Nicole Scherzinger's acclaimed Broadway run in "Sunset Blvd" ended in July with strong ticket sales, but the production still suffered major financial losses.
Producer JJ Powell revealed the Andrew Lloyd Webber musical lost about $6 million despite playing to full houses. "It was the hit show and winner of the season," Powell told the Daily Mail, "but still lost around 40 percent of its total investment, which was some $15 million, including the director Jamie Lloyd's stake of $4 million."
The show, which ran for 10 months, closed after weeks where box-office receipts reached $2.4 million. Scherzinger's performance as fading film star Norma Desmond received critical praise, but rising operational costs and Broadway's economics left investors short.
High Costs, Big Names, and Limited Profits
Powell, who runs the Tony and Olivier award-winning Neptune Productions, said the financial problems reflect a larger Broadway issue. "With operational costs through the roof, management difficulties, unions and the obsession to go for gold, as well as star-studded casts, ticket prices are soaring, leaving the average citizen unable to access entertainment which should be for the masses," he explained.
He said top-billed celebrities benefit financially while many actors and crew members struggle to stay in the industry. "The elite 1 percent celebrity makes a great payday, while the rest of the actors are looking to new careers and the theatregoer is prohibitively pushed out the door," Powell said.
His company has staged other high-profile productions, including "Merrily We Roll Along" starring Daniel Radcliffe. Even those shows, he noted, have faced slow profit returns. "The system is broken, and if we don't fix it soon and take a positive stand, there will be no theatre left to produce – and certainly few artists willing to continue the struggle," he said.
A Broader Broadway Problem
"Sunset Blvd" is not the only show to face steep losses despite critical and commercial interest. Powell also produced "Cabaret at the Kit Kat Club," which is set to close in October with a projected $25 million loss on Broadway, even though it has been a hit in London.
Industry insiders point to the gap between West End and Broadway economics, where higher production expenses, aggressive marketing, and higher union costs cut into revenue.
For producers, a hit show that sells lots of tickets still might not get a return of their investment.
Powell said the key is to rethink the financial structure in the business. He claimed that it would keep both the investors and the artists safe while letting more people see plays. If not, he said, Broadway could lose the talent and mix of people that fuel its reputation.
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