Industry Pro Newsletter: Drabinsky/Osnes Lawsuits, London Offering a Ticket Bank

Amid continued economic uncertainty, a wave of closing notices have hit Broadway - but why aren't audiences coming? In London, in response to the rising cost of living, the government has announced a plan to create the cultural equivalent of a food bank - providing free tickets and access to cultural institutions for those that are struggling to make ends meet. Meanwhile, Cara Joy David offers analysis on two newly recently filed lawsuits.

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Industry Trends

All the Latest on Laura Osnes and Garth Drabinsky's Defamation Lawsuits by Cara Joy David

This past week, there have been updates in a couple of the big theater-related lawsuits.

This summer, Actors' Equity Association filed lawsuits against a PARADISE SQUARE producing entity in both state and federal court. (In the state case, the parties informed the court last week that the sides were negotiating settlement. In the federal case, AEA has filed for summary judgment; that motion is pending.)

After those lawsuits were filed, embattled PARADISE SQUARE producer Garth Drabinsky sued AEA for defamation and related claims. This past week, he filed an amended complaint in that suit, adding antitrust claims. Drabinsky accused AEA of violating Sections 1 and 2 of the Sherman Act, which is a federal statute that prohibits certain actions that restrict commerce and competition. The Amended Complaint alleges that AEA putting Drabinsky on its "Do Not Work" list has made it impossible for him to work in part because AEA monopolizes the theater market.

Underlying the new claims is Drabinsky's allegation that AEA has reach that extends beyond theater. On its "Do Not Work" list, AEA states: "[W]e share a special bond with AGMA, AGVA, GIAA and SAG-AFTRA... [We] stand in solidarity with one another. Members of our sister unions in the 4A's are prohibited from accepting theatrical employment without an Equity contract, and we have a reciprocal arrangement that also prohibits Equity members from working in the areas covered by other 4A's unions without the appropriate union contract." Through this, Drabinsky is alleging that AEA has essentially partnered with other unions to ban him from working in other entertainment fields. For instance, the Amended Complaint alleges: "AEA, members of AEA, and unions that represent actors, such as AGMA, AGVA, GIAA, and SAG-AFTRA, and their members, have entered into an unlawful horizontal agreement in the form of a 'Do Not Work' Blacklist to boycott Drabinsky."

Horizontal group boycotts -- which are agreements among competitors to boycott a third party - are indeed frowned on by the courts. But this isn't a traditional framing of one and antitrust suits against unions are generally not favored under the law. Indeed, there are statutory exemptions related to them and also strong case law that holds that as long as a union essentially stays in its lane, it won't be held liable for antitrust violations. Drabinsky's attorneys are obviously leaning into this supposed partnership between the unions to show that AEA has steered outside its lane.

AEA has already filed a letter with the court saying the claims "fail as a matter of law" and "lack merit." The court will now set a schedule for AEA to motion to dismiss the complaint.

In other theater related news, The New York Post and the two reporters sued by Laura Osnes for defamation have motioned to dismiss that suit. In Defendants' motion to dismiss they rely primarily on New York's "anti-SLAPP law." SLAPP stands for "strategic lawsuit against public participation" and New York has strong laws to protect against those suits, which limit freedom of the press. Defendants argue the article was on a matter of public interest and that, therefore, in order to succeed, Osnes must establish it was published with "actual malice." In New York statutory speak, that means Osnes has to "establish[] by clear and convincing evidence that any communication which gives rise to the action was made with knowledge of its falsity or with reckless disregard of whether it was false[.]" Defendants argue the Complaint hasn't properly pled "actual malice" and the motion includes long statements from both reporters detailing (without disclosing source names) how they found out about the story and the follow- up they conducted. Defendants also argue that even if Osnes did withdraw from the concert, and was not fired (as printed in The Post), the gist of the articles is true and therefore cannot support her claims. Osnes is expected to oppose this motion to dismiss.

BroadwayWorld will keep you updated on the resolution of these cases.

Broadway/New York

Tony Awards Set Their Venue

The Tony Awards are moving uptown to the United Palace theater in Washington Heights for the first time in their history. The show will take place on June 11, 2023, broadcast live from the United Palace. Eligibility cutoff is scheduled for April 27, 2023, with nominations being announced on May 2, 2023. Click here to read more...

Ticket Sales Continue to be an Issue in New York

The situation affecting off-Broadway theaters is more serious even though Broadway's struggle is more obvious. Many already had narrow profit margins, and some didn't even own their theater buildings. Under those situations, the future of the theater and the surrounding community are also in danger in addition to the future of any one production. Click here to read more...

Regional

Shermona Mitchel New Co-Artistic Director at Sound Theatre

Alongside the original creative director Teresa Thuman, Shermona Mitchell will take over as co-artistic director of Sound Theatre on January 1. The decision was made by unanimous vote of the board. Before moving into the new role, Mitchell will resign from her position as board president, where she served as the board's first Black woman in 2021, with immediate effect. Click here to read more...

Samuel Resigns from BSO After 18 Months

Gail Samuel, the first female president and CEO of the Boston Symphony Orchestra in its 141-year existence, has resigned after only 18 months on the job. In a news release Friday morning, the BSO thanked Samuel for her leadership as the organization was coming back from COVID-19 and announced her departure. In 2023, the BSO Board of Trustees will start looking for a new leader. Jeffrey D. Dunn, a current member of the BSO Board of Advisors, will hold the position in the interim. Dunn was previously the Executive Chairman, President, and CEO of Sesame Workshop. Click here to read more...

Gladys Ramirez Named Executive Director at Miami's City Theater

Ramirez takes the reigns from Susi Westfall, who will remain on the board of directors. A long-time fixture in the Miami arts community, she was most recently serving as the General Manager for City Theater. Click here to read more...

In Effort to Improve DEI Efforts, Oregon Shakespeare Festival Turns to Tech

In order to incorporate data and algorithms into its DEI efforts to rethink its operations, the Oregon Shakespeare Festival has partnered with management consulting firm and "tech-enabled change management platform" Reframe. This partnership is part of the theater industry's push to increase diversity, equity, and inclusion. Click here to read more...

International

St. David's Hall To Be Leased to Private Company

Leading councillors have endorsed plans that would lease one of Wales' most well-known concert venues to a private entertainment company. The management of Cardiff's St David's Hall will be handled by Academy Music Group (AMG), which already oversees performance venues all around the UK. Musicians have spoken out against the plan and a petition has been started. The "loss of cultural production" has been identified as a major deterrent by opponents, including past and current venue workers. However, the idea has received approval in principle from the council's cabinet. Click here to read more...

London Launching a "Cultural Food Bank"

The next year, a new program will start in London to provide free cultural events for people who are having a hard time making ends meet. The London Ticket Bank will serve as the cultural equivalent of food banks, assisting those with limited financial resources to enjoy theater, comedy, dance, and music. Click here to read more...

Missed our last few newsletters?

December 12, 2022 - Roundabout Going Dark on Broadway

As the end-of-year fundraising pushes are in full swing, a few different stories this week underscore the precarious position the industry finds itself in - new research from IMPACTS highlights the importance of mission in soliciting both donations and membership renewals, the Met works to recover from a cyber attack, and as Cara Joy David reports, Roundabout will be dark on Broadway this Spring. Click here to read more...

December 5, 2022 - BWW 20th Hosts Announced, A Tentative Agreement Between AEA and the Broadway League

With voting underway in the BroadwayWorld Awards around the globe, it is an exciting time around the BroadwayWorld offices - but nothing has been more exciting than our announcement last week of our 20th Anniversary Celebration set to take place on May 21, 2023 at Sony Hall in the theatre district. The event will be hosted by none other than BroadwayWorld's Richard Ridge and Tony Award-Winning Broadway Legend Chita Rivera. This is an event we're all thrilled about, and can't wait to release more details as the date gets closer. Click here to read more...

November 28, 2022 - Orchestras Back on the Road, Streaming Continues for Some Companies

With many theatres getting into the swing of things with their holiday offerings, the end of 2022 is now in sight for many companies. The last few years have seen seismic shifts in how the industry operates, and this week, Cara Joy David brings us a great piece about how some companies are keeping the relatively new avenue of streaming open as a way to maintain access for audiences. Click here to read more...

BroadwayWorld Resources

BroadwayWorld Stage Mag - A Fully Interactive Show Program

The digital solution to your show program needs - want to see what's possible? Check out the Stage Mag's for A Gentleman's Guide to Love and Murder and for The Musical of Musicals (The Musical!)! Then start building your own at stagemag.broadwayworld.com.

Add Your Show to our Regional Events Calendar

As audiences get set to return to in-person performances, and as your company works to market your own return to the stage, make sure you've got your upcoming shows in our regional events calendars. Listings are free of charge, with boosting options available. Get your show listed now

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