Every winter, a number of shows close on Broadway. From December 2024 to February 2025, 17 shows have closed or will close. To the casual theatre fan, 17 may seem like a staggering amount, enough for panic and hot takes about the death of Broadway or why the industry isn't supporting new work. 

But for those who follow the industry closely year after year, like we do at Playbill, wintertime is but another season in the life cycle of Broadway. While spring, summer, and fall are times for new shows to open, winter is typically when many shows close. 

But why do shows close on Broadway? 

The answer to that question isn't simple. And before we give you a very in-depth explanation, here's some important clarification. There is a popular assumption that Broadway is a theatre district that is controlled by a larger entity (we at Playbill have even been asked why we close Broadway shows). 

But in reality, no one person or organization controls Broadway. 

Instead, Broadway is a collection of independent businesses. Every single Broadway show has its own budget, artists, marketing team, and producers responsible for making sure that shows bring in enough money to keep running. When producers wants to bring a show to Broadway, it is because they have raised enough money to pay the artists involved a Broadway union contract—as well as enough money to rent a Broadway theatre (of which there are 41). So when a theatre fan asks "why did that Broadway show close?," the reason is unique to each show. And the reason that one Broadway show closes will not be why another one closes.

Here are some common reasons why a show might close on Broadway.

Limited engagements

A common reason why a show would close is...it was always scheduled to close. Of the 17 shows that have/will close by mid February, 10 were limited engagements. This is a common reason for celebrity-driven shows, plays, or any shows that run in Broadway's non-profit houses operated by Second Stage, Manhattan Theatre Club, Roundabout Theatre Company, or Lincoln Center Theater. With those non-profits, the companies program multiple shows in one season at their theatres. And because they have costs subsidized by grants and donations, they can afford to produce shows on a limited basis that are riskier than your typical Broadway production.

Outside of non-profit world, we often see celebrities that want to headline a show on Broadway but may only be able to commit to a few months, hence the term "limited engagement" (such as earlier this fall, when Mia Farrow starred in The Roommate for three months). 

And even when there is not a celebrity attached, a producing team might want to mount a limited run of a play they are particularly passionate about (providing they raise enough money to cover the losses). Recently, The Hills of California closed on Broadway after a run of 2.5 months. The play did not star any celebrities, but it was by Jez Butterworth, whose last Broadway play The Ferryman won the Tony Award for Best Play. Such a prestige project usually pays its dividends to producers come Tony Awards time.

Sometimes, a limited engagement can extend on Broadway if it sells so well that producers want to keep the momentum going. This was the case with last year's Appropriate, which was originally slated to be a three-month limited run starring Sarah Paulson and ended up running for six months due to popular demand. So a limited engagement on Broadway can be a way for producers to showcase a star or a story that they are particularly passionate about, but just as the name suggests, it is only open on Broadway for a limited time—and its producers certainly don't consider it a failure when that final performance day comes. So for any limited engagement, of which there are many this spring, get your tickets now.

Lack of ticket sales

Shows that are not billed as limited runs will begin on Broadway in an open run, where it runs as long as it can sell enough tickets to sustain itself. When a show that was supposed to be an open run closes, it almost always is because there were not enough audience members buying tickets to cover the weekly costs of running the show—a musical can cost $600,000 to over a million per week depending on the size of the show. A show's running costs includes paying the artists working every week, utilities, theatre rent, theatre staff (box office, ushers, security), insurance, royalties, and numerous other fees.

Earlier in a show's run, it is usually not making enough money to cover running costs. That's when producers use the millions they raised in advance to get the show to Broadway (usually the reserve funds) to cover the running costs until the show (hopefully) can sustain itself via its weekly ticket sales. But that advance capitalization doesn't last forever. If a show is struggling even after opening night, producers need to decide if they will continue to fund it indefinitely hoping for an eventual turnaround or pull the plug. 

So if you are a fan of a show that you saw in previews, make sure to encourage your family and friends to buy tickets. Those early days, and early ticket sales, help producers decide whether there is enough demand to keep a show going or to cut their losses early.

No longer profitable

For shows that have been running longer, producers might decide to close the show because, even after years of good box office returns, it is no longer selling enough tickets. When the long-running hit The Phantom of the Opera closed on Broadway after 35 years, it came as a shock to theatre fans. After all, what is Broadway with Phantom? But a run of many years is a rarity today on Broadway, because of the higher costs of getting a show to Broadway and keeping it running (as composer Andrew Lloyd Webber mentioned in 2023). When a long-running show no longer makes enough money to sustain itself and give producers a nice return, then unfortunately it's time to put up the closing notice.

Though in the case of Phantom, we may see it back in New York sooner rather than later in a new, ostensibly less costly version. So just because a show closes, it doesn't mean it's disappeared (but more on that later).

Stop clause

A stop clause is a standard agreement within all contracts that Broadway producers sign with theatre landlords when renting a theatre: If a show's ticket sales fall below a certain amount for multiple weeks in a row, the theatre's owner can force the show to depart. The amount that triggers a stop clause varies from show to show.

The reason for a stop clause is because theatre landlords receive a cut of the box office of a show. If a theatre is housing a show that is struggling at the box office, and another show comes along that wants that theatre, then the landlord might decide it's more financially advantageous to enforce the stop clause.

What causes low ticket sales?

The reason a show may not find enough of an audience can be attributed to many factors: the critics' reviews were mixed, the marketing campaign wasn't successful, there wasn't enough money in advance ticket sales to give producers reason to keep the show going. But those factors are not, in and of themselves, the reason that shows close—a production can circumvent a colder critical reception using smart marketing. Rather, those individual factors are what lead, in the aggregate, to the main reason that shows close: not enough people want to buy tickets. 

That is where the Broadway audience comes in. With the exception of the non-profit houses, Broadway is a commercial entity where shows run if there is demand, and therefore the revenue, to keep them running. That means if you love a particular show, then you should buy tickets and recommend it to people you know. According to a recent Broadway League study, word-of-mouth/personal recommendations is the number one deciding factor for audiences when buying tickets to a show.

At the same time, a Broadway closing isn't necessarily a cause for sadness. As Suffs creator Shaina Taub told me recently as her show was closing on Broadway: "It's sort of the life cycle of Broadway...While January 5 is the end of our Broadway chapter, it really feels like the first day of the rest of Suffs' life, in so many exciting ways." 

While a majority of shows produced on Broadway do not recoup their initial investment (meaning producers do not make back the money they invested into the show), many shows do make their money back later on down the line, through touring productions, licensing to schools and local theatres, cast album sales, and many other subsidiary opportunities.

It's important to remember that not all shows are meant to go on to a long Broadway run. And every show that closes means a new show can open. As musical theatre legend Patti LuPone once said: "there should be term limits on federal and Supreme Court judges, on members of Congress, and Broadway musicals." 

Though it is unfortunate when shows close, always remember that a show closing on Broadway doesn't mean it's the end. In fact, it could be the beginning of a long life for that show.