Ayr's Gaiety Theatre shows were making profit

Jul 17 2009 by Edwin Lawrence

GAIETY shows were making handsome profits before the theatre’s closure.

But council chiefs insist these were nowhere near enough to cover costs.

A consultant’s report shows almost every show making money.

The report is posted on a Scottish Government website.

And it reveals profitable shows over the eight years from 2000 to 2008.

The only loss-maker was the once incredibly popular Gaiety Whirl.

But the summer show clearly ran out of creative steam and audiences in the 21st century.

The report also says the Gaiety lagged behind when it came to booking popular, modern stand-up comics.

However, the Gaiety panto remained a tremendous success.

And in the year leading up to closure in January this year, the old theatre pulled in nearly £800,000 in box office receipts.

But of this, £535,000 went to show producers, leaving just £246,000 for the Gaiety.

And South Ayrshire Council had to find an average annual subsidy of £500,000 to pay the theatre bills – staff, electricity, marketing and other costs.

So when faced with a multi-million pound refurbishment, the council could no longer sustain the costs.

However, the consultant’s report says the council should have had a set of accounts that were easier to understand.

And it says the closure period must be used to re-think marketing and connect with younger people.

The report also says the council should work more closely with the Friends of the Gaiety group.

And it says an independent trust would be the best solution for future operation of the Gaiety.

A council spokesman said: “During the last eight years, on average, the Gaiety’s actual income has accounted for only 40 per cent of the total costs of running the theatre.

“And while the share of box office takings retained by the Gaiety increased from 16 to 31 per cent, this takes no account of the running costs of the theatre and cannot be considered as profit.

“The Gaiety did not in fact make an annual profit at any point between 2000 and 2008.

“The additional £4m borrowing to complete all works required would have increased the Gaiety’s costs by approximately £290,000 to the local taxpayer, every year for the next 30 years.

“The decision to close the Gaiety was difficult and was taken against the backdrop of an extremely challenging economic climate, the ongoing costs of running the Gaiety, and the likely impact on local taxpayers of borrowing money to upgrade the theatre.

“However, we are making every effort to find a buyer for the Gaiety, and following adverts in the national press, expressions of interest are being received.”