Rena Wasserman, general manager of the Greek Theatre in Los Angeles for the Nederlander Organization, surveys her current domain.
If all goes as currently planned, and in a controversial move aimed at boosting city coffers, Los Angeles’ iconic (and lucrative) Greek Theatre will be under new management for the first time in 40 years by Nov. 1. The Griffith Park amphitheater, which is owned by the city, will be operated by the Department of Recreation and Parks in an “open venue” format for 2016. RAP takes over Nov. 1 as the Nederlander Organization’s contract expires. The city council has until April 29 to veto the decision.
At press time, a motion was made by councilman Paul Koretz to the city council to further review RAP’s plan for the Greek.
“This is a well-established business model to operate amphitheaters,” said RAP G.M. Michael Shull. “It has worked well for other venues around the country.” According to Shull, the city was averaging roughly $1.5 million in net revenue from the Greek, based on approximate gross receipts of $27 million. The city expects to potentially more than double its share under the new plan. “Under our supervision,” added Shull, “the city can earn $3.0 million to $4.8 million, based on a 50- to 70-show schedule, respectively. Last year, the Greek under Nederlander put on 74 events, according to theatre G.M. Rena Wasserman.
The battle for the Greek has been hotly contested. As previously reported in Venues Today, an RFP for full management and promotion of the Greek was issued and competing bids were accepted. RAP "assembled an independent panel of experts and they unanimously picked the Live Nation proposal as the best, and the RAP board of commissioners accepted the recommendation,” Shull recalled. The contract, however, needed city council approval, and the city vetoed the decision. “After that,” said Shull, “we did not believe we could prepare another RFP in time. Meanwhile, we had spent a lot of effort evaluating the pros and cons of an open venue, which we thought would be be more profitable, and practical considering the circumstances. It was voted on, passed and, barring a veto from the city council, that’s what we’ll do, at least through 2016 when operations will be re-evaluated.”
The city will not run the Greek’s day-to-day operation, according to Shull, nor will it book shows. “We will hire professionals to do that,” he said. “An RFP will soon be issued to find a management company to run the Greek and book the 2016 season which runs from mid-April through the end of October. RFPs will also soon be issued for food and beverage, parking and so forth.” Also at issue were capital improvements for the Greek which was built in 1929 and seats 5,801.
According to RAP commission president, Sylvia Patsaouras, Nederlander was under fire for not doing enough to maintain and improve the facility, a charge Wasserman flatly denies. “We have not neglected the Greek,” she said. “Rather, we have spent a half-million to one-million dollars per year for maintenance and improvements; more than $10 million for capital improvements since 2002. Under the city’s supervision, they will have no capital improvement fund.”
Shull said the city will devote a yet-to-be-determined portion of the Greek revenue to capital improvements while expecting minor improvements to be made by new concessionaires.
The control of the Greek Theatre is an emotionally charged issue. Local community groups and friends of the theatre are not fans of change. Wasserman added Nederlander has the backing of the community, as evidenced by a petition of support that she said carried 30,000 signatures. Patsaouras indicated RAP is sensitive to community needs and will work to see they are met and “ensure the community is not negatively impacted.” She added, “We understand people are comfortable with Nederlander, but we need to get more money for the city, and we don’t think the Greek has been maintained properly.” Shull added, “If anything, the new plan “empowers the local community. If they have any issue with the Greek or how it’s run, they can bring it before the board and we will listen.”
Under the open venue plan, any bona fide entertainment company, including Nederlander, can book shows through the new management company for next year. “The management company, which would provide their own marketing director and general manager, would be paid a fee and act as our agent,” said Shull. “They will work closely with the promoter, but report to RAP."
The Greek management company will do no promotion, that will be left to the entertainment company.” RAP also hopes to, according to Patsaouras, hire back many of the scores of part- and full-time rank-and-file staff presently employed by Nederlander. Applications will be screened on a case-by-case basis.
Added Wasserman, “We sit here astounded that our 40-year history can be dismissed. We’ve been an exemplary model of successful public/private relations. We don’t believe RAP fully realizes the vast complexity of running the theatre, and hope they will reconsider.”
Interviewed for this story: Sylvia Patsaouras, (213) 202-2640; Michael Shull, (213) 202-2633; Rena Wasserman, (323) 817-6108