Springfield Performing Arts Development Corp. last month was awarded a 30-month contract to run CityStage, and was the sole bidder to operate Symphony Hall through the end of 2018.
SPRINGFIELD -- The nonprofit created to manage and book acts into Springfield Symphony Hall and the nearby CityStage theater has been suffering from declining revenues in recent years, recording annual operating losses beginning in 2010 after staying in the black for much of its first decade.
According to a review of publicly available tax documents by The Republican, Springfield Performing Arts Development Corp. -- the only entity to bid this year on new contracts to run the venues -- saw its revenue from ticket sales fall from $1.2 million to just over $750,000 from 2010 to 2015.
The losses have led to a shrinking piggy bank of assets the organization can draw from to stay afloat.
"Of course our numbers are troubling, and we can't survive for more than a couple of seasons if these numbers don't change," Springfield Performing Arts President Tina D'Agostino wrote in an email.
D'Agostino said the organization is developing a "strategic plan to address short- and long-term issues and increase ticket sales, attract more sponsors and raise more money."
The trends seen at Symphony Hall and CityStage are not unique to Springfield.
With attendance at live performances on the wane across the country, organizations managing venues for theater, music, dance and other arts events are thinking creatively about how to market and package those performances -- and of what types of performances to offer.
"I think Springfield is seeing the same thing that everyone is seeing," said Dee Boyle-Clapp, director of the Arts Extension Service at the University of Massachusetts Amherst. "Imagine everything else that is going on. We have televisions at home that rival theaters. People work harder than they have ever worked. Wages have not increased."
Organization's history
Springfield Performing Arts Development Corp. formed in the late 1990s as a division of the Springfield Business Development Corp. The group took over management of the former StageWest in 1998, renaming the venue CityStage.
StageWest, a resident professional theater company that had operated in the Columbus Center space since it opened in 1984, shut down after accumulating $700,000 in debt -- a financial situation blamed at the time on a waning subscriber base, poor management and challenges nonprofit theaters were facing around the country, according to a report in the Union-News, predecessor to The Republican.
Springfield Performing Arts began managing Symphony Hall in July 1999, after the venue was run for two years by the Massachusetts Convention Center Authority.
After recording losses during its first two years -- including its inaugural CityStage season, which was cut short due to low advance ticket sales for the final four shows -- the organization recorded operating surpluses each fiscal year from 2001 to 2005.
The organization recorded a $13,830 loss in 2006 before logging three more consecutive years of surpluses.
The organization's net revenue of $491,893 in fiscal year 2007 was the largest surplus in its history.
But the losses began in 2010 with a negative income of $61,378. The news got worse from there.
Over the next four fiscal years, the organization lost over $300,000. Then, in 2015, the organization recorded a loss of $145,687 -- the highest since its startup years of 1999 to 2000.
The organization has been steadily cutting expenses, from just over $1.8 million in 2010 to under $1.4 million in 2015. Payments to artists and associated fees represent the single largest expense category, running in the neighborhood of $450,000 to $500,000 in recent years. D'Agostino earned a salary of $103,180 as president in 2015, according to tax filings.
But as overall expenses have fallen, so has the organization's annual gross revenue. The 2015 total of $1.2 million was down 39.7 percent from $2.05 million in 2008.
The yield from performance revenue, which twice exceeded $1.6 million in the early 2000s, has been under $1 million each fiscal year since 2012. The 2015 figure of $756,195 is the second-lowest on record -- behind only fiscal year 1999, when the organization booked shows only at CityStage.
Meantime, six straight fiscal years of operating losses have cut into the organization's net assets. After peaking at $944,198 in 2009, that nest egg fell to $460,081 in 2015.
Sole bidder on venue contracts
The Republican reviewed the organization's tax records after Springfield Performing Arts emerged this year as the lone bidder for fresh contracts to run Symphony Hall and CityStage.
The organization was recently awarded a new 30-month contract from the Springfield Parking Authority to operate the CityStage theaters at the Columbus Center complex on Bridge Street.
Springfield Performing Arts pays the Parking Authority $2,526 a month in rent. It also pays for utilities, and is responsible for maintaining the space.
"We were hoping to receive other qualified proposals in this area," said Parking Authority comptroller and chief procurement officer Ehsanul "Bokul" Bhuiya.
Bhuiya said arts organizations from Springfield, Hartford and West Hartford picked up bid documents. But, none made a formal proposal to take over the space.
"One thing is, people don't find this to be an ideal spot for these operations," Bhuiya said, explaining that he reached the conclusion because of the lack of other bidders.
He said he can only infer that the other potential operators didn't see enough potential in CityStage.
"I know we wanted something fresh, something new," Bhuiya said.
Springfield Performing Arts was also the only bidder on a city contract to operate the iconic Symphony Hall until the end of 2018.
Patrick J. Sullivan, director of Springfield parks, buildings and recreation management, said he and a city committee are reviewing the Springfield Performing Arts proposal for the Symphony Hall management contract.
The officials are currently weighing a number of factors, including the organization's financial records included as part of its bid package.
Sullivan said he expects to announce a decision in September.
The year 2018 looms large in the city's future. MGM Springfield plans to open its $950 million casino a few blocks away from Symphony Hall in the fall of 2018.
According to the host community agreement hammered out among the city, MGM and the state Gaming Commission, MGM expects to co-produce no fewer than three and no more than five events at Symphony Hall each year.
MGM is partnering on management of the MassMutual Center, located about a block away.
Finding the right mix
Despite her organization's recent financial struggles, D'Agostino -- who has led Springfield Performing Arts since the 2011 retirement of former president Cynthia J. Anzalotti -- said she is optimistic.
"We are committed to finding the right mix of entertainment for these venues," she wrote in response to questions from The Republican.
Tina D'Agostino, president of the Springfield Performing Arts Development Corp., at CityStage in a 2015 file photo. File photo / The Republican
D'Agostino declined to discuss specific artists or genres the group plans to target for booking.
The lineups for fall 2016 at both venues are heavy on one-person shows and tribute bands featuring the music of the 1960s and 1970s. Examples include The Last Waltz LIVE featuring the music of The Band, and singer-songwriter Kevin MaC at CityStage.
The Truth Hurts Comedy Tour featuring Latino comics such as Willie Barcena, who has a special on Netflix, is booked into Symphony Hall in October.
"Comedy does very well, Broadway is hit or miss," D'Agostino wrote. "Sometimes family shows do well, other times they miss the mark. Reality television stars draw great crowds most of the time."
She continued: "We've had mixed reactions to Cirque-style and magic shows. There have been decent crowds for concerts, from rock to country, and R&B to oldies. Serious dramas don't typically sell well, but tributes, comedies and musicals often do, many selling out."
A review of attendance data for over 160 Symphony Hall events from October 2011 to June 2014 shows that comedy does indeed do well: four of the 10 highest attendance totals were for high-profile comedians, including Jerry Seinfeld and Aziz Ansari.
The numbers, included in the city's bid materials for the Symphony Hall management contract, also show high attendance for some musical acts.
Guitarist Joe Bonamassa, whose concert filled 2,563 of Symphony Hall's 2,600 seats, saw the highest draw for any performer or other ticketed show during the period for which attendance figures were available.
High-profile speakers -- like the reality stars D'Agostino mentioned -- consistently drew some of the largest crowds, with an average attendance of 1,979, according to an analysis of the data by The Republican. Comedy shows drew an average crowd of 1,764, while theater events saw a much lower average of 928.
Whatever the genre, though, live performances are competing against an increasing array of entertainment options.
D'Agostino compared the competitive and economic climate in recent seasons to 2002, when the organization saw its gross revenue peak.
"Think about it, did we have Netflix, or access to entertainment in our homes in 2002? What was the economy like in 2002? Times have changed," she wrote in a series of emails. "Participation in the arts is on the decline. Other arts organizations are feeling this. I'm not entirely blaming Netflix or home theaters or the economy, but I think fewer people feel compelled to see a live show."
Boyle-Clapp, of UMass -- who teaches courses including Introduction to Arts Management and Foundations in Arts Entrepreneurship -- said there's a limit to how much an arts organization can rely on cutting expenses to balance its books.
She agreed to talk about the arts economy in general, and not about Symphony Hall and CityStage in particular.
Eventually, Boyle-Clapp said, cutbacks hurt the product the organization puts up on stage. A decline in quality, in turn, alienates supporters the organization once could have counted on for ticket sales and donations, further exacerbating the problem
"People cost money," she said. "If you are going to put on the Boston Symphony, the Springfield Symphony, you can't cut back. You need all those performers -- and you need to pay them."
Symphony strategies
The Springfield Symphony Orchestra is a separate organization that pays D'Agostino's group to rent the hall for its performances.
The rental fees go toward Springfield Performing Arts' bottom line, and the organization -- in its role as the venue manager -- also makes money on concessions sold during symphony performances. While other groups also pay to rent the facility, the symphony is the single largest tenant.
In terms of its fiscal health, the symphony recorded an operating surplus of $1.3 million in 2015, ending the fiscal year with $7.9 million in net assets -- up from $4.8 million in net assets in 2000, according to tax filings.
Maestro Kevin Rhodes conducts the Springfield Symphony Orchestra in its Season Grand Finale at Symphony Hall on Saturday, May 7, 2016. Steven E. Nanton photo
Symphony orchestra performances drew an average audience of 1,344 during the period covered in the bid documents, and its youth orchestra program drew an average audience of 2,133.
Orchestra events accounted for nearly a third of the 25 best-attended ticketed shows at Symphony Hall from October 2011 to June 2014.
But, like D'Agostino's organization, the symphony has also seen its performance revenue slide over the past decade, from $966,363 in 2005 to $654,690 in 2014.
That decline in ticket sales reflects national trends.
According to a 2012 survey by the National Endowment for the Arts, just 8.8 percent of Americans attended classical music performances that year, down from 9.3 percent in 2008.
Attendance for ballet performances fell to 2.7 percent of the population from 3.9 percent four years earlier. Opera attendance fell to 2.1 percent of the population from 3.2 in 2008.
The survey is done every four years, so new numbers are not yet available.
But Boyle-Clapp fears the trend has continued.
"Personally, I'm worried to death," she said.
One issue arts organizations are facing is that, in the age of standardized testing, schools are less likely to teach art, music and music appreciation. In many households, children aren't exposed to classical music, either.
"How do you miss something you were never exposed to?" Boyle-Clapp said.
The solution many institutions and venues have discovered is to mix up their offerings in ways that still serve their arts mission.
Examples include staging concerts in which orchestra musicians wear T-shirts and blue jeans, so audience members unaccustomed to dressing up feel more comfortable. Other strategies include offering shorter, less expensive events for those tight on time or money, or symphony concerts that start at 10 p.m. to draw a late-night crowd.
"You don't have to change what you do," Boyle-Clapp said. "What is helpful in the field right now is changing how you do it. The biggest piece is to take away the fear some people have about attending."
As an example, she pointed to the eclectic arts programming at MassMOCA in North Adams.
The museum's upcoming schedule ranges from the FreshGrass Bluegrass Festival featuring Old Crow Medicine Show, Ricky Skaggs and Kentucky Thunder and others to a showing of the 1924 Buster Keaton silent film "Sherlock Jr." that is coupled with a live performance of the score by The BQE Project, a chamber ensemble.
Peter T. Salerno, executive director of the Springfield Symphony Orchestra, said his group is trying to be as innovative as possible.
For example, the symphony this season will continue its Dinner & the Symphony promotion. The partnership with Peter Pan Bus Lines and The Student Prince offers an evening out that includes a meal at the historic Springfield restaurant, tickets to a show and charter bus service from pickup points in Wilbraham and Longmeadow.
And the Symphony is offering innovative performances on the stage as well, he said.
In May 2017, the symphony will present "Video Games Live" from Springfield native and video game music composer Tommy Tallarico, who has arranged music from classic games such as "The Legend of Zelda" for an orchestra. The musicians play the music while the games are projected on big screens.
For the event, the symphony will set up an arcade in Symphony Hall, Salerno said.
"The idea, artistically, is to show that a symphony orchestra can play anything," Salerno said, adding that one of the hopes is to bring a younger generation to Symphony Hall by showing off the orchestra's versatility.
The Springfield Symphony Orchestra wants to experiment while continuing to respect the music and the musicians -- a balance he said the video game performance strikes well.
"We just can't stand still. We have got to continue to keep the vibrancy," he said.
The big picture
D'Agostino painted Symphony Hall and CityStage's woes as part of a larger set of challenges facing downtown Springfield.
"The restaurant space next to CityStage has been vacant for 8 years! Has that helped our business? Of course not," she wrote. "Right now, I think you'd find out that attendance and participation has been down at other events and businesses. There are challenges that we all face, but things are getting better."
She pointed to successes the city has seen in drawing visitors downtown in recent months, including the White Lion Wednesdays series.
The outdoor beer garden, sponsored by the city's Business Improvement District and hosted at a rotating set of locations downtown, proved to be so popular that its initial schedule of 10 dates was extended into September.
"More events, better attendance, positive experiences and good buzz -- that's what downtown Springfield needs. We want to be a part of that," D'Agostino said. "More synergy and a better vibe will arise out of the collective success of many individuals, organizations and businesses that are working so hard to improve downtown."