Chicago Symphony reports small deficit
OrchestrasFrom the CSOA annual report:
The CSOA’s results from operations included total revenues of $78.8 million and expenses of $80.2 million resulting in an operating deficit of $1.4 million.
Total endowment and other investments were $453.5 million at June 30, 2024.
Endowment investments increased from $359.8 million at June 30, 2023, to $406.8
million at June 30, 2024, as a result of investment gains and new gifts to the SEMPRE
ALWAYS campaign. Over the same period, other investments, including beneficial
interest in trusts, increased from $41.7 million to $46.7 million. The CSOA continued to
reduce its long-term debt, which totaled $117 million as of June 30, 2024, and has
reduced the balance by nearly 20% since June 30, 2017.
Total assets at year-end were $581.8 million. Net assets increased $77 million as of
June 30, 2024, to $420.3 million
More gaslighting from Chicago.
Tickets sold were 291,988 compared to the pre-covid peak of 347,502 tickets sold in the 2017/2018 season. The structural permanent loss in audience is 15-20%, at a time when the major US houses (Cleveland, Philly, New York, Los Angeles) have fully recovered.
What the financial report tell us is that there were approx. $18.3M of net assets released for endowment withdrawal, and $3.6M more released for other investment withdrawal. Without this direct tapping into investment sources of support, $22M in operating losses more should be added to the deficit, which would become $23.4M, almost the size of the ticket sales ($26M). Operating expenses were $65M (higher than the $63M in previous year, an already staggering number). This is hardly the picture of a healthy organization with regards to its core business of making music offered in paid concerts. Take the endowment out and it would be over.
Meanwhile, Muti is bringing more “gifts” to other US cities. Here are excerpts of a review of his Philadelphia Verdi Requiem concert from the past week-end, published on Backtrack and titled “Requiem for a heavyweight: Riccardo Muti in Philadelphia”, a performance that was rated two stars out of five
(https://bachtrack.com/de_DE/review-philadelphia-orchestra-riccardo-muti-verdi-requiem-october-2024)
“Don’t meet your heroes, Flaubert once cautioned – they often have feet made of clay. […]
.. although Muti has lived with this work for decades and has a thorough pedigree as an opera conductor, the performance lacked a sense of musical variation and narrative drive ..
… The orchestral musicians played consistently well for Muti, though he seemed intent on goading them to keep things loud and fast…
… Muti’s preferred dynamics sacrificed the emotional core of the work for a few thrilling moments …
…With the orchestra and chorus essentially operating at one speed throughout the performance, the progression of the work lacked a total impact …
…As a performance […] it felt as if we were laying flowers at feet of clay…”
His concerts in Chicago on Nov. 8 and 9 have hundreds of unsold seats.
On the other hand, his concerts with Uchida on Oct. 31, Nov. 2 and 3 are pretty much sold out.
Uchida is one of the world’s best pianist. That’s who they are paying to listen to.
On the one hand, a second review of the Verdi Requiem – from the Philly Inquirer – was a rave. On the other hand, I attended and am probably a bit closer to this review. Muti was great at what he’s always great at – balancing the sections, getting just the right sound from each section, etc. But the performance’s visceral impact was a bit underwhelming.
Muti’s Eroica and Emperor Concerto performances this week are nearly sold-out (November 8 and 9 have to do with the program, not Muti). My friends in Philadelphia said that Muti’s Requiem was truly amazing (people in the orchestra and in the audience). Who are you Chicagorat? Why aren’t you brave or big enough to use your real name? What are you afraid of? Not impressed by Backtrack, by the way.
Mr Levin, instead of worrying about me, why don’t you share with the public here what a big man Muti has been with respect to the very young Japanese violin prodigy Himari Yoshimura? Did he treat her compassionately, or did her cut her off because of his own narcissistic ego and ridiculously thin skin?
Please enlighten us – you had a front seat throughout that business and know well Muti’s nature. I’m sure the readers here would appreciate your insights.
Why don’t you come out from under the covers, Chicagorat. Clearly, you know things about the CSO’s financial situation that only a board member or CSO committee member would know. If you are a board member, which I suspect might be the case, you should respect the confidential nature of your position. The same holds true if you are an orchestra player. Riccardo Muti is a great, great conductor, a musical giant of our time. He is right up there with Reiner, Szell, Kubelik, Kleiber and Toscanini. I wonder how much you really know. Whatever your personal gripes are with Muti, his music making is unparalleled. The CSO never sounds better than when Muti is on the podium – that is simply a fact. Come on Chicagorat, who are you? Don’t be a coward!
I am just a rat.
You have not answered my question about the young Japanese player. Why? Is it because you will profit financially if she plays in future engagements with Muti and her career blossoms? Is that why you are trying to mend those fences and kiss Muti’s ring?
The program, not Muti? Who do you think chose the program?
Dear Rat. You spew information with no supporting evidence. Have you documentation the other orchestras’ attendance have fully recovered from the pandemic? From what I have observed and heard, they are all also working their way back.
Considering you clearly are a member of the CSO based on previous postings, you should be grateful your employer is putting significant emphasis on shoring up its financial position, and being successful at it, instead of whining like the unhinged ingrate you are.
Muti is on the downside, everyone knows it, he’s an old conductor. Give him a break. He should be, as old waiters and old horses, treated with respect and tenderness…Poor Philadelphia has to deal with “energetic” Yannick, how better could it be?….
“Take the endowment out and it would be over.” and yet, this is one of the reasons there are endowments . . .
“Tickets sold were 291,988 compared to the pre-covid peak of 347,502 tickets sold in the 2017/2018 season.” It would be interesting to know how many of these tickets are for CSO concerts and how many are for non-Chicago Symphony events.
Bring back Muti and give him a proper budget and a decent repertoire to get the bums on seats!
Kudos to you administration and trustees! A great orchestra takes generations to develop but only a few years to destroy.
There would be almost as many reasons as there are people in an audience to explain declining audiences for this or other classical music. I’m sure it’s always been this way; there is or was no ‘golden’ period. But I’m fairly certain that economic conditions contribute to lower attendances overall and reduced returns for orchestras and venues. Endowment investments might camouflage that somewhat, of course.
I would say keep doing that thing you do!!
Since reiner they have become a dull orchestra , a total bore
Yes, those Solti and Abbado and Barenboim and Boulez and Tennstedt concerts were a total bore. I was a 10 concert subscriber for 18 seasons during the 80’s and 90’s. Were you there or is your comment simply silly? Reiner stepped down at the CSO over 60 years ago. What is your live experience of his conducting the CSO?
Chicago Rat makes some interesting points but I doubt he/she/they are one of the musicians. The Rat is truly in the administration with these numbers as the musicians don’t care about the numbers beyond their weekly paycheck.
John Le Carre would be proud of the Rat. As would be Smiley.
However, the numbers to me look impressive even with the draw from the endowment.
The endowment is meant to be used not just squirreled away. The endowment also appears to be substantially larger than the MET opera which has also dipped into its endowment for the purposes of surviving the Pandemic.
I don’t think any organization that performs live events in the arts has truly recovered. Perhaps they never will given the ease of streaming.
Not too worried about the finances down at 220 S Michigan Ave.
“The musicians don’t care about the numbers beyond their weekly paycheck”? Not very nice dig at the musicians.
In my experience from being around CSO musicians, very few if any take a real interest in the overall fiscal challenges of running such a large organization.
As long as they are getting paid, they nuts and bolts of how that happens off stage is of little concern.
No different than a line worker at Ford or GM.
Most rank and file laborers do not view their role as worrying about how the sausage is made.
They just want to make the sausage and get paid for it.
They feel that it’s management’s job to figure out how to pay for the sausage being made.
You have no idea what an endowment is meant to be. It is not a slush fund. A healthy organization does not draw from the endowment capital, and very often is restricted from doing so by its various donors. A healthy organization DOES have a reserve fund to draw from for emergencies or to cover deficits. From my view four hours away, CSO does not look like a healthy organization.
I have experience as an administrator as well as a musician. I am well aware of what an endowment is meant to be used for.
Unfortunately, something called a Pandemic changed the playing field (at least temporarily)
An endowment is of no use to anyone if the orchestra ends up not existing.
$400M + for an endowment where the annual budget is roughly $80M is a good ratio when compared to other top orchestra including the MET and the Boston Symphony.
Assuming a draw of 5%, the endowment is providing/can provide roughly a quarter of the budget through interest ($20M)
With the stock market at record highs and given an election year when anything can happen, I think it was prudent to take some money off the table, pay down some of the debt due to operating costs and try to recoup audience members with the incoming Music Director.
I think it was a good use of existing resources as the fiscal compass is reset.
The CSO is doing good to have a manageable deficit. They dont want to touch endowments but will the deficit low and endowments and investsments so high, why don’t pay the deficit and their bills and start from zero?Seems crazy to have past deficits and old bills go unpaid when the increase in the investments would easily cover it.
An endowment is only useful when it is spent.
(Hopefully on something useful).