In the musical Cabaret, the Emcee tells the audience, "Money makes the world go 'round." That is truly the case for the current Broadway revival. On Sunday, the show announced that its star Billy Porter, would depart the production due to a case of sepsis—and to stem its financial losses, the production would be moving up its closing date by about a month, from October 19 to September 21. And now, one of its investors is suing the show.
Entertainment lawyer and Broadway producer James L. Walker, Jr. filed a lawsuit August 29 with the state of New York. Walker, Jr. invested $50,000 in the production; he alleges that Cabaret lead producers have not returned any money to its investors, and have not provided a full accounting of its finances to investors. The lawsuit seeks the show's full financial records, disbursement of profits to investors, compensatory damages, punitive damages, and attorney fees. Walker. Jr. is also seeking a jury trial.
In a statement, the Cabaret producers responded to the suit with: "While we are incredibly proud of the artistic success of Cabaret At The Kit Kat Club on Broadway and deeply saddened by the fact it has had to close early, the production has not been in a position fiscally to make any distribution to investors. We’ve offered to engage in a constructive dialogue with Mr. Walker regarding his financial expectations and to give him access to our accounts, but unfortunately, he has instead decided to file a lawsuit that lacks any merit.”
Walker, Jr. has also invested in MJ The Musical, Hell's Kitchen, and last season's short-lived Dead Outlaw. “I have produced and invested in over 15 Broadway shows and currently have about 10 running worldwide, and I have never seen a show make nearly $100 million (approximately) and our team not receive any profits at all or any transparent disclosure of who is being paid what out of the revenue. We will turn over every check, payment, and document to find out where the near-$100 million went the past year and a-half.”
He also added that “the Cabaret producers directed me to their lawyers, who in turn, told me if they were to sit down with me, I would have to sign something before I could have anything shared with me. That is not what transparency looks like in business[,] and [is] not open access to the 'books' as they allege. If you are losing money, just provide all the receipts and bills to prove it."
This production of Cabaret, directed by Rebecca Frecknall, first began in the West End in 2021 and marketed as a bold, immersive reimagining of the John Kander-Fred Ebb musical. Following the success of the show abroad, plans were made to transfer it to Broadway. Cabaret opened at the August Wilson Theatre April 21, 2024. Its lead producers (ATG Productions, Underbelly, Gavin Kalin Productions, Hunter Arnold, Smith & Brant Theatricals, and Wessex Grove) raised $24 million to put on the show, tapping into a deep network of investors. The $24 million included $7.5 million to renovate the Wilson, changing it from a proscenium house to an in-the-round performance space. The production itself was also ambitious, with extra money invested to create an in-house dining experience and a pre-show that takes place for an hour prior to the show's official start-time, including live actors and musicians.
Since it began, Cabaret has earned over $88 million at the box office. But the show's weekly operating expenses—which includes the pay for actors and everyone working weekly in the building, as well as royalties for the creatives involved—were over $1 million. During the early months of its run, the show made up to $2 million a week, turning a profit. After the departure of stars Eddie Redmayne and Gayle Rankin on September 14, 2024, the show saw its weekly grosses sharply dip. In the months since, the grosses have been on a downward trajectory—operating at a loss a majority of the time. In the week ending in September 7, 2025, Cabaret made only $380,051.60.
According to Broadway Journal, who first reported this news, its lead producers waived their own fees and royalties for the last year. The show's landlord, ATG (who is also a producer on Cabaret), also waived the theatre rent to bring operating expenses down.
Walker, Jr. alleges that the Cabaret producers failed to distribute profits to the investors during the early months of the show's run. Though it is typical for producers to keep hold of profits in order to shore up the show during weeks of lower grosses. In an industry where an estimated one in five Broadway shows recoup its money (meaning it has made enough profits to pay back its investors), this latest lawsuit is a sign of just how risky it is to invest in Broadway shows—especially in the current environment where operating expenses have dramatically increased and a New York state tax subsidy for Broadway has dried up.
Says Walker, Jr. "It’s not about money, but transparency and protecting all of the little guys investing their savings in these wonderful Broadway productions.”
