Film finance recoupment for private equity investors may 16, 2018 entertainment finance. It became apparent that film financing was a big concern. This film financing agreement the agreement is entered into as of february 7, 2007 by and among dod, llc, a california limited liability company the llc, public media works, inc. Pdf this chapter explores the conditions under which a more. Represented purchaser in its acquisition of securitylink, one of the nations largest electronic security and life safety.
The process of raising film financing is extraordinarily complicated and there is no one size fits all film investor contract template available. Tricoast also maintains a network of investors to create slate investment opportunities, we have a full time casting director and a vp finance to evaluate projects submitted by our producing partners. Represented equity funds in connection with film slate financing. Film financing companies are some of the larger film investors, on the platform, but more private film investors are providing large amounts of film funding on movie investor. This film financing pitch deck secured funding at the cannes film festival just weeks after we finished it. Completion bond fees are not included in slateds executive producer services fee. But paramount wonders about the plaintiffs expert who, earlier in the case, found that paramount had presold five of them. Film financing is moving online and the new platform slated might just be the main impetus for ushering in a new generation of film finance, professional social networking, and smart opportunities for investors and filmmakers. Back end net receipts or profits generated by the film that is payable to. The main factors determining the commercial success of a film include public taste, artistic merit, competition from other films released at the same time, the quality of the script, the quality. Film production is one of them but how to prove that it is the main activity.
Business plan tools for film film business plan investor. Ffs is backed in debt finance by its private investors plus several large chinese companies including china merchants bank, a. A simple guide to financing an independent film with private. Cofinancing hollywood film productions with outside. Film industry the film industry is a prolific contributor to the cultures and economies of the u. Investment prospectus page 3 of 26 the film genre the bend is a suspensethriller, mystery drama. Slate financing are you are an established film producer trying to put together finance for a slate of films. The inevitable clash between the execution of an artistic vision and the commercial pursuit of profit makes production and financing different for every film. Inside film financing equity film financing gaining prominence there has been a flurry of activity of third party film financing over the past couple of years driven in large part by the influx of capital into hedge funds and private equity, with equity investments now more prevalent. Each situation is different and depends on the amount of funds raised, geographic location country, state, city, film budget, investor types active vs passive and many more variables.
Film sourcing production documents and templates are not intended to be legal advice and are for educational purposes only. Simply put, in the world of independent film, private equity usually means a financial investment in your movie. Our clients include principals, film and television producers, domestic releasing companies, entertainment technology companies, foreign and domestic sales agents, and postproduction houses. A how to guide for applying to film grants filmmaking lifestyle programs can get very specific. Avoiding financing movies with underperforming scores has a massive impact on a hypothetical film funds portfolio, and it is important to diversify one.
Tagline they thought it was the road trip from hell. Evidence from hollywoods slate financing agreements. The melrose film slate covered 25 paramount films released between april 2004 and march 2006, and in their most recent court papers, the plaintiffs said that the studio presold foreign rights for only two of them. Apr 24, 2020 olffi is the worlds largest and unique database on public funds and incentives for film, tv, new media, shorts and more, covering over programs and incentives in 95 countries as well as their relevant regulations and coproduction treaties. Elevating entertainment and the greenlight groupe present a minimized risk, high yield investment opportunity. At the height of the slate financing craze, institutional investors were gulled by their. Create a plan that included your marketing costs in your budget. Slated launched this last at sundance and has since aggregated film investors representing hundreds of millions of dollars and has forged partnerships with some of the. Unless you happen to be further along in your career, with a string of successful films, access to big name directors and stars, and aligned with a major hollywood studio or large independent for distribution, you should focus on raising financing. Paramount loses slate financing deal with chinas huahua media.
Download the pdf of this white paper for offline reading. Jun 26, 2019 slate financing is an investment strategy which uses a portfolio of films to cut out risk and generate returns. Producers are increasingly relying on coproduction and public supports to develop and finance their projects. Film financial services provides senior production debt for feature film and television projects and slates, including. With gap financing, a lender provides a loan of between 10%30% of a films budget against the value of all the unsold foreign distribution markets. May 16, 2018 if you are just starting out a career in film and tv, forget about pitching a slate to investors. Then david gleason, the director, and his wife, producer nathalie lichtenthaeler, shot the film, retitled it, dont go, and became repeat customers for us to create the poster. Slated shows how film financiers can beat the market. Represented hsm electronic protection services, inc. Jan 17, 2019 for whatever reason, most people coming into movie world have no idea what private equity means, and if you dont, it can turn a discussion of financing a film into a sea of meaningless jibberjabber. We use hard numbers and our own scoring algorithms to reexamine some of the foundational thinking behind the movie business. Our film financial projections template will make financing for your independent film production a breeze. Film finances was founded in 1950, when producers of motion pictures. Film finances has given completion guarantees to all leading banks in the entertainment industry, major film studios and distributors.
With vod sales projections, you can find the marketing formula that works for your movie and crunch your numbers until you find a scenario that brings you profits. Film financing pitch deck aaron davis graphic design. Paramount inks slate financing, strategic partnership with. Under this specific film financing regime, which has become a significant. Overview there are strong creative opportunities presented from an evolving niche financing tool termed monetizaton financing that uniquely facilitate transactions in a. How slated remakes indie film finance fast company. The investment capital and the slate financier group is not limited to hedge funds.
Film financing and the digital single market european parliament. Our analytics, packaging tools, and deal flow, empower filmmakers, talent, financiers, and distributors to make great movies and supply the exploding global demand for content. If you are pitching a slate to investors, be realistic with what you are asking, be truthful about sales cycles and be careful to let investors know when their money will be used, and how long it will take to potentially get any of their investment. Conservatively, the risk will be less than 50% of the investment. Slated launched this last at sundance and has since aggregated film investors representing hundreds of millions of dollars and has forged partnerships. Pictures announced a multifilm cofinancing and coproduction agreement with legendary. Film financing arrangement typical legal entity structure a film company and financial investor fund their respective ownership percentages in newco through cash capital investment b newco acquires a completed film at cost from a wholly owned production subsidiary of the film company.
The information that is usually included in a film business plan include. Every film that slated advisors helps finance requires a completion bond and we work closely with a leading completion bond provider to ensure your project is bondable. Filmmaking contracts should always be customised to suit each production and the legislation of your country area. Just listen to what film financing expert jeff steele wrote in the very first. Nov 07, 2017 paramount loses slate financing deal with chinas huahua media. Jun 19, 20 film financing is moving online and the new platform slated might just be the main impetus for ushering in a new generation of film finance, professional social networking, and smart opportunities for investors and filmmakers. Key considerations in film finance white paper 3 of 4. The ultimate guide to indie film budgeting 10 routes to finance your film elliot grove 8 steps for getting film grants. All the research and financial data involved in creating your business plan will be used to provide all the information you need in a pitch deck, film finance plan, prospectus and even in the private placement memorandum ppm if you are using one. Typically, film makers would try and apply for competitions to receive grants, or they run campaigns on platforms like indiegogo and kickstarter, getting burnt out on using some of the fundraising to create fan perks and try. We will help you put together a package that will attract investors and interest from investors and studios for distribution.
Because of the popularity of slate financing arrangements with the studios, legendary is hardly the only such company operating in hollywood. Let filmpro finance assist you with introductions to banks, financiers, and potential sources of equity. Film investor contract template film investment package. Paramount slams opposing lawyers in film investment lawsuit. There has been a flurry of activity of third party film financing over the past couple. Apr 04, 2018 but importantly and most awesomely, you can treat your movie business like any other small business. Gap loans plus finance of presale contracts and tax credits. Anyone buying those contracts would reap enormous benefits should the film then do better than. Jun 08, 2012 relativity medias ryan kavanaugh, the lynchpin behind so many of those massive slate financing deals, continues to use regression analysis when deciding which film projects to invest in via his own studio.
May 26, 2016 key considerations in film finance white paper 3 of 4. This website uses cookies to ensure you get the best experience on our website. Home distribution film financing tricoast finances films tricoast also maintains a network of investors to create slate investment opportunities, we have a full time casting director and a vp finance to evaluate projects submitted by our producing partners. The date of this confidential private placement memorandum is june 9, 2008. Avatar gives investors a putative roi of no more than 50%, imagine the yield across a more typical hollywood release slate. Given that most film producers do not want to use their personal assets to fund their films, the most important issue for many producers is how to finance their film project with other peoples money. An independent house can also decide to rent a distributor for a fee but maintain more of the upside from the revenue streams. Investment prospectus page 2 of 26 the executive summary the investment prospectus is designed to provide the reader an overview for the successful production, marketing, and distribution of the feature film titled the bend. The investment capital and the slate financier group is. Paramount inks slate financing, strategic partnership with chinas shanghai film group and huahua media studios chinese partners will co finance paramounts full film slate over the next.
Filmpro finance llc was established in 2001 as a consulting firm to producers and financiers to make introductions that might lead to projects being financed. Issuing a private placement memorandum ppm lets your film company sell shares to passive investors those who invest but take no active role in the production in order to raise the money needed. Adverse selection and moral hazard in equity partnerships. Outside investors attracted by high returnslow correlation.
Slated is the leading online film finance marketplace. Film finance recoupment for private equity investors. Introduction slate financing has emerged in the film and. Bringing film financing companies, private film investors, the public, and filmmakers together on one website, helps the whole film. Many options exist to raise money for a film project. The film industry and, increasingly, television too has a long history of encouraging outside investment in film development and production. Nov 09, 2012 the ultimate guide to indie film budgeting 10 routes to finance your film elliot grove 8 steps for getting film grants. It has provided debt financing for a slate of films produced by miriam segals good films.
Private placement memorandum for film projects growthink. Variables such as cast, filmmakers, genres, release dates and ratings are fed into his backroom computers. Olffi is the worlds largest and unique database on public funds and incentives for film, tv, new media, shorts and more, covering over programs and. Apr 22, 2014 paramount fights investors fraud lawsuit over big film slate. Rating the bend anticipates receiving an r rating from the motion picture association of america mpaa due to language and adult themes. There are plays in the movie industry itself, in the form of common shares. The methods of financing film projects are as diverse as the film. A clapperboard is a device used in filmmaking and video production to assist in synchronizing of picture and sound, and to designate and mark the various scenes and takes as they are filmed and audiorecorded other names include clapper, clapboard, cue card, clacker, slate, slate board, slapperboard, sync slate, time slate, sticks, board, smart slate, dumb slate and sound marker.
This excel template walks you through analyzing your film, comparing it to other films, movie production costs and easily allows you to add financials directly into your independent film business plan. Based in century city, california, comerica entertainment group has become one of the most successful film financing entities in the industry. Show me the money euromoney october 2006 by helen avery hedge funds are the new financiers to the movie industry, attracted by the potential returns on diverse portfolios of movies especially from dvd sales. Where creativity and capital meet using untapped collateral and nontraditional payment terms 1. These financing relationships are then examined through the lens of the principalagent framework, with careful consideration given to potential sources of adverse selection and moral hazard in contemporary co financing relationships, under both external and slate financing. In all, we have guaranteed nearly 6,000 feature films, television series, documentaries and streaming productions. Pdf this chapter explores key issues in film financing from the. Slate financing is an investment strategy which uses a portfolio of films to cut out risk and generate returns. Ffs is backed in debt finance by its private investors plus several large chinese companies including china merchants bank, a fortune 500 company. Paramount fights investors fraud lawsuit over big film slate. Film finance is a subset of project finance, meaning the film projects generated cash flows rather than external sources are used to repay investors. Slated where great movies get made projects, talent. There are multiple ways in which films can be financed both by studios and independently. We are one of the few vertically integrated entertainment.
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