Spoleto to end 2008 season in the red, officials report

For the first time in more than 12 seasons, the Spoleto Festival USA will end its fiscal year in the red, officials said Monday at the festival's spring board of directors meeting.

Celebrating is 32nd season, the 17-day arts festival will end its fiscal year Aug. 31 with a $292,422 deficit in its operating budget, festival General Director Nigel Redden announced to the approximately 50 board members attending the Monday meeting at Spoleto headquarters, 14 George St.

The festival has encountered multiple obstacles this year:

On April 25, festival Chairman Eric Friberg announced that $246,000 earmarked for the festival had been cut from the S.C. Legislature's budget and that corporate and foundation contributions were down 12 to 15 percent. Despite hard lobbying by board members — who pointed out to lawmakers the festival's $60 million to $70 million economic value — legislators did not restore the cut when the state House and Senate passed the new budget last week.

"With this poor economy, we predict 2009 probably will be even softer, and so we are taking this deficit very seriously," board Treasurer Carlo Evans said. He added that board members would be called upon for additional financial support.

Redden said another reason that the 2008 festival will not meet its $7.8 million budget has to do with the cost of the music theater piece "Monkey: Journey to the West" which runs 18 times at the Sottile Theatre.

The elaborately staged work costs $1.2 million and required alterations to the Sottile's proscenium stage and orchestra pit to accommodate the elaborate sets and special effects.

"The work on the Sottile was extremely difficult, but was necessary for the production," Redden said. In contrast, the 2007 festival-spanning production "The Constant Wife," presented by Ireland's Gate Theatre, cost $342,227.

Redden explained that The Gate Theatre canceled its production of the musical "Sweeney Todd" after the festival season had been announced in mid-December. "Monkey: Journey to the West" was substituted at the last minute.

"The Sottile isn't a good place for a straight play and with only a week to make a decision, we could either have 'Monkey' or nothing at all in that slot," Redden explained.

He added that The Gate Theatre canceled, not because of disagreements with the Spoleto Festival, but because of internal chaos, which included a music director who had changed his mind and accepted an offer from "Riverdance."

"But it's the first bad experience we've had with The Gate Theatre and we've been working with them for many years," Redden said.

Other problems unique to this year include a weak dollar that has affected foreign currency exchanges and affects Spoleto since it pays foreign actors up front. Every continent is represented at Spoleto except Antarctica and Australia.

Other factors include:

--The increase in the cost of diesel fuel and gasoline for the trucks used to bring in sets, costumes and equipment for productions.

--The great increase in domestic and international airline tickets.

--Program producer Nunally Kersh reported costs in helping a key dancer in "Rite of Spring" in obtaining a visa from Nigeria. Sen. Lindsay Graham is attempting to facilitate things in time for the June 7 opening.

On the bright side, Redden reported that ticket sales for "Monkey" are going very well, with some performances nearly sold out and a performance added for noon June 1.

Reminding the board that the festival has weathered much rougher times, Evans said, "Remember, about 10 years ago, the festival had a $3 million debt and now has a $15 million net worth.

Redden added that the festival also has a $10 million endowment.

Other successes include the completion of the renovated Memminger Auditorium at a cost of $6 million with fundraising on schedule.

Regarding the reaffirmation of a sister city relationship the festivals in between Spoleto, Italy and Charleston, Mayor Joe Riley said he would like to see the two festivals share the expense of a mutual orchestra, but that each festival would have separate financial responsibilities.

Emmanuel Villaume, The Christel DeHaan Music Director for Opera and Orchestra for Spoleto, said young musicians who know they can perform in Charleston and in Italy are more likely to want to join the festival orchestra. "In that way, we can attract even more talented musicians," Villaume said.

Reach Dottie Ashley at 937-5704 or dashley@postandcourier.com.