Six on Broadway recoups

[bdn223]

Posted: 3/23/23 at 10:35am

https://broadwaynews.com/2023/03/23/broadways-six-recoups-ahead-of-its-600th-performance/

 

According to Broadway News Six' Broadway production just recouped its capitalization, although its states the initial capitalization was $5M, I have to suspect with covid costs that number likely increased. Overall though, I maybe wrong, but this is the first musical on Broadway to announce its turned a profit since the pandemic. 

[ErmengardeStopSniveling]

Posted: 3/23/23 at 10:37am

I am very surprised it took that long, considering the high grosses and low cap. Even if the budget ballooned to $7M. I think some of us thought it had recouped somewhere around the Tonys, but evidently not!

[bdn223]

Posted: 3/23/23 at 11:03am

ErmengardeStopSniveling said: "I am very surprised it took that long, considering the high grosses and low cap. Even if the budget ballooned to $7M. I think some of us thought it had recouped somewhere around the Tonys, but evidently not!"

Doing some back of the napkin math, either Six  has spends a fortune on marketing each week, the capitalization tripled due to the pandemic, or a 75 minute musical with a cast of 11 including alternates, pit of 5, a unit set, and only 7 costumes costs over $800K a week to operate. I know Six also got a $10M government grant to reopen, which I assumed didn't have to be paid back, but also covered the reopening costs and gave the show a buffer if it operated at a lost post reopening. Considering the show only had 1 week where it brought in under $800K and that was when it had to cancel 6 performances due to covid, and otherwise its only had 1 other week grossing under $900K since reopening, I highly doubt its ever run at a loss besides the week of canceled Covid performances. 

[binau]

Posted: 3/23/23 at 11:20am

Mmm very curious where all the money has gone it doesn’t seem to make much sense! 

[HogansHero]

Posted: 3/23/23 at 11:28am

It is well to remember that there is no correlation between recoupment and the announcement thereof. There is no requirement of a public announcement ever. There is also no control on how a producer chooses to allot net revenue. 

[Fosse76]

Posted: 3/23/23 at 11:29am

At $11 million, it took Come From Away only 9 months to recoup. With a larger cast. And the Schoenfeld only has a handful more seats than the Lena Horne. Even with the added costs of covid testing, staffing, and cancelations, it's weird it took so long for Six to recoup. The $10 million grant more than covered the original investment, and I doubt the re-startup of the production equalled the original capitalization. The covid testing/protocol costs would have to have been astronomical. 

[ErmengardeStopSniveling]

Posted: 3/23/23 at 11:37am

Yes the allocation of the net is what makes me say "huh", since the release specified it recouped in Dec 2022 (whether that is true or not). I had simply assumed they weren't going to announce, for modesty purposes in a strange time for the industry. But the timing of all that doesn't really matter.

[bdn223]

Posted: 3/23/23 at 11:47am

The story has now been updated to reflect the show recouped its initial investment in December of 2022, which still raises some questions about what was the final capitalization. According the the Broadway Journal in 2020 the shows initial operating costs that were presented to investors were $469K with a maximum capitalization of $6.5M, even if we assume covid costs added an additional $50K a week to the operating budget then take out royalties, that would mean the show profited over $18M by the beginning of December 2022. Either Kevin McCollum's team is doing some funny accounting, or they are spending an additional $200-$300K over the operating expenses on marketing each week.

Updated On: 3/23/23 at 11:47 AM

[MayAudraBlessYou2]

Posted: 3/23/23 at 12:42pm

While it does seem strange that it took so long, it is worth pointing out that SIX is a MAJOR spender when it comes to advertising. They have a really well shot and edited TV spot, which features actual footage (instead of a camera slowly panning over the one piece of key art which so many shows employ...seriously does anyone buy tickets based off those?) I'd say this has to be one of the more expensive Broadway commercials and they have it running everywhere (Id also say its the most effective at making you want to see the show). They also recently did a recut version of it. I dont have access to any financials obviously, but I suspect their aggressive advertising efforts to make the show a omni-present Broadway brand have eaten up a big chunk of cash.

[pethian]

Posted: 3/23/23 at 6:01pm

bdn223 said: "...pit of 5, ...."

Pit of 5 at the Lena Horne? I thought the minimum there was 9 musicians.

 

[bdn223]

Posted: 3/23/23 at 6:08pm

pethian said: "bdn223 said: "...pit of 5, ...."

Pit of 5 at the Lena Horne? I thought the minimum there was 9 musicians.

"

Maybe they got an exemption because its a rock musical, but yes there are only 5 musicians who make up the lady's in waiting of Six.

[HogansHero]

Posted: 3/23/23 at 6:45pm

ErmengardeStopSniveling said: "Yes the allocation of the net is what makes me say "huh", since the release specified it recouped in Dec 2022 (whether that is true or not). I had simply assumed they weren't going to announce, for modesty purposes in a strange time for the industry. But the timing of all that doesn't really matter."

Either I did not note the Dec date or they added it later. The allocation I was referring to (and I was not clear) would have been to reserves. This is not that dissimilar to Rudin and Dolly. Both he and Kevin have a hearty appetite for advertising plus Six has been spending first class money on social (direct and indirect), influencers, etc. I can see how you could justify heavily covering advertising and marketing in lean weeks in the future with reserves.

[pethian]

Posted: 3/24/23 at 6:07pm

bdn223 said: "pethian said: "bdn223 said: "...pit of 5, ...."

Pit of 5 at the Lena Horne? I thought the minimum there was 9 musicians.

"Maybe they got an exemption because its a rock musical, but yes there are only 5 musicians who make up the lady's in waiting of Six."

 

Or are they paying for 9 but only using 5. (Or doesn't that  happen anymore?)

 

[Call_me_jorge]

Posted: 3/24/23 at 6:55pm

How did waitress do it? Surely, they didn’t have a pit of 9.

[ANewBrainn]

Posted: 3/24/23 at 11:33pm

bdn223 said: "https://broadwaynews.com/2023/03/23/broadways-six-recoups-ahead-of-its-600th-performance/



According to Broadway NewsSix' Broadway production just recouped its capitalization, although its states the initial capitalization was $5M, I have to suspect with covid costs that number likely increased. Overall though, I maybe wrong, but this is the first musical on Broadway to announce its turned a profit since the pandemic."

I find it very unlikely that The Music Man didn't recoup

[dangeresque49]

Posted: 3/25/23 at 1:59am

I am glad I saw this on my cruise. I would have never paid more than about $30 for it. I am sure the Broadway performers were probably better but I don't think the set was much different. I guess good for the producers. This show likely filled a void for people who never got to see the spice girls live as far as music goes (although the cast is most definitely more talented than them), I just don't have a ton of interest in general on seeing a short show on Broadway for the same prices as a production who gave me better value. I think Hamilton is worth double the cost of this for double the time on better music content. 

[bear88]

Posted: 3/25/23 at 5:18am

It's not relevant to this thread whether you liked the show (and not even on Broadway, or on tour, but on a cruise ship) or would prefer something else.

I think the interesting part is the announcement that the musical is in the black, and is officially a hit - the first post-COVID show to announce as much. The reasons for this are interesting to me, and I've never seen Six (though my daughter did last year). 

The musical was all set for Opening Night when the world shut down. I'm sure the producers and creatives went through a lot of stress, knowing they had a hit on their hands but unable to perform for what turned out to be a long time. Would all of their work and investment come to naught? It's a happy ending and good news for theater.

[OhHiii]

Posted: 3/25/23 at 7:04am

The fact that this show took THIS long to recoup that little of an initial investment is a testament to how expensive the return truly was with added protocols and canceled performances that were no longer insured. Let’s see how long MJ takes.

and yeah no way that The Music Man didn’t recoup and make a not insignificant profit. 

[jo]

Posted: 3/25/23 at 8:29am

On another show --

Did THE MUSIC MAN ever recoup? Presumably it had one of the largest weekly operating expenses during their season.  Their announced development cost ( via Variety) was $ 24 million.

Any word?

[Call_me_jorge]

Posted: 3/25/23 at 9:32am

jo said: "On another show --

Did THE MUSIC MAN ever recoup? Presumably it had one of the largest weekly operating expenses during their season. Their announced development cost ( via Variety) was $ 24 million.

Any word?"

When they announced their final extension the producers added that they expected to recoup by the end of the run. Whether that ended up happening is anyone’s guess.

[jeffrey2]

Posted: 3/25/23 at 10:11am

On another show…do you think Funny Girl will recoup by th end of Lea’s run?