UPDATED: L.A. Opera gets $14-million emergency loan

Los Angeles Opera asked for and received a $14-million emergency loan from Los Angeles County today to allow it to stay afloat and keep paying its expenses through the middle of next year.

UPDATED: CLICK HERE FOR THE FULL STORY IN TODAY'S TIMES

The county Board of Supervisors approved the request by a vote of 4 to 1, with the dissenting vote coming from Mike Antonovich, who last July tried to short-circuit the opera’s upcoming Ring Festival on the grounds that it glorified an anti-Semitic composer, Richard Wagner, who had influenced Adolf Hitler. The festival is anchored by the Opera's $32-million "Ring" cycle, the performance of Wagner's four-opera "Der Ring des Nibelungen."

Stephen Rountree, chief executive of the Music Center and chief operating officer for L.A. Opera, appealed to the board for the loan, which will come from a pool of county bond money.

The loan “is needed now, literally next week,” Rountree told supervisors.

Zev Yaroslavsky, the board’s leading arts advocate, said the risk would be “very nominal, very minimal” and that letting the opera go under was unthinkable.

“It’s an important artistic organization for our county,” Yaroslavsky said. “For all they have built up ... this is almost no price for us to pay. We’ll make money on the interest rate, and we’ll save the opera. I’m not happy that we’re in this situation, but what’s our choice? This is one of our major tenants at the Music Center. This could set off a chain of events that takes down the Music Center.”

Supervisor Gloria Molina complained about the last-minute, emergency nature of the bailout request.
“The solution at this point in time is the solution, but I think the problem could have been presented earlier.”

The nonprofit opera company’s most recent available tax return, for the year ending June 30, 2008, shows that it already was experiencing difficulties before the economic meltdown that arrived that September, striking a blow to many arts organizations that rely on donated funds. To float the opera that year, its board members provided $19.6 million in interest-free loans, of which $5 million was forgiven. Ticket sales came to $18.2 million, just a fraction of the company’s $55.6 million budget. The opera filled the gap with $40.7 million in donations.  In 2006-07, fund-raising had fallen far short, leading to a deficit of nearly $6 million.

Antonovich said the opera had brought financial difficulties on itself by plunging $32 million into its production of the "Ring" Cycle by German director Achim Freyer, which included performances earlier this year three of the four operas, to be followed by the intensive festival performances, in which aficionados can see the entire "Ring" Cycle within a week. The opera's general director, Plácido Domingo, is singing the role of Siegmund in "Die Walküre," the second opera of the cycle.

“Many feel it’s going to be a loser, basically because of the person who is being honored,” Antonovich said, referring to Wagner.

Announced in November 2008, the 10-week "Ring" festival, April 15 to June 30, 2010, aims at involving some 100 arts organizations throughout the region, with L.A. Opera’s production at its hub. Arts philanthropist Eli Broad provided a $6 million gift from his foundation to underwrite the opera production. The hope is that it will be an international event and tourist draw for L.A.

-- Mike Boehm and Garrett Therolf

NOTE: An earlier version of the story omitted Stephen Rountree's title as chief operating officer for L.A. Opera, dropped a word so it was not clear the opera performed three of the four "Ring" operas and stated that 50, not 100, organizations are part of the "Ring" festival. 

Photo: Plácido Domingo and Linda Watson in "Die Walküre," Credit: Lawrence K. Ho / Los Angeles Times

Comments

[markiejoe]

maybe if we just ignore antonovich he will just go away.

[Jebediah]

Why is Antonovich such a negative Scrooge all the time? He needs to be shown the door. The arts must be supported.

[jmg_NX21]

Antonovich does not know Wagnerites does he?
PERFORM IT... AND THEY WILL COME... Munich, Japan, Paris, NY, Bayteuth... LA!

(Even if they boo... didn't you hear them? They were there during the Performance of Das Rheingold.)

[TomTallis]

Antonovitch's anti-Wagner stance is really behind the times. Even Israel hasn't banned Wagner performances for decades. Perhaps Mr Antonovitch could point out which music in the Ring is anti-semitic?

[Donald Frazell]

HOW much? OMG, this is ridiculous. Opera in LA obviously doesnt have the support to carry such a fat lady, looks like she has sung for the alst time, because no way in hell should tax payers float a vehicle for at most 10,000 people, considering how few performances and repeat listeners there are, for such a limited yet ponderous creative vehicle.

It isnt an American art form, let those who like it go to the place of its birth, Europe, its their music anyway. They can afford that, but if it was already leaking that much money, it is doomed. This makes the MoCA fiasco look tiny. At least it could become a place for tens of thousands to go to, though with its limited appeal and intelligence it has been for the same few thousands of overpaid "elites". We do realize that it was fools like Broad who brought on this depression, dont we?

Its time we entered the 21st century, and realized all that takes away from our survival isnt worth keeping, and that true creative art is very cheap. And relevant, that it relfects the world we live in, not the fantasies of a few tax dodging, speculative rich fools. This Age of Excess is over, and this isnt of this current age, but the one that died in WWI. Time to move on, and put aside childish things. Lord of the Rings in wigs just aint cuttin it.

art collegia delenda est

[AdoptiveFather, Los Angeles CA]

Get zev out of office.

He hands out our tax money like candy to children. All those that receive it love him and vote to re elect him. The rest of us get stuck eith the bill.

[AdoptiveFather, Los Angeles CA]

Earlier post said: ".........Why is Antonovich such a negative Scrooge all the time? He needs to be shown the door. The arts must be supported........"

If you think the arts should be supported than go support them...just don't ask for money out of my pocket. I support what I want to support with MY MONEY!!!!!!!!

[Wade]

$14 million isn't that much money. Get a grip, people.
As for Antonovich, what else can one expect but calcified thinking from a man who has sat on the LABOS since the Carter administration?

[busytimmy]

People, calm down. It's a loan! Mike Antonovich is a rube who should just shut up. Wagner did not write the theme music for the holocaust and WW2!

[JeromeAtWork]

"Ticket sales came to $18.2 million, just a fraction of the company’s $55.6 million budget"
-----

Maybe try lowering your budget. This 14 mil "loan" only covers them until the middle of next year, what happens after that? I support art, but this will never end. Organizations needs to operate within their means. Opera does not draw a large audience, so get a smaller venue and reduce salaries.

[From Silver Lake]

THIS IS A LOAN, not free money (bailout is a misleading term). Come on, it is a worthy cause.

THE MONEY WILL BE PAID BACK IN FULL.

It's a loan.

It's a loan.

It's a loan.

[karen linderman]

$14 million...no it's not a lot for an opera company of the LA Opera's stature. But I would like to see them reach out to the masses and start developing their future audiences. I'm not sure how man teens and 20 somethings are interested in Wagner unless someone like an Anne Bogart or a Mathew Bourne turn it inside out and upside down and recreate and reinterpret for the times.

Hey I'm not saying that there isn't a place for traditional and classical, but they need to mix it up with more progressive modern work in order to build new audiences for the future. What about a rock opera or a new original piece commissioned by a jazz or theater composer?

My advice: Cut your budgets, develop audience with edgier more contemporary work, offer cheap seats to people who can't normally afford the opera (not just students). Otherwise when all of those 70 year old subscribers and donors leave this earth you're going to need a lot more than $14 million to stay afloat.

[Patrick]

Good afternoon! My name is Patrick. Who can tell me which is your home's Eli Broad to send a letter? Thank you!

[Donald Frazell]

How about simply stop being such prima donnas hand ahve more performances to cover teh costs? Of course, they figure thre isnt that big an audience, and make it seem rare to artificially keep teh cost high. And publicize for demand from outside the area, otherwise they wouldnt even sell what they got.

Develop some juevos, and sing more performances. If your voice is a little off, so what? Damn perfectionist critics confirm opera is dead, for only a dead thing can be perfect, but even then is in a state of rottingness.

And no, its not "just a loan". They already had a $6 million debt foregivness before, so much of this will be also. if not all, as where they gonna get the monies to repay in this economy? We are stuck with the bill, thanks effette oepera fans, hope it was worth it. NOT.

art e musica collegia delenda est

[Karla]

Donald, I'm afraid it takes more than just juevos to perform opera more than once every 2-3 days. And it's not "perfectionist" critics who have made it so, either. If we are gonna turn it into a Broadway show, then we should first and foremost cease to call it opera.

That said, although I love opera and balk at the outrage of $14 million compared to what kind of money can be unloaded into sports due to this day and age's supply and demand, I for one don't care if this Ring fails. They should have pulled the plug on it the minute the economy crashed, that much is obvious.

[Donald Frazell]

Sports makes money, or at least makes it change hands, doesnt really improve the economy except locally. but does give people what they desire, just dont want to aste any public monies on it anymore than on opera. $14 mil is alot of money, adn it will not be paid back, they will either get it "fprgiven", again,. or go bust before they pay it back, they are underwaters, how they gonna do that?

Just do I like must, listening to jazz, as most of the gra ones like Miles are dead, and one of the two only true jazz clubs just went under. Buy CDs. Though Opera really is showbiz, not music first and foremost. Their voices can ahndle it just stop worrying about every precious lil note, and feel the music. Did Miles play as preciously perfect as Wynton Marsalis? NO, but he was far better. If Sarah Vaughn could do consecutive concerts, and be on the road for decades, I think these wannabe divas can handle it.

art e musica collegia delenda est

[operafan7]

Antonovich was blaming Wagner for inspirign Hitler, how delirious is THAT? The Ring Cycle CAN (and was) staged beautifully. LAOPERA's mistake was to hire the Fryer tandem - who else would ever consider those losers to get such a commission?! Huge mistake, Maestro Placido, let's have some courage to admit it. If it were not for the Fryers' fiasco, the house would've been full for Wagner and very good singers. What a shame that such a fiasco was also so expensive... I keep thinking, why such a cost? Those bird cages and similar nonsense - were tehy all made of gold?

[Karen Linderman]

Unfortunately only a handful of people will get to see any of the LA Opera's productions. That would include me and I love opera. Tickets START at $32 and that is in the very last row of the theater. Take that grant money and offer tickets throughout the theater for EVERY performance at discounted prices so people who normally wouldn't get to see the opera can develop a love for it. (your future audience)

And what about Rush tickets for all of the unsold seats 1/2 hour before the show starts?

Getting rid of the opera is not the answer. We need more art.

Change Something. Rethink. C'mon.