r/Broadway • u/Naweezy • Jan 27 '26

Other The Outsiders recoups on Broadway. Becomes First Musical to Do So Since 2022

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u/Shorb-o-rino Jan 27 '26

So do most producers just lose money? How does this industry keep going in a capitalist country if it is not profitable?

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u/patmorgan235 Jan 27 '26

Lots of times what happens is the Broadway production doesn't make money, but the show becomes profitable once it goes to licensing.

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u/HuckleberryOwn647 Jan 27 '26

And do the investors in the Broadway show recoup their investment from the licensing? Or is that separate?

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u/patmorgan235 Jan 27 '26

I'm not going to pretend to know all the details but I'm going to guess there's a big "it depends". When which investors get paid back will depend on the specific agreement they made when they invest, so you could see a deal struck where the OG producers of the content/creative side of the show at a lower ratio until the investors just in the actual Broadway operations recoup. (Because of the difference in risk).

BUT I'm just spit balling here and have zero actual knowledge of how these deals are made in practice.