Coda: Assets Of Syracuse Symphony Divided Among Thee Local Institutions

It's over.

The Orchestra entered Chapter 7, a liquidation bankruptcy proceeding. The bank, the primary creditor, recovered what it could, and in an act of goodwill, distributed some of the most important assets to local organizations.

M & T Bank has closed the books on what’s left of the Syracuse Symphony Orchestra.

The bank’s regional president Allen J. Naples announced the dispersal of the SSO’s assets to three community groups at a news conference this morning at the Onondaga Historical Association. The bank was the main secured creditor for SSO assets when it filed for Chapter 7 bankruptcy in May.

Naples said the orchestra’s instruments, including a Steinway piano, and computer and electronic equipment would be donated to the Cultural Resources Council of Syracuse and Onondaga County. The SSO’s sheet music, considered to be the most valuable asset, will be given to the Setnor School of Music at Syracuse University. Onondaga Historical Association will receive the orchestra’s archives, albums and paintings.

Rightly, the music library was seen as the most valuable asset. Without it, it would be impossible to ever re-assemble another orchestra in the future. A lot of that music is long out of print, and the years of musicians' markings on the parts (which in effect create a local edition of a piece) are irreplaceable.

The bank did the right thing, for the city and for themselves. They took their haircut, to be sure, and left the door open for something else to assemble itself in the future. The bank also bought a good deal of that intangible asset--goodwill--so difficult to build, so easy to destroy.

Once again, OS sez: 2012 cannot come soon enough. It will take sober grownups to set the country in motion and productive again, so that profits can be made to spend on important items like a local symphony. Until then, it's chinstraps on. We haven't reached the end of the orchestra closures yet. Louisville has yet to get back underway, and Philadelphia is still in BK. Whoo'da'thunk'it that the great Philadelphia Orchestra would wind up in BK court?

Colorado Symphony may be next.

Philadelphia Orchestra Files For Bankruptcy, Detroit Symphony Resumes Its Season

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.