The contrast between the situations is evident--utter acrimony in Detroit and a classy sense of heartbreak in Philly.
The letter from the Philadelphia Orchestra management is here.
We are writing to inform you that despite the incredible artistry of the musicians of The Philadelphia Orchestra and their diligence and hard work as collaborative partners, the Board of The Philadelphia Orchestra Association has made the difficult decision to file for Chapter 11 protection. Our financial situation is serious and the simple facts are these:
- Our operating funds are rapidly dwindling and will be exhausted by June 2011.
- While the Orchestra does not have any debt, we are operating at a significant loss with a structural deficit of $14.5 million.
Let us assure you, first and foremost, that our concerts will go on as scheduled, including this evening’s performance of Mahler’s Symphony No. 4. Indeed, the music plays on!
Yet, let us be frank about the myriad factors contributing to the financial challenges we face. Our structural deficit has been created by a decline in ticket revenues, decreased donations, eroding endowment income, pension obligations, contractual agreements, and operational costs. Our beloved musicians made multiple generous concessions during the collective bargaining negotiations. Our Board donated more than $9.5 million above and beyond annual giving. And our professional staff was both reduced and agreed to pay cuts. These proactive and important steps were simply not enough to solve all of the issues we face.
We are now on the front end of a great readjustment in the culture, long overdue in reality.
This organization will likely rise from the dead, stronger than ever, and deserves to.
Hopefully, other organizations in the not-for-profit world, that do so much to define and enrich our culture, will take a cue from this letter.
Meanwhile, back in Detroit....how not to go through the readjustment.
1 comment:
Hi,
I'm a cellist and a graduate of a major music school and just heard that the Philly Orchestra is filing for bankruptcy. This is horrible. I was telling a friend that generally what happens is someone dies (or hopefully retires) and then about 200-400 qualified musicians audition for one chair. I can never see this happening is say...big league baseball. I also can't see how you could downsize an orchestra, as Detroit was trying to do...you could never play such pieces as Mahler 4, and then really you don't have a cultural center.
Melissa
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