The Palau de les Arts Reina Sofia in the City of Arts and Sciences in Valencia is apparently facing its fourth year of existence with great trepidation, as grants to the entity have dropped considerably - starting with the Valencian government, that next year will give 24 million euros as opposed to 29 this year - but the biggest drop is from the Culture ministry that will only give one and a half million euros as opposed to the 19.1 million that go to the Teatro Real.

The already delicate situation has been worsened due to the current financial crisis as sponsors such as porcelain manufacturer Lladro, the Roig Supermarket Group and a number of others have pulled out, leaving a 300,000 euro drop in income, and as a result future planned events are being cut from the programme.

Amongst the options being considered is to possibly cancel one of the operas or stage it in a concert version, with no sets or costumes.

Cash-strapped opera house boss explores fundraising options
By: valencialife.net
Wednesday, November 26, 2008

Helga Schmidt, the director of the new Palau de les Arts Reina Sofia in the City of Arts and Sciences in Valencia has revealed that she is looking at the future with a calculator in her hand.

Her problems appear to be multiple: the Ministry of Culture in Madrid has promised a five million euro aid package, but no one knows when, or even if, this is going to arrive, whilst next year the grant from the Valencian government will drop by five million euros with respect to the package that was agreed for this year.

So Ms Schmidt has had an idea: Turn the Southern Annexe into a luxury goods shops mall, the Palau itself can have a store selling CDs, scores and other items linked to the performance, and she also has plans for bars and restaurants, adding that star chef Ferran Adria has already shown an interest.

The problem is that she is going to have to walk through a legal minefield to get her project off the ground, but she continues to insist that the first stores must be open by the end of next January.