Metropolitan Opera Responds to AFM Document Alleging Mismanagement

On the eve of its contract negotiations with the Metropolitan Opera, Local 802, American Federation of Musicians released an 84-page document alleging that the Met's current fiscal problems are the result of mismanagement on the part of general director Peter Gelb. Now the Met has responded with a detailed, point-by-point refutation of the AFM document.

Among the points made by the Met:

In response to the comment that 61% of Met productions under Gelb's tenure have received negative reviews, the company says, "A check of Met reviews from the last 10, 20, and 30 years shows that there have always been positive, negative, and mixed reviews. The point is that there is nothing unusual about having a range of critical reactions to new productions." For example, the company compares the 2013-14 season with positive reviews for Falstaff and Prince Igor, mix notices for Two Boys, Werther, and Eugene Onegin, and generally negative for Die Fledermaus, with the 1993-94 season (positive for Stiffelio, and Rusalka, mixed for Death in Venice and Otello, and negative for I Lombardi), and 1993-94 (positive for Rinaldo, mixed for Francesca da Rimini, and negative for Ernani.) The company adds, "We examined New York Times new productions for the seasons from 2006-07 to 13-14, rated as positive, mixed, or negative. The results show that there have been 26 positive reviews, 21 mixed, and seven negative reviews." In response to a union comment that the orchestra was more favorably reviewed than the productions of the last several years, the Met says, "These rating only take into account the critic's views of the productions, not the musical values, since that's the subject of the discussion."

The union document contends that rising ticket prices have depressed box office sales, to which the Met says, "Lowering prices means sales have to be significantly better to make up the difference in order to have a positive financial impact. The last two data points on your chart show that even when prices were reduced dramatically, sales improved only slightly. The average ticket price in 2013-14 is lower than 2010-11, and so is the percentage revenue earned. It is not correct economics to say that 'lowering ticket prices earns more money; raising ticket prices loses money!' Lowering prices increases demand, but total revenue may or may not increase as a consequence. That depends on something economists call elasticity ('the elasticity of demand')."

To the union's assertion that Gelb's new productions do not attract audiences when revived, the Met responds, "Opening runs have historically outperformed subsequent revivals. A look at new productions prior to Mr. Gelb's arrival shows the same pattern you ascribe to him. Two of these productions: Don Giovanni and Roméo et Juliette -- performed better as revivals under Mr. Gelb than they did in their respective opening runs. [Examples cited include La Traviata, La Bohème, and Eugene Onegin.] Using just the 2012-13 as an example shows the flaws in this logic, since the Met experienced greater box office sales in four of the last seven years by performing more 'Gelb revivals.'"

The union cites the Met's highly criticized Robert Lepage production of The Ring Cycle as a drain on company resources. The Met says that the production was fully funded by a gift from the Ziff family, that in the 2010-11 season the premiere of the first two operas in the cycle sold 96.4%, and the following season, when the final two operas in the cycle were produced and the entire cycle was presented, sales were 85.2%. The company adds, "It is in the third consecutive year (2012-13) that our unprecedented attempt to repeat it in successive seasons, because of the Wagner anniversary, backfired simply because of it being overplayed in the midst of numerous other Ring performances taking place around the world. In addition, in the three years since the initial premiere of two of the productions in 2010-11, the Ring productions have grossed more than $23 million in box office sales."

The union takes issue with Gelb's recent public comments that "box office sales are down because box office sales in every city in this country are down for classical music and opera. This is an endemic problem that America faces, and that is faced in Europe as well." The Met adds detail to this argument, saying that Lyric Opera of Chicago's increase in ticket sales is entirely due to a production of The Sound of Music and Houston Grand Opera's 3% increase is based on an increased number of performances. It also cites the closure of New York City Opera, Philadelphia Orchestra's bankruptcy, English National Opera's loss of government funding thanks to reduced ticket sales, and Rome Opera's announcement that it is facing liquidation as examples, along with a survey, by cultural consultants LaPlaca Cohen, that asserts "85% of cultural consumers attended opera 'rarely or never,' making it the least popular art form in the survey."

Noting the union's contention that the orchestra is among the highest paid in the country because it works more hours than its counterparts, the Met says, "A review of Met payroll data shows that Met regular musicians worked an average of 746-778 hours per season in FY13," not 940 -1,125 hours, as the union contends.

There is much more, but what the two documents reveal most starkly is how far apart the two sides are as a July 31 deadline looms for lockout. LSA will report further developments as they happen.