Wade on Birmingham

City Stages 2009: Less money, mo problems

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City Stages logo 2009City Stages is almost ready to go, except for one small problem. It’s short by $250,000.

Festival organizers asked the City of Birmingham to make up the shortfall on Tuesday, which the City Council approved. This comes on top of $300,000 in cash and services already given by the city for this year’s three-day downtown annual music festival.

City Stages has said via Twitter that “Each dollar invested @citystages means 10 to 20 dollars for the city.” Its site makes a similar claim: “City Stages contributes between $10 and $20 million to the area economy each year.” It adds, “City Stages provides over $1 million in direct tax revenue paid by the festival to date.”

Yet, despite repeated attempts to obtain documentation for these claims, the festival public relations representative sent only reports made in 1999, 2000 and 2001 [reports in PDF]. It is unclear who prepared the reports at the Birmingham Regional Chamber of Commerce or Greater Birmingham Convention and Visitors Bureau, or how the methodology was determined.

Those figures from up to 10 years ago represent a period with high attendance levels and lower ticket prices. The assumptions — rather than actual figures — include number of attendees and estimated daily expenditure per attendee, creating economic impact estimates for each year:

  • 1999: $29.2 million
  • 2000: $14.7 million
  • 2001: $16.7 million

Meanwhile, the festival’s tax documents from 2007 [PDF] shed a little more light:

  • The festival paid $124,903 in licenses plus payroll and sales taxes that year.
  • Festival president George McMillan drew compensation of $105,909, with a salary of $22,334 and an expense account of $83,575. He worked an average of 25 hours per week.
  • By contrast, then-festival director Kristie McCullough made $52,568, with a salary of $50,208 and an expense account of $2,360. She worked an average of 40 hours per week.
  • McCullough Advertising received $23,333 in 2007 and $19,883 in 2006 for advertising and marketing services. Guy McCullough was vice president of the board.
  • The budget shortfall was $425,262 from a budget of nearly $3 million. The previous year’s shortfall was $1.1 million.

Birmingham faces a leaner budget this year, with greatly reduced funding for most arts and nonprofit groups. Should the city continue to give money to the festival without requirements? What impact does the festival and its potential disappearance have on the city?

• • •

The festival takes place Friday through Sunday in downtown Birmingham. Tickets are $45 for advance three-day passes (sale ends today), $28 per day, free for age 12 and younger or 60 and older. The lineup includes Doobie Brothers, Indigo Girls, REO Speedwagon, Young Jeezy, Styx and En Vogue. The weather: highs in the low to mid-90s, lows in the mid-70s, with few clouds.

• • •

Also:

  • Birmingham magazine: “Something’s got to give. I don’t think anyone’s denying that: City Stages is in debt, and they too are admitting that change may be necessary.”
  • Birmingham News: Even editorial writer Joey Kennedy and the board can’t pin down the festival’s generated tax dollars (see comments).
  • Birmingham News: City Stages Unplugged, free preview from 11:30 a.m. to 1 p.m. Friday in Linn Park, with Shirock and Dragonfly.
  • Black and White: lineup previews of Friday | Saturday | Sunday
  • Bham.fm: “In the words of David Bazan (Pedro the Lion), ‘If it isn’t making dollars, then it isn’t making sense. If you aren’t moving units, then you’re not worth the expense.’ ”
  • Birmingham Weekly: all stories tagged “City Stages”
  • WBHM (90.3): “Tapestry” one-hour City Stages special
  • The Terminal: “I’d argue that people need to bring suggestions for real solutions to the table before completely bashing the festival and saying it needs to go.”

• • •

Complete City Stages coverage.

7 Yips for “City Stages 2009: Less money, mo problems”

  1. John
    Friday, June 19, 2009, 9:19 am
    1

    So how did they pull off the first year with tickets at $3 per day ($5 weekend pass) and only 38,000 attendees? They still had headliners (Chuck Berry, John Hiatt, Travis Tritt, Sin Ra, the Winans, the Temptations, John Prine)

  2. Birmingham City Council votes to bail out City Stages | Birmingham Weekly
    Friday, June 19, 2009, 11:20 am
    2

    […] Wade Kwon talks about City Stages money problems and digs up some relevant documents. blog comments powered by Disqus var disqus_url = […]

  3. Wade
    Friday, June 19, 2009, 2:18 pm
    3

    John, I do think that the music and festival industry has changed tremendously between 1989 and 2009. Talent prices are higher, expectations are greater.

    I don’t know what the solution is, because I’m still not clear on the details. I’ve asked City Stages several times to share information that backs up their economic impact assertions.

    But they have refused to share that information. So much for transparency.

  4. Kenn McCracken
    Monday, June 22, 2009, 9:25 am
    4

    My only real problem — the one that can’t or won’t be addressed, unlike ticket prices, questionable talent booking, or placement of the festival on the calendar — is what seems to be a steadfast refusal to admit that the festival was not successful, much less addressing any problems. It’s parallel to the bailouts of the last year — why is it, exactly, that we continue to prop up unsuccessful ventures? Because they’re necessary to society’s success? Because the people really want them, even if they won’t pay for them?

    My jaw nearly shattered on impact with the floor when I read this morning that McMillan was actually admitting that CS might be at its end. Until I realized he’s probably just trying to drum up sympathy.

  5. Wade Kwon
    Monday, June 22, 2009, 3:20 pm
    5

    I’m not really expecting anything to change this year or next. The pattern has been set for years.

  6. Wade on Birmingham » Blog Archive » BREAKING: City Stages festival ends its run in debt
    Thursday, June 25, 2009, 12:50 pm
    6

    […] City Stages 2009: Less money, mo problems Wade Kwon | I’m not really expecting… Kenn McCracken | My only real problem —… Wade | John, I do think that the music and… John | So how did they pull off the first year… […]

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