I have no sympathy for Philadelphia. They’re a bunch of bums, anyway.
And I should point out that I’m talking about the Philadelphia Flyers, AKA “The Broad Street Bullies.” They’re playing my Sabres in the first round of the interminable NHL playoffs and I hope they go down, and go down hard.
That having been said, there are some ridiculous shenanigans going on in Philadelphia right now and I don’t know how in the world this is going to be justified by anyone. The Philadelphia Orchestra, sitting on what is a $140 Million dollar endowment, is about to declare bankruptcy. Wow.
A few important numbers to consider (culled from the internet so not immediately verifiable):
- Current year deficit = $3.3 Million
- Cumulative deficit = $7.5 Million
- Budget for this season = c. $46 Million
- Income for this season = c. $31 Million
- Endowment = $140 Million
- Attendance = 63% Capacity
The raw numbers certainly show an organization in crisis but the rumors paint a more dire picture. Scuttlebutt has it that the orchestra is almost out of cash. Cash flow is, of course, the dirty little secret in this business. We announce our seasons in March so that we can get renewals so that we can pay for the rest of our current season, etc. etc. Once cash flow starts to choke you’ve got a real problem.
Still, it does seem that the Board is (to quote The Beatles) “Taking the easy way out.” Bankruptcy should be the last resort, not the first. But this is what happens when your organization has been wandering in the artistic desert for 10 years. Even mighty Philadelphia can’t survive that.
More importantly, perhaps this is finally the tipping point. Detroit, Boston, and now Philadelphia are all facing major crises, though the crisis in Boston doesn’t yet seem to be affecting the bottom line. The stresses that were the daily intake of the “middle rank” orchestras have now gotten a firm hold onto 3 of the biggies. Initial reaction from what I can see breaks down along the familiar lines of everyone blaming everyone else.
I would be a lot more impressed if the good news continues in Honolulu. I hope that with brand new leadership, management, and good will those folk will come up with a decent, sustainable way of funding and managing an orchestra. There will be a tremendous amount of resistance to it by those who firmly believe that it is their right to follow in the footsteps of their predecessors, but the financial world of the 3rd millenium is going to force the rest of us to adapt. Board vs. Administration vs. Union…………. I’m done with this. It’s tired, it’s old, it’s outdated, and it reminds me of the credit crisis of two years ago. Banks blaming Government blaming Big Oil blaming Mortgagers blaming Whomever – and it’s the people who got screwed. In Philly, as it was in Detroit, it’s the audience that’s going to get hosed.
For those of you who believe that the current fiscal model is the way to survive – good luck. I just hope you don’t take the rest of us down with you.
“this is what happens when your organization has been wandering in the artistic desert for 10 years.”
What in your view constitutes orchestral desert wandering? And why did it go on for ten years?