| You are partially correct. Having been on the end of a stop clause, the theatre license agreement specifes a date after which two consecutive weeks below a certain gross (usually breakeven), the theatre can exercise the stop clause. The stop clause doesn't mean you have to leave at once. It just means ut has been invoked, and they can ask you to leave anytime they want after that. This is what happened to BEETLEJUICE at the Winter Garden. The stop clause was invoked during early mediocre business - but they weren't asked to leave. But as soon as Scott Rudin signed MUSIC MAN up for the Winter Garden, the Shuebrst gave Beetlejuice a firm exit date. I am fairly sure KPOP would have gotten their stop clause, but they're closing because their average ticket price has hovered between $40 and $25 each week. One can't recover from that. I would guesstimate at the lowest end that KPOP costs $350,000 a week to operate. Their average weekly net (spendable money) has been around 4146,000 - before royalties of any kind, though they may have been waved. That leads to the conclusion that in 8 weeks they have lost at least $1.6 million - likely more. I would also imagine, based on weekly sales, that their advance sales are very small, even through the holiday season. Their average ticket price over 8 weeks has been $44. One more off Broadway hit turned into a Broadway flop. |
