Lyric Opera of Chicago has prided itself on keeping in the black financially in one of the most economically challenging arts fields. But this is the first time it's had to rely on a rage for fine wine as well as fine singing to do so. In other cities, grand opera is often confused with opulence, extravagance, and a cavalier attitude toward finances. But from the time of its legendary general director Ardis Krainik, Lyric Opera and its trustees have made clear that financial solvency is a necessary component of their presentation of international music theatre. At its annual meeting Monday night, Lyric reported that, as it has for the last 21 of 22 years, the company will show a surplus -- albeit a small one of $100,000 on $54.9 million in operating expenses -- for the eight-opera season that ended this spring. William Mason, Krainik's successor as general director, underscored that Lyric would not have kept its record if it had not been for its wine auction, held only every three years. The 2009 auction netted $1.2 million, allowing the company to exceed its $18.65 million fund-raising goals and stave off red ink. Lyric continues to have an excellent box office record, with 93 percent of seats sold during its 2008-09 lineup. With such hits this season as Manon, Lulu, Porgy and Bess, Tristan und Isolde and Madama Butterfly, just over half of its 82 performances were sold to capacity, pushing the total number of tickets sold to 274,591. Lyric's endowment, however, has taken a big hit, dropping by about $39 million, more than a quarter of its value a year ago. As at many organizations, staff salaries are being frozen and some vacant positions will not be filled. Mason said costs of $1.7 million must be saved over last year, bringing next year's operating budget down to $53.2 million. The company's fiscal 2010 fund-raising goal is also lower at $16.6 million. No artistic plans need to be cut or trimmed for 2009-10, and 2010-11 "looks fine at this point," Mason said. "After that, we'll wait and see. We are always prudent in our planning, with very lean budgets." Lyric's three-year contract with its orchestra expires this summer. Chicago Symphony Orchestra musicians last week made voluntary concessions in the middle of their contract to help the CSO with its books. Lyric Orchestra players historically have been tough on salary issues as they do not have the year-round income security of members of larger American symphony orchestras.Here is my Tuesday May 19 Chicago Sun-Times and suntimes.com article on Lyric Opera of Chicago's preliminary financial report for 2008-09.
Lyric tightens belt to adjust to declining endowment
BY ANDREW PATNER
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