Union to salute royalty

B'way contract finalized

By ROBERT HOFLER

NEW YORK -- The Broadway contract between the League of American Theaters and Producers and the Society of Stage Directors and Choreographers was finalized last week after 15 months of negotiations.

SSDC won increased pension payments. The league got the union to keep a $1.25-per-ticket restoration fee for theaters royalty-free.

The latter point of contention developed recently when the league put the issue of restoration fees back on the table. Last year, SSDC won an arbitration that forced the league to calculate royalties on that additional money. Jujamcyn theaters charge a $1 per ticket restoration fee; some Shubert theaters charge $1.25. At present, the Nederlander theaters charge no restoration fee.

For the new contract, the league proposed a royalty-free $4 cap to the fee.

At a Nov. 19 meeting, SSDC members opposed the ticket surcharge concept and rejected the league's $4 cap. A number of league members have also objected to the restoration fee on grounds that it contributes to rising ticket prices.

Compromise cap

Ultimately, the two sides agreed to a royalty-free $1.25 cap.

In an interview with Daily Variety, the league's head of labor relations, Harriet Slaughter, called the $4 fee a "problematic issue and a symbolic one. We want an acknowledgement in the contract that there are other facilities in New York City and on the road that have a restoration fee of $4." Slaughter added, "The understanding (is) that we would not during the life of this contract charge more than $1.25."

Slaughter could not be reached for further comment regarding the conclusion of the contract negotiations.

Split voice

In a rift within the league itself, some producers joined SSDC in objecting to the fee on grounds it contributed to rising ticket prices.

Directors Walter Bobbie and Susan H. Schulman co-chaired SSDC's negotiating team. "I think under these emotionally charged circumstances, we reached as respectful and equitable an accord as possible," Schulman said in a written statement.

In the end, the new contract may not have much effect on directors' and choreographers' royalties. Only three shows currently on Broadway ("Proof," "Rent" and "The Tale of the Allergist's Wife") pay royalties on the gross; all others pay on net operating profits.