Faded Hope Music

Phillys Orchestra Mulls ruin

The Philadelphia Orchestra needs $15 million to stay afloat. Its newly appointed President and CEO, Allison Vulgamore is faced with the daunting task of increasing ticket sales and finding a new musical director. Verizon Hall, the Orchestras home is only 62% full at best this season, even after offering tickets at discounted prices. This is down from 80% last year.

One possible course of action is to file for ruin. But no firm decision has been made on this thus far. At this point of time, Vulgamore is more concerned about finding other means to boost revenue.

At the same time, recently there has been an in-house squabble between the Orchestra and its pop subsidiary, Peter Nero and the Philly Pops which Vulgamore as the President had to step in to mediate. The decision that needs to be made is whether they stay together or go their separate ways. Aside from that she was also contemplating on who to assign as musical director, someone who she says needs not only musical ability and charisma to draw crowds but also someone who can be in tandem with her in restructuring the orhestra.

But in tandem with the need of a musical director is the pressing need for funds. Pledges from the public have amounted to $8 million so far but at least $15 million is needed to restructure and revive the operations of the Orchestra the way Vulgamore would like to see it.

The Orchestra has an endowment fund that quantity to $112 million as at Nov. 30. But this is far below the targeted $250 million the Orchestra was aiming for during its last fund raising effort. Furthermore, not all of the endowment fund is free to be used by the Orchestra. Only a meager $5.5 million out of the $112 million is 100% free for use by the orchestra board. How the balance of the fund is used is determined by the donors.

The Philadelphia Orchestra is not the only one in the country facing severe financial difficulties.

The respected Cleveland Orchestra, considered by many to be one of the world’s best, was faced with a crippling strike last week when those included in the orchestra filed protests at proposed pay cuts by the management.

Even the famous New York Philharmonic Orchestra that performs in a much wealthier city compared to Philadelphia or Cleveland, ended last season with a $4.6 million deficit.

Last year, over a million people all over the nation filed for bankruptcy. They are on their way to a new lease in life, without crippling debt. How about you? Call us at (813) 200 4133 or toll free (800) 965 5074 for a free consultation.

Cleveland Orchestra Miami Residency Jan. 28, 2011 Ein Heldenleben

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