Investing In Partner Success

by:

Joe Patti

I am not a big Oprah fan but I heard a story last week on All Things Considered that really impressed me as to how invested her show is in the success of their partners. The story focuses on a small company with 6 employees whose soaps were chosen to be given away on air as part of Oprah’s Favorite Things.

One of the things the Oprah people did was send the company technical details for their web server to make sure their website didn’t go down from all the visits they were likely to get. Apparently Oprah’s website gets near 4 million hits alone when she does her favorite things shows. It just strikes me that the show could easily regard the show as throwing favor to the small company and let them fend as best they can. Some of the other favorite things were made by corporations like Samsung, Hasbro, United Artists and LG electronics who have to resources to maintain websites and fulfill orders and are more likely to be partners in the future.

Even though arts organizations feel like they are the ones seeking/begging favor, there are plenty of times when arts organizations have the opportunity to make a partner’s experience more enjoyable. It might be the quality of advance materials for a school outreach or giving a sponsor a high quality of care even though they aren’t one of your bigger donors.

What’s A Turkey?

by:

Joe Patti

A little audience participation activity in the spirit of the season—

I was looking up the story behind terming a Broadway flop a turkey and discovered I can’t find anything definitive. The story I had originally heard was that any show that couldn’t sustain itself past the holiday season was termed a turkey. Good for consumption only during the holiday season I suppose.

Searching the internet, I came up with this quiz about turkeys in general which claims the term originates “After a show called “Cage Me a Turkey” that was so bad it closed before intermission on opening night.”

That story frankly doesn’t ring true for me.

I found another explanation on a listserv archivepost by Gerald Cohen that literally employed a turkey or the egg argument that doesn’t solve the mystery.

“Theatrical _turkey_ is traceable to burlesque theatre, but here a problem arises: we find reference both to _turkey shows_ and _turkey troupes_. Which one came first? Were the turkey shows so called because they were performed by turkey troupes? Or were the turkey troupes so called because they performed turkey shows? And whichever came first, why was _turkey_ used?”

Cohen later gives the best explanation I have found.

“In the mid-1920s _turkey (show)_ was extended from a strictly burlesque context to the legitimate theatre — a development apparently due to an unusual streak of bad quality that hit the legitimate theatre in Syracuse at that time. The road shows were derided in Syracuse as ‘turkeys,’ with clear reference to the itinerant (fly-by-night, grossly incompetent) turkey troupes of burlesque vintage. From Syracuse the extended use of _turkey_ ‘third rate production (in the legitimate theatre too)’ spread to New YorkCity and hence into standard slang.”

But that is merely the best explanation in terms of best research. I am interested in hearing what other stories are out there to back up the use of the turkey label. If you a story, I wanna hear it, so tell it in the comments section.

Prepare to Lose Your Shirt

by:

Joe Patti

So the stagehands strike on Broadway is going so poorly, the producers canceled the entire next week of shows because they don’t believe there will be a resolution any time soon. I read somewhere that the folks who own and manage the theatres had been building up a war chest for a number of years so they could weather the next big strike.

Unfortunately, none of that hoarded money will go toward paying off the investors in the shows that have shut down. As far as they are concerned, everything is going to hell.

But investing in Broadway shows has always been a risky proposition. The expectation is that you will lose all your money and it is a shock when you actually see some return whereas most investments operate on the opposite assumption. The only thing you are generally guaranteed as an investor are tickets to opening night and an invitation to the opening night party. (Unless things go south before the show opens.)

If you have ever wondered about the mechanics of investing in a Broadway show, the Franklin Weinrib Rudell & Vassallo law firm website has an article on the subject. While the law doesn’t protect you from losing your shirt, it does limit losing ones shirt to those who won’t be left destitute by the loss. New York State has very stringent laws regulating investments in Broadway shows. If the total investment being solicited is in excess of $5 million, which most are these days, the show is subject to Federal Securities law. Since compliance with NY State laws can be very expensive due to all the legal fees involved, it is preferable to be subject to the Federal statutes.

Even if the total investment sought is under $5 million, a production can avoid being subject to the stringent NY State laws if “potential investors must be furnished with a thorough disclosure document (unless all the investors are accredited, in which event no particular type of information is stipulated); and there may be no more than 35 unaccredited investors, all of whom must demonstrate that alone, or together with a purchaser representative, they have the financial knowledge and experience necessary to evaluate the merits and risks of the offering.”

An accredited investor is “defined as an individual with a net worth in excess of $1 million, or who, in each of the last two years, has earned income in excess of $200,000 per year (or $300,000 with spouse), with a reasonable expectation of reaching that amount in the current year.”

Investing in Broadway shows is not for the risk averse or financially insolvent. The article discusses many of the financing structures that are used when investing in productions. The more money one brings to the table, the better deal one can negotiate–including a percentage of the producers profits above the normal investor’s cut. So if you are interested in the intricacies of funding a Broadway show, give the piece a read.

Sport Isn’t Art

by:

Joe Patti

Today on NPR, commentator Frank Deford talked about the flak he got from listeners for a story he did a few weeks ago about Princeton Athletic Director, Gary Walters, belief that sports should be viewed with the same prestige as the arts.

What was interesting to me was that in his original piece a few weeks ago, Deford spoke of college sports in terms like “…dismissed as something lesser — even something rather more vulgar…”, “Its corruption in college diminishes it so and makes it all seem so grubby.” The title of the piece online even compares sports to Rodney Dangerfield.

He puts forth Walters’ argument that “Is it time, for the educational-athletic experience on our playing fields be accorded the same … academic respect as the arts?” and “Athletic competition nourishes our collective souls and contributes to the holistic education of the total person in the same manner as the arts.”

He wonders if there isn’t a double standard in that “a young musician major in music, a young actor major in drama, but a young football player can’t major in football?”

However, in his piece today, sports don’t seem to have it so bad in colleges and universities. “I’m afraid the game is over. In our American academia, the arts must be satisfied with the leftovers,” Deford says. He goes on to quote John V. Lombardi, the president of the Louisiana State University System: ”

“Mega college athletics … prospers because for the most part we (our faculty, our staff, our alumni, our trustees) want it. We could easily change it, if most of us wanted to change it. All protestations to the contrary, we … do not want to change it.”

What sums the situation up for me is Deford’s line that “sports in our schools and colleges are not only ascendant, but greedier and more invulnerable than ever.” While it is true that his first piece is about academic prestige and the second is more about which programs get better funding and a comparison of the two is apples and oranges. It seems to me that athletics have prestige and funding and seeing that they lack only recognition as a worthy academic pursuit are greedy to acquire that as well.

I have never been terribly put out by the inequities in sports and arts funding in schools. I make grumbling noises about funding decisions that favor sports over arts and the hardwood flooring and office suites athletics officials have at my school. But after a few moments, I move on and don’t dwell upon it.

I am a bit concerned though that people would be thinking that an activity that has always been adjunct to the academic experience should be an academic experience. There are already too many exceptions made for athletes academically as it is. When a dance or theatre major is failing history or missing classes because they were in rehearsal the night before, their academic career is in jeopardy. Not so with the college athlete.

Now people want to give them academic credit for playing sports? In the context of all the scandals that have emerged, how can a degree based on sports credits be viewed as credible? How can a big sports university that grants the degree maintain its credibility even? If anything, I would agree with the argument that often comes up that schools should drop the pretext that the students aren’t there primarily to perform athletically rather than academically. Better to emulate the G.I. Bill and guarantee them an education at the end of 4 years of service.

I will admit that art and sport are joined in so many discussions that in some respects their existence seems intertwined like two planetary bodies orbiting each other. In terms of aspects of each that qualify as academic pursuits, they are quite different. While there are some like Tony Kushner who believe that undergraduate art majors should be abolished, there are elements to arts training which are more dependent upon instruction in other subjects than athletics are. An artist’s understanding of their craft is enhanced far more by studying literature, history, physics, language, material sciences than for an athlete. That is, in fact, what Kushner suggests an artist study as an undergrad rather than majoring in the arts. At no time does he feel the arts are not worthy of academic study.

Which is not to say that arts majors are taking advantage of these opportunities to the extent they should any more than the athletes are. It would be great if artists were feted and recruited in the manner athletes are, but that isn’t the world we live in. Perhaps athletes should be renumerated in accordance with the financial benefit their performance has for their school, but those activities should not be equated with academic achievement.