Minnesota Orchestra board posts $650,000 deficit
Updated 8 a.m. Wednesday | Posted 6:19 p.m. Tuesday
Nearly a year after ending a bitter battle with musicians, the Minnesota Orchestral Association announced a deficit of $650,000.
But the financial shortfall was much smaller than the one the association posted a year ago, when it posted a $1.1 million deficit during the nation's longest-running contract dispute for a concert orchestra.
The latest numbers emerged Tuesday when the Minneapolis-based orchestra released an annual report that documented the financial results following its 16-month lockout of musicians and an abbreviated, six-month season.
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In January, musicians signed a new three-year contract, accepting a 15 percent reduction in salaries in the first year of their contract.
Newly appointed Orchestra CEO and President Kevin Smith said the concession by musicians to accept a pay cut helped the balance sheet.
"That has a major impact. A 15 percent cut is substantial, that's more than $1.5 million dollars," he said.
The orchestra reported $10.5 million in contributions in 2014, up more than $2 million from 2013.
Its finances also were bolstered by a more than 12 percent return on investments.
Smith said the orchestra needs to boost revenues, such as ticket sales, which have not changed much over 2012 levels.
Musicians have already begun preliminary talks with management about their next contract. Smith says they're also in talks with music director Osmo Vanska to extend his contract beyond May of 2016.