Broadway’s Shutdown is a HUGE Blow to New York’s Tax Revenue

New York has already shut down its movie theaters and the economic pain has trickled up and down the movie industry. That entertainment shutdown has bled to Broadway theater box offices. Already closed because of the pandemic, Broadway theaters will remain closed through May 30, 2021, having been idle since March. That was when New York City became the nation’s epicenter of the pandemic.

Extinguishing the bright lights of Broadway has put nearly 100,000 workers on unemployment. The loss in revenue is staggering. Consider that the average single ticket price for a Broadway show is about $125 and a high-capacity Broadway theater can hold over 1,700 in the audience, and the losses in both revenue and investments will be in the millions.

The entire theater industry has hit the pause button. Closures have spread from five Edinburgh, Scotland, festivals to the Oregon Shakespeare Festival. London’s popular West End have canceled all performances through May 31, 2020.

Broadway tickets are always at a premium, and theater goers typically buy tickets well in advance. At a time when there is no box office revenue, ticket sellers don’t want to refund more tickets than absolutely necessary, and refunds add to the oceans of red ink they are already drowning in. However, the Broadway League reports that people who bought tickets for Broadway shows canceled through June 7, 2020, will receive an email about refunds and exchanges.

Sean Hannity shows you how to protect our freedom Sean Hannity shows you how to protect our freedom Compounding the pain is that Broadway is heavily dependent on tourism. No one knows when — or if —visitors from around the country and the rest of the world will be enthusiastic about visiting New York. Also, Broadway show audiences tend to be older people who are more vulnerable to COVID-19 complications. Whether that crowd will be enthusiastic about congregating in packed theaters after the pandemic abates is anybody’s guess.

Meanwhile, New York Governor Andrew Cuomo during a recent news conference was asked to comment on the Broadway League president announcement that she was “hopeful that the restrictions will be lifted by June 7.”

Said Cuomo, “I wouldn’t use what Broadway thinks as a barometer of anything, unless they’re in the public health business.”

Nevertheless, the income generated by Broadway shows is more about economic health. Statista.com reports that the gross revenue of Broadway shows in New York during the 2018/19 season generated over 1.43 billion U.S. dollars.” Losing that income is a big blow to New York state’s already impacted tax revenues.

The governor capped off his testy observation saying, “Before you go to Broadway theaters, people are going to say, ‘When can I go back to work? When can I go back to school? When are other essential services going to open?’ Before they go to a play, there’s going to be a lot of other questions that they’re going to ask, and that’s going to be a function of numbers.”

Of course, the big numbers of unemployed Broadway theater stagehands, musicians, etc., out of work for the past six months might have a more focused perspective on the situation. Likewise, New York City hotel and restaurant employees could be asking the same questions Governor Cuomo posed: When can they go back to work?

Poster Comment:

John Dillinger was Public Enemy #1. He was set up by the lady in red and killed outside the Biograph theater in Chicago.