Short on cash and facing anemic attendance, the Metropolitan Opera (Met) at the Lincoln Center for the Performing Arts in New York City will withdraw up to $30 million from its endowment to cover current expenses this year and reduce its performance schedule for next season by 10 percent, the New York Times reports.

The Met—a nonprofit and the largest performing arts organization in the United States with an annual budget of $312 million—lost $150 million in anticipated revenue during the COVID-19 pandemic and has withdrawn $23 million from its endowment this year and may access an additional $7 million, totaling almost 10 percent of its endowment (estimated at $306 million). In recent years, the organization had limited the annual draw from its endowment to 5 percent. According to the Times, the Met anticipates replenishing the funds before the end of its fiscal year in July 2023, though as the “prospect of a recession next year is further rattling arts groups…it is unclear if that will be possible.”

During the 2020 shutdown, revenue shortfalls were offset by funds pledged by donors who now—amid the year-long market downturn—have become more hesitant to deliver those gifts. Following the Met’s reopening, and despite efforts to jumpstart audience engagement, revenue is down by more than $40 million compared with before the pandemic. For the past season, paid attendance at the opera house declined 16.5 percent to 61 percent of capacity, compared to 73 percent before the pandemic.

Subscriptions—one gauge of long-term financial health—are expected to fall to 19 percent of total box office revenues this season, compared with 45 percent two decades ago. In an effort to draw new audiences, the Met will embrace the production of new works, which have shown box-office strength with sold-out performances compared to the anemic attendance for traditional opera performances. “Opera should reflect the times we’re in,” said Metropolitan Opera music director Yannick Nézet-Séguin. “It’s our responsibility to generate new works so that people can recognize themselves and their realities on our stage.”

“The challenges are greater than ever,” said Metropolitan Opera general manager Peter Gelb. “The only path forward is reinvention.”

(Photo credit: Wikimedia/Blehgoaway)