The Metropolitan Opera's deficit ballooned to an estimated $22 million last season due to weaker-than-expected gift income and ticket sales as well as expenses related to the company's protracted labor dispute, the New York Times reports.

At nearly 7 percent, the New York City-based company's deficit for the 2013-14 season was roughly eight times larger than the previous season's deficit — and its largest annual deficit, as a percentage of its budget, since 1984. Although the Met began cutting expenses last year, the fall off in gifts and box office sales exacerbated the revenue shortfall, while contentious negotiations with its unionized employees — which at one point seemed destined to lead to a lockout — resulted in an additional $4 million in additional costs, including legal fees and severance pay and medical expenses for employees. According to the Times, the Met expects that the labor and management cuts agreed to this summer will save it $18.5 million in the current fiscal year and, after they are fully phased in, $22 million next year, resulting in a balanced operating budget.

Met officials also told the Times that box office revenues for the current season are running $2 million ahead of what they were at this point last season and that gift income is expected to increase now that the labor dispute has been settled. The company also is preparing for a campaign aimed at doubling its endowment, which was valued at $265 million at the end of July.

"The looming operating deficit for last season was a warning call," Met general manager Peter Gelb said in a statement. "It's what compelled us to seek concessions in the union negotiations. Looking ahead, by adopting a leaner, streamlined business model in combination with a larger endowment, we will place the company on safer financial footing."