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L.A. Opera’s $14 Million Imbroglio

Superstar Plácido Domingo pushes the company closer to worldwide acclaim — and financial collapse

The most famous top executive of any arts organization in the world is certainly the superstar tenor who also serves as general director of the Los Angeles Opera — but on any given day, where in the world is Plácido Domingo

“I don’t know, he’s everywhere, he could be anywhere,” Stephen D. Rountree, president of the Music Center and chief operating officer for L.A. Opera, tells me in his Music Center office at the Dorothy Chandler Pavilion, now L.A.’s de facto opera house. “He was just in Acapulco with his family for the holidays.”

“I think currently on the East Coast,” Gary Murphy, the opera company’s communications chief, adds with a little more confidence. “He maintains residences in L.A. and Washington, D.C. [where he is also general director of the Washington National Opera], in New York City and elsewhere. Right now, he is in rehearsals at the Met for Simon Boccanegra and Stiffelio.”

None of that mattered much until last month, when the opera’s globe-trotting and often remote superstar was given a $14 million last-minute bailout from Los Angeles County, amid indications that the opera company has overreached with its recent dramatic, high-profile and altogether costly Ring Cycle and coming Ring Festival.

Domingo, who is in L.A. for weeks at a time when he is conducting and singing, calls most of the artistic shots at L.A. Opera, sorting out whatever is debatable with the company’s esteemed musical director, James Conlon.

In their tenures, Domingo and Conlon have made L.A. Opera one of the top opera companies in the world by many measures. The company attracts world-class talent for new productions. It often uses operas in repertoire to showcase budding stars, many of whom have won Domingo’s own international competition. The duo’s two long-standing pet projects — Wagner’s Ring Cycle, and the Recovered Voices series, featuring music stifled by Nazi Germany — are the kinds of exceptionally ambitious projects, broad in scope and resource-intensive, that none but the world’s top companies would dare attempt.

But along the way to this artistic Valhalla, L.A. Opera has busted the credit line at its bank, requiring the $14 million bond-issue lifeline from the county to pacify the company’s primary creditor and permit the shows to go on through at least 2012.

Rountree, a Music Center fixture, who absorbed the top financial spot in his duties at L.A. Opera when the company began to feel a squeeze last year, speaks of lending and spending and financial instruments with a fluidity and frankness uncommon among top arts-organization financial executives. He talks in terms of “low-gap” and “high-gap” operas — those that lose a little money, and those that lose a great deal of money (almost no opera makes money, though some recitals do). 

That’s the issue underlying L.A. Opera’s current financial woes — the balance of repertoire between the high-gap, rarefied productions Domingo loves and the low-gap warhorses that can see the opera through lean times.

“He’s onboard with us — he’s got religion,” Rountree says of Domingo’s state of mind after the bond issue. He adds that the 2010-2011 season, to be announced in late January, will reflect the new financial reality.

Has Domingo “got religion”? 

He may have, but in a statement to L.A. Weekly, he also touted his chancy programming legacy. Asked if he has overreached by producing too many high-gap productions and too few low-gap warhorses, Domingo exhibits the unrepentant bravado of Don Giovanni:

“Not at all,” Domingo says from New York. “We have always done interesting things here; that’s part of our identity.

“Of course, there is always a place for the popular operas that bring in big crowds — I love those operas, too, but we always strive to make those productions special, for example, by putting together an absolutely peerless cast for our recent The Barber of Seville. It is critical to strike that balance between traditional and nontraditional repertoire, and to have a variety of theatrically distinctive presentations. Without that, an opera company quickly becomes uninteresting and pointless.

“These days, we must be especially pragmatic as we look at budgets for future seasons, but I know we can be both fiscally realistic and artistically relevant.”

Rountree originated the county bond issue, which was sold to Bank of America for $14 million. The money is to be repaid to the county by L.A. Opera over the next three years (at a markup of 4.8 percent).

“I saw how the Disney Hall was financed when it was built, through this same kind of bond,” Rountree explains. “We’re doing this with the same kind of instrument, but what’s new here is that this is the first time a bond has been issued for programming rather than a building or construction project.”

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  • dino marconi 02/11/2010 6:10:00 PM

    very overrated opera company; still doesn't compare to SF Opera which features better productions and much better singers

  • Robert 01/26/2010 10:46:00 PM

    In response to Eric They DO put on a free community production- every year in January at the Our Lady of the Angeles Cathedral. They've done for a few years (that I know of) and are still doing it this year.

  • joseph mailander 01/15/2010 12:06:00 AM

    Just a little update: These pieces about Placido and the possibility of overextension have all hit at once; my piece, plus... Anne Midgette's piece at the WashPo Tim Smith's piece at the Baltimore Sun Wakin's piece at the NY Times So it must have resonated with others along the line. Kudos to the LA Weekly for indulging this story for the past month.

  • Eric 01/14/2010 11:42:00 PM

    If we bailed out the Opera (again), how about they put on a free show for the people at the Rose Bowl as a thank you!?

  • Megan 01/14/2010 10:36:00 PM

    Over extension by art organizations has been a common theme in the last year: LA Opera - Needs a $14 million bond to stay afloat after pursuing grandiose Ring plans and other far flung adventures the people will be paying for over the next few years. MOCA - Essentially sells its soul to Eli Broad after profligate spending on exhibits and perhaps mismanaging its endowment. Autry Museum - Preens and struts about some $100 million monolithic building expansion in Griffith Park, naively thinking if it can only move the Southwest Museum's collection into its museum it will finally have credibility in the museum world. It all crumbles to dust when Autry management is unable to raise sufficient funds and public outcry to preserve the Southwest prevails at City Hall. Perhaps we are past the days of financially irresponsible art managers and their boards overextending, living on credit, and seeking to build some ego-driven monument to themselves. If someone had thrown a bucket of "reality water" on these idiots sooner, we would not have wasted so much effort having to fix and redirect the mismanaged art organizations of Los Angeles.

  • Kathleen 01/14/2010 12:00:00 PM

    A story of - dare I say it - operatic proportions! The people come to the rescue of high art and its prancing, resplendent prince! The Heroes! The Villains! Even a walrus and Blue Meanies! Thank you, Joseph Mailander and LA Weekly, for this entertaining and equally edifying story. Almost enough to enthrall those of us who can't afford a ticket to the pricey proceedings at La Chandler.

 

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