Lyric Opera In The Money, For Now

By Alexander Hough in Arts & Entertainment on May 19, 2009 7:00PM

The Lyric Opera of Chicago announced today that the 2008-2009 season registered a surplus of approximately $100,000, although financial trouble looms as the economy continues to founder.

Lyric has run a surplus in 21 of the last 22 seasons, no small feat in an industry where operating deficits are ubiquitous even in flush times: musician and staff wages and other operating costs keep pace with those from other sectors of the economy, while the number of performances and how much can be charged for them remain relatively stagnant. The 2008-2009 numbers Lyric flaunted include operating expenses of $54.9 million and ticket revenue of $27.96 million (with some additional revenue trickling in from concessions and theater and set rentals).

The remaining deficit must be overcome by donations, and Lyric made it into the black by exceeding their $18.65 million fundraising goal (fully audited financial statements won't be available until August).

Lyric's General Director William Mason tempered the good news, saying that "the recession is most certainly affecting our ability to sell tickets and raise money for 2009-10." This season, Lyric sold an extraordinary 93% of its seating capacity. However, subscription tickets, which make up roughly 75% of ticket revenue, are usually sold prior to the season's start - that is, the bulk of this year's sales occurred before last fall's financial meltdown.

Mason also pointed out that Lyric achieved its surplus by raising $1.2 million at a recent wine auction, an event that occurs only once every three years (though it is somewhat promising that the auction, which took place in March, raised more than the last one in 2006).

Additionally, Lyric's endowment declined by approximately 26%, or $39 million in net assets, for the year, a disturbing trend in itself but also squashing the additional revenue stream of investment income.

Lyric has adjusted their 2009-2010 budget according to gloomy projections, cutting operating expenses by $1.7 million and lowering the fundraising goal to $16.6 million. Staff salaries have been frozen and some vacant positions will be left open.