According to Broadway investment banker Lisbeth R. Barron, who brokered the deals for British firm Ambassador Theatre Group to take over six theaters in the United States, the overwhelming losses that the COVID-19 pandemic has caused might lead to some theaters changing hands.
5 comments:
A game of musical chairs? I have a personal belief that broadway venues should be owned by the city of New York to assist with overhead costs that producers on broadway have to pay for when they put up shows. Nonetheless, this article focuses on the independent venues that are going to be passed around to the people that can afford to hold onto them. I agree with Barron that venues will and continue to hold their value. I’m really angry about the fact that regional theatres are definitely struggling to pay for overhead costs and the government is not assisting the arts in any way. The only thing I can look forward to is that if people can’t afford to continue their regional theatres, that we can rebuild them from the ashes. It makes me very nervous to think about the fact that there are theatre owners who are looking to expand their portfolios.
Although I’m saddened that most of the theaters that are going to have to be sold for lack of revenue are owned by smaller organizations, I’m glad that they are still considered of value. Theaters are iconic pieces of real estate and are considered a lucrative investment. I think that what we learn about the stock market about when is a good time to buy and sell, also applies here. You should buy when prices are low, (a bull market or recession) and you sell when stock prices are high. For the most part that applies to the real estate market because during an economic crisis, people are foreclosing on their homes or just need to sell it for the income, so prices tend to be lower and then the value of the home will increase when the market stabilizes. I don’t know how well that applies to buying theaters, But right now ithey are not bringing in income from shows and the owners need to get them off their hands. I assume it’s a good investment. It’s true though that we don’t know when this pandemic with be over, so it’s hard to say when the theaters will start making money again.
I Found this article very interesting and gave me insight into the business side of theatre which I never really think about. Although the thought that some theatres can get sold during this time I think it may be inevitable. Most people have said that the virus has only sped up the closures that would take place later down the road. I did not know the information about the theatres in London being bought for such a high price, but also the theatres work kind of differently there than broadway. I hope that the theatres of Broadway are not bought by the same company. I think having multiple companies owing the theatres is better so that broadway can be more diverse, that way of a show gets rejected by one company it could be accepted and put on by another theatre. It'll be interesting to see if anything might actually change.
I think it’s crazy how much the Corona virus is affecting so many different things, not just people. Museums, concerts, flights, etc are all being cancelled due to the outbreak, and the consensus of when everyone will be safe is still undetermined. It’s really scary to think that a virus could cause so much destruction all over the world now. The fact that it's hitting the entertainment industry is also really scary especially when thinking about how long it took the virus to do the amount of damage it has and scare the amount of people it does. Also, the amount of money being poured into these productions and shows all for it to be cancelled is so heartbreaking. The hard work these people put into the shows is all going to waste, and there is no telling if any of it will be salvageable, both monetarily and performance wise- I hope there is some kind of way to get their money back.
It’s no surprise to any theatre person that theatre in general, but more specifically Broadway, is all business. Obviously there’s going to be massive side-effects when everything is shut down because of a pandemic. And it honestly looks like there’s no end in sight. I, like many others hoping to join the industry or are already in the industry, can attest to considering continuing this career path here. “Even after a vaccination becomes available, it is uncertain when families will feel comfortable returning to theaters, while their owners must still pay all of the property taxes, utilities bills, and maintenance expenses during the long shutdown.” I never considered the business of Broadway too much until recently, so I also never considered the concept of theatre venues being bought up. It doesn’t surprise me that billionaires will be taking advantage during the pandemic… I’d actually be surprised if it wasn’t this way. It’s still disappointing nonetheless. Capitalism sucks. That is all I must say.
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