BROADWAY CLOSINGS - can you call it? What's next to go?- Page 11

[bdn223]

Posted: 7/1/12 at 11:01am

BwayPhreak The issue with Anything Goes as well as all non-for-profit hits and misses is that if they announce their recoupment then they are openly admitting that they are making a profit off the show which would possibly void their tax exempt status.
Non profits have a budget per season that is based off donations and subscribers. Any "profit" made off a show/season isn't used for a year because they already budgeted the following seasons. This is why is you look at roundabout they only do a big budget musical revival every 18 months instead of every year in hopes that they can build up funds from one show to make another.

[AEA AGMA SM]

Posted: 7/1/12 at 11:17am

"BwayPhreak The issue with Anything Goes as well as all non-for-profit hits and misses is that if they announce their recoupment then they are openly admitting that they are making a profit off the show which would possibly void their tax exempt status."

A non-profit organization making money off of a show would not void their non-profit status. It just means that there are no investors or share holders who are gaining from that money made. All money made is folded back into the company. NYSF never had to worry about losing non-profit status from the money made from A Chorus Line nor did Roundabout have to worry about the money made from the revival of Cabaret effecting their status. It just meant they had more money to plan with for the budgets for successive seasons.

[dramamama611]

Posted: 7/1/12 at 11:47am

AEA is 100% correct. Thanks for handling that so eloquently, btw.

[Bwaydide92]

Posted: 7/1/12 at 12:55pm

And an announcement wouldn't stop them from losing their non-profit status if that was the case. They still have to report to the IRS even if they are exempt from taxes. You are probably not right about the time frame in which they do big-budgets, but that's probably just so they can raise funds. Not that they have anything to hide. They probably don't make announcements about recoupment because that's not their mission like a for-profit show.

[AEA AGMA SM]

Posted: 7/1/12 at 1:12pm

You also don't speak in terms of recoupment with a non-profit because there are no investors who are recouping anything. The company raises the funds for each show as part of their operating budget. If they end up making money on a show because of an extended run then it's a bonus for them, but there is nobody who is looking to recoup an investment.

Basically, if a show from a non-profit extends past its originally scheduled limited run then it is a fairly safe bet to assume that it is covering its own operating costs (that should be obvious, no smart non-profit would extend a show that couldn't pay for itself), and probably pulling in at least a small profit to add to the coffers of that producing entity, allowing for the creation of bigger budgets the next season, shoring up deficits from previous seasons, or increasing their endowment to help cover them through leaner years.

[bdn223]

Posted: 7/1/12 at 4:48pm

by possibly loose their tax exempt status I meant that it would bring their finances into question for the IRS to audit them, if they are publicly stating they are making money, which is against their mission statement.

[frogs_fan85]

Posted: 7/1/12 at 5:01pm

Non-profits are allowed to have successful endeavors. Any profits resulting from a successful show would be a budget surplus, which 503(c)s are allowed to have and do not pay taxes on.

[ethan231h]

Posted: 7/19/12 at 7:04pm

I think

Chicago
Rock of Ages
Ghost
Phantom
Nice work

[wonkit]

Posted: 7/19/12 at 7:08pm

Non-profits are only in danger of losing their tax exempt status if they profit excessively from endeavors not covered by their mission statement. They are permitted to profit from their charitable/educational activities as much as they can (assuming they report them appropriately).

[dramamama611]

Posted: 7/24/12 at 7:30pm

testing....only because I can't find the last post actually made!

Posted: 7/25/12 at 1:44pm

^ Mine too. And it wasn't in a MorganJames way. It was just mentioning how people were so on the mark a few weeks ago on this board about Ghost closing.

[dramamama611]

Posted: 7/25/12 at 1:44pm

Yours was the post I was looking for!

[Mister Matt]

Posted: 7/25/12 at 1:54pm

Is War Horse going to transfer? If not, I don't see it hanging on much longer.

Posted: 7/25/12 at 2:00pm

I agree with MisterMatt and WarHorse.
and 'Nice Work' if that hasn't been announced already.

Evita has been sailing down the percentages as well. but let's see what September does, when all shows start to suffer.

Posted: 10/8/12 at 12:45pm

MARY POPPINS is next.

[little_sally]

Posted: 10/8/12 at 12:48pm

Do you have inside info on that, taboo123?

[tazber]

Posted: 10/8/12 at 12:52pm

Rebecca!

Posted: 10/8/12 at 12:59pm

we've been pretty dead on with the predictions over the last 2 years. I just have a slight hunch.... and although it may spike for the holidays.....I think an announcement will happen come January.

again, I would hate to add dismal negativity to the broadway scene.. as we all want every show to thrive, crews and casts to continue working, boosts to help the economy, etc....

but in reality- shows open- shows close. That's the business of it.

I think Mary Poppins is next.

[CapnHook]

Posted: 10/8/12 at 1:15pm

They will not close MARY POPPINS until Disney has a new show to put in there. An announcement will not likely happen in January, unless they have kept their next show under wraps.

Disney has a slew of shows in development, but I don't think any of them are ready for Broadway next season (2013-14).

[frogs_fan85]

Posted: 10/8/12 at 1:18pm

I see your point based on MARY POPPINS' sales from the past few months, but I think the show's closing would really be decided more by two other factors: the potential successes of ANNIE and MATILDA and if Disney has another show ready to go into the New Amsterdam. The show has already recouped, so they can certainly survive thinner sales weeks in anticipation of better sales during peak times. However, if ANNIE and MATILDA are smashes that takes away a lot of the potential audience for MARY POPPINS.

Posted: 10/8/12 at 1:33pm

I think that's what I'm guesstimating it on.

Annie and Matilda will definitely make a huge dent in that market...
so will Christmas Story and all the holiday surges coming...

plus MP has been in the 60% the last few weeks.


What's going on with Aladdin? Wasn't that in the front burner?

[bdn223]

Posted: 10/8/12 at 1:52pm

Poppins will last at least through the summer!! With that said though Poppins was supposedly going to close some years back so The Little Mermaid could transfer into the New Amsterdam, since it had been given its walking papers not by Disney, but by the Neaderlanders who gave the theater to the Addams Family.

Has anyone else noticed Mary Poppins has apparently stopped selling premium seats? at least according to their grosses their not with a top ticket price of $139.

Honestly though Poppins has been a place holder the past few years waiting on Aladdin and/or Dumbo's kinks to be worked out. As long Poppins doesn't give Disney any major losses it won't close until a new production is ready to move into the Amsterdam within 3 months (closes in January new show opens come March).

[desiree armfeldt]

Posted: 10/8/12 at 1:53pm

everything I've heard on aladdin is that it'll be 2014!

[Starship]

Posted: 10/8/12 at 2:46pm

Mary Poppins could last a little longer if they redid a lot of their casting. They're spending way to much on too many ensemble members, understudies, and swings. If they just reduced the amount of understudy assignments and swings, they'd already be making a little bit more each week.

Updated On: 10/8/12 at 02:46 PM

[CapnHook]

Posted: 10/8/12 at 4:29pm

That's ridiculous. Adding an understudy role to an ensemble contract is not that expensive. They wouldn't save much, at least not enough to keep the show running. MARY POPPINS has great weeks and then they have not-as-good weeks. They're fine. Pending the box office that moves to MATILDA and ANNIE, MARY POPPINS could probably make it another 1-2 years and be just fine. Knowing Disney, however, they already know when they plan to close it, and when they plan to open a new show at the New Amsterdam.