What Does a Theatre Producer Do? (Part 1)
Veteran producer John Breglio explains the ins and outs of his job
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“I can assure you that 90 percent of those people had no idea how the deals worked,” Breglio says. “And some of them considered themselves producers with millions at stake. The ignorance was remarkable.”
That’s why he decided to write a book, calling on his expertise from over 40 years as a producer, entertainment lawyer, and chairman of Theatre Development Fund’s board (from 1997 to 2006).
The result is , which was published earlier this year.
Breglio’s thesis is that in showbiz knowledge is both power and profit, and those who venture into producing without it are risking fortunes.
Two “sea changes,” in terms of the economics of the theatre, get his special attention.
One is the change in the royalty structure of a theatrical property. For many years, a show paid gross royalties “to the talent, the theatre, and producer as a first priority before paying any of the other bills, leaving little or nothing for investors.” A shift was triggered by a page-one story in The New York Times in 1981 about the financial structure of the musical Woman of the Year, starring Lauren Bacall. The piece detailed how far down the ladder the investors were in a show that had been running for a long time.
“After the article appeared, I had clients who were calling investors who responded with: ‘Do you think I’m an idiot? I just read The Times‘ story. I’m not going to sit around and watch everyone make millions before I make any money back.'”
What was proposed and eventually accepted was “the royalty pool,” which is a sharing arrangement by all the parties whereby the net gross, after deducting weekly operating costs, is divided by royalty participants, the theatre, and the investors.”The balance of power between investors and producers on one hand and the creative team on the other completely got re-negotiated and re-balanced,” Breglio says. “It marked the end of the domination of the creative people in terms royalties off the top.”
And if the “royalty pool” concept had not been accepted?
The other major development in the art of producing was the emergence of not-for-profit theatres across the country as developers of shows that would be commercially produced.
When asked if the lines are now clear between the commercial producer and the not-for-profit, Breglio says “categorically, no. If you are a not-for-profit and you’re going to engage in these kinds of agreements with commercial producers, it’s crucial you have legal counsel who are experts in not-for-profit tax laws. If you, as a not-for-profit theatre, cross the line, you can lose your tax exempt status. If you’re not careful, it’s all a slippery slope.”
Stay tuned! The second half of Frank Rizzo’s conversation with John Breglio will arrive next week.
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Photo of John Breglio by Nan Knighton. Photos from A Chorus Line by Paul Kolnik
Follow Frank Rizzo at @ShowRiz. Follow TDF at @TDFNYC.
FRANK RIZZO