Hartford Business Journal

18 HARTFORDBUSINESS.COM | JULY 13, 2026 FOCUS | NONPROFITS David Fay, president and CEO of The Bushnell, and Stephanie Fried, chief operating officer and executive vice president, inside the Hartford theater's main auditorium. Steve Laschever | HBJ Photo Show Business The Bushnell takes on Warner as nonprofit theaters face mounting costs celebrates this winter. Royalties from that hit helped build the theater's multimillion-dollar endowment. Goodspeed designs and builds its own sets and costumes in East Haddam, houses performers and designers during productions, and has exported shows to New York, London and beyond. The theater employs nearly 400 people each season and estimates its annual economic impact at about $20 million, Logan said. Presenting theaters follow a different model. The Bushnell and Shubert Theatre in New Haven book touring Broadway productions and concerts rather than producing their own shows. Because they present a variety of productions throughout a season, a stronger booking can help offset one that underperforms, said Anthony McDonald, executive director of the Shubert Theatre. "I don't have to live or die on a single perfor- mance or a single run of something, because thankfully we get to, in many ways, curate the season," he said. Strong demand, tight margins Despite different business models, theater leaders say they face the same economic reality: strong attendance doesn't cover the cost of producing live performance. Goodspeed illustrates that chal- lenge. Logan said the producer filled about 93% of its seats last year, among its strongest seasons, even as its most recent tax filing showed a $1.3 million deficit. Donations accounted for about a third of its revenue, with another 15% to 18% of the budget filled through other sources, Logan said. Across the nonprofit theater industry, earned revenue, including ticket sales, typically covers only 40% to 60% of operating expenses, meaning even well-attended theaters rely heavily on philanthropy, grants and other funding sources to balance their budgets. Goodspeed falls near the bottom of that range, even in a strong year. The Bushnell saw gains in both earned revenue and philanthropy in fiscal 2025. Ticket and program revenue rose $3.4 million, while contributions increased about $4.1 million. Subscription renewals for the upcoming season are running six percentage points ahead of the previous two years, according to Stephanie Fried, The Bushnell's executive vice president and chief operating officer. The Shubert's finances followed a different path. The theater swung from a $170,000 deficit to a $2.9 million surplus in the fiscal year that ended June 30, 2025. Contributions and government grants climbed from $1.7 million to $4.7 million, accounting for most of the improvement. McDonald attributed the increase largely to state By Andrew Larson alarson@hartfordbusiness.com T he Bushnell had a banner year most theaters would envy. In the 12-month period that ended June 30, 2025, Connecticut's largest nonprofit theater posted a $3.1 million surplus on $36.9 million in revenue, reversing a $1.7 million deficit from a year earlier, with both ticket sales and donations rising. Now, it's taking on another theater's losses. As of July 1, The Bushnell assumed full financial responsibility for the Warner Theatre in Torrington, which has run persistent operating deficits and holds an endowment of just $360,000. The formal affiliation builds on a management relationship the two theaters have maintained since 2023. The partnership is about more than rescuing one struggling theater. It reflects broader changes underway in Connecticut's nonprofit theater industry, where audiences have largely returned after the pandemic but many organizations continue to operate on thin margins as rising costs, limited growth in earned revenue and shifting funding sources force them to rethink how they operate. Some smaller theaters have even been forced to close their doors or cancel shows. The Warner's books reveal why it needed a larger partner. In fiscal year 2025, the Warner posted an operating loss of about $845,000, on top of a $520,000 loss the year before. Now fully backed by The Bushnell, the Warner retains its name, staff and community mission. In return, The Bushnell gains a 300-seat black-box theater to develop productions for potential touring. David Fay, The Bushnell's president and CEO, said that capability matters because Broadway isn't producing enough new shows to satisfy the growing number of presenting theaters competing to book them. Just six original musicals opened this Broadway season, he noted. Creating original content, he said, is a hedge against that shrinking supply. "When you get to a certain size — particularly if you have a facility that you've got to take care of — you'll see more of this," said Fay, who expects more consolidation across the industry. He describes the strategy as "funding aspiration instead of funding desperation." Two business models How theaters respond to broader pressures impacting the sector depends in part on their business model. Connecticut's nonprofit theaters generally fall into two categories: presenting theaters, which rent finished productions and put them on stage, and producing theaters, which create their own shows from start to finish. "We're the largest producing company," said Vanessa Logan, managing director of Goodspeed Musicals in East Haddam. Producing theaters like Goodspeed invest heavily in developing shows from the ground up, but a successful production can generate long-term returns. Since 1963, Goodspeed has launched 21 productions that even- tually reached Broadway, including "Annie," whose 50th anniversary it Vanessa Logan Anthony McDonald

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