement commits Broadway and its touring productions not only to the types of diversity training and mentorship programs that have become common in many industries, but also to a variety of sector-specific changes: the industry is pledging to forgo all-white creative teams, hire “racial sensitivity coaches” for some shows, rename theaters for Black artists and establish diversity rules for the Tony Awards.

   The signatories include the owners and operators of all 41 Broadway theaters — commercial and nonprofit — as well as the Broadway League, which is a trade organization representing producers, and Actors’ Equity Association, which is a labor union representing actors and stage mangers. Their pledges are not legally enforceable, but they agreed to “hold ourselves and each other accountable for implementing these commitments.”

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