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THEATER

The status: “If you need money to put your son through college, I’d say this probably isn’t the way,” says Mark Kaufman, president of Broadway and Off Broadway company CTM Productions. “On the other hand, as members of society, we have an obligation to make the arts happen.” If the possibility of losing money doesn’t make you want to jump off an upper-circle balcony (only about 20 percent of investors ever recoup their cash), invest in theater. “Gone are the days of David Merrick, who would come up with all the money and be the sole producer of a show,” says Kaufman. Indeed, plays and musicals have become so expensive to produce—up to $3 million and $20 million, respectively—that often it takes dozens of financial backers to get a show off the ground.

The game plan: So how few dollars can you put into a play to call yourself an owner? It varies. For the musical Ring of Fire, which had a three-month run on Broadway in 2006, CTM Productions set the minimum at $25,000 per investor. But “in some cases, people actually put in half that,” says Kaufman. “And if someone comes along and says, ‘Hey, I have $10,000 I want to put in the show,’ I don’t know any producer who’s gonna say no to that.” Before handing over the money, though, you’ll have to fill out extensive paperwork: The SEC’s accredited-investors regulations say that in order to put your cash in showbiz, you have to qualify financially (this usually means making at least $200,000 a year).

While most potential investors get invited to script readings, you can infiltrate the scene if you have cash to offer. Contact the Broadway League (212-764-1122, broadwayleague.com) for information about how to get involved, or enroll in a three-day course on investing at the Commercial Theater Institute (212-586-1109, commercialtheaterinstitute.com). As for picking shows likely to be successful, the best you can do is go with your gut. “Invest in what you believe in,” says Kaufman. “I used to think you could look at a script and know if it would be a commercial hit. But you can’t do that anymore: Younger audiences are looking for something different.”

Risk: 8 How many rich theater people do you know? Reward: 3 Artistic pride is worth millions—unless you have to pay the rent. And P.S. Investment won’t get you a discount on tickets.