PRODUCER’S PERSPECTIVE Ken Davenport, Broadway Producer, Off-Broadway, Theater

Who the furkus is Burton Turkus?

2010-09-02T11:00:00-04:00

Burton Turkus was an attorney, an author, and most influentially to our industry, an arbitrator.

Waaaay back in the days of the original Promises, Promises, in April of 1963 to be exact, Mr. Turkus presided over an arbitration between, well, just about every theatrical union, and the then named, League of New York Theatres.

Here's what went down 50 years ago . . .

There was a 13-day strike in 1960 known as the "Broadway Blackout" which was the result of the failure of Actors' Equity and The League to come to terms on a new agreement. The biggest outstanding issue? The creation of a brand new pension fund for the Actors.

The Actors got their pension fund as a result of the walkout. As part of the agreement, they graciously agreed to help The League lobby the City of New York for the removal of the 5% Admissions Tax that was levied on all theater tickets at the time.

The theory was . . . if they could get rid of this 5% tax, they could use that 5% to pay pensions to all the unions. The league would be happy because they wouldn't be paying any more than they already were. And the unions would be happy, too, because they would all get pensions. Happy-happy, joy-joy!

Well, it wasn't so easy.

The two sides were successful in getting the City to do away with the tax on tickets (!) . . . but there was a disagreement in how much of that 5% should go to AEA, and, consequently, how much of the remaining amounts should be distributed to the other eight unions involved.

Make sense?

Simplified: The 5% tax went away. So they had a pot of 5%. But how to whack it up?

Enter the esteemed Mr. Turkus, who, in the "Burton Turkus Award of 1963" (as it is affectionately referred), created a system for determining who got what.

First, the actual net "tax relief" that we ended up with after the repeal was a net of 4.5%, not 5%, or "the 045" (as it is also affectionately referred).

Next, in order to distribute the funds accordingly, BT examined the books of Broadway shows to determine what percentage of gross payrolls was attributed to the actors, what was attributed to the musicians, the stagehands, and so on. These percentages make up the guts of the "Award".

A complex chart was created which awarded different percentages of "the 045" to the various unions, depending on a few factors, like whether it was a play or a musical, and even how many musicians a show had.

Confused yet?

Let me use a specific example, using modern day numbers:

A production grosses $1,000,000 for a week.

4.5% or .045 of $1,000,000 is $45,000.

$45,000 is then allocated towards the pension of our various unions.

In a musical with over 16 musicians, The BT Award allocates Actors' Equity 50% of the $45,000 or $22,500. Local One gets 15% or $6,750. Local 751, the Treasurers, got 1.88% or $846.00 and so on, until the entire $45,000 is distributed.

This happens every week on Broadway to this day!

Now, IF on your show, your 045 monies don't pay for pension that you are responsible for, you still have to make up the difference (if the Treasurers actual pension on the salaries was supposed to be $1000, then you got billed another $154). The .045 only contributes towards the pension due, but it doesn't necessarily cover all of the pension due.

Why is this history lesson relevant?

The wise Mr. Turkus, who ended one of the most bitter disputes our industry has seen, and is known as a hero in certain circles, created this chart using the payroll allocation formulas that were in front of him at the time . . . that are now almost 50 years old.

Back then, the Actors made up the bulk of the payroll, which is why they got the bulk of the 045. Things have shifted just a teensy bit over the years, and salaries for some of the other unions have increased dramatically . . . which has thrown the whole 045 off its axis.

It's very common now that the amount due to Actors' Equity greatly exceeds that amount that is actually due. So you could "overpay" by thousands of dollars . . . and the 045 ain't a Discover card. There's no cash back.

At the same time, shows can often have a "deficiency" to Local 1, meaning that their 045 contribution fails to pay for the entire pension due, which then means that the show has to make up the difference.

So, while you're overpaying to one union, you're underpaying to another, and you cannot apply the overpayment from one to the other. You gotta make good on the underpayment, and the overpayment stays with the union. (I remember Show Boat having a million-dollar overage at one time!)

Now, Actors' Equity, recognized the issue over the years and created opportunities for Producers to use their "overages" on National Tours of a show after they play on Broadway . They've even used that overage for a reduction to their health payments at one time.

And that's all good . . . but I don't think it's enough.

I've got another idea.

It's time for a Burton Turkus, Jr. to come in, toss out the archaic old formulas and come up with something new. And maybe this one can also handle the annuities that shows also pay to the unions.

I know, I know, the unions that are getting the overages aren't going to take to this very well. (I think my phone has started ringing already) Why would they? I wouldn't want to . . .

But it is the right thing to do.

With all due respect to the great Mr. T, the 045 has to be readjusted, reconfigured, or simply trashed sooner or later. These aren't the days of the original Promises, Promises anymore. Our economics are vastly different now, and we can't rely on economic formulas designed in the days when a brand new Ford Mustang cost $2,495.

Mr. Turkus deserves to be in the Broadway Hall of Fame. But his Award needs to be retired.

If you would like to read the actual Burton Turkus decision from 1963 (it's quite fascinating) and see the percentage distribution charts, click here.

Ticketmaster tackles the subject of their fees, on their brand new blog.

2010-09-01T11:00:00-04:00

There's a new voice in the theatrical blogosphere.

And it has a market cap of over a billion buckaroos.

The recently merged Ticketmaster unveiled their own blog a couple of weeks ago, written by their very own CEO, "Nathan" (he signed the blog by his first name only). Their first (and so far only) post begins with the sentence, "We get it - you don't like service fees."

Master-of-the-Nation (my pet name for the new company formed by the Ticketmaster/LiveNation merger) continues to explain that they are going to use their blog to help educate the consumer on the fact and fiction of e-commerce, how fees are going to be presented in the future, and why the fees are what they are (news flash: that billion dollar market cap has something to do with it).

While they're a little late to the explanation party, I gotta give props for their desire to shed a little light on their world, and for the changes they are about to implement, which are a direct response to the comments they've heard from their consumers (they have frightening data demonstrating the drop-off-rate when a customers sees those fees).

But the line that made me fall in love was this . . .

This [new] user experience mirrors what you see across the web from leaders in their field – Amazon, Apple, Expedia, Zappos and more. It’s not complicated, it’s just the right thing to do.

We are the leader in the industry, and so we are accountable for taking the initiative to drive industry change. We take that responsibility very seriously, and at the new Ticketmaster we wake up every day obsessing over the fan experience. We think this change is a big step toward creating pricing transparency that is good for fans, and thus good for business.

Kudos, MotN. I look forward to seeing how you will continue to think of the consumer first, and market cap second.

Now, the only other thing that Nathan has to learn right now is that a blog needs to be updated more than once every week.

Come on. You've got googles of stuff to talk about. Give us some regular content, already?

It's not that hard.

To read the full Ticketmaster statement on their Ticketology blog, click here.

The cost/benefit analysis of DIY or "Hold the tomatoes!"

2010-08-31T11:00:00-04:00

For this post, we go back to one of my fave lunch spots, the Cafe Europa, home of the guys who say "To go" when you've already told them so.

This time, it's about tomatoes.

I hate 'em . . . so I used to tell the sandwich guys to remove them from my pre-fabbed Classic Italian.

And then I'd have to deal with them lookin' at me funny, and then watch as they pulled apart the bread, and plucked the tomatoes off themselves.

One day I realized that I was better off just doing it myself, back in the comfort of my office. I could do it faster, and also ensure that there wasn't even one little disgusting t-seed left to infect the rest of the sandwich.

I did it myself.

Broadway has always been a very specialized industry. There are few providers for our specific services. And those providers have been able to charge, well, almost anything they want.

We're just starting to emerge from the naive, Kool-Aid-induced haze that had us believing there were only a few people who could do the jobs that we needed them to do. We're finding that there are vendors all over the country, and all over the world, that can accomplish similar tasks, and often at much cheaper prices.

We're just starting to join the DIY revolution.

I'm a huge supporter of folks DIYing their way to success. Done right, you can save money, and learn about whatever you're DIYing in the process. Teach a man to fish, and you've got an all-you-can-eat sushi bar in your backyard!

Will you sacrifice some expertise? Could you sacrifice some time? Could you screw up? Yes.

So it's up to you to calculate the risk quotient of taking on a task that you wouldn't normally take on.

Here's the $ equation.

X = Cost of Expert Vendor
Y = Cost New Vendor or Yourself
Z = Your potential loss if you f' it up.

If X > (Y + Z), then you should have hired the Expert in the first place.

But, flip that alligator mouth around, and you've made out on this deal, and learned something to save you even more in the future.

You can't just be a guerrilla DIY guy. You have to consider all the options. The experts out there are experts for a reason. And there are times when you need them on your team.

But that doesn't mean you shouldn't take off your own tomatoes every once in a while.

Broadway Grosses w/e 08/29/10

2010-08-30T15:18:55-04:00

Show Name	GrossGross	TotalAttn	%Cap	AvgPdAdm
A LITTLE NIGHT MUSIC	$596,663	7,045	94.59%	$84.69
AMERICAN IDIOT	$610,478	7,725	56.50%	$79.03
BILLY ELLIOT: THE MUSICAL	$1,006,495	10,577	93.04%	$95.16
CHICAGO	$485,398	6,323	73.18%	$76.77
COME FLY AWAY	$633,486	8,873	68.85%	$71.39
FELA!	$442,031	5,936	72.04%	$74.47
IN THE HEIGHTS	$555,905	7,585	70.55%	$73.29
JERSEY BOYS	$1,014,108	9,696	98.70%	$104.59
LA CAGE AUX FOLLES	$581,350	6,546	77.41%	$88.81
MAMMA MIA!	$830,277	9,466	78.99%	$87.71
MARY POPPINS	$920,251	11,218	78.03%	$82.03
MEMPHIS	$841,523	9,367	79.65%	$89.84
MILLION DOLLAR QUARTET	$437,005	5,391	55.51%	$81.06
NEXT TO NORMAL	$285,421	4,828	78.17%	$59.12
PROMISES, PROMISES	$985,433	11,158	79.84%	$88.32
ROCK OF AGES	$475,269	6,366	79.81%	$74.66
THE ADDAMS FAMILY	$764,231	8,602	70.79%	$88.84
THE LION KING	$1,546,227	12,963	96.62%	$119.28
THE PHANTOM OF THE OPERA	$774,626	9,924	76.81%	$78.06
WEST SIDE STORY	$689,020	9,526	70.17%	$72.33
WICKED	$1,664,108	14,472	100.00%	$114.99
TOTAL	$16,139,301	183,587	78.54%	$84.97

I'll admit it. I love Daughtry. But not for the reason you think.

2010-08-30T11:00:00-04:00

Daughtry is one of the most successful American Idol contestants to date.

And he (and his publicity peeps) are also some of the smartest.

Actually, what I'm about to describe ain't brain surgery. It's pretty simple, actually, yet so many Producers in so many industries don't take it into account when releasing a new product.

It's called . . . ti . . . timing.

Guess what Daughtry's new single is called?

I'll give you a hint. What month comes after August, before October, and starts this Wednesday?

That's right, back-to-schoolers. It's called "September," and the song is a slow jam that captures the end-of-summer blues perfectly.

The song is on Daughtry's 2009 album Leave This Town, but "September" wasn't released as a single until this June, which gave it just enough time to ramp up to the charts by mid-July, and now peak with serious radio play just two days away from the song's namesake.

And if you don't think that this release was planned like, well, brain surgery, then I've got a show for you to invest in that involves a murdering moose.

Releasing a product, or debuting a show, is not like investing in the stock market. We should time our market. We already have data that suggests when your best chances for a Tony nom are, right? There are, no doubt, specific times of the year when your show will attract a wider audience.

It's up to you to determine the right time for your show. It may not be as obvious as opening Elf around Xmas, or releasing "September" around September, so make sure you spend some time trying to get into your audience's specific frame of mind.

And then pray there's a theater available at the same time.

Oh, and I do really like Daughtry. He's a cool version of Nickelback, so what's not to like? Come on, watch this video below. Tell me it's not a good song.

Now, if only he'd write a musical . . .

Paging Dr. House to the theater . . . stat.

2010-08-27T11:00:00-04:00

I love me some House.

Maybe it's because he reminds me a bit of my Dad (Dad's a doctor who admittedly has been a bit nasty to a few nurses in his day).

Or maybe it's because I like his style . . . it reminds me of how a great marketer works.

When House has a new patient presenting symptoms, he treats with the broadest and least invasive techniques first . . . then he stands back and watches how the body responds. If that doesn't cure the ailment, he tries something a bit more creative. And if that doesn't work, he goes at it with something totally different. And if that doesn't work, he tries something else, and so on, and so on, until he finally cracks it and save the poor bleeding bastard's life.

When a great marketer gets a new show, they usually start with a broader advertising campaign that features the tried and true techniques that have worked for the most shows. After that launch, he watches how the market responds. If the initial launch doesn't work, he tries something different. And if that doesn't work, he tries something else, and so on, and so on, and so on, until the right medicine stops the bleeding at the box office.

No two shows are alike. And just because one treatment or plan doesn't work, doesn't mean another won't. The point is to keep trying. Keep coming up with ideas. And if you've gotta go experimental, then go for it.

Because if theater means as much to you as it does to me, then keeping a show going may not be life or death, but it sure feels pretty close, doesn't it?

6 Things I learned at 6 Flags.

2010-08-26T11:00:00-04:00

Yesterday, my office staff and about 40 other folks from the shows that we're working on right now took a bus down to Jackson, NJ for the 4th Annual Davenport Theatrical retreat to Six Flags.

I've used the Broadway-show-is-like-a-thrill-ride simile before, so on this trip I tried to find some more specific things that all of us in the theater could learn from this pillar of an amusement park.

Here's what I picked up:

1. Make everyone on your staff a marketer.

When I stepped through the entrance turnstile, the ticket-taker tore my ticket and then said, "Ride El Toro!" Then she said the same thing to the person behind me. And to the person behind them.

When I grabbed a good but expensive chicken sandwich, the lunch lady put my sandwich on the tray and said, "Check out The Dark Knight!"

The management of 6 Flags have turned their entire staff into marketers pushing their own product. Why can't we do the same thing?

Could shows buddy up and have their respective ushers pitching the other show? Imagine an usher seating a family at Lion King and saying, "2 seats off the aisle. Enjoy the show and check out Mary Poppins on your next trip to NYC!" Or what about box office personnel suggesting to stop by the merch stand, or even the bar. We've got people. They've got voices. We should (be able to) use them.

2. It's not what you win, it's that you play a game.

Does anyone really want a giant stuffed banana? Or a Batgirl cape? The prizes at the carny game booths are crap, but that doesn't stop people from playing. Because it's not about the prize. It's about the contest. For what people spend on these games, you could BUY any of the prizes! I spent $30 trying to get a plastic red ring around a bottle top, for you-know-who's sake. I don't even remember what I was trying to win!

Maybe that's why "Sign up to win free tickets" isn't as effective as we all want it to be. More effective would be "Sink this putt for a chance to win free tickets." People love to play, and they lust to compete, and they don't even care what for.

(I won the Batgirl cape, by the way)

3. Get 'em to take photos, and they'll have something to talk about.

Enter the park, and there's someone there ready to take your picture. Exit any ride, and they snapped your picture. Throw up in the bushes? Most likely they've got in on film.

They've even got folks roaming around like the guy in the show above, reminding you to check out "your photos."

Why? Yes, because they sell them and make bank.

But also because they know that each souvenir photo that goes home is literally 'captured fun', bound to inspire the desire to return upon each look.

I'd put a photo booth in my lobby if I could, or even have a floating photog in the audience.

4. Use your assets to advertise.

Something new at the Flags this year were the branded roller coasters and the outdoor advertising for other products. Gum, hair products, candy bars, and more were being pitched to me all day. (FYI, I only remember Snickers . . . the others brands are a loss to me, and I STARE at advertising . . . sorry, guys).

I'm certainly not suggesting we turn our theaters into minor league baseball stadiums, but there has to be ways we can use our assets to advertise other products (or our own) and offset some of our expenses.

Google AdWords, affiliate links, etc. are non-invasive ways to generate some income on your show's websites. As long as you're not pushing people away from your shows, there is a way to make some additional money.

5. Small crowds don't pay less.

It rained yesterday . . . which means smaller crowds, less lines, and . . . unfortunately, less staff. Look, I get it. Reduce the staff if your revenue is reduced. But unfortunately, they went a bit too far, and our experience was not as dynamic and exciting had it been a sunshiny day.

Just because we were weatherly challenged, doesn't mean we shouldn't get all 6 Flags. We got about 4. And they're paying, because I just told the whole world wide web about it.

This one is for all the actors out there. I remember what it's like looking out at an audience with only a handful of people in it. I once did You're A Good Man, Charlie Brown to 7 people. Yes, there were more of us on stage.

It ain't easy, but those 7 people deserve the same show as the houses that have 700.

6. The Premium Premium ticket.

I'm a big believer in the pay-for-play Flash Pass system that allows you to jump the line and plan your day better. And I'm happy to pay for it. Six Flags has obviously been taking lessons from Gordon Gekko, because this year they added another level to their Flash Pass: Platinum. Obviously they had seen enough traction on the Gold level, that they added another level to nudge some people up. And it worked. There were no lines, yesterday, and yet the woman next to me had to have Platinum . . . even though the woman selling her the pass advised her not to get it.

There is always someone who wants to fly first class. Coming up with a high-roller ticketing option might be a way to get a few more dollars from a few more people with very little effort.

Broadway is not a theme park. And it should never be. But that doesn't mean we can't learn from what the parks do well, and what they don't, in order to make our world the happiest and most profitable place on earth.

Our Green Broadway $100 winner announced!

2010-08-25T11:00:00-04:00

Holy comments, BroadwayMan!

Based on the mountain of comments this blog received, making the theatrical workplace a greener place is obviously a very important subject for all of you.

And what creative suggestions they were! Everything from LED lights to a "Craigslist for Theater Supplies" to a shock-absorbing dance floor that turns time-steps into electricity. (Can you imagine how much electricity you could get from "Electricity" in Billy Elliot?)

There were several subjects that kept popping up: paperless ticketing, Playbills and leftover sets, to name a few. And, you know what I say . . . if more than one person has the same idea, it's a subject that needs close examination (and there's probably a business model behind it as well).

My staff sorted through the comments yesterday, and while they could have given multiple winners, they finally narrowed it down to just one.

The winner of the C-Note and the title of Mrs. Green Broadway is . . . RS! RS wins with this suggestion:

The Producers should try to get Equity to come up with a way to stop requiring stuffers, without having to announce the changes in cast - there are already too many announcements before a show. Either allow us to just post the changes at the entrance or even allow for postings near each entrance to the aisles - the amount of paper we waste in stuffing is beyond imagination. Also if we still have to continue to stuff Playbills - shows really need to do one page all encompassing stuffers.even if this means that the stage managers end up producing the stuffer on the day.

I couldn't agree more. The amount of stuffers used on Broadway is disgustingly wasteful. There has to be a better system that saves paper, time, money and more. I blogged about it once and even said it might be worth us paying a few more bucks to our staffers to lose this minuscule piece of billing.

But something has got to be done. The pros are not outweighing the conservation.

Congratulations, RS! $100 is on its way to you!

And thanks to all of you for be a part of the team that helps "green" Broadway. What we can save together is worth a whole lot more than $100.

Broadway's 1st Quarter Results: Summer Lovin' happened so fast.

2010-08-24T11:00:00-04:00

With the end of the summer comes the end of the first 13 weeks of the Broadway season, which means it's time for us to check in and see how the grosses and attendance are stacking up so far.

And lo and behold, it looks like Santa got his seasons messed up, because we got a nice present this summer!

Grosses are up a considerable 2.9% this quarter, as compared to the first 13 weeks of last season. Attendance notched up 1.1% as well.

This is quite a difference from the first quarter last year, when we were down 3.2% in the gross column and 9.6% in the attendance column.

Why the difference? Is the economy better? Were there more tourists in town?

I think the answer is simpler than that.

In the first 13 weeks of this season, there were simply more shows. Playing weeks were up 7.3% over last year.

I think we'll slip back a bit this Fall, as the season looks a little light (I'm expecting a surprise closing announcement from at least one show). However, I am still holding firm with my projection that will see modest increases in both attendance and grosses for the year . . .

. . . Especially now that Spider-Man looks like it's finally ready to cast his web.

See you in Q2!

Broadway Grosses w/e 08/22/10

2010-08-23T16:09:27-04:00

Show Name	GrossGross	TotalAttn	%Cap	AvgPdAdm
A LITTLE NIGHT MUSIC	$539,005	6,602	88.64%	$81.64
AMERICAN IDIOT	$707,740	8,761	64.08%	$80.78
BILLY ELLIOT: THE MUSICAL	$1,039,995	10,878	95.69%	$95.61
CHICAGO	$534,347	6,853	79.32%	$77.97
COME FLY AWAY	$635,399	9,049	70.21%	$70.22
FELA!	$482,416	6,378	77.40%	$75.64
IN THE HEIGHTS	$634,335	8,462	78.70%	$74.96
JERSEY BOYS	$1,020,157	9,643	98.16%	$105.79
LA CAGE AUX FOLLES	$602,152	6,678	78.97%	$90.17
MAMMA MIA!	$886,815	10,184	84.98%	$87.08
MARY POPPINS	$1,052,470	12,781	88.91%	$82.35
MEMPHIS	$854,846	9,610	81.72%	$88.95
MILLION DOLLAR QUARTET	$450,851	5,633	58.00%	$80.04
NEXT TO NORMAL	$298,132	4,903	79.39%	$60.81
PROMISES, PROMISES	$966,150	10,901	78.00%	$88.63
RACE	$274,787	4,149	49.02%	$66.23
ROCK OF AGES	$511,836	6,442	80.77%	$79.45
SOUTH PACIFIC	$626,513	7,284	99.96%	$86.01
THE ADDAMS FAMILY	$1,125,749	10,417	85.72%	$108.07
THE LION KING	$1,632,627	13,425	100.07%	$121.61
THE PHANTOM OF THE OPERA	$857,575	10,778	83.42%	$79.57
WEST SIDE STORY	$726,347	9,982	73.53%	$72.77
WICKED	$1,688,034	14,472	100.00%	$116.64
TOTAL	$18,148,273	204,265	81.51%	$85.69