Business Proposal Example

To: Lila Lane, Managing Director
From: Chelsea Penney, Stage Manager
Date: May 14, 2019
Subject: Proposal to buy ABT’s full production of Sleeping Beauty

Purpose

I propose that the company invest in Sleeping Beauty by purchasing American Ballet Theater’s used production, including costumes, props and sets, to increase revenue over Texas Ballet’s next several seasons.

Background of Problems

Since the company’s first season in 1980, Texas Ballet has been renting various full stage productions of the ballets we have been performing. We have used Pacific Northwest Ballet’sDracula, Ballet West’s Don Quixote, Joffrey Ballet’s La Bayadere, and San Francisco Ballet’sCinderella, among others. The reason we have been renting is because these popular classical ballets generate full houses and enough ticket revenue to meet budgetary requirements, and it is simply too expensive to purchase full productions of every ballet we perform.

Texas Ballet currently owns it’s own full production of The Nutcracker, Coppelia and Swan Lake, but they are quite old. Audiences have begun to grow tired of the same ballets, which is why we started renting more frequently, but in order to continue expanding our repertoire and save the money we lose by borrowing, we must invest in a new production.

Advantages of Purchasing Sleeping Beauty
Sleeping Beauty is one of the most famous and beloved classical ballets in history. The show never fails to draw large crowds because it is a familiar fairytale as well as a storybook ballet, which tends to appeal to a wide range of audience members including families, young adults and other first-time patrons. This ballet will not only attract new ticket buyers, but it will also generate revenue because we will be able to rent our production to other companies.

American Ballet Theater is in the process of replacing their production of Sleeping Beauty and has offered their “old” sets, costumes, and props to Texas Ballet first because of our Artistic Director Steven Pint’s great relationship with them. This production has received rave reviews and is a great opportunity for Texas Ballet.

The Purchase of this Full Production of Sleeping Beauty Includes:

• Sets for every scene including the Third Act’s ballroom reminiscent of French palace of

  V ersailles

• Costumes: Over 50 tutus, 20 men’s jackets, 30 children’s costumes, 100 headpieces/tiaras

• About 150 props to be utilized throughout the show

  Reviews and Photos

  ”The unashamedly bold, often cheerfully clashing colors in both décor and costumes (by Willa Kim) are Disneyesque,” says Alastair Macaulay of the New York Times. http://theater.nytimes.com/2007/06/04/arts/dance/04slee.html?_r=0

  This production includes things like “ornate medieval costumes”, “a steep, winding staircase” and other characters such as “Puss in Boots, Red Riding Hood, and Cinderella”, says Roslyn Sulcas of the New York Times. http://www.nytimes.com/2010/06/16/arts/dance/16beauty.html

Costs

A brand new production of Sleeping Beauty would cost approximately $3 million to design, produce, and put on stage. ($1.5 million for costumes, $750 thousand for sets and backdrops, $500 thousand for props, and $250 thousand in various other production costs)

American Ballet Theater has offered to sell their 15 year-old production (used for only 6 seasons) for $2 million. The sets are nearly perfect condition. Some costumes may need minor repairs and alterations, but they are in good condition over all.

We have estimated that ticket revenue over a two-week run of Sleeping Beauty, we can generate about $300 thousand. If we rent the production out to other companies, we can charge them $500 thousand per use and the borrowing company would have to pay to transport the materials.

Projected Results

By presenting Sleeping Beauty for two-weeks every three years, and renting the production to two other companies a year, we can double our investment in only four years without much effort on our end. Sleeping Beauty will sell itself.

Timetable

American Ballet Theater is willing to make an agreement by July and transport the production by September, which leaves plenty of time for Texas Ballet to present it in February.

Request for Approval

Sleeping Beauty is an excellent choice for our next in-house, full-length production because it sells itself. It is a classical ballet with a familiar story that attracts audiences of all sorts who will be reminded of why the Ballet is still a thriving and athletic art. This ballet is always in demand, not only in Texas, but also around the world, which could allow us to break even on this investment within 30 months by renting the sets, costumes, and props to other companies.

Sleeping Beauty would be a superb addition to Texas Ballet’s repertoire and our audiences would surely appreciate the change.

This slightly used production from American Ballet Theater is a good choice because it is still in great shape but it will save TB over $1 million and 100 thousand man-hours. ABT’s beautiful production would come to us ready-made and prepared to be placed directly on our stage.

To pursue this venture, I will contact American Ballet Theater’s Managing Director, Chantel Akers, and we can proceed with negotiations.