In a drastic move amid financial turmoil, Atlanta Ballet’s executive director Tom West and the board of directors made a significant decision in August 2021: they sold their headquarters, the Michael C. Carlos Dance Centre, for $8.3 million to New Jersey’s Faropoint real-estate firm.
This decision was not made lightly. Founded in 1929, Atlanta Ballet is the longest continuously operating ballet company in the United States, and it found itself $2 million in debt in the aftermath of the Covid-19 pandemic.
The company’s troubles began when negotiations to continue showcasing choreographer Yuri Possokhov’s highly anticipated reimagining of The Nutcracker at the Fox Theatre fell through. The production was originally slated for its debut at Cobb Energy Performing Arts Centre in 2020 but was canceled due to the pandemic. Additionally, they had two productions scheduled for the spring of that same year which were also wiped out, contributing to a $3 million shortfall by year’s end.
West explained, “In the economics of a ballet company, The Nutcracker is really the only thing that makes money, and it funds the other artistic investments of the season.”
As restrictions eased, the challenge of attracting audiences back to live performances became apparent. The relocation of The Nutcracker hit the ballet company hard; many long-time patrons felt uneasy traveling outside of Midtown Atlanta, leading to a loss of over a million dollars for two consecutive years.
Compounding the issues, in February 2023, the company faced severe setbacks when its bank rescinded its line of credit, causing significant doubt about the company’s ability to recover financially. For the next 18 months, Atlanta Ballet struggled, contemplating various alternatives including engaging major funders and exploring the possibility of borrowing against their equity in the building.
By summer 2023, selling the headquarters through a sale leaseback arrangement emerged as a viable strategy. According to West, “A number of donors, particularly in the philanthropic community, were not ready to step forward for the ballet,” indicating a need for restoring confidence in the company’s operations and management.
During internal discussions on the company’s direction, a suggestion arose from committee member Mark Bell who posed the question: “You are not in the real-estate business—is owning your property really essential, or should you look at it differently?” This prompted ballet leadership to reevaluate their priorities.
Following a year-long process of negotiations, Atlanta Ballet finalized the sale and switched to a rental model under a 10-year lease with options for two five-year extensions at fixed rates.
West expressed optimism about the future, stating that the lease provides flexibility: “We have the right of first refusal if they decide they want to sell it to another investor.” The ballet now has the freedom to either remain at its current location or explore options for developing a new facility as they approach their 100th anniversary.
The sale has offered Atlanta Ballet vital financial relief, providing about $8 million that West describes as a breath of fresh air that helped shift focus away from immediate financial survival to longer-term strategic planning. “It got me and my senior leadership team out of the bunker,” he noted, allowing them to build up operating reserves and gain necessary cash flow for coming years as they work on enhancing fundraising and marketing efforts.
Now more hopeful about the ballet’s prospects, West remarked, “When you are focused on [whether you’re] going to be able to make payroll in a month, you don’t have the bandwidth to make longer-term strategic decisions.”
This pivot is not unique; other cultural institutions have taken similar steps. Nello McDaniel, the founder of Arts Action Research, mentioned that organizations like the Long Wharf Theatre in Connecticut have also sold their headquarters to regain stability post-pandemic.
As Atlanta Ballet continues to refine its mission, it is in the process of forming an internal committee that will prioritize securing funding for new artistic programs. The aim is to draw in “world-class” productions and commission original works that the ballet can call its own.
Last year’s production, Coco Chanel: The Life of a Fashion Icon, co-commissioned with ballet companies from Hong Kong and Queensland, served as a successful test case. Choreographed by Annabelle Lopez Ochoa, this production not only achieved significant artistic acclaim but also generated $610,000 in ticket sales, reflecting a broader appeal beyond just ballet aficionados.
“We wanted something coming out of the pandemic that would spark the interest of the community beyond ballet lovers,” West stated. This strategy appears to be working, as subsequent subscription sales saw an increase, enhancing the perception of ballet as an accessible art form rather than merely a niche segment.
Looking ahead, Atlanta Ballet has exciting offerings planned for the 2025–26 season, including a tribute to Frida Kahlo, also choreographed by Ochoa, alongside a new interpretation of Giselle.
Having faced numerous crises throughout his career, West views problem-solving as an integral part of his leadership. With experiences spanning events such as the 9/11 attacks, the 2008 recession, and the pandemic’s impact on the arts, he understands the importance of addressing challenges directly.
West advises that it’s crucial to pause, clearly define problems, and identify non-negotiable priorities. “For us, it is the people—the artists, the creative collaborators, the staff. They are our biggest asset. We are investing in the right way for the future so we can take care of them.”
image source from：atlantamagazine
