#1
Posted: 8/24/23 at 1:28pm
If I invest 25,000 in a medium size musical that is a hit, how much money would I make?
Is Investing in Broadway worth it?
#5
"Hey little girls, look at all the men in shiny shirts and no wives!" - Jackie Hoffman, Xanadu, 19 Feb 2008
Posted: 8/24/23 at 1:38pm
Do it because you care about theatre. Don't do it if you expect a dime in return.
"Hey little girls, look at all the men in shiny shirts and no wives!" - Jackie Hoffman, Xanadu, 19 Feb 2008
#6
Posted: 8/24/23 at 2:07pm
If only there was any way to find already existing information.
For the expectation: you lose all or most of it
For the hopeful: you break even
For the lucky: you double your money in 2-5 years
For the very lucky: 10-20x your investment over ten+ years
70-80% of all bway shows fail to break even.
If we're not having fun, then why are we doing it?
These are DISCUSSION boards, not mutual admiration boards. Discussion only occurs when we are willing to hear what others are thinking, regardless of whether it is alignment to our own thoughts.
#7
Posted: 8/24/23 at 2:15pm
You would be better off investing in London or Regional productions here in the States! Broadway has become way too expensive (which is sad) recently. As others mentioned, if you plan to invest, don't have any hope of getting it back!
The idea is to work and to experiment. Some things will be creatively successful, some things will succeed at the box office, and some things will only - which is the biggest only - teach you things that see the future. And they're probably as valuable as any of your successes. -Harold Prince
#8
Posted: 8/24/23 at 3:18pm
Broadway Flash said: "If I invest 25,000 in a medium size musical that is a hit, how much money would I make?"
Exactly $124,892,735,405.65.
Updated On: 8/24/23 at 03:18 PM
#9
Posted: 8/24/23 at 5:00pm
Look at your investments as contributions to a good cause - the arts - with the added bonus of exciting get-togethers with famous actors. More fun than Wall Street meetings.
#10
Posted: 8/24/23 at 5:17pm
Tom5 said: "Look at your investments as contributions to a good cause - the arts - with the added bonus of exciting get-togethers with famous actors. More fun than Wall Street meetings."
The Under $100,000 investors (in general) don't really get to schmooze with the stars --- they get a pair of tickets for opening night (side rear orchestra or mezzanine) and if they're lucky a tote bag and a mug!
#11
Posted: 8/24/23 at 5:19pm
70-80% of all bway shows fail to break even."
I know this is the standard thought about Broadway, but im reality, I'll never believe it. Almost envy facet of entertainment claims to be a losing venture. Sports, Broadway. Even" The Empire Strikes Back" claims to have never made any money. Don't believe it for a second. Are there shows that lose money? Sure. But 70-80% today? No way. It would have dried up ages ago if that were the case.
#12
Posted: 8/24/23 at 5:26pm
KKeller6 said: "70-80% of all bway shows fail to break even."
I know this is the standard thought about Broadway, but im reality, I'll never believe it. Almost envy facet of entertainment claims to be a losing venture. Sports, Broadway. Even" The Empire Strikes Back" claims to have never made any money. Don't believe it for a second. Are there shows that losemoney? Sure. But 70-80% today? No way. It would have dried up ages ago if that were the case."
To be fair, this just means they lost money in their Broadway run, but they could be profitable on tour/licensing, and I'm not sure what kind of deal the investors get in terms of future iterations of the production, but it could be true they eventually make a profit with subsidiary revenue
#13
Posted: 8/24/23 at 8:13pm
Is it a show thats already open? Can you give us a hint? Knowing what the show is would help.
#14
Posted: 8/24/23 at 9:40pm
BroadwaysBroad said: "Is it a show thats already open? Can you give us a hint? Knowing what the show is would help."
Shows that are already open, especially hits, rarely, if ever, seek additional investors. If there is a currently running show that is seeking more money then it's almost certainly a bridge loan that is being taken in a very misguided hope of keeping a floundering show open.
For the poster who advised investing in regional productions in the US, the large majority of those are produced by non-profit companies. So you can't really invest in those, as they don't return anything on the investment. You'd be making a tax-deductible donation. The rules may be slightly different if it's what is considered "enhancement" money from a commercial producer/group who are using the non-profit as development ground, but I'm not sure about that. I assume even there the money they put into it goes into the deduction/write-off category for them.
#15
Posted: 8/24/23 at 10:16pm
Broadway Flash said: "If I invest 25,000 in a medium size musical that is a hit, how much money would I make?"
You do it expecting to lose money. Only insane luck allows a return.
I had the chance to put $10k as a small investor in the OBC of Hairspray. It paid back and I was given the chance from that to put money into the first national tour, sit-downs and the Vegas production. It ended up paying for itself several times over. I was incredibly fortunate. It paid off my student loans.
That said, I put $50k+ into The Prom and lost it. I wanted it to do well, as I absolutely loved the show, the writing and the cast, but it wasn't meant to be. It never found a huge audience, even with the Netflix film version.
You win some, you lose some. I don't think I'd put money into another show, as it's not a financial risk I want to take at this point in life, but I'm happy I did what I did.
You do it to create something special and because you believe in it.
#16
Posted: 8/24/23 at 11:18pm
Out of curiosity, did you lose all $50k you put into The Prom or only a portion of it?
#17
Posted: 8/25/23 at 6:57am
How does someone invest? Is there a website where you choose your show?
#18
Posted: 8/25/23 at 9:25am
There is one GREAT way to almost ensure you end up with a small fortune by investing on Broadway.
Start with a large fortune.
Updated On: 8/25/23 at 09:25 AM
#19
Posted: 8/25/23 at 10:45am
KKeller6 said: "70-80% of all bway shows fail to break even."
I know this is the standard thought about Broadway, but im reality, I'll never believe it. Almost envy facet of entertainment claims to be a losing venture. Sports, Broadway. Even" The Empire Strikes Back" claims to have never made any money. Don't believe it for a second. Are there shows that losemoney? Sure. But 70-80% today? No way. It would have dried up ages ago if that were the case.
Well, if you know anyone with a track history (more than having invested in more than one or two shows) ask them whether or not to believe it. That's why just getting one's money back (recoupment) is a big deal. A show that does nothing more than break even is considered a "hit" in Broadway terminology. One of my closest friends has been a small investor ($25,000 or so) in about 20-30 shows over the past 15 years, and he's always given me the show by show run down, as he's asked me to split units with him multiple times. I've resisted the temptation.
CZJ at opening night party for A Little Night Music, Dec 13, 2009.
#20
Posted: 8/25/23 at 11:22am
Was offered to invest in "One More Time" and thought for sure it would make $ ... glad I rethought that one.
And you just reach out to producers/investors and get on the email lists, etc.
#21
Posted: 8/25/23 at 1:10pm
Well, if you know anyone with a track history (more than having invested in more than one or two shows) ask them whether or not to believe it. That's why just getting one's money back (recoupment) is a big deal. A show that does nothing more than break even is considered a "hit" in Broadway terminology. One of my closest friends has been a small investor ($25,000 or so) in about 20-30 shows over the past 15 years, and he's always given me the show by show run down, as he's asked me to split units with him multiple times. I've resisted the temptation.
I've never invested in shows, but from what I've heard, it's not like producers will take anyone's money for any show. Is that correct? You have to kind of " pay your dues". By investing in their riskier ventures. So, sure, it's very hard for outsiders to get to the point where you're making a lot of money. I'm sure you can get lucky. But, it seems to be a closed club. For the small timer.
#22
Posted: 8/25/23 at 1:15pm
A close friend invested in the Bette Midler "Hello Dolly." It seemed like a no brainer to turn a nice profit. The investors recouped 105% and they felt with the business it was doing, Mr. Rudin did not serve them well.
#23
Posted: 8/26/23 at 10:03am
If you have disposable cash, then yes. The best scenario is to invest in a long-running hit first and use the profits (or portions of it) each year to invest in other Broadway shows. I’d hope those who invested in Wicked back in 2003 are reinvesting some of their profits for new/riskier Broadway shows.
For Hello Dolly, I recall reading a NYT article that Rudin bundled that show to new investors with riskier plays that may not fully recoup. Plus he spent a lot of money in marketing; thus only 105% were returned to investors.
From attending the broadwaycares auction last fall, I recall people bidding over $10k for a pair of tickets to opening night + party (if they had one.) If you’re an investor, at least you have a chance of recouping or getting a small portion of the investment back.
#24
Posted: 8/26/23 at 10:26am
KKeller6 said: "70-80% of all bway shows fail to break even."
I know this is the standard thought about Broadway, but im reality, I'll never believe it. Almost envy facet of entertainment claims to be a losing venture. Sports, Broadway. Even" The Empire Strikes Back" claims to have never made any money. Don't believe it for a second. Are there shows that losemoney? Sure. But 70-80% today? No way. It would have dried up ages ago if that were the case.
Almost 80% of new restaurants fail, but new restaurants still open all the time.
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