Funding for the Metropolitan Opera has remained unchanged.
A financially struggling cultural institution in New York is reportedly considering employee layoffs, reductions in executive salaries, delays in new performances, and the sale of two murals valued at $55 million.
On Tuesday, Peter Gelb, the general manager of the Metropolitan Museum of Art, revealed plans for substantial job cuts, emphasizing that these measures are necessary due to potential issues with funding agreements involving Saudi Arabia.
“We need to show that we can continue to support the Metropolitan Museum of Art and simultaneously reduce expenses without sacrificing the quality of our artistic output,” Gelb stated in a conversation with the New York Times.
“We have to do it.”
Gelb cited major reductions to the contentious $200 million contract with Saudi Arabia, which was established last September.
This deal entailed the Museum performing at the Royal Diriyah Opera House near Riyadh during winter for three weeks over the coming eight years.
However, there has yet to be any follow-through from the Middle Eastern nation regarding the agreement.
“We know Saudi Arabia has had to modify its budget due to its own economic challenges,” Gelb commented. “I’m hopeful it will proceed; we’ve just been in a holding pattern for a bit.”
As a result, at least 22 management employees will be laid off, representing about 8% of the more than 3,000 staff members employed in the Metropolitan District.
The Times mentioned that 35 executives with salaries exceeding $150,000 will see their pay slashed by 4% to 15%, depending on their income.
Gelb himself will also experience a pay reduction. Last year, his compensation was around $1.4 million.
These salary cuts are expected to be temporary; however, Gelb did not clarify if those who are laid off might be brought back.
The Museum is also scaling back its upcoming season from 18 to 17 performances and is deferring a new production of Mussorgsky’s “Khovanshchina,” which debuted in Salzburg last year.
Additionally, the Opera House may explore selling two Chagall murals—originally commissioned for the venue in the 1960s—with a combined worth of $55 million. Notably, buyers would still see the murals on display, albeit with a donation plaque next to them.
Gelb attributed the financial shortfall to the lack of a finalized agreement with Saudi Arabia.
Moreover, the Museum is considering selling the naming rights to its theater at Lincoln Center, similar to the arrangement at the David H. Koch Theater, which hosts the New York City Ballet.
To boost revenue, the Metropolitan Museum of Art might lease its 3,800-seat venue to pop artists when it isn’t in use, such as for the musical “The Last Ship,” written by Sting, scheduled for nine performances in June.
Fortunately, the Museum’s “Under 40” program, which provides discounted tickets to younger audiences, seems to be unaffected by these changes.
“We’re trying to be as entrepreneurial as we can,” Gelb remarked.
“It’s evident that we must develop new business models. This is valid for all high-performing institutions, but given the enormous operational costs of the Metropolitan Museum of Art, we need innovative ways to generate funding.”
The anticipated budget cuts should save the institution about $25 million this year and another $25 million next year.
Since the pandemic, the Metropolitan Museum of Art has struggled financially, having depleted $120 million from its endowment to remain operational.
Before 2020, the Museum typically presented 25 works each season.
