Billionaire Eli Broad has saved the troubled Los Angeles’ Museum of Contemporary Art (MOCA), which was struggling in the wake of the financial meltdown.
NY Times: The board of this city’s financially troubled Museum of Contemporary Art reached a preliminary agreement on Thursday to accept a financial rescue offer from Eli Broad, the billionaire philanthropist who was a founding trustee of the museum and is one of this city’s largest arts patrons, according to three people close to the board…
[T]he agreement could fall apart and that a competing offer from the Los Angeles County Museum of Art for a merger of the two institutions had not been completely dismissed…
The Museum of Contemporary Art has run into increasingly difficult financial straits in recent years as its fund-raising has failed to keep up with its spending and the museum’s management dipped into restricted funds in order to pay for ongoing operations.
As a result, the museum’s endowment has declined from more than $40 million near the beginning of the decade to about $6 million currently, according to people who have been briefed on the museum’s finances. The erosion of resources has been made worse by the recent declines in the financial markets, which have taken substantial bites out of the investment portfolios of many cultural institutions.
Mr. Broad offered last month to come to the museum’s rescue, offering up to $15 million in matching funds to help rebuild the endowment. He said he would give the museum one dollar for every dollar it raised. He also offered to give the museum $15 million over five years to pay for exhibitions.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.