THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA
LIBRARIES AND ARTS COMMITTEE - 8 JUNE 2000
REPORT BY THE EXECUTIVE DIRECTOR OF EDUCATION AND LIBRARIES
HOLLAND PARK THEATRE DEVELOPMENT OPTIONS
This report requests that Members agree to go to public advert for a sponsor for Holland Park Theatre.
The accompanying ‘Development Options’ document, compiled in association with Arts in Business, outlines the history of the growth of the Holland Park Theatre Season, gives information on all aspects of the Theatre and provides information on funding options for the years 2001, 2002, 2003.
FOR DECISION
1. BACKGROUND
1.1 The 2000 season is the last year of the Evening Standard Season sponsorship. It is now necessary to seek out expressions of interest for a new sponsor.
1.2 Potential sponsors will require extensive information on the Theatre and the Royal Borough’s development thoughts. A copy of the attached document would be sent to potential sponsors accompanied by other information.
2. PROPOSALS
2.1 There are four main options for Holland Park Theatre funding. Each of these is outlined in greater detail in the Development Options:
1. The Theatre runs without a sponsor, and therefore is fully funded by The Royal Borough of Kensington and Chelsea.
2. A sponsor/investor is found who could operate on one of three levels:
A. The Royal Borough funds the infrastructure and a sponsor provides funding for the artistic programme, however the Royal Borough retains artistic control and ticket income (as now)
B The Royal Borough funds the infrastructure and a sponsor provides funding for the programme and controls artistic programming. The Royal Borough retains ticket income.
1 C The infrastructure and artistic programme are underwritten by The Royal Borough and an investor/partner who would provide funding for developments and expect a percentage of the ticket income.
3. Set up as a Charitable Trust.
4. The Theatre operation is passed to a commercial theatre entrepreneur.
2.2 To attract potential sponsors immediately and to enable any who would like to see the Theatre in operation (during the three months of the season) to do so, it will be necessary to go to advert immediately.
3. RECOMMENDATION
The Committee is RECOMMENDED to instruct officers to publish a public invitation to sponsors to submit their proposals and that these applications are invited under Options 2A, B, C above to enable the widest field to be explored. Applications bidding to sponsor the Theatre will be placed before Members for consideration.
FOR DECISION
ROGER WOOD Executive Director, Education and Libraries
Background papers: Officer’ working papers.
Officer contact: Anyone wishing to inspect the above documents should contact: Miss C. Powell, Central Library, tel. 020 7361 3027. LA00.06.JMcE.HPT
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HOLLAND PARK THEATRE
Featuring
Opera Holland Park
Development Plan and Options
Seasons 2001 - 2003
3 INTRODUCTION
The aim of this Development Plan is to present for Members and prospective partners/sponsors the history and current status of Holland Park Theatre and give options for the future development of the Holland Park Theatre Opera Season.
The final year of major sponsorship by the Evening Standard is the 2000 Season and therefore it was thought timely to have information to present to potential sponsors/partners.
Holland Park Theatre has grown in importance in the opera calendar since the introduction in 1996 of Opera Holland Park. The 1999 Season saw the Theatre break even of the Royal Borough’s underwriting for the first time. Although expenditure and staffing are frugal and ticket prices at a minimum, a stage has been reached in development where either the Royal Borough would have to inject additional finance into the artistic programming or a major sponsor/partner has to be found.
A great deal is achieved on current funding, however with year on year budget cuts and pressure on the continuation of the Theatre, a new direction needs to be found to insure continued improvement.
The next two years will see the design and build of a new canopy. Funding for this is being accrued, however an estimate of cost indicates that the Royal Borough will need to invest in the balance of funding and a method of financing need to be found.
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Holland Park Theatre Overview
The Holland Park Theatre (HPT) provides the venue and infrastructure for visiting companies and Opera Holland Park (OHP). Since its creation, HPT has become established as one of the country’s principal operatic seasons. The combination of an imaginative array of acclaimed productions and the spectacular setting of the theatre within the grounds of Holland House has proved to be extremely popular with visitors. The activities and management of HPT are undertaken by The Royal Borough of Kensington and Chelsea Libraries and Arts Service.
Short History
Holland Park Theatre was inherited from the GLC who used it as a venue for GLC open air arts events.
In 1986, the Royal Borough invested in the canopy which covers the auditorium and stage.
In the early years of the opera season, all productions were bought in from, mainly, amateur companies. The season was subject to extremes of performance ranging from extremely good to the unfortunately bad. Sponsors were not attracted to the venue and consequently the Royal Borough was subsidising the costs each year.
In 1995 a plan was embarked upon to raise the artistic profile of the season and to upgrade the infrastructure (facilities, promotion, publicity) of the Theatre with the intention of attracting sponsors.
The ‘House Company’ - Opera Holland Park - was formed for the 1996 season. The intention was to give HPT management closer control of the quality of singers, musicians and productions.
The HPT’s first major sponsorship was provided by the “Evening Standard”. The sponsorship was initially for three seasons: 1995, 1996, 1997. The sponsorship was extremely successful for both parties, resulting in the “Evening Standard” extending their sponsorship for a further three years, the 2000 season being their last year.
Since 1996, the in-house company OHP has produced eleven operas. These have included, in the first year, Un Ballo in Maschera and, subsequently, Tosca, Iris (which has been revived), Eugene Onegin, Cavalleria Rusticana and Pagliacci, Lucia di Lammermoor and L’Arlesiana. Last year’s successful season comprised Rigoletto, Le Nozze di Figaro and Simon Callow’s production of Carlo Menotti’s The Consul. In addtion, HPT has provided the opportunity for other companies to present their productions and the 1999 season included Central Festival Opera’s La Bohème , Mecklenburgh Opera’s Orpheus in the Underworld and European Chamber Opera’s L’Elisir d’Amore . In the 2000 season, as part of the Royal Borough’s Millennium celebrations, OHP will be producing all operas in the season. 5
An average season runs from early June to mid-August and consists of fifty to sixty performances, of five or six operas, all of which are presented in the Holland Park Theatre.
The theatre, with a capacity of eight hundred seats, is set in the gardens of Holland House. The auditorium and stage are entirely covered by a high tensile canopy, which has ensured that no productions have ever fallen victim to the weather. A variety of catering facilities and picnic areas are available around the theatre complex and all inclusive hospitality packages can be arranged.
Promotion and Publicity
As part of the publicity for each season, HPT produces a promotional brochure which is widely distributed giving details of the forthcoming season and information about ticket booking. A Season Magazine is also produced which is an acclaimed publication providing background to HPT, an introduction to each of the season’s productions and a series of erudite and entertaining articles by well- known personalities who give their views on a range of operatic topics. The 1999 edition, of the Magazine sold 2,614 copies, and included contributions by James Naughtie, Tom Sutcliffe, Simon Callow and Brian Sewell.
Productions at HPT are receiving recognition in the national and musical press, as demonstrated by the extracts of reviews shown later. The theatre is now accepted by commentators as a viable addition to the two major houses in London for performances of the lyric arts, filling a niche in the market.
Objectives
Holland Park Theatre is committed to continuing the same rate of progress and development that has been achieved each year since 1996. Specifically, HPT has the following objectives for the next three years:
• to reinforce HPT’s arrival as a principal and widely acclaimed London operatic venue; • to continue the promotion of high quality opera at affordable prices; • to maintain HPT’s reputation for running a cost effective, efficient opera house with widespread support; • to attract the most able, ascendant, performers based in this country. • to have a development and educational programme to enable people to enjoy music • to be a showpiece for The Royal Borough of Kensington and Chelsea • to break down barriers to the opera performance art form by developing a relaxed but quality venue
2000 season
6 The choice of repertoire for the 2000 season demonstrates the theatre’s commitment to presenting a varied selection of popular, less well-known and unknown* productions and consists of the following:
Opening Production Composer Number of date performances 6 June Madama Butterfly Puccini 10 evening, 1 matinee 21 June L’Amore Industrioso De Sousa Carvalho 4 evening 27 June L’Amico Fritz Mascagni 5 evening 5 July Royal Ballet School 5 evening 13 July Così Fan Tutte Mozart 10 evening 1 matinee 25 July Yeomen of the Gilbert and Sullivan 5 evening, Guard 1 matinee 1 August Ballo in Maschera Verdi 10 evening, 1 matinee
* L’Amore Industrioso , by the Portuguese composer João de Sousa Carvalho, is particularly worthy of mention. Written in the eighteenth century, this charming work has seldom been performed and never been performed in Britain. In addition, L’Amico Fritz is one of Mascagni’s less well-known works.
7 Vision statement : Holland Park Theatre Opera Season
To promote opera to as wide a cross section of the community as possible; create a welcoming and fashionable venue; present opera of the highest quality possible while keeping ticket prices at a level which is socially inclusive; employ emerging and new singers currently singing and studying in the U.K., encourage new audiences through education and other audience development methods.
Primary Aims
• To provide a wide range of high quality, progressive operatic productions which offer a platform for outstanding developing and established singers, directors, conductors, designers to showcase their talent.
• To create a relaxed, inclusive yet sophisticated atmosphere in an effort to dispel the popular belief that opera is not welcoming for the majority of people.
• By judicious and careful planning keep expenditure to a minimum, thus enabling the Royal Borough’s underwriting risk to be minimal.
• To maintain ticket prices at an affordable level which maximises accessibility to productions.
• To develop an educational programme for people of all ages to ensure that all individuals have the chance to learn about the art form.
• To encourage large and small scale sponsorships.
• To ensure that all visitor to the Holland Park Theatre have a memorable and repeat experience.
• To introduce audiences to new or little heard operas while maintaining a balance in the repertoire of well known and liked works.
8 Objectives 2001 - 2003
- Secure a partner or a sponsor to inject finance into the Theatre’s artistic programme for a period of three years
- Appoint educational programme assistant
- Continue to undertake audience development work
- Commission a new canopy and aim to increase seating capacity to c.1000 and improve audience facilities
- Have a stable finance base to be able to plan repertoire for 2/3 years ahead
- Streamline auditioning and contracting of singers, conductors, directors, designers with longer lead in times
- Obtain benefits of liaisons with other similar sized opera venues in Europe and U.K.
- Investigate the potential for a touring arm for productions
9 Staff
Staff Structure
Head of Libraries and Arts
Marketing & Publicity Project Administrator Operations Manager Manager
Box Office Sales & Promotion Production Front of House Technical 4 staff 2 staff 7 staff 14 staff 5 staff
Black - Permanent Posts Red - Seasonal Posts
The chart above shows the structure for the staffing of the Holland Park Theatre season.
Four of the posts shown in the chart are permanent RBK&C staff, however only two of these permanent posts are occupied the whole time with the Holland Park Theatre Season: the Operations Manager and the Project Administrator.
The Head of Libraries and Arts inputs approximately 10 per cent of working time to Holland Park Theatre.
The Marketing Manager inputs up to 50 per cent depending on the time of the year.
The Box Office Manager post had been full time in the past but is currently on a six month temporary contract.
This structure is lean and generally efficient and has worked well to date building an artistic and financial well-being which has earned Holland Park Theatre in a relatively short period a reputation as an extremely desirable venue to visit and in which to perform.
The four permanent posts are responsible for arranging and managing the entire Holland Park Theatre season including the construction of the Theatre, technical arrangements, contracts, financial management, promotion as well as the artistic planning of repertoire and recruitment of artistic staff.
Artistic planning is undertaken by a group chaired by the Head of Libraries and Arts and consisting of Project Administrator, Marketing Manager, Operations Manager with music specialists consulted for advice, opinions and contacts.
The proposed season programme is submitted to the Libraries and Arts Committee for approval.
10 Conductors (musical directors), directors and designers are appointed for specific productions and work together with Holland Park Theatre staff to make artistic decisions such as casting and design.
In practice, day-to-day management of the Holland Park Theatre season is undertaken by the Operations Manager and the Project Administrator. This is done in liaison with the Head of Libraries and Arts and the Marketing and Publicity Manager who deal with press, sponsors, customer communications and decisions affecting the overall season including artistic contracts.
11 Holland Park Theatre - Roles and Responsibilities
Head of Libraries and Arts
Responsible for managing the Borough’s Libraries, Arts, Museums, Galleries and Holland Park Theatre.
Specific responsibilities :
Ensuring the efficient management of the Holland Park Theatre season. Repertoire programming; financial planning for the season; agreeing fees and contracts for singers, conductors, etc.; agreeing individual production budgets; strategic planning.
Operations Manager
Efficient operation of the built environment of the Theatre site; Licensing; Technical management of lighting, sound, stage and backstage areas; environs of the site; contracts for seating, lighting, security, cleaning; Front of House management including health and safety; recruitment of seasonal technical and front of house staff.
Project Administrator
Administration of Opera Holland Park, the ‘House’ company; repertoire planning; initial costing of productions; arrangement of auditions and rehearsals including booking spaces; negotiating and producing contracts for singers, musicians and production teams; ensure Season runs efficiently and cost effectively.
Marketing and Publicity Manager
Repertoire planning; overseeing Box Office operation; business/sponsorship development; promotion of the season; negotiating contracts as required; promotion and publicity including the production of season brochure and magazine; strategic planning; press and public relations.
Box Office Manager
Efficient and effective box office operation; recruitment of seasonal staff; financial preparation and reconciliation of box office income; ensure good customer care; manage Scenario Card recruitment.
These posts form the management group for Holland Park Theatre. The following staff are required to complete the season team:
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Technical Staff No. of Posts Head Technician 1 Chief Electrician 1 Deputy Electrician 1 Chief Stage Technician 1 Deputy Stage Technician 1
Front of House Staff Front of House Manager 1 Performance Fire Officer 1 Theatre Stewards 12 per performance Programme Sellers 2 per performance
Box Office Staff Box Office Assistants 4
Bar staff, cleaners and security staff are contracted in
Working Hours
The Technical staff and the Front of House Manager work a basic 40 hour week between the hours of 9 a.m. and 11 p.m. Any additional hours are paid at overtime rates.
All other staff are employed per performance and will therefore work a maximum of 36 hours a week.
13 Infrastructure developments planned for the three seasons: 2001-2003
Canopy replacement
The Holland Park Theatre canopy has been a feature in the development of the Holland Park Theatre Season as a major player in London’s summer entertainment. Unlike other “summer” theatre structures, the programme has never been disrupted or cancelled due to rain.
The current canopy was designed and manufactured in 1986. Adjustments were made due to problems in 1987.
By the 2000 season the canopy will have been in place for fourteen years.
A consultant’s report on the structure in 1999 said that the canopy which originally was given a life of fifteen years, could be expected to last for a further two to four years.
Plans to replace the canopy are currently being explored. A specific-ation will be drawn up during 2000-2001 followed by tendering and design. Manufacture of a replacement structure is scheduled during 2001 with the new canopy in place for the 2002 season.
A contingency budget to contribute towards the cost of a new canopy has been set up and currently holds £100,200.
The cost of a replacement structure is estimated at between £360,000-400,000.
Audience and Artists’ Facilities
Dressing Rooms:
Currently singers and musicians change for performances in makeshift and inadequate dressing rooms.
Although in the main they do not complain, the accommodation does make running a performance difficult for wardrobe and costume staff. Current space also makes it difficult when legislation requires special arrangements to be made, for example when children are involved in a production.
It is hoped that an increase in the area covered by a replacement canopy would help alleviate these problems.
Other Backstage Facilities:
Holland Park Theatre has always suffered from a lack of storage space.
14 Before a new production can move in, the production running in the week prior to it must be moved out.
Turnaround time is crucial as productions follow on back to back throughout the season.
As a result of the lack of storage space, costs are incurred due to the weekend and overnight working required to turn around productions. Economies of scale which would result from, for example, being able to deliver and store sets and props for a number of productions in one journey are not available.
The same problems arise from the lack of sufficient wardrobe space.
There are plans to include enhanced storage in the specification for the replacement canopy.
Stage and technical staff accommodation and administration space are also at a premium. During the preparation of the site, erection of the structure and through the season until the site is cleared in August, Holland Park Theatre environs are the full-time workplace for a number of RBK&C staff.
Audience Facilities:
Work is under way to redesign the ground layout in order to increase the picnic and other refreshment facilities for patrons. Additional seating and tables are being obtained.
It is hoped to have a canopy over the tiled walkway to provide further covered seating within the Theatre grounds.
The sloping grass area under the trees just inside the side entrance gate is scheduled to be arranged into three level tiers which will provide additional picnic space.
15 Musical Structure and Repertoire
Opera Holland Park
Opera Holland Park is a ‘house company’ created to produce work solely for the Holland Park Theatre during the Holland Park Theatre Season. It therefore comes under the auspices of The Royal Borough of Kensington and Chelsea Libraries and Arts Service.
Opera Holland Park exists to provide a substantial platform for the best emerging operatic talent based in Britain today. The performers are drawn from the ranks of singers currently being “groomed” by the major houses or who are widely accepted - after significant successes in small or medium sized companies - to be particularly promising.
Opera Holland Park offers singers a showcase to prove their capabilities in major roles. They benefit from the fact that they are performing in a well known London venue to large Capital-based audiences including reviewers and agents. Many British singers are forced to go abroad to establish themselves as performers and Holland Park Theatre offers an opportunity for them to continue their development in this country.
The productions of Opera Holland Park allow singers to display their full range of abilities as operatic performers and not just their vocal talents. They work with prestigious directors and receive as part of the rehearsal process, a period of intense training in language and musical coaching.
A stated interest for Holland Park Theatre patrons is the chance these productions offer to steal a glimpse into the future.
Orchestra
Since 1996 it has been the practice that Opera Holland Park orchestras are fixed by a professional orchestra fixer who manages the ‘house’ orchestra.
This has lead to a continuity among the players engaged at the Theatre, which has raised the standard of the performing orchestra. Being an 800 seat part-time venue, Holland Park Theatre has managed to negotiate special rates successfully with the Musicians’ Union.
16 Repertoire
From time to time productions of operas have been mounted in London which clash with the same operas being performed at Holland Park Theatre. In terms of seats sold, there has not been a discernible effect on the audiences for Holland Park Theatre despite competition from these sometimes spectacularly large and heavily promoted events.
A high level of audience loyalty exists which has been carefully nurtured for the past five years with the introduction of Scenario Card Membership and patron consultation about the venue and repertoire.
Indeed an extensive audience survey showed that many members of the Holland Park Theatre audience are likely to have also attended productions at the main opera venues in the U.K. The unique nature of Holland Park Theatre within London scores heavily among the reasons given for attending by those surveyed.
Surtitling of productions
Most productions at Holland Park Theatre have been sung in the original language. In an effort to meet requests from some of the audience, a surtitling system was acquired. Purchase of a proprietary unit would have been a severe drain on the budget, therefore an alternative solution was sought.
A one-off sponsorship enabled a system to be hired for one production. While this system was in situ it was suggested by technical staff that a system could be manufactured ‘in house’ for approximately 75 per cent of the purchase cost. This was done and software adapted for the purpose.
The system is now available for hire by venues and small opera companies between September and April each year. Translations of a libretto cost approximately £500. A skilled operator is also required at £60 a performance.
Budget constraints dictate that surtitles cannot be used for all performances although this would be the ideal, taking into account Holland Park Theatre’s aim to make opera accessible.
17 Repertoire 1996 - 2000
In original language unless otherwise specified. (E) = English
Bizet - Carmen (1996) Cilea - L’Arlesiana (1998) Donizetti - Don Pasquale (1997) L’Elisir D’Amore (1999) Lucia di Lammermoor (1998) Gilbert & Sullivan - The Yeomen of the Guard (2000) Mascagni - Iris (1997) (1998) L’Amico Fritz (2000) Mascagni/Leoncavallo - Cavalleria Rusticana/ (1998) I Pagliacci Menotti - The Consul (1999) Mozart - Così fan tutte (2000) Die Zauberflöte (1997) Don Giovanni (1996) Le Nozze di Figaro (1999) Offenbach - Orpheus in the Underworld (1999) Puccini - Gianni Schicchi/Il Tabarro (1997) La Bohème (1999) Madama Butterfly (2000) Tosca (1997) Turandot (1997) Purcell - Dido and Aeneas (1998) Rossini - Il Barbiere di Siviglia (1996) Sondheim - Sweeney Todd (1996) Sousa Carvalho - L’Amore Industrioso (2000) Strauss - Die Fledermaus (1998) Tchaikovsky - Eugene Onegin (E) (1997) Verdi - Falstaff (E) (1996) Il Travatore (1996) La Traviata (1998) Rigoletto (1999) Un Ballo in Maschera (1996) (2000)
18 Promotion and Publicity
The coverage for Holland Park Theatre Season has grown in line with the higher standard of production now being presented.
Feature articles about the Theatre site and Opera Holland Park appear regularly in the build up to and during the summer Season.
Close association with the Evening Standard and a media sponsorship with BBC Music Magazine ensure good basic coverage.
A Holland Park Theatre web site is being developed which will give world wide penetration.
Publications produced for the Season include a Brochure and a Magazine.
Brochure
Published at the beginning of March each year. Over 100,000 copies are produced, as the brochure is the major advertising and sales medium for the Season. A booking form is contained in the brochure along with Scenario Card membership information and Box Office contact numbers.
As an additional promotional item, the illustrations for each year’s brochure are commissioned from an artist who has exhibited in the Libraries and Arts Service’s galleries over the previous year.
The brochure has twice won Highly Commended awards from the annual Communicators in Business scheme.
Magazine
Prior to 1995 cast booklets and programmes were produced by visiting companies for sale during their productions. So varied was their quality and value for money that in striving for improved and consistent quality, a brand image for Holland Park Theatre and an income stream it was decided to design and produce all programmes in house.
As the printed programmes became more elaborate, the lead in time for design and production of six individual publications increased while the resources available were limited.
In 1998 all six printed programmes were amalgamated into one Magazine. The Magazine features information about each production and articles on opera and associated topics by leading writers. The Magazine now also presents itself as an attractive medium for major advertising.
Patrons
Holland Park Theatre audiences have been increasing each year since 1995. Although individual weather events do not have a major effect on audience
19 numbers, in 1998 in particular a sustained cold, wet and windy spell did cut the amount of last minute ticket sales.
The audience base is extremely loyal as can be measured by the number of repeat bookings indicated on the Box Office database.
The original loyalty scheme was replaced in 1996 by the Scenario Card Membership. For a one-off annual fee a discount is available on all tickets purchased by a Scenario Card holder. Members also benefit from a separate Members’ Area where tables are provided for picnics. A forum is held to consult Members every year and a newsletter is produced which lists offers and benefits throughout the year.
Membership stood at approximately 800 in 1999.
Ticket sales to Members are high with about 25 per cent of sales attributed to Members during the two week priority booking period.
Box Office Facilities
The Box Office opens for Scenario Card priority booking in April and to the general public in the first week in May. The Box Office operates using a PASS 2 ticketing system. Recently acquired hardware has facilitated the speeding up of the booking process to patrons and it is planned to extend the Box Office facility to remote sites such as Central and Chelsea Libraries.
20 Critics
It has taken time and hard work for Holland Park Theatre/Opera Holland Park to build a reputation among the serious critics.
The proliferation of outdoor performances of opera galas and garden operas became an over exploited activity in the early nineties. Unfortunately much of it was poor and amateurish and did not serve to excite serious opera goers or critics. Many critics assumed that Holland Park Theatre was of this ilk and in some ways pre-1996 they were correct. The major turnaround came when others began to diminish while Holland Park Theatre became stronger. The launch of Opera Holland Park drew an initial surge in interest and as productions became stronger, so did the frequency of visits by critics. Their level of criticisms whether praise or disappointment was more welcome by Holland Park Theatre than being taken for granted. Critics now consider Holland Park Theatre to be an important part of the London opera scene and a venue at which to spot developing talent - be they directors, conductors or performers. The repertoire has provoked interest and praise for its adventurousness as is the ability to spot a “popular” if less performed opera.
The following is a selection of comments about the theatre rather than the individual productions, from critics since 1996.
James Naughtie in The Evening Standard: “It’s hard to think of a happier setting for opera that The Holland Park Theatre and it is now an exciting as well as pleasant place.”
Carolyn Bartholomew in Tatler: “The rash of summer festivals has become an epidemic (but) one of the more established is The Holland Park Theatre.”
Insider: “Tip for the summer: The Holland Park Opera Season must be one of the easiest and cheapest ways known to man of living a truly sybaritic life. Truly magical.”
Simon Callow in BBC Music Magazine: “My excitement about Holland Park is that it is a very enlightened scheme. I am not aware of any other Local Authority in the British Isles doing the same and it needs to be encouraged as much as possible.”
Tom Sutcliffe in The Evening Standard: “Holland Park again proves quality in opera is not just about top-price tickets and huge-fee stars. Singing, decent, fresh, youthful is the Holland Park tradition.”
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Julie Neuberger in The New Statesman: “I went to Holland Park - where you can hear excellent young singers, find stylish and witty productions - and all at reasonable prices, without having to leave work in the middle of the afternoon!"
22 Finance and Administration
HPT places great emphasis on financial management and analysis of its operations in order to derive maximum benefit from the resources at its disposal. Budgets are monitored rigorously and detailed market research has been carried out on the audiences. Consistently high levels of sales of seats across a wide range of productions have been achieved and when combined with rigorous cost control and cutting in 1999 a small surplus of income over expenditure was recorded.
Principal sources of income and items of expenditure
The majority of HPT’s revenue flows from box office receipts, supported by contributions from sponsors, sales of programmes, catering income and Scenario cards. Main items of expenditure are costs directly related to productions, staff costs, hire of equipment and publicity.
Staff infrastructure is lean as there is not a large permanent work force. The only full-time HPT member of staff at the time of writing is the Operations Manager. Other officers are engaged on HPT in addition to their other main responsibilities and therefore only a percentage of their time needs to be spent on the 10 week season.
Summary of income and expenditure 1999 Actual/2000 Estimate
1999 2000 Actual Budget £ £ Income Box office receipts 739,050 693,570 Sponsorship 107,92- 50,500 Programme sales & advertising 34,800 39,700 Scenario cards 21,030 14,680 Hospitality & catering income 11,930 7,000 Miscellaneous 7,850 - Total income 922,580 805,450
Expenditure Opera Holland Park 224,000 170,000 Hire of companies 197,000 170,000 Hire of equipment 136,610 206,790 Staffing 189,700 179,500 Running costs 73,720 91,540 Publicity 65,800 67,830 Total expenditure 886,830 885,660
Net income (expenditure) 35,750 (80,210)
Subsidy History
23 the following table shows how the policy of seeking to maximise income to offset overall costs to the Royal Borough is being achieved:
Season Net cost Tickets issued Ticket subsidy 1989 £209,343 15,583 £13.43 1990 £201,123 23,347 £8.61 1991 £175,719 27,513 £6.38 1992 £186,150 31,159 £5.97 1993 £164,780 31,257 £5.27 1994 £146,800 35,825 £4.09 1995 £129,630 36,602 £3.54 1996 £127,350 42,258 £3.01 1997 1 £225,070 43,979 £5.11 1998 £123,730 41,918 £2.95 1999 (£-25,000) 38,136 (£0.65)
1 extra week to season
The main factors in attaining the surplus of income over expenditure for 1999 were:
• Additional sponsorship from corporate sponsors
• Reduced staff costs
• Production budget cost cuts
24 Analysis of seat occupancy in 1998 and 1999
Year Production Occupancy % 1998 Cavalleria Rusticana/Pagliacci 88% Iris 87% Die Fledermaus 91% Dido and Aeneas 87% Lucia di Lammermoor 99% L’Arlesiana 70% La Traviata 92%
1999 Rigoletto 88% L’Elisir d’Amore 67% Le Nozze di Figaro 97% Orpheus in the Underworld 83% The Consul 52% La Bohème 94%
Ticket prices and capacity
The prices for 2000 have been set at the same level as 1999 as a reflection of the Company’s objective to maximise accessibility to the productions. The full price remains at £26, with a similar range of concessions. The capacity of the theatre continues to be 800.
Market research
Detailed analysis has been performed on the audiences attending operatic productions as part of the process for assessing the effectiveness of publicity and booking systems and to identify the most appropriate policies for pricing and marketing. In summary, the results indicate that although some of the audience is similar to that at the major opera houses in the country, the informality, value for money and the theatre’s environment are the key specific attractions of HPT. In return, patrons display a high degree of loyalty and flexibility. The following specific characteristics of the audience were identified:
• very sociable, affluent, well travelled and well educated with a wide variety of cultural interests • enthusiastic supporters of operatic and theatrical productions with over 70% regularly visiting the English National Opera and circa 70% regularly visiting the Royal Opera House • intensely loyal to HPT with its key attractions being perceived as its informality, environment, quality of the opera • they respond to the reasonable ticket rates set to attract a range of social groups
25 Sponsorship
Introduction
The contribution made to HPT by sponsors is absolutely vital to the theatre’s success, the adherence to its philosophy and the achievement of its development objectives. The importance of investment from sponsors in monetary terms, is evident from the analysis of the theatre’s finance. Without the significant investment from sponsors, the theatre would be incapable of producing high quality opera while at the same time maintaining one of its primary aims of having an accessible pricing policy.
HPT has been fortunate in the support provided by a number of extremely loyal sponsors since 1996. In particular, the Evening Standard has been the principal sponsor having extended its original contract until 2000. This is a testament to HPT’s credibility and attraction since it is very unusual for the Evening Standard to renew its sponsorship arrangements. In addition, Opera Holland Park has received consistent, valuable support from the BBC Music Magazine, the world’s best selling classical music periodical, the Cadogan Group, Egon Zehnder International, American Express and BMW Holland Park.
Future partnership with sponsor
The theatre has reviewed its sponsorship strategy and is now looking to create a new partnership with a principal sponsor. The primary objective in seeking new sponsorship terms for HPT is to ensure that the theatre can continue to develop its reputation as a leading venue for providing exceptional operatic experiences featuring exciting and inspiring artists within what is indisputably one of the world’s pre-eminent cultural cities.
As a principal sponsor, HPT is looking for a partner who is keen to:
• contribute to the achievement of the theatre’s objectives; • enjoy and benefit from being a part of the theatre’s activities and success; • be conspicuously associated with the promotion of opera as an accessible art form; • assist in dispelling the myths which have evolved around opera and which hamper the development of more widespread base of opera enthusiasts.
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Benefits available to a Principal Sponsor
HPT is in an extremely strong position to act as a progressive partner to a sponsor. The theatre has rapidly developed a strong and identifiable brand but at the same time offers considerable flexibility to a sponsor since there are neither decades of tradition to uphold or factions to satisfy.
Partner sponsors will therefore be guaranteed of:
• exceptional audience reach; • active involvement • industry leading publicity ensuring effective and complementary brand positioning and management; • opportunities for promotion of the sponsor’s product range; • first class client entertainment opportunities; • unparalleled access to the venues for promotions.
More specifically, suggested benefits accruing to the principal sponsor could include:
• clear association of the sponsor’s name with all productions in each season of sponsorship. Example - currently branded Evening Standard Holland Park Theatre; • sponsor’s logo branding on all publicity (including front pages) advertising, theatre stationery and production tickets; • reference to the sponsor in critics’ reviews of productions; • full page colour (A4) advertisements in the season brochure and season’s Magazine; • a substantial gratis quota of tickets; • pre-scheduled exclusive use of HPT’s hospitality facilities; • involvement in events including the launch, first nights, dress rehearsals etc. • complete dedication by HPT management and staff to the promotion of the sponsor and the relationship with HPT; • a flexible relationship enabling creative thinking from the sponsor’s personnel to realise the full potential of ideas.
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Development Strategies
Members are now presented with a range of strategies for the future development of Holland Park Theatre. Some strategies may be non sequiturs, however in the cause of exploring all options, everything is listed.
Major advantages and disadvantages are shown for each option, as well as the potential financial implications where appropriate.
1. Continue current organisation structure with all of Holland Park Theatre under The Royal Borough of Kensington & Chelsea control with no major sponsor
Advantages
• The Royal Borough of Kensington & Chelsea has total control of the venue and the artistic programming.
• The Royal Borough will have full control of the image portrayed to the public in general by all parts of the Theatre
• Costs are set and controlled in-house
• The Royal Borough’s corporate objectives will be more easily linked
• Royal Borough control over the Grade I listed venue. There will be no need to consult outside agency if the Royal Borough wishes to develop Holland House and environs
• Able to continue educational/audience development within broad values of the Royal Borough.
Disadvantages
• The Royal Borough will need to significantly increase financial investment in artistic programming
• A venue wholly owned and run by the Royal Borough may have restrictions in gaining funding from Trusts and Charities
• Within a local authority finance, personnel and investment policies there are constraints on, for example, the accruing of balances from year to year.
28 2. RBK&C retains full infrastructure operation of the Theatre: Partner/Sponsor input to artistic planning
There are three main variations on this formula.
Variation A - “The Basic Sponsor”
Theatre infrastructure is funded by RBK&C with a major sponsor for the artistic programme. RBK&C retains artistic control and ticket income.
Advantages
• RBK&C retains full control of Theatre image
• Artistic costs, which are most variable, would be met (fully or partly) by sponsors
• Infrastructure cost recouped from ticket income
• Council retains ability to change and alter environs in Park without having to consult outside
Disadvantages
• Perhaps missing injection of fresh ideas to artistic programming
• Variability of mood or financial stability of sponsors
• Sponsor’s finance may simply be used to replace Council’s base funding
• Potential sponsor may wish to portray an image not consistent with the Royal Borough’s broad values (e.g. Tobacco)
29 Variation B “The Partner”
Theatre infrastructure is funded by the Royal Borough. Whole artistic planning by sponsors who fund artistic programme. RBK&C retains full ticket income.
Advantages
• RBK&C retains control of Theatre infrastructure and would set ‘service level’ criteria to ensure corporate image and aims are maintained
• New input to artistic planning
• Ticket income to meet infrastructure costs and excess may be available to meet development costs
• No need to consult about changing environs of Theatre
Disadvantages
• Possible pressure to change established success formula for Theatre programming
• Danger that Council’s vision and objectives for Theatre would not match that of new artistic controllers
• Loss of loyalty from current patrons if artistic image changed too much, resulting in loss of ticket income
• Chance that new artistic control quality will be variable.
30 Variation C - “The Investor”
Theatre infrastructure and artistic programme underwritten by the Royal Borough and an investor/sponsor. Ticket income shared on an agreed percentage.
Advantages
• RBK&C retains control of Theatre and artistic programming
• Costs met partly by investor/sponsor and by percentage of ticket income
• RBK&C retains ability to change physical environs of Theatre without consulting outside body
• Investor would fund major developments
Disadvantages
• No injection of new artistic input
• Variable economic situation may affect investor/sponsor
• Ticket income percentage may not, depending on circumstances, meet full Borough costs
31 3. Become Charitable Trust
Set up a Charitable Trust to run the Holland Park Theatre.
Advantages
• Holland Park Theatre operated under external management
• The Royal Borough of Kensington & Chelsea not directly responsible for the venue/programming/ staffing and finance beyond the subsidy which would have to be agreed
• The Royal Borough would not be responsible for managing any of the above
• If the programming of Holland Park Theatre is of a nature which appealed to grant-giving bodies, then a Trust would attract funding easier than a local authority. The Trust would be free to pursue these objectives
• A Trust would be free to develop programming without necessity to consult with Royal Borough Committees
• A Trust may have financial advantages in terms of VAT, etc.
Disadvantages
• Would be difficult to set up in time for 2002 season
• Most Trusts would still expect an element of ‘subsidy’ from The Royal Borough at least for the first few years of existence.
• A Trust would take some time to set up and the Council would need to ensure that it presented an overall advantage to the short season, unique atmosphere and its overall financial responsibility.
• Trust programming may not be of the nature required by the Royal Borough, particularly following the period when the subsidy from the Royal Borough has ceased. The Borough would have limited influence over image or programming
• Although the Royal Borough would not be responsible for managing finance, programming, venue, staffing, any difficulties would ultimately be fielded by the Royal Borough
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• The programme development necessary to maintain Trust status and obtain grants from Trusts and Arts Council may vary from that which has made Holland Park Theatre such a successful and prestige venue for the Royal Borough
• The Trust would not have the staffing infrastructure offered by Council- based services, for example Accountancy, Personnel, Legal, day-to-day management. A Trust would therefore have to create at cost, a supporting infrastructure
• The Trust would obviously have a major interest in any redevelopment, for purposes other than the Theatre, which the Royal Borough would like to undertake in the Park
• Would not necessarily reduce the subsidy required from the Royal Borough
33 4. Commercial Operation
Holland Park Theatre be let to a commercial theatre entrepreneur who will have a ready-made administrative infrastructure as well as a national programme of events to draw on.
Advantages
• Subsidy to the commercial operator may be low
• The company would have a range of products to stage at the Theatre drawn from their portfolio at theatres around the country
• Higher level of performer than is available to Holland Park Theatre by employing benefits of scale
Disadvantages
• No requirement to abide by Royal Borough programme development wishes
• Purely commercial objectives may lead to higher seat prices, especially with ‘premium’ performers
• Ability to run a programme may depend on market forces and the wellbeing of the operator’s other performance houses throughout the country
• Fund raising through Trusts, Arts Council would not be possible
• Difficult commercial negotiations if Council wished to redevelop area around the Theatre
• Commercial demands may clash with Council licensing/Health and Safety requirements
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