Met Opera's collapsed Saudi deal reveals broken arts funding model

The $200 million agreement between the Metropolitan Opera and the Saudi government to stage performances for three weeks each winter has fallen through, resulting in a $30 million shortfall by July 31. Initially a memorandum of understanding, this deal underscored the Met's ongoing financial difficulties, as its endowment has decreased from $340 million to $216 million since the onset of the pandemic. To address this crisis, the opera house is selling naming rights, two Chagall murals, and is anticipating a $100 million inheritance. This setback follows news of Saudi Arabia's exit from LIV Golf. Opera companies now incur nearly double the expenses compared to 1999 for fewer shows, with revenue shrinking from 41% to 12-20%. Other cultural organizations are similarly affected, although the National Gallery of Art recently received a $116 million donation.