NY Times: The $30 Million Founding Father: How ‘Hamilton’ Got Federal Aid

[everythingtaboo]

Posted: 6/29/21 at 2:50pm

Some highlights from today's New York Times article::

"Aware that a large amount of federal aid 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 show also had a London production that was not eligible for the American relief program.)

“Remember when Chrysler and GM were about to go bankrupt? In the same way that the federal government came in to bail out auto companies, it’s doing the same thing for all of show business with this legislation,” he said. “It’s returning us to health and it’s protecting the well-being of our employees.”

Seller said that none of the money would go to the show’s producers (including him) or its investors, and none would be used as royalties for artists (including the show’s creator, Lin-Manuel Miranda).

Instead, he said, the money will be used to remount the shuttered productions, and to reimburse the productions for pandemic-related expenses..."

“‘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.”

The rollout of the Shuttered Venue Operators Grant initiative, a $16 billion federal aid program designed to help get cultural organizations back on their feet after the pandemic forced many to close, has been plagued by delays and confusion. But the Small Business Administration, which is administering the program, has begun announcing grant recipients, and there are indications that Broadway and its affiliated businesses could fare well.

As of Monday, the administration said that among the entities getting $10 million, which is the maximum available for a single grant, were two Broadway landlords, the Nederlander Organization, which controls nine Broadway theaters (one of which houses “Hamilton&rdquo, and Jujamcyn Theaters, which controls five, as well as the Roundabout Theater Company, a nonprofit that runs three Broadway houses. David Byrne’s Broadway show, “American Utopia,” was also among those getting $10 million.

Nederlander affiliates that run commercial theaters in Los Angeles and Chicago each got $10 million. Three Broadway touring productions managed by NETWorks were given grants — $10 million for “Fiddler on the Roof”; $9.8 million for “Waitress”; and $9 million for “The Band’s Visit.”

[JBroadway]

Posted: 6/29/21 at 3:22pm

A classy move, on Seller's part, to explain exactly where the money is going and why. You might say he was just covering his own ass from potential criticism, and that's probably true, but many powerful people in his shoes are not so transparent, and don't care about being seen as greedy as long as they get their payday. 

[SouthernCakes]

Posted: 6/29/21 at 3:48pm

Yeah glad he clarified.

But a non-eq tour getting the same amount as Hamilton?

[bear88]

Posted: 6/30/21 at 1:44am

I am not going to waste any time getting mad about this, because Seller is just being a smart producer, Hamilton isn’t the only beneficiary and government support for the arts is a good thing - especially under the circumstances.

But I did think of the small theaters in my neck of the woods scrambling to stay alive and, in one case, holding a big fundraiser.

It’s the small, regional theaters that really need the help. I hope they get some.

[DiscoCrows]

Posted: 6/30/21 at 6:16am

Yeah, I share the same sentiments. I trust and am glad to see Seller clarified what was happening with the funds, it was not only a smart move but an admirable one as well for him to have been so transparent. I see a plethora of people on twitter quite unhappy about this headline though, and I understand concerns about smaller venues and projects getting adequate funding as well at the end of the day. We’ll see.

[KKeller6]

Posted: 6/30/21 at 9:02am

Pretty much exhibit A as to what ails our country. Some obscenely rich people get $30-$50 million. They have a few extra expenses. Expenses which will easily and undoubtedly be recovered. Quickly.

[ErmengardeStopSniveling]

Posted: 6/30/21 at 10:06am

Sort of like the PPP loans –– if you have a problem with this, direct your anger towards the government/Chuck Schumer, and not the individual producers/shows. Anyone (rich or poor) who has the opportunity to collect money to help restart and sustain their business after a 15 month shutdown isn't going to turn down free money.

I believe the size of the grant is determined by the projected lost grosses over a period of months; any show with decent pre-pandemic sales would easily be able to prove about $10 million lost in a short period of time.

Though I also know there are a number of nonprofit arts venues struggling mightily who haven't received an answer about the funds yet, so it's a tricky situation...

Updated On: 6/30/21 at 10:06 AM

Posted: 6/30/21 at 10:25am

KKeller6 said: "Pretty much exhibit A as to what ails our country. Some obscenely rich people get $30-$50 million. They have a few extra expenses. Expenses which will easily and undoubtedly be recovered. Quickly."

"Seller said that none of the money would go to the show’s producers (including him) or its investors, and none would be used as royalties for artists (including the show’s creator, Lin-Manuel Miranda)."

If the producers and LMM are not getting any money, which rich people are you referring to?

[BdwyFan]

Posted: 6/30/21 at 10:36am

I’m guessing All the excess funds will sit in a “Reserve” in the bank. Eventually that cash will be distributed to investors et al. I doubt the production would burn through the cash during slow weeks. Assuming they even have slow weeks.

Posted: 6/30/21 at 12:37pm

BdwyFan said: "I’m guessing All the excess funds will sit in a “Reserve” in the bank. Eventually that cash will be distributed to investors et al. I doubt the production would burn through the cash during slow weeks. Assuming they even have slow weeks."

So basically you're saying Seller is lying.

[fashionguru_23]

Posted: 6/30/21 at 12:58pm

Waitress had just gone non-equity in January 2020, so its missed a lot of cities, The Equity closed in August 2019. Fiddler I'm surprised is still going (also non-equity), and Band's Visit started Summer 2019 so it didn't play a full year when it was shut down. 

Surprised to hear Troika didn't get any money for the Equity My Fair Lady, Cats, or Margaritaville.

[everythingtaboo]

Posted: 6/30/21 at 1:57pm

ctorres23 said: "KKeller6 said: "Pretty much exhibit A as to what ails our country. Some obscenely rich people get $30-$50 million. They have a few extra expenses. Expenses which will easily and undoubtedly be recovered. Quickly."

"Seller said that none of the money would go to the show’s producers (including him) or its investors, and none would be used as royalties for artists (including the show’s creator, Lin-Manuel Miranda)."

If the producers and LMM are not getting any money, which rich people are you referring to?"

I think it's more the idea that, like we saw mostly in the early days of PPP, the people with money and influence also had access to the right legal and financial teams with the knowledge and connections to get their monies before it ran out, and before many of the mom and pop shops, who would be closer to the brink to begin with, even knew how to submit for their PPP. 

[KKeller6]

Posted: 6/30/21 at 2:33pm

Not for nothing, but if it's going to be used for expenses related to the show, then it absolutely is going to the Producers. Even if they spend it all. Because they would have had to accrue those costs.
And I'm not angry at anyone, for the poster who asked, but you have millionaires, collecting millions, to help remount a show that will probably end up making billions.
All while some dude ( and gal) during the pandemic had to pump gas for minimum wage because he is "essential". While Sellers took a vacation. How about we give him a million and give Sellers nothing?
We try so hard to be fair, we get almost nothing right. Maybe I am a bit angry. Honestly, for these people to apply for that money is a disgrace. They had no expenses during the shutdown except rent, and they probably had some insurance to help cover that. Everyone stayed fat.

[Wick3]

Posted: 6/30/21 at 2:55pm

Good for them for getting their application approved.

I recall last year small businesses like Shake Shack qualified for PPP loan but after public backlash they turned down the loan.

I was just surprised Seller even applied given how Hamilton was had grosses of roughly $2-$3 million a week before the pandemic hit. 

I hope small/regional theaters were able to get their loan applications approved.

[DiscoCrows]

Posted: 6/30/21 at 3:26pm

fashionguru_23 said: "Waitress had just gone non-equity in January 2020, so its missed a lot of cities, The Equity closed in August 2019.Fiddler I'm surprised is still going (also non-equity), and Band's Visit started Summer 2019 so it didn't play a full year when it was shut down.

Surprised to hear Troika didn't get any money for the Equity My Fair Lady, Cats, or Margaritaville."

Is there anywhere we can read more about who (despite the large sum of applications still being processed) did or didn’t get accepted? Some sort of official list, or is it more just offhanded reports? I think the issue here is less about Hamilton and more about who isn’t being funded en light of Hamilton. Even if a tad “immoral” to have applied for a show that is arguably in no need of this money (respectfully, someone tell me if I’m wrong there please), it’s not like Seller having applied/gotten this funding would be an issue assuming every other mom & pop venue gets what they need as well right? Seller & Co. are playing by the rules- each independent company is a separate LLC and grossed well over $10m prior to February of 2020. I wish the answer was as simple as “it makes sense”- it does. But I understand the larger concerns regarding SVOG here.

[PlayItAgain]

Posted: 6/30/21 at 4:21pm

Pretty obscene considering the show in verious ways has made over 650 million already

wondering how many smaller thetaers that really needed that money won't get it as a result 

[SouthernCakes]

Posted: 6/30/21 at 5:12pm

I’m still stuck on a non union tour of Fiddler making $10m?!

I guess I need to get into producing.

[DiscoCrows]

Posted: 6/30/21 at 5:14pm

SouthernCakes said: "I’m still stuck on a non union tour of Fiddler making $10m?!

I guess I need to get into producing. "

Yeah I’m surprised so many people are more irked by Hamilton than they are this. It’s nuts.

[phantom39]

Posted: 7/3/21 at 6:27am

This is pretty upsetting and this article is not making it better.. HAMILTON is a global blockbuster that can survive without this aid that should go to small theaters around the country. Seller is a great PR man.

[DiscoCrows]

Posted: 7/6/21 at 7:06pm

Caitlin Hudson: "A #SVOG Broadway update: Chicago, Ain't Too Proud, Phantom, Waitress approved for $10 million grants; Girl From the North Country: $9.9 million. Several Off-Broadway theaters have also been approved, including Ars Nova, Atlantic Theater Company, La MaMa."

https://twitter.com/hustonca/status/1412515382452273162?s=20