Joseph H. Kluger to conclude tenure as President of The Philadelphia Orchestra

16-year tenure marked by artistic, financial, and institutional successes

(Philadelphia, May 12, 2005)

Joseph H. Kluger, who has served as The Philadelphia Orchestra's top professional executive since 1989, announced today that he will conclude his tenure as president, effective August 31, 2005. Having helped The Philadelphia Orchestra achieve an unprecedented series of artistic, financial, and institutional goals, he has decided to seek another position in which to apply his varied skills and experience. When he leaves the Orchestra, he will work as an associate with AEA Consulting (www.aeaconsulting.com), an internationally recognized arts consulting firm.

Mr. Kluger, whose 16-year tenure is the longest of any administrative leader in the history of The Philadelphia Orchestra, other than Arthur Judson (1915-35), said, "It has been a privilege to serve this great orchestra and to work with such an unparalleled group of virtuoso musicians, under the leadership and vision of Music Directors Riccardo Muti, Wolfgang Sawallisch, and Christoph Eschenbach, three of the finest conductors in the world today. Their artistry, along with the support of a talented and dedicated group of Board, staff, and volunteers, has made my years with The Philadelphia Orchestra an extremely satisfying experience. I feel privileged to have worked with all of them and am very proud of what we have accomplished together."

Kluger continued, "Because of our collective achievements, I believe it is the right time to make a transition. While I have not decided whether my next position will be in the arts, academia, consulting, or something more commercial, it is the right time in my life to find another arena in which to apply the skills and experience I have acquired during a 27-year career in orchestra management. I look forward to working with Adrian Ellis and his team at AEA Consulting. In my work with them as a client, I have developed a deep appreciation for their incisive thinking about the cultural sector and I am looking forward to helping them advance their work on the challenges facing the performing arts in general, and symphony orchestras in particular, both in the United States and overseas. Although AEA is based in New York and London, my wife and I are committed to keeping our home in the Philadelphia area, as we have really come to appreciate everything our region has to offer."

"This morning, on behalf of the Board of Directors of The Philadelphia Orchestra Association, I regretfully accepted Joe Kluger's resignation as president, effective at the end of the fiscal year in August 2005," said Association Chairman Richard L. Smoot. "Joe has put a great deal of thought into this and has consulted with me often in recent months before reaching this decision."

"It has been a pleasure to work closely with a man who has given so much of his life to this great institution and who has contributed so much to this organization, the music industry, and the city of Philadelphia," Mr. Smoot said. "Joe has been at the center of every major milestone the Orchestra has achieved in the past 20 years. He was responsible for leading the transition in music directors from Riccardo Muti to Wolfgang Sawallisch, and most recently to Christoph Eschenbach. He was part of the team that began the movement to build a new hall for our great Orchestra and was here to see it open in December 2001. His most recent accomplishments have been his efforts to ensure the future of the Orchestra by building its endowment, and by securing one of the largest gifts ever made to any American orchestra. I'm sure one of the accomplishments that he is most proud of is the recently announced recording contract with Ondine Records. Joe has done all of this in a quiet and unassuming way while allowing others to shine. His departure closes a chapter of great artistic and organizational growth for The Philadelphia Orchestra and we wish him all the best."
"Joe Kluger's knowledge and passion for music has been the foundation of our partnership since I became music director of The Philadelphia Orchestra," said Christoph Eschenbach. "Joe and I have had a wonderful relationship from the very beginning of the recruitment process right up until today, and I know this will continue. Joe's departure is a loss to the symphony world. I know his creativity and commitment will serve him well in the future and I wish him the very best."

"After the 1996 strike Joe and I worked increasingly closely on Orchestra business and I have come to appreciate his many talents and abilities," said cellist John Koen, chair of the Philadelphia Orchestra Members' Committee. "I have learned a great deal about leadership by observing him. Our recently announced partnership with Ondine Records, as well as the new recording agreement which makes the partnership possible, are due in no small part to Joe's depth of knowledge about electronic media, his persistence, and his leadership within the music industry. On behalf of the musicians of The Philadelphia Orchestra I wish Joe success in his future endeavors."
During Mr. Kluger's tenure as president of The Philadelphia Orchestra Association, he played a leadership role in the search and recruitment efforts for both current music director Christoph Eschenbach and his predecessor, Wolfgang Sawallisch. He also played a catalytic role in the development of the Orchestra's new home in The Kimmel Center for the Performing Arts. Some of the Orchestra's other accomplishments under his leadership include:

• Obtained commitments of over $120 million for endowment (including the recent challenge grants from the Annenberg and Neubauer foundations, as well as amounts prior to the current $125 million campaign)
• Completion on time and on budget of a $40 million renovation of the Academy of Music
• Generated over $8 million in audio recording royalties from audits of recording contracts
• Development of a model relationship of cooperation and collaboration with the musicians of the Orchestra, who now play an active role in governance and decision-making
• Establishment of the Philadelphia Orchestra Media Institute (POMI), a joint-venture partnership with the musicians of the Orchestra, to maximize the distribution of its music via electronic media technology. POMI projects to date include:
  • Pioneered efforts as the first major symphony orchestra to offer music for audio "streaming" on the Internet, via a strategic alliance with Andante.com
  • Signed multi-year recording agreement with Ondine Records, based on an innovative shared revenue arrangement with the Orchestra musicians
  • Theatrical release of Music from the Inside Out™, a documentary by Oscar-nominated filmmaker Daniel Anker that explores the mystery of the creative spirit, featuring musicians of The Philadelphia Orchestra
• Historic tours to Vietnam (first by a U.S. symphony orchestra), Israel, China, and Latin America
• Major initiatives to increase cultural diversity, educational activities and community partnerships, as well as the audiences' appreciation for, and understanding of, our music

During Mr. Kluger's tenure, The Philadelphia Orchestra Association eliminated a major structural deficit and has achieved financial stability in its operating budget, through a collective effort to increase earned and contributed revenue and reduce expenses. Other financial highlights of Kluger's tenure include:

• Operating budget grew from $20.5 million in FY89 to $37 million in FY05 (80% increase)
• Endowment market value increased from $34 million in FY89 to $120 million, as of March 31, 2005 (250% increase)
• Annual contributions increased from $3.4 million in FY89, covering 15% of annual operating expenses, to more than $11 million projected in FY05, covering 30% of expenses (224% increase)
• Ticket sales revenue increased during the first year in the new concert hall by 35% over the prior year; sales have remained at 90% of capacity since the move to the Kimmel Center

Mr. Kluger is an internationally recognized expert in the classical music industry on recordings, broadcasts, the internet, and other electronic media activities and has served for over 10 years as the chairman of the Orchestra Managers' Media Committee of the American Symphony Orchestra League.

Mr. Kluger is an active participant in civic groups in the Greater Philadelphia region. He is currently a member of the Executive Committee of the Philadelphia Convention and Visitors Bureau, the Board of Overseers of the Curtis Institute of Music, and the Boards of the Arts and Business Council of Philadelphia, the Marian Anderson Award, Sunderman Conservatory at Gettysburg College, and the Musical Fund Society. He has previously served on the Board of the Greater Philadelphia Cultural Alliance, of which he is a past president, the Central Philadelphia Development Corporation, Mayor Rendell's Cultural Advisory Council, and Governor Rendell's Arts and Culture Transition Team.

Mr. Kluger received a Master's Degree in Arts Administration from New York University in 1979 and his Bachelor's Degree in Music in 1977 from Trinity College in Hartford. He has also participated in executive training programs throughout his career, including the Senior Executive Leadership Program of NTL Institute and the Wharton Fellows Program at the Wharton School of the University of Pennsylvania.

Mr. Kluger has also been an active performer and teacher. He is a frequent guest lecturer on leadership and arts administration at the graduate and undergraduate level at Wharton, Penn, NYU and Drexel. At Trinity College, he was a President's Fellow in Music and a teaching assistant in Music Theory and Music History. He has studied piano and voice, the latter including a summer at the Mozarteum in Salzburg, Austria. Mr. Kluger has also been both a director and performer in numerous amateur musical theater productions.

AEA Consulting (www.aeaconsulting.com) specializes in strategic, operational, and facilities planning for the cultural sector. The company was founded by Adrian Ellis in 1990 and has offices in London and New York. AEA works on an on-going basis with the boards and senior management of many of the world's most successful and innovative cultural institutions and their funders, helping them to define, plan, and achieve their long-term organizational goals. Their closely integrated international team places staff who have held senior positions in arts management alongside colleagues with backgrounds in public policy, business and financial, economic, and market analysis. This unusual combination of perspectives has enabled the company to complete well-grounded, successful assignments that have effected lasting organizational improvement for their clients - performing and visual arts organizations, public and private funders, policy makers, and educational institutions.

Founded in 1900, The Philadelphia Orchestra has distinguished itself as one of the leading orchestras in the world through a century of acclaimed performances, historic international tours, best-selling recordings, and its unprecedented record of innovation in recording technologies and outreach. With only six music directors piloting The Philadelphia Orchestra through its first century, the ensemble has maintained an unparalleled cohesiveness and unity in artistic leadership.

This rich tradition is carried on by Christoph Eschenbach, who began his tenure as the Orchestra's seventh music director in September 2003. As Mr. Eschenbach and the Orchestra inaugurate a new era in the ensemble's esteemed history, the Orchestra has announced the launch of the public phase of a five-year, $125-million endowment campaign, entitled A Sound, A City, A Civilization. Commitments to the campaign include a lead gift of $50 million from the Annenberg Foundation, along with other major leadership gifts that have allowed the Orchestra to raise the original campaign goal from $75 million to $125 million.

In addition to Mr. Eschenbach's appointment as music director, the Orchestra has observed several important milestones in recent years. The Orchestra's 2002-2003 season celebrated Wolfgang Sawallisch's ten highly acclaimed years at the Orchestra's helm and paid tribute to his artistic achievements with the release of a Grammy-nominated three-disc set of Schumann recordings, the first recordings made in Verizon Hall at The Kimmel Center for the Performing Arts. The Orchestra moved to its new home at the Kimmel Center in December 2001, after celebrating its 100th Anniversary through a series of activities surrounding the year 2000, including the internationally televised gala Birthday Concert on November 16, 2000, a tour of Europe in 2000, and tours of Asia and the United States in 2001. A tour in the spring of 2003 took the Orchestra to nine cities in the United States, Mexico, and South America. Christoph Eschenbach and the Orchestra capped their first full season together with a tour of the music capitals of Europe in the spring of 2004.

The Philadelphia Orchestra annually touches the lives of more than 1 million music lovers worldwide through its performances (more than 300 concerts and other presentations each year), publications, recordings, and broadcasts. A major winter subscription season is presented in Philadelphia each year from September to May, in addition to education and community partnership programs. The Orchestra presents a series of concerts each year at New York's Carnegie Hall, performing encores of some of its acclaimed concerts from Philadelphia. Its summer schedule includes a month-long outdoor season in Philadelphia at The Mann Center for the Performing Arts, free concerts in local neighborhoods, and a three-week residency each August at the Saratoga Performing Arts Center in upstate New York.

The Kimmel Center for the Performing Arts hosts the Orchestra's home subscription concerts. The Center includes two performance spaces, the 2500-seat Verizon Hall, designed and built especially for the Orchestra, and the 650-seat Perelman Theater for chamber music concerts. Designed by architect Rafael Viñoly along with acoustician Russell Johnson of Artec Consultants Inc., the Kimmel Center provides the Orchestra with a state-of-the-art facility for concerts, recordings, and education activities. The landmark building is named in honor of Philadelphia businessman and philanthropist Sidney Kimmel, who gave the largest individual gift toward its construction. Mr. Kimmel has served on the Board of Directors of The Philadelphia Orchestra since 1995.

The Kimmel Center for the Performing Arts (KCPA) and the historic Academy of Music (where the Orchestra performed for 101 seasons) are operated together as a single cultural facility by Kimmel Center, Inc. (KCI). A variety of Philadelphia's other performing arts groups serve as resident companies for the two buildings. KCI owns, manages, supports, and maintains the KCPA. Kimmel Center, Inc., also manages the Academy of Music, owned by The Philadelphia Orchestra Association since 1957, and where the Orchestra continues to present the highly anticipated annual Academy Anniversary Concert and Ball. Additional information about The Philadelphia Orchestra can be found at www.philorch.org.