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New York's Met Opera unveils Saudi collaboration to boost finances / Photo: © AFP
NYSE - LSE
New York's Met Opera unveils Saudi collaboration to boost finances
The Metropolitan Opera in New York announced Wednesday an agreement to perform in Saudi Arabia and provide artistic training in the oil-rich kingdom as it works to shore up a creaky financial outlook.
The prestigious cultural institution, which received a Moody's credit downgrade just days ago, will travel to Riyadh for five years to perform during the opera house's winter break under an agreement with the Saudi Music Commission.
The performances will be at the Royal Diriyah Opera House, which is expected to open in 2028.
The agreement commits Met creative staff to provide training to Saudi opera singers, composers, directors and other artisans. The collaboration also envisions the commissioning of a new opera, according to a joint press release by the Met and Saudi Arabia's Ministry of Culture.
"Music is a universal language that transcends borders, uniting people through creativity," said a statement from Paul Pacifico, the CEO of the Saudi Music Commission.
"This collaboration is more than a cultural exchange; it is an opportunity to forge new connections, share our stories through music, and contribute to a vibrant global arts community."
The venture reflects the "increasingly challenging" economics of producing Grand Opera, Met General Manager Peter Gelb told AFP.
"The Met cannot survive based on the earned revenue sources and the annual fundraising," said Gelb, who declined to provide financial details about the venture. "This agreement with the Saudi government helps us meet our financial needs."
On August 27, Moody's Ratings downgraded the Met two notches to "B3," placing the institution more deeply into the non-investment grade category, reflecting "persistent and increasing deterioration in the operating performance."
A note from Moody's emphasized Met moves to tap its endowment to cover deficits, noting a $70 million draw in 2023 and 2024 and another $50 million authorized in 2025.
"These draws will reduce future support to budgetary operations as regular draws decline in line with lower reserves," Moody's said.
Gelb said the Met is actively exploring other sources of raising funds. These include licensing agreements of its intellectual property, as well as naming rights to the Met building at Lincoln Center.
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