The Minnesota Orchestra announced an operating deficit of $6 million for fiscal year 2012 after a $2.9 million loss for fiscal year 2011, news sources reported.
This is the organization's largest operating loss in its 110-year history. This loss is coming at a time when the orchestra's musicians are locked out in the midst of contract negotiations, Pioneer Press reported.
The news was presented at a closed meeting of the board of directors Thursday. The board did not hold a celebratory annual meeting, due to the labor dispute. For now, all concerts for the fall and holiday seasons have been canceled, Star Tribune reported.
"At the most fundamental level, our expenses continue to grow and our revenues cannot keep pace," board chair Jon R. Campbell said outlining the serious financial challenges facing the orchestra." This gap will continue to widen annually until we eliminate our structural deficit once and for all," Pioneer Press reported.
Currently there are no negotiations scheduled between the board and musicians. The negotiating is being handled under the auspices of the federal mediation office, Star Tribune reported.