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Changes put rebounding music group ‘on the right track’ Print Email
Written by Eric Tiansay   
Wednesday, 29 December 2010 10:00 AM America/New_York

GMA posts a profit, reduces debt and sells headquarters after cash crisis ‘threatened existence’

 

Leaders of the threatened Gospel Music Association (GMA) say the organization is “on the right track” after posting a profit for the first time in three years, and getting ready to appoint a new leader. 

The embattled music industry group has experienced similar struggles to CBA—another financially challenged trade association that saw the departure of its longtime president and CEO, the sale of its Colorado Springs, Colo., headquarters and a reduction in staff as well as a revised mana ement model.

In a November letter to GMA members and supporters, Ed Leonard, GMA president and board chairman as well as Daywind Music Group president, wrote that the association experienced a financial crisis in 2009 that “threatened its very existence.”

Leonard_Ed“With the grace of God, understanding vendors, supportive contributors, faithful members, a dedicated board of directors and a right-sized-yet-mighty staff, we posted a profit in 2010 for the first time in three years, and reduced our debt by $564,000 to a manageable amount,” Leonard said. 

The organization had reduced expenses “significantly,” and sold its building, moving into free space in the Provident Music Group building in Franklin, Tenn. 

GMA’s challenges have been due in large part to declining membership, which forced the association to cut its staff of 18 to three in a series of layoffs in 2009. John Styll—who had served as the organization’s president and CEO for six years—also stepped down in September 2009 as part of a cost-cutting effort to keep the group alive. 

During last year’s Dove Awards—held in April in Nashville—GMA scrapped its traditional weeklong series of events at Gospel Music Week, which culminated with the awards ceremony due to a lack of corporate sponsors and other factors.

Additionally, GMA announced last July that the 42nd Annual Dove Awards would be held in Atlanta’s historic Fox Theatre April 20, 2011—the first time the show will take place outside Nashville. 

But the organization saw some things turn around in 2010. In his letter, Leonard pointed out that the Dove Awards garnered a record increase in viewership, and GMA’s Immerse training event in July in Nashville had a strong turnout. 

“The success of these two events led to significant financial performance for both,” he said. 

Leonard—who began a series of fund-raising efforts in 2009 to “reset” the organization and relieve past debt, including an $800,000 shortfall incurred from a past Dove Awards sponsor dropout—told Christian Retailing that GMA now only owes $354,000, down from a total debt of $921,000.

Solarek_MitchellOwned by the GMA Foundation, the association’s Nashville facility was also sold for $697,000 in October. “It had 5,000 square feet, much of which was not being used at the time of the sale,” he said. The 1,000-plus-square-foot office space provided by Provident was “fantastic, and our hosts could not be more gracious.”

When Leonard’s term as chairman and president ends in April, his position will be filled by Maximum Artist Management President Mitchell Solarek. In addition, GMA will hire an executive director, rather than a president, as part of a new management model. 

In a similar move last year, CBA appointed Curtis Riskey as executive director to replace longtime President and CEO Bill Anderson.

GMA did not follow CBA, Leonard said, “but the situation is very similar. With the move to a volunteer-led organization with a strong staff, an executive director position is more appropriate.”

A GMA board member for nearly three years, Solarek told Christian Retailing that the association’s “progress speaks for itself.” 

“Our debt has been reduced greatly, and our flagship property—the Dove awards—grew in ratings by 54%,” he said. “I believe we have made huge strides in the past couple of years under Ed’s leadership, and that we are in a position to rebuild and focus on serving our members. I am confident  that we are on the right track. … I am fortunate to be able to begin my term as chairman when much has been accomplished, and we are able to focus on growth and creating opportunities for our members.”

Leonard said that the 2011 Dove Awards—GMA’s showcase event to be taped for broadcast Easter Sunday, April 24, on the Atlanta-based Gospel Music Channel (GMC)—will be preceded by several events, including the Holy Hip-Hop Awards and the Harmony Honors. 

Meanwhile, artists Johnny Cash, DeGarmo & Key, Golden Gate Quartet and disc jockey Bill “Hoss” Allen are due to be inducted into the GMA Gospel Music Hall of Fame, Jan. 24. The induction ceremony will be held at Trinity Music City Auditorium in Hendersonville, Tenn., where admission will be free.

The GMA Gospel Music Hall of Fame was established in 1971 and has inducted more than 150 members, including Phil Keaggy, The Statler Brothers, Larnelle Harris, The Winans, Elvis Presley, Mahalia Jackson, Keith Green, Amy Grant, Sandi Patty, Petra, Michael W. Smith, Dolly Parton, Bill and Gloria Gaither and Evie Tornquist Karlsson.