The possible sale of the two famous murals by Marc Chagall at the Metropolitan Opera (MET) in New York opens a new chapter in the relationship between major cultural institutions and finance.
The Metropolitan Opera under financial pressure
The Metropolitan Opera of New York, the oldest and largest opera house in the United States, is still facing the economic consequences of the Covid-19 pandemic. Box office revenues have not returned to previous levels, and operating costs remain very high.
On January 19, the management announced a particularly severe cost-cutting plan. The goal is to contain a structural deficit that has worsened in recent years and puts pressure on the sustainability of the organizational model.
What does the $200 million agreement with Saudi Arabia entail?
Last September, the Met signed a preliminary agreement worth $200 million with Saudi Arabia. For five years, the company will have to present productions for three weeks each winter at the Royal Opera of Diriyah in Riyadh.
In return, the Saudi kingdom has committed to financially support the American institution for eight years, with a contribution aimed at strengthening the annual budget. Additionally, the Met will have to provide professional training programs for local singers and technicians.
However, as explained by General Manager Peter Gelb to the New York Times, the scheduled payments are experiencing delays. According to his statements, the Saudi authorities had to review their budgets due to internal economic difficulties, slowing down the disbursement of the agreed funds.
What drastic measures has the Met’s management adopted?
In the absence of the promised funds, the management has initiated a containment plan that directly affects staff and programming. Salary cuts ranging from 4% to 15% are planned for the 35 highest salaries, including that of Peter Gelb.
Additionally, 22 jobs out of the 284 administrative employees will be eliminated. One of the 18 productions announced for the next season, La Khovanchina by Modest Mussorgsky, has been postponed. The management had entrusted this title to Finnish conductor Esa-Pekka Salonen with a staging by Simon McBurney.
That said, the plan is not limited to direct cuts. Gelb indicated that they are also considering selling the theater’s naming rights, renting the hall to external artists on non-performance nights, and, most importantly, the possible sale of the two large murals by Marc Chagall.
Why are Marc Chagall’s murals at the Met so important?
The two monumental panels, titled Le Triomphe de la Musique and Les Sources de la Musique, were created in 1966. Each measures 9 by 12 meters and dominates the atrium of the Lincoln Center, clearly visible from the outside thanks to the large windows.
The artist conceived them after being invited by the Met to create the sets for Mozart’s The Magic Flute. During those years, Chagall was particularly engaged in large decorative and architectural projects, allowing him to experiment with painting on exceptionally large surfaces.
In the 1960s, he had already created the Commedia dell’arte curtain for the foyer of the Frankfurt theater in 1958 and, in 1964, the famous ceiling decoration of the Opéra of Paris. In continuity with these interventions, the artist continued his reflection on the relationship between visual arts, music, and performance in the United States as well.
Could Chagall’s murals really be sold by the Met?
The two works at the Lincoln Center depict whirlwinds of color and light that, seen from the outside, resemble large luminous stained glass windows. Their current valuation is estimated at around $55 million, making them a potentially significant financial asset for the Met.
However, in the event of a sale, the murals should remain physically in place, without being removed from this symbolic temple of music in the heart of Manhattan. The only concrete change would be the indication of the new owner on a plaque nearby.
Overall, the proposal thus configures a form of transfer of legal ownership, but not of the cultural and identity value of the works for the public and the institution.
How does the Met’s case fit into the broader context of cultural institutions?
According to The Art Newspaper, the Met faces an annual operating budget of $330 million. In the past year alone, the institution had to draw $120 million from its endowment fund to cover current expenses.
Furthermore, the management claims to want to act with the utmost entrepreneurial spirit. Gelb emphasized to the New York Times the need to develop new economic models for the survival of major cultural institutions, whose operating costs are particularly high compared to other artistic realities.
This framework fits into a broader debate involving museums, theaters, and orchestras worldwide, called to balance cultural mission and economic sustainability. In this sense, the Met is not an exception but an emblematic case.
What are the economic prospects of the Metropolitan Opera?
The announced measures should allow the institution to save about $15 million in the current fiscal year and an additional $25 million in the next fiscal year. This is a significant intervention, but not a definitive solution, given the overall size of the budget.
Gelb specified that these cuts, including salary reductions and layoffs, could be reversed by 2027, provided that Saudi Arabia fully honors the commitments made in the multi-year agreement still being implemented.
That said, if the agreement were to experience further delays or downsizing, the Met might be forced to resort more decisively to the asset enhancement of its resources, including, ultimately, Chagall’s murals.
What does the possible sale of the Met’s Chagall murals mean for the art market?
The choice to put the sale of such emblematic works on the table indicates how institutions are willing to rethink their assets. For the international art market, the potential sale of the murals would represent a strong signal on the monetization of publicly visible masterpieces.
Moreover, the valuation of $55 million for two immovable works offers an interesting case for art investment experts, who should consider a highly prestigious asset but lacking physical mobility. A comparison with normal auction transactions is therefore complex.
Overall, the Met’s dossier shows how the search for new financial resources is redefining the boundary between private ownership and the public function of artworks, especially when these are intimately linked to the identity of an institution.
As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for several international crypto-related magazines and CMO at Eidoo. She is now the co-founder and editor-in-chief of The Cryptonomist and Econique.
She is also a marketing teacher at Digital Coach in Milan and she published a book about NFTs for the Italian publishing house Mondadori, while she is also helping artists and company to entering in the sector. As advisor, Amelia is also involved in metaverse-related project such as The Nemesis and OVER.
