Are You A Theater Or A PAC? A New Model Emerges

These days, middle-sized buildings have to take risks, think commercially and look at the bottom line to survive.

For some venues tied to municipalities and/or nonprofit boards, stepping outside that mission-oriented comfort zone may feel easier said than done, but panelists were there to provide some assurance that with careful planning, it can work – and pay off.

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Take the Fox Cities Performing Arts Center in Appleton, Wis.

Gerald Henley explained his building works with a nine-month calendar (summer is off limits in Wisconsin) that always includes 12 weeks of Broadway and 18 to 24 performing arts products, leaving room for 26 commercial products each year.

So who does he get to fill those spots in the 2,100-seat theater? Henley said he’s had great luck over the years with bands that were on their way up like Little Big Town and Florida Georgia Line.

Other times, he’s taken chances on artists that his community wouldn’t be able to bring in otherwise. “The best part of the job is talking people into taking risk on shows,” Henley said. “You don’t always win. You manage your risk. If your building is 100 percent averse to risk you’ll never have a real partner out there.”

Sally Williams of the Ryman Auditorium, which is a for-profit venue, also takes risks to fill her building. While the Ryman does have a tenant in the Opry, which had 53 shows during 2014, there were 166 other events during that time including private rentals, outside promotions and 35 in-house promotions.

“The number of shows that we take risk on has been growing in the last five years,” Williams said. “But we’re not taking business away from promoters, we’re just doing more shows. In addition, we do a bluegrass series that is a six-show series in the summer, and we have a Christian variety show called Sam’s Place that started 20 years ago and we revived this year. … We have always been in the business of knowing that out of the 365 days in a year, we’re going to have to contribute to filling those days.”

Moderator Bob Papke of SMG stressed you don’t have to have a historical venue like the Ryman to stand out from the crowded PAC marketplace. He noted venues can do wonders by creating a great experience for all involved, treating events as their own and not handing ownership over to the presenter, delivering and monetizing services to make their shows more profitable and finding ways to boost ancillary revenue through food and beverage sales.

AEG’s John Valentino books about 25 percent of his shows in PACs and added a few points to Papke’s advice. “When we bring an artist into a building, we want them to feel welcome,” he said. “This band has chosen your venue to connect with their fans. You’ve got 12 weeks of Broadway on the schedule, but they want to feel like they’re the priority when they’re there.”

Prioritizing the artist could mean giving local input about what’s going on in the market to make sure the optimal date and scaling is selected, and responding in a time-sensitive fashion when the promoter asks for avails, tech packs, marketing contacts and other information, he said.

And on the day of the show, artists want to work with crews that are willing to meet to their needs. “We tiptoe into venues,” he said. “We like our staff to integrate with your staff to work as best as they can for the optimal results.” Williams agreed. “I think partnership is the key word here,” she said. “Certainly the model would be to view you as a client, but really you’re a partner and our success is mutual. It’s really important to have that mindset.”