At a cost of $2.5 million, he built the 1600-seat Ziegfeld Theatre on the west side of Sixth Avenue between 54th and 55th Streets. Designed by Joseph Urban and Thomas Lamb, the auditorium was egg-shaped with the stage at the narrow end. A huge medieval-style mural,
The Joy of Life, covered the walls and ceiling. To finance the construction, Ziegfeld borrowed from
William Randolph Hearst, who took control of the theater after Ziegfeld's death.
The Ziegfeld Theatre opened February, 1927 with his production of
Rio Rita, which ran until April 1928, followed by
Show Boat. Although he recognized its artistic value, he was terrified
Show Boat would fail because of its unusually dramatic storyline. According to an eyewitness, the audience barely applauded on opening night, but it was not because they disliked the show, but because they were so taken aback. It was a great success, with a run from December 1927 until May 1929. In 1932, after Ziegfeld lost much of his money in the
stock market crash, he staged a revival of
Show Boat backed by "angels" David and Barney Warfield. It became the biggest grosser on Broadway, until the
Great Depression affected its run (May to October 1932).