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The Artful Manager

Andrew Taylor on the business of arts & culture

Mergers and inquisitions

March 21, 2005 by Andrew Taylor

The 2002 merger of the Utah Symphony and Opera is a story worthy of, well, an opera (it’s already the subject of a Harvard Business case study, which is sort of like an opera with financials). Full of intrigue and trials, the merger was intended to shore up and streamline the efforts of the two shaky organizations, but seemed instead to create one, larger shaky organization.

The Salt Lake Tribune reported last week that musicians and management had reached a tentative contract agreement, even as the combined organization struggled to fill its multi-year deficit. Says this report:


The group’s earned income suffered after the merger as paid attendance for operas and concerts declined and spending climbed. Performance revenue from ticket sales and fees from Utah Symphony & Opera’s last season was $3.7 million — lower than the $4.2 million earned by Utah Symphony alone in the year leading up to the merger, according to a recent audit.

The musicians and the management even pitched in together on a consultant to assess the damage and recommend a way out. Thomas W. Morris, former ED of the Boston Symphony and Cleveland Orchestra, noted that:


….the organization has an ”underlying financial crisis (that) has been masked by reliance on major gifts.” Morris concludes that ”financial solutions (are) not possible without organizational solutions.”

My favorite line from the media comes from the local NBC news station, speculating on the content of Morris’ report (which is now available for download on the musicians’ web site — thanks Drew):


From what we can gather, that report suggests the board members and manager focus on finding donors and increasing ticket sales.

So, that’s the secret. If only we had known.


NOTE: For more on this merger and the negotiations surrounding it, take a look at my neighbor blogger Drew McManus’ entry on the subject.

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Andrew Taylor is a faculty member in American University's Arts Management Program in Washington, DC. [Read More …]

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