The John F. Kennedy Center for the Performing Arts in Washington, DC, could close as soon as Tuesday after its board of trustees warned that the institution is nearing bankruptcy, according to a report by The Washington Post. The board is recommending that the main building close immediately because of its costs, ahead of a special meeting on Tuesday.
The trustees say the center could be unable to pay employees or cover maintenance costs within a few weeks. Their assessment was set out in a 57-page report addressing both the institution’s financial crisis and the need to renovate its building.
Why the center is under financial pressure
The center had budgeted for about $220m in revenue but was expected to collect about $124m, The Washington Post reported. Even after substantial spending cuts, the institution was left with an estimated deficit of roughly $23m in the past fiscal year.
The report links the financial strain to falling ticket sales after artists cancelled concerts in response to President Donald Trump’s takeover of the institution. A center spokesperson attributed the problems to financial mismanagement by previous leadership and said Trump’s name had attracted new donors. Read the context: Allegations of rushed and mismanaged Kennedy Center renovations for Trump’s FIFA peace prize ceremony.
What the board is considering
Trump is chairman of the board of trustees, which is expected to consider the financial and physical problems at Tuesday’s special meeting. Trustees argue that adding the president’s name to the facade could be the only way to avoid what they describe as an imminent and “certain fiscal collapse.”
The center was named for the late President John F. Kennedy, who championed civil rights before his assassination in 1963. In December, a Trump-selected board voted to rename it the “Trump-Kennedy” Center, but the change was later blocked in court.
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