In December, word started spreading that the venue we know as 54 Below was hitting the rental market. Various area businesses were contacted by those who were marketing the property for occupancy in the first quarter of 2027. The businesses received digital brochures filled with pictures and facts about the space. They were offered tours. 54 Below, through a spokesperson, denied any knowledge of this, saying the organization was negotiating a lease extension. The landlord, Eric Hader, texted me stating that he “cannot control databases or rogue brokers, but can confirm that any marketing of the space is absent from the knowledge, consent, or authorization of the landlord,” and told me, “whatever [I] publish is at [my] peril.” But I myself called and was offered a tour, which I have trouble believing a ‘rogue broker’ would offer. Regardless, by mid-January, 54 Below Managing Director Richard Frankel told me he is “confident slash hopeful that it’s all going to be resolved” and that 54 Below will remain in its space for years to come. He also gave me a peek at a little of what is going on at the cabaret venue.
While other venues that regularly host Broadway artists have sprung up since 54 Below opened in June 2012, 54 Below still stands out. It features up to three shows night, in addition to offering dinner to those attending a traditional theater show at another venue. 54 Below has played host to big names and actors just getting their names out there. It also premieres shows and hosts reunion concerts.
54 Below was founded as a commercial enterprise by Tony Award-winning producers Tom Viertel, Marc Routh, Richard Frankel and Steve Baruch, but in April 2023 announced a transition to a non-profit entity partially in response to the economic realities of the time. (The owners applied for the status and were initially approved in 2022.)
“We wouldn’t be here probably if we didn’t switch to not-for-profit,” Frankel said. “It was not a sustainable commercial business. To boot, it was entirely appropriate because of our programming. We tend to do what we love and we tend to love new writers and left-handed composers of color who live on the south part of Long Island or something… So we’re not-for-profit for the same reason that Manhattan Theatre Club is not-for-profit or Ensemble Studio Theatre is not-for-profit.”
Because 54 Below is a non-profit, its tax returns are public. For the year 2024, 54 Below had a negative net income (meaning expenses were greater than revenue) of almost $845,000. Its net assets were around negative $5.7 million (meaning the organization’s liabilities are greater than its assets). In addition, an examination of the 2023 tax return compared to 2024 tax return indicated a substantial increase in accounts payable (meaning monies owed to vendors for goods and services purchased on credit), which tends to indicate increased liquidity issues. (Oddly, “Operating Lease Liability,” which represents the present day value of future lease payments and therefore tends to go down as time goes on and less is owed on a lease, remained the same in both the 2023 and 2024 returns.) The rent payable—meaning rent payments accrued but not yet paid—was over $350,000 on that 2024 return, indicating rent was not being paid monthly. None of the financials are public for 2025 yet, but Frankel said things were looking up.
“I don’t know whether we ended up entirely in the black or a bit in the red for 2025, but I know that we are coming close,” he said. “I view that as a bit of an achievement.”
Frankel said the team is constantly analyzing what works and what doesn’t, from menu items to acts. He said streaming has been profitable for the organization, earning $200-$300 thousand each year. (They do pay a fulltime video director and have associated costs, so that isn’t pure profit, but it is still a positive.) 54 Below streams two or three shows a week—not surprisingly the biggest in person draws do best on streaming. Frankel estimates Patti LuPone had about 2000 streaming viewers.
Another bright side has been the private events business—some people rent out the establishment for functions. It is not cheap, as Frankel notes that the cost is based on what the establishment would have made from a show in that slot, but people and organizations still rent it. That business easily accounts for over $1 million per year.
54 Below has also been trying to bring in new attendees who may not be able to afford a full price ticket and food/beverage minimum. The organization has a $15 ticket initiative for select shows. Frankel said the tickets almost always go, but the cost is high for the organization because for many of the shows the seats would have sold at a higher price, it is not that they would have gone empty. He did not have numbers as to how many of the $15 ticket buyers eventually bought full price tickets, but noted that, despite there being no minimum, some of those ticket buyers do spend a lot on food and drink. Some of them also add a donation to their check.
As a non-profit, 54 Below is focused on those donations. While Frankel said the best way to support the organization is to buy a ticket and come, donations are always welcome. He said they had around 800 small donor donations last year, including people in the membership program. The 54 Below membership program has tiers ranging from $100 to $400. Frankel estimates “several hundred” patrons are members of 54 Below. They also have some grants from family foundations, but for many grants an organization needs to be operating as a non-profit for a few years before consideration. According to Frankel, this is the first year they are eligible for a New York State Council on the Arts grant, for example. So leadership of course hopes that more grants will be forthcoming as time moves on.
The New York Times article announcing the transformation to a non-profit stated that leadership hoped 54 Below would receive 20% of its operating budget from contributions. It is not quite there—in 2024, it raised approximately $1.4 million from contributions of a $9.5 million budget, which is just shy of 15%—but Frankel stated a belief that they are getting close.
In keeping with this, 54 Below is about to launch its first ever annual benefit, taking place on March 23. There have been other benefits for the establishment. For example, Patti LuPone sang at an apartment as a benefit for the organization. But this is the first organized mega-concert for the organization. The lineup includes Darren Criss, Ariana DeBose, Joe Iconis, Jeremy Jordan, Norm Lewis, Marilyn Maye and Marc Shaiman. Music direction will be by Benjamin Rauhala. In person tickets sold out quickly, but there is a live stream option which recently went on sale. If you can’t make it to the space, buying this live stream or another live stream is a great way to support 54 Below.
In terms of the current lease, the 15-year term expires in March 2027. That lease had two five-year lease renewal options. Negotiations are underway as to the terms of that first five-year renewal. As of now, despite any marketing of the space, Frankel believes 54 Below will remain just where it is. He said the landlord has “expressed support for” the organization and, despite financial challenges, they have come up with “creative ideas for solving” any issues.
But, of course, times are tough. 54 Below does need your support to continue. They have not limited programming. They have not laid off staff. But, like many non-profits, 54 Below needs more money.
“Everything is examined all the time,” said Frankel, regarding ways in which to improve the bottom line. “But that’s not, I think, the real answer or solution. The real answer or solution is what’s going to get us out of this constant struggle. And I honestly don’t know the answer to that other than putting one foot in front of the other every day.”
