Timothee Chalamet’s controversial claim that "no one cares” about opera touched a nerve. But the actor may not be totally off base - at least when looking at Metropolitan Opera Association’s financial situation.
Moody’s Ratings cut the Met Opera’s debt rating further into junk on Tuesday, lowering it to Caa1 from B3 with a negative outlook. The downgrade reflects the organisation’s "pronounced structural deficit” and extraordinary endowment draws totalling US$120mil (RM470mil) since fiscal 2023 that has eroded its total cash and investments, analyst Debra Roane said in a report.
Without a major cash infusion, such as a significant licensing deal or large donation, the Met faces a likely "substantial budgetary shortfall in fiscal 2026, potentially requiring further unsustainable endowment draws,” Roane added.
The New York City-based nonprofit has outstanding debt of US$178mil (RM697mil) as of mid-2025 and has depleted its endowment below its historic value, Moody’s said. The endowment is currently US$212mil (RM830mil), a spokesperson for the Met said, adding that the organisation is anticipating significant gifts from a bequest to help replenish it.
Performing arts venues across the US have been struggling with attendance and ticket sales. Opera ticket count in the US fell by 21% from 2019 to 2023, according to an Opera America survey, and ticket revenue declined by 22%. Last year, Moody’s revised Carnegie Hall’s outlook to negative from stable on "thinning operating performance.”
The Met had 76,000 new ticket buyers for 2024-25, a 11% drop from the prior season, according to the organisation, with the average age of single-ticket buyers at 44, down from 50 pre-pandemic.
Chalamet incited performing artists late last month by saying "I don’t want to be working in ballet or opera or things where it’s like hey keep this thing alive even though no one cares about this anymore” in a Variety and CNN Town Hall video with Matthew McConaughey. The Met responded to his remarks with a behind-the-scenes video of their production saying, "All respect to the opera (and ballet) people out there.”
Separately, the Seattle Opera reacted by offering a discount, using code TIMOTHEE, off select seats for Carmen and told a trade publication ticket sales increased due to the promotion.
As the average opera-goer ages, institutions are scrambling to attract younger audiences. The Met, for instance, launched a "Fridays Under 40” programme in 2018 offering discounted tickets.
The upcoming season will feature 194 performances, the fewest in its 60 years at Lincoln Center, according to the spokesperson, who added that the figure is still more than double any other opera company in the nation. Founded in 1883, the Met relocated to Lincoln Center’s 3,786-seat venue in 1966.
"This season we are anticipating our highest box office since the pandemic, closing at 75% paid attendance, up from 72% last season,” the spokesperson said. "We expect to balance our budget for this fiscal year.”
Despite the Met’s upbeat outlook, Moody’s added that expiring bank agreements heighten its refinancing and liquidity risks. Its fiscal 2025 operating revenue is around US$281mil (RM1.1bil), according to Moody’s. The Met issued general obligation corporate bonds in 2012 upwards of US$100mil (RM392mil) with the first term due Oct 1, 2027, according to data compiled by Bloomberg.
"Although the Met’s renowned global brand and exceptionally strong donor base, together with the potential for extraordinary revenues and planned cost reductions, could support credit improvement, these positive factors are outweighed by its elevated liquidity and credit risks,” Roane said. - Bloomberg
