Roundabout Question

[NewSynchopation]

Posted: 1/1/14 at 4:07pm

Roundabout theatre usually has full scale productions of musicals, but they only run for around 150 performances in a limited run unless ticket sales are extremely strong. My question is how do they make back their money in only 150 performances while other shows have to run for at least 400+? What do they do to save costs?

[frogs_fan85]

Posted: 1/1/14 at 4:53pm

Who said that they make their money back on ticket sales? Or make money back at all?

[bobs3]

Posted: 1/1/14 at 4:55pm

In not-for-profit theater the weekly running costs for the show are factored into the production budget of each show (salaries, theater maintenance, advertising, office staff, accounting, legal etc.). So, even if a show does not cover its weekly expenses from ticket sales the costs are already covered in the production budget. If a show does become a runaway hit (i.e., Anything Goes, Cabaret) any excess revenue above the weekly operating costs goes back into the the theater company's operating fund and/or endowment. From a legal and tax accounting standpoint a not-for-profit company cannot make a profit.






Updated On: 1/1/14 at 04:55 PM

[TimesSquareRegular]

Posted: 1/1/14 at 5:23pm

Don't not-for-profit theater companies have separate lower-scale contracts with the unions?

[bobs3]

Posted: 1/1/14 at 5:31pm

Depends on the NFP company and the show. Many off-broadway companies use Most Favored Nations Contracts which means no member of the company can receive more compensation than any other member. It gets more complicated with Broadway NFPs especially when there is a star (or two) involved with the production.

Updated On: 1/1/14 at 05:31 PM

[GavestonPS]

Posted: 1/1/14 at 7:33pm

Even without a Most-Favored-Nations contract, I suspect a star will work for less when he or she only has to commit to six months (including rehearsals) rather than over a year. S/he can make up the loss doing TV or film the rest of the year.

[gleek4114]

Posted: 1/1/14 at 7:57pm

^ This is true. For awhile I was curious as to how Sutton was going to do Violet and star in a new TV Land show then I realized Violet is only running from the end of March through mid August.

[indytallguy]

Posted: 1/1/14 at 9:32pm

"From a legal and tax accounting standpoint a not-for-profit company cannot make a profit."

That's a tad misleading. A nonprofit can always make a profit. If they do, in general it must be plowed back into mission-related work as you note. If the profit is not tied to its core mission and the reason for which it was granted nonprofit status, the excess revenues are subject to UBIT, unrelated business income tax.

[Jonwo]

Posted: 1/1/14 at 9:37pm

South Pacific ran for over two years so I imagine it made money for LCT. Roundabout usually has a season planned out so unless a show is a hit and can extend or transfer then it'll close by its closing date and be replaced by another show, rarely does a not for profit have to close early. Wasn't the point of the Sondheim was that it could potentially house extended runs for Roundabout shows which were hits?