It was a bad week all across the board. Everyone took some sort of dip. Well, except American Buffalo but that doesn't count lol

That Girl wrote:

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http://www.broadwayworld.com/grosses.cfm

It wasn't Grease's best week, but it's still better than a lot of the other shows.

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Grease is doing GREAT, compared to the other shows!

It's 68.5% which is not great, but considering how badly shows are doing this week, mostly due to the marathon, it's not terrible.

if a show gets under 65% it is very likely to close.
thats whats been happening lately.
im surprised we havent heard of any more show closures yet.

If this economy keeps up the way it is, all the theatres in New York will be pretty dark!

gramps3 wrote:

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The only two figures that really count are the "nut" (or what it costs to put the show on) and the dollars made above expenses (the net). Percentages, reviews, good-times vs bad-times, fan's pleas and how other shows are doing are relatively meaningless.

The producers are in the business to make money and this means that the cost is subtracted from the gross income and the net (what is left over) is looked at very carefully. Investors are neither happy nor very tolerant of break-even shows or excuses and if a show is making more than it costs to produce it, that amount, divided among the investors, has to be enough to make it worth-while as an investment. 

It is also a matter of concern about tying up one's venture or investment capital in something that is making only a little when the dollars might be invested in something that will make more. Loyalty to a show is typical of many uncritical or uninvested fans but it means practically zilch to producers.

Many of the suggestions from fans, e.g., hire so-and-so for one of the leads, must meet a stringent fiscal examination. Hiring a star costs more and therefore raises the "nut" and therefore has to make significantly more and have promise for making more for a significant length of time to be really helpful.  Fans have faith and hope but the producers are pretty short of charity.

It has been estimated earlier on this forum by people who, because of their experience with the business, are likely to be close to being right that the "nut" for Grease is probably in the neighborhood of $450,000-$500,000 a week. You can do the math and see how close to the cliff Grease is treading right now.

And, with the winter doldrums just over the horizon with only a few good showing dates during the holidays when revenues are apt to pick up a little, the dark depths of January, February etc loom fearfully ahead and 2008 may not be the only thing to be gone after the holidays.

Gramp3

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I believe that when we were talking about what the "nut" was for grease, nobody really knew and that the average broadway show was 450K-500K. You are correct though Stan, doesn't matter how many seats you fill, its how much money you make.
Hopefully, the producers have more surprises for us after the new year. Like, another well known performer. If they hired another big name, it might last until summer.

-- Edited by Hello799 at 22:12, 2008-11-04

One would have to have access to the company's financial records to know for sure but good estimates can sometimes be made by people who have had experience with other parts of the business.

The estimated "nut" for Grease isn't all that high. Here are just some of the factors that go into comprising the prodution cost.

Theater rental
Cleaning and ushering personnel
Utilities including water, electricity, heating and airconditioning
Rental of stge equipment (e.g. light bars, floods, jells)
Insurance
Pro-rated advertising and promotion costs
Business overhead (lawyers, accountants, bookkeepers etc), box office folks
Printing of tickets, programs, promo boards
Fees and licenses and permits as needed.
Set production and maintenance 
Various technical supervisors, electricians, audio people, various back-stage technical people such as stage hands, seamstress, makeup and hair care  
    personnel
Photographer
Costume design, cleaning, repair and dressers for help with quick changes
Salaries, health insurance, social security fees for all personnel and cast
Original cast auditions and practice including musicians, and hall rental
Special transportation for some cast and security personnel
Stage manager
Standby medical personnel
Director, props rental and/or purchase
Fees for obtaining rights to use certain musical numbers and the script itself
Band/orchestra members  and equipment
Travel (particularly if out of town preliminary shows are used)

Well, you get the idea. Can you imagine what the prop and costume budget for something like the Lion King would be?

And some sort of cash reserve must be kept at hand in case there is an emergency such as having to hire additional actors if a flu bug hits the cast.

Grease has also had the handicap of a small house when it was selling out but the same can be a blessing when sales are down as the smaller house usually has a lower rent and operating costs.

If you are really interested in the0 whole area go back to beginning of this thread over a year ago and I think you will find a lot of good information.

Stan/ Gramps3

-- Edited by gramps3 at 23:16, 2008-11-04