producer percentage of profits
if i am financing an independent film,
what percentage of the profits should i
get and what percentage would the
producer(all the leg work etc) get?
Re: producer percentage of profits
While Mr. Stone's answer is valid... it might be helpful to know some fairly "typical" deal terms for reference.
Every deal is different, and must be evaluated negotiated carefully.
Typically, though, an independent, investor financed film project provides for the investor to recoup 100%-110% of the amount invested from ALL monies earned by the film. This is referred to as pre-recoupment priority payment. (recoupment defined at that 100-110% figure).
Post-recoupment a 50/50 split of Net Profits between Producer and Financier is typical. Producer's side of the equation must cover all of the profit participation of actors, director, etc.
Sometimes, an actor or other participant will participate in GROSS receipts, or will have a deferred fee payable from Gross receipts... in either case, reducing/delaying the investor's recoupment.
Whichever side of the deal you're on... this is not "do it yourself" stuff.
You'll want to make sure that all state and Federal securities laws have been complied with and that the financing structure stands a chance of succeeding.
consult me or another lawyer... really. It's important!
Re: producer percentage of profits
While Mr. Stone's answer is valid... it might be helpful to know some fairly "typical" deal terms for reference.
Every deal is different, and must be evaluated negotiated carefully.
Typically, though, an independent, investor financed film project provides for the investor to recoup 100%-110% of the amount invested from ALL monies earned by the film. This is referred to as pre-recoupment priority payment. (recoupment defined at that 100-110% figure).
Post-recoupment a 50/50 split of Net Profits between Producer and Financier is typical. Producer's side of the equation must cover all of the profit participation of actors, director, etc.
Sometimes, an actor or other participant will participate in GROSS receipts, or will have a deferred fee payable from Gross receipts... in either case, reducing/delaying the investor's recoupment.
Whichever side of the deal you're on... this is not "do it yourself" stuff.
You'll want to make sure that all state and Federal securities laws have been complied with and that the financing structure stands a chance of succeeding.
consult me or another lawyer... really. It's important!
