Saudis Scrap $200M Met Opera Deal

The U.S. war on Iran is being blamed by the Saudi Arabian government for its withdrawal from a $200 million deal with the Metropolitan Opera, reported to be in its worst financial shape ever.

Announced last fall as the Met’s savior, the deal called for the company to present three weeks of performances each winter, beginning in 2028 and extending through 2032, at the new Royal Diriyah Opera House on the outskirts of Riyadh.

Royal Diriyah Opera House in Riyadh, Saudi Arabia

Met General Manager Peter Gelb tells The New York Times that earlier this week “the Saudis cited damage to the country’s economy caused by the war in Iran and the blockading of oil passing through the Strait of Hormuz.” 

“This is something we had been working on for several years,” he said. “It’s a very significant disappointment. We are determined to find a sustainable path forward.”

Gelb said the company would be approaching other potential international partners; he declined to be specific. He also said that negotiations were moving ahead on selling the naming rights to the Metropolitan Opera House, an idea he floated last January when announcing other cost-cutting measures at the company. Those included laying off 22 administrative employees, cutting top salaries back, selling the two Chagall murals (valued at  $55 million) with the understanding that they remain in the Grand Tier with a nameplate credit; and cutting productions next season from 18 to 17 (there were 25 before the pandemic).

The Times reports that Met’s endowment is now valued at $216 million, down from $340 million in 2022 and that it has a $62 million line of credit  due in February 2027 and a shortfall of $30 million due to be made up by July 31.

The New York Times