Schermerhorn Bankruptcy . . . (2013, foreclosure, credit)

[CountryGirl2b=]

I have memberships at the Frist Center and Cheekwood and THIS year I decided to support the Symphony and have $500 worth of tickets for the next 12 months . .

NOT looking good! I have since read some online comments and get the feeling this was somewhat controversial? This past December I went to see Lady Antebellum film their Christmas concert here and it really is a lovely building. It's a shame if we lose it . . . although Classical Music has a lot of competition in this town.

So, if someone does buy it at the auction, what will they turn it into? A Food Court?

Maybe a sound stage for "Nashville"????

[BirdieBelle]

That building is a world class facility. It is truly amazing, beautifully and professionally built.

It will be auctioned because the Symphony is going bankrupt and cant pay back the $82M they owe. It is a horrible situation.

Of course, they pay the conductor nearly $500K per year and the symphony director more than $300k in salary. Not sure money management is their forte.

[nashvols]

The flood kind of messed things up for them. I don't know if they would've been in great financial shape had that not happened, but I doubt they would've been in this much trouble this early.


Also, have they declared bankruptcy yet? I just read foreclosure. Btw, this could end up looking very bad on BoA's part.

[BirdieBelle]

Originally Posted by nashvols

The flood kind of messed things up for them. I don't know if they would've been in great financial shape had that not happened, but I doubt they would've been in this much trouble this early.


Also, have they declared bankruptcy yet? I just read foreclosure. Btw, this could end up looking very bad on BoA's part.

I agree about BoA.

Not bankrupt yet. Foreclosure proceedings in progress.

Lets hope a last-minute solution happens.

[CountryGirl2b=]

Sorry, foreclosure . . but that sounds even worse! Can't they file for Bankruptcy PROTECTION????

Here is a link to the latest news from the Schermerhorn:

Nashville Symphony: Latest News

I read that the musicians don't make a lot (comparatively speaking) - $60,000 a year. I do think they belong to a union though. Had a friend with a recording studio and when he had strings/horns, he had to be very careful about breaks and meals in terms of time management.

And yes, millions of dollars of damage from the flood . . . .

[nashvols]

Originally Posted by Wmsn4Life

I agree about BoA.

Not bankrupt yet. Foreclosure proceedings in progress.

Lets hope a last-minute solution happens.

I understand from BoA's end that this is a huge amount of outstanding debt, and as a business, they have to protect their end, too.

But I don't think they are thinking through the PR implications of this. We are not that far removed from the bank bailouts/subprime loan debacle of a few years ago, not to mention the large fraud scandal they were involved in as well as $20 billion they received in TARP money.

Regardless of how much in the wrong or right they are in, public opinion of banks -- especially large banks -- is pretty low. While Nashville & its symphony are a relatively minor blip on the national radar, they are big enough to where enough noise, or a national media outlet picking up on this story, could lead to some very bad press for them. I don't know of all of the details to this situation, and I don't pretend to, but I would almost guarantee that it would be painted as big evil BoA shutting down the Nashville Symphony and kicking them to the curb, then selling their "house" to the highest bidder.

And while $80 million is certainly a large figure for us, BoA has revenue of over $80 billion, and assets of over $2 trillion. There's absolutely no way they don't come out of this looking like the bad guy.

What concerns me is the timeline of this. We just heard about the loan not being renewed (or whatever, in bankers language) a couple of months ago...and now BoA is saying the symphony has till the end of the month to come up with the money...which to me, seems like an impossible task without a monumental donation.

This is the response from the Nashville musicians union:

http://www.tennessean.com/article/20...text|FRONTPAGE

If this had been playing out for a couple of years, I could certainly see it. But that doesn't appear to be the case.

It's also a little confusing that they would consider an auction, because of several factors.

1) BoA would likely not get close to the $80 million owed on the building. In a town that is literally overflowing with concert venues, even a world class facility like that would be a tough sell for someone that is actually interested in making money. It's a symphony hall...and while there are other events there, it would have a hard time competing with anything without the symphony being the primary tenant. They might get half (or less) back.

2) Compounding that issue, whomever buys the land must use it as a music venue. If they buy it for any other purpose, they must pay metro fair market value for the land (as per the deal of metro gifting the land to the symphony in 2003). The land (2.58 acres), is currently assessed at $11.2 million. That makes the prospect of selling to someone looking for a money-making venture even tougher.

3) As stated above, this would be very bad press for BoA if this got out. They may hold all the cards with the property, but they don't hold them in the department of public perception. They've taken a lot of hits over the past few years, and this would be a relatively high profile interest story if it got out. You would THINK that after all of this, they would want to maintain a low profile. Apparently learning from past mistakes is not their strong suit.

Originally Posted by CountryGirl2b=

Sorry, foreclosure . . but that sounds even worse! Can't they file for Bankruptcy PROTECTION????

Here is a link to the latest news from the Schermerhorn:

Nashville Symphony: Latest News

I read that the musicians don't make a lot (comparatively speaking) - $60,000 a year. I do think they belong to a union though. Had a friend with a recording studio and when he had strings/horns, he had to be very careful about breaks and meals in terms of time management.

And yes, millions of dollars of damage from the flood . . . .

Yes, in general, foreclosure is worse. It would be one thing if it was only the balance sheet...but this involves their venue -- the venue dedicated to them. They didn't own the venue when they played at TPAC.

Someone from the Tennessean comments page pointed out that the two biggest contributers to the NSO's current troubles were the credit crisis of 2008, and the flood of 2010...two things they had no control over.

[Nashter]

It's really sad. Not growing up in Nashville but loving Schermerhorn. It's one of the reasons for my move-in, along with my love of country music. Hope it stays. I always promote the SSC to all my friends and prior to the news comings out, I had even mentioned Schermerhorn as one of the places to go on a visit to Nashville. As a hi-fi guy, the center is top notch.

[TVofM]

I know this is going to be unpopular to say, but I'll say it anyway. Most people never go to the symphony. Shows they had recently such as BB King sold out. They needed to be booking LOTS of those type shows that the Ryman and TPAC missed on. John Prine sold out 2 nights at the Ryman in one day. Looks like THAT venue will rake in the $$$.

Woulda, coulda, and shoulda. Three words that haunt the Symphony Center at this time.

[CountryGirl2b=]

I have only lived here 3 years but I saw Lady Antebellum there and have (probably worthless) tickets for Kenny Loggins, Michael McDonald, Huey Lewis, and a tribute to the Beatles. Gordon Lightfoot, Kathy Griffin, Chicago, Foreigner, Abba the Concert, and Bill Cosby are all scheduled to perform.

A lot of people don't go watch Country Music or Blues either. But there's no shortage of country music venues.

I think a lot of people DO go to the Schermerhorn, just not enough. The Nashville Symphony has been around since 1946. I think it's more a matter of unwise decisions and the $40 million in flood damage.

For whatever kind of music they use it for, it's a stunning building, inside and out.

PS. The first John Prine show with Leon Redbone is NOT sold out . . .

[TVofM]

Originally Posted by CountryGirl2b=

I have only lived here 3 years but I saw Lady Antebellum there and have (probably worthless) tickets for Kenny Loggins, Michael McDonald, Huey Lewis, and a tribute to the Beatles. Gordon Lightfoot, Kathy Griffin, Chicago, Foreigner, Abba the Concert, and Bill Cosby are all scheduled to perform.

A lot of people don't go watch Country Music or Blues either. But there's no shortage of country music venues.

I think a lot of people DO go to the Schermerhorn, just not enough. The Nashville Symphony has been around since 1946. I think it's more a matter of unwise decisions and the $40 million in flood damage.

For whatever kind of music they use it for, it's a stunning building, inside and out.

PS. The first John Prine show with Leon Redbone is NOT sold out . . .

People don't go watch country music or blues???

Bonnie Raitt at the Ryman last year - sold out twice on the tour.
Brian Setezer there - sold out
Gary Allan - sold out
Chris Young - sold out
Earth Wind & Fire (r&b) in 36 hours from now... sold out (except a few obscured view)
Eric Clapton at Bridgestone - sold out
Carrie Underwood at Bridgestone - sold out
etc.etc.etc....

BTW - I just clicked on the few remaining scattered single seat for Prine's Friday show and they all said obstructed view seats... so, no, there are no seats left to speak of. Not if you actually want to "see" the show.

I have two pairs of tickets for Huey Lewis at the Symphony Center and also intended to see Chicago. What makes you think the tickets will be worthless?