Metropolitan Opera loses $200M Saudi partnership amid Iran war
The Metropolitan Opera in New York has lost a non-binding strategic partnership with Saudi Arabia that was announced in September 2025 as a potential $200 million lifeline. Saudi Arabia withdrew citing economic fallout from the Iran war and oil export disruptions via the Strait of Hormuz. The Met, already in its worst financial crisis in 142 years, faces a $30 million deficit due by July 31, 2026. Annual budget is $330 million, with ticket sales covering only a third. Since 2022, $120 million has been drawn from its $217 million endowment. Emergency measures include cutting 22 administrative jobs, reducing executive pay, trimming the season from 18 to 17 productions, postponing a Mussorgsky opera, and renting the hall to pop artists. These save $15 million this fiscal year and $25 million next. A $55 million Chagall mural sale and a public fundraising campaign are being considered. Moody's has downgraded the Met's credit rating below investment grade.
Key facts
- Saudi Arabia withdrew from a $200 million partnership with the Metropolitan Opera.
- The withdrawal is attributed to economic consequences of the war in Iran.
- The partnership was a non-binding memorandum of understanding announced in September 2025.
- The Met faces an immediate $30 million deficit to close by July 31, 2026.
- Annual budget is $330 million; ticket sales cover only one-third of operating costs.
- Since 2022, $120 million has been taken from the $217 million endowment.
- Emergency cuts include 22 administrative jobs and reduced executive pay.
- Moody's has downgraded the Met's credit rating below investment grade.
- The Met may sell Chagall murals valued at $55 million.
- A $15 million short-term loan matures in February 2027.
Entities
Artists
- Marc Chagall
- Modest Mussorgsky
- Nicholas Hytner
Institutions
- Metropolitan Opera
- Royal Diriyah Opera House
- Moody's
- Louvre
- Guggenheim
- NYU
- Bridge Theatre
- Wellfleet Harbor Actors Theater
- Berlin Modern
- Hampshire College
- San Diego
- Artnet
- Artsy
- Arkansas Public Television
- PBS
- LIV Golf
- PGA Tour
- Opera America Magazine
- National Gallery of Art
- Artists Count
- Venice Biennale
- Kennedy Center
- New York Review of Books
- ArtsJournal
- diacritical
Locations
- New York
- United States
- Saudi Arabia
- Riyadh
- Iran
- Strait of Hormuz
- Middle East
- United Kingdom
- Cape Cod
- Berlin
- Germany
- Greece
- San Diego
- California
- Arkansas
- Venice
- Italy
- Russia
- Israel
- Tijuana
- Mexico