----- Original Message -----

From: rparnther2004

To: Film_F_and_I@yahoogroups.com

Sent: Thursday, January 19, 2006 8:21 AM

Subject: [Film_F_and_I] Film Financing Experiences

Here's one of my anecdotes from quite a few years back:  I got
involved in an indie project that was initially funded by private
investors that sought out the director after hearing him on a weekend
radio talk show.

The producer and director brought me, a CPA, on board to help oversee
the funds.  They were able to use the funds (approx. $75,000)to shoot
the film and assemble a rough cut which they used to attract a
$250,000 television pre-sale from PBS supplier, American Playhouse. 
They used that to finish the film and pay off most of their
deferments....

....Being a very young accountant at the time and inexperienced in the
ways of the industry, I thought all independent films were financed,
produced and picked up for distribution this way.  Boy, was I wrong...

The CPA firm I worked for at the time sponsored a panel on film
financing.  I recall New Line's Bob Shaye making a presentation where
he made a distinction between "project" financing and "company"
financing. I interpreted "company" financing to mean funds used to
produce a film that were loaned or invested in a company based on its
overall financial position and cash-flow generating ability, not the
potential of the film being produced...

Here's one of my anecdotes from quite a few years back:  I got
involved in an indie project that was initially funded by private
investors that sought out the director after hearing him on a weekend
radio talk show.

The producer and director brought me, a CPA, on board to help oversee
the funds.  They were able to use the funds (approx. $75,000)to shoot
the film and assemble a rough cut which they used to attract a
$250,000 television pre-sale from PBS supplier, American Playhouse.
They used that to finish the film and pay off most of their
deferments.

The film was accepted into the Sundance Film Festival where it won a
jury prize. The producers ended up selling the North American rights
to the film to the Samuel Goldwyn Co. for another $250,000.  Can
anybody guess what film?

Being a very young accountant at the time and inexperienced in the
ways of the industry, I thought all independent films were financed,
produced and picked up for distribution this way.  Boy, was I wrong...

The CPA firm I worked for at the time sponsored a panel on film
financing.  I recall New Line's Bob Shaye making a presentation where
he made a distinction between "project" financing and "company"
financing. I interpreted "company" financing to mean funds used to
produce a film that were loaned or invested in a company based on its
overall financial position and cash-flow generating ability, not the
potential of the film being produced.

Unfortunately for many indies, they have to rely on project
financing, while distributors can do either.  It made me look at
company financing as an alternative for financing indie films. For
instance, I've seen projects funded by business owners (outside of
the movie business) who used their company's cash flow to support a
loan to the filmmakers, although that is quite rare.

----- Original Message -----

From: HannoverHouse@...

To: Film_F_and_I@yahoogroups.com

Sent: Thursday, January 19, 2006 1:06 PM

Subject: Re: [Film_F_and_I] Re: Using agencies to package projects...

.... this happens all the time.  If someone at one of the major agencies really likes a project, they can try to package it (add stars, add a director or DP, and take the package to a studio or major independent for funding).  The problem that a lot of indie producer / director / writer types have is that the agencies have a tendency to "take over" the property and make it there's alone to control.  For example (and I won't use names), but just last month, I had fully secured the financing for a $4-mm comedy to be shot in Canada (partial Canadian tax & quota funding, and the balance in bank funding secured against a pre-sale and some credible distribuiton projections).  Our bank sent the funding confirmation letter to the agent and attorney for the writer / director, and as a courtesy, "cc'd" the agency for the principal star.  Low and behold, the principal star's agency (not the same as the writer / director's) suddenly realized that this was a "for-real" deal... not the sort of bullshit that wanna-be producers shuck-and-jive about.  So this major agency started trying to kabosh the deal with my company by telling the actor that they should only be starring in films for "major studios."  So what can you do?  Sue to try and force an actor to be honorable and live up to their commitments?  I think that worked once, and only once, with Kim Basinger in the "Boxing Helena" fiasco.  No, you can't win the war by suing actors and the major agencies.  You have to accept that if you're going to give a project to a major agency to package (in any way) that you are forfeiting your control over the project and handing it over to some (generally) unsavory, self-important types.  Fortunately, I've got other projects, and was able to substitute a film for the same financing structure and bank loan.  Still, there are a lot of people in the business that prefer to go the agency-route to get films moving.  They can definitely make things happen.  Perhaps not better than private funding or independent pre-sale or co-production routes.  But with the studios, yes, the agencies can open doors that outsiders cannot even reach...  just be careful....

 

Eric Parkinson, President
HANNOVER HOUSE

Don't think my blood pressure would hold up under those circumstances. I
like to live in an ivory tower, smelling roses, and thinking great thoughts
that a grateful world will be all to willing to embrace. Unfortunately I've
had to grovel in the filth for a lifetime and I don't want to blow what
little pension plan I've made in a fit of frustration and bravado. So the
question is how to ease oneself through this process without ending up doing
what you did.

Of course sometimes it pays off and you have a hit and a career. But... I
won't frighten you with tales of various friends.

Lawrence




----- Original Message -----
From: "Production NYC" <production.nyc@...>
To: <Film_F_and_I@yahoogroups.com>
Sent: Thursday, January 19, 2006 11:36 AM
Subject: Re: [Film_F_and_I] Re: Great question to start the forum


> Hi Lawrence,
>
> I ended up in the same situation you described, I had an advance from
> a sales agent, and a major private investor lined up to put the rest
> of the money. We started shooting and after a week the "investor"
> disapered.... We had every one in the crew working on spec from then
> on... but not for free ... with a 25% increase on their rate
> (deferred) and points (loads of them) ... and a lot of credit cards
> debts... hopefully we ve made a really good film and we should be able
> to pay every guys & gals who worked so hard to finish the film before
> long... but as far as making money,.. I ll be lucky if I recoup half
> what I spent on that one...
>
> been there done that,,, IHey we re in "show business" and we re living
> the life...
>
> Cheers,
>
> Vincent.
>
> On 1/18/06, Chad Sekerchak <csekerchak@...> wrote:
>>
>> To follow up on one of Lawrence's questions.
>>
>> I've got a script, life-rights, and book rights to a great script based
>> on
>> the Nuclear Power industry.  The movie will take $3-6M (more if A-list is
>> attached) and I'm working on raising $1-3 from wealthy industry insiders
>> (akin to "branded" feature).
>>
>> Once I have that, what's the next step?  Finance will be tough given I
>> don't
>> have a track record.  So do I try and sell the partial package or look
>> for a
>> Co-Producer?  I've only got "interest" from top talent since I can not
>> yet
>> "pay to play" at this point.
>>
>> Thanks.
>>
>> Chad.
>>
>>
>>  ________________________________
>> Yahoo! Photos
>>  Got holiday prints? See all the ways to get quality prints in your hands
>> ASAP.
>>
>>
>>  SPONSORED LINKS
>>  Documentary filmmaking Film financing Private investor
>>  Filmmaking
>>
>>  ________________________________
>>  YAHOO! GROUPS LINKS
>>
>>
>>  Visit your group "Film_F_and_I" on the web.
>>
>>  To unsubscribe from this group, send an email to:
>>  Film_F_and_I-unsubscribe@yahoogroups.com
>>
>>  Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
>>
>>  ________________________________
>>
>
>
>
> Yahoo! Groups Links
>
>
>
>
>
>

From: Chad Sekerchak

To: Film_F_and_I@yahoogroups.com

Sent: Thursday, January 19, 2006 11:01 AM

Subject: Re: [Film_F_and_I] Re: Great question to start the forum

Hey Lawrence.  I'm at the exact spot as you. A screenwriter.... learning the production side.

 

I've started a ProdCo as a DBA under another one of my companies.  But I have decided that either: 1) I sell (not option) one of my scripts this year, or 2) produce one of them myself.  And if I sell one, I'll probably take the money and write a cheepy script and produce it as well. 

 

So, I love your question.  I don't know the answers yet, but I love your description of a producer as a bullshitter (or should be).  In fact, I've been described as a good BSer, but I've never lied or mis-lead in business.  So, my definition of a SUCCESSFUL producer is a "Bullshitter with Integrity".  And I think that describes me pretty well.  And I think I have some talent too.

 

So, if you get an answer to your questi ons, please share them with me.  And I'll do the same.

 

ps:  I'm posting another question for the board as well which will tell you a little more about one of my projects. 

 

pps: sounds like your across the pond?  I'm on the east coast but I'm planning a trip to london soon, if you want to grag a coffee or lagger.

 

 

---

Yahoo! Photos
Got holiday prints? See all the ways to get quality prints in your hands ASAP.

Hi Lawrence,

I ended up in the same situation you described, I had an advance from
a sales agent, and a major private investor lined up to put the rest
of the money. We started shooting and after a week the "investor"
disapered.... We had every one in the crew working on spec from then
on... but not for free ... with a 25% increase on their rate
(deferred) and points (loads of them) ... and a lot of credit cards
debts... hopefully we ve made a really good film and we should be able
to pay every guys & gals who worked so hard to finish the film before
long... but as far as making money,.. I ll be lucky if I recoup half
what I spent on that one...

been there done that,,, IHey we re in "show business" and we re living
the life...

Cheers,

Vincent.

On 1/18/06, Chad Sekerchak <csekerchak@...> wrote:
>
> To follow up on one of Lawrence's questions.
>
> I've got a script, life-rights, and book rights to a great script based on
> the Nuclear Power industry.  The movie will take $3-6M (more if A-list is
> attached) and I'm working on raising $1-3 from wealthy industry insiders
> (akin to "branded" feature).
>
> Once I have that, what's the next step?  Finance will be tough given I don't
> have a track record.  So do I try and sell the partial package or look for a
> Co-Producer?  I've only got "interest" from top talent since I can not yet
> "pay to play" at this point.
>
> Thanks.
>
> Chad.
>
>
>  ________________________________
> Yahoo! Photos
>  Got holiday prints? See all the ways to get quality prints in your hands
> ASAP.
>
>
>  SPONSORED LINKS
>  Documentary filmmaking Film financing Private investor
>  Filmmaking
>
>  ________________________________
>  YAHOO! GROUPS LINKS
>
>
>  Visit your group "Film_F_and_I" on the web.
>
>  To unsubscribe from this group, send an email to:
>  Film_F_and_I-unsubscribe@yahoogroups.com
>
>  Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
>
>  ________________________________
>

Chad, if you can get $3M just from your script, it shouldn t be an
issue to get talents attached and if your partners are "insiders" they
can probably will hook you up on Gap financing.

Best of luck

Vincent.

On 1/18/06, Dorez D <dorezd@...> wrote:
>
> I've co-produced a project with private money and I can tell you, it can be
> a bigger hassle than it's worth.  But, the money was completed and was
> purchased by Blockbuster.  I wasn't the one who secured that deal, so I
> can't shed any light on how it worked.
>
> I've also known people who sold a script and then used the money to produce
> an ultra-low budget project.  I think that's a great way to launch your
> career as a producer.   So, Chad, I think your idea is a good one.
>
> - Dorez
>
>
> ----- Original Message -----
> From: Chad Sekerchak
> To: Film_F_and_I@yahoogroups.com
> Sent: Wednesday, January 18, 2006 7:01 PM
> Subject: Re: [Film_F_and_I] Re: Great question to start the forum
>
>
> Hey Lawrence.  I'm at the exact spot as you. A screenwriter.... learning the
> production side.
>
> I've started a ProdCo as a DBA under another one of my companies.  But I
> have decided that either: 1) I sell (not option) one of my scripts this
> year, or 2) produce one of them myself.  And if I sell one, I'll probably
> take the money and write a cheepy script and produce it as well...
>
>
>  ________________________________
>  Yahoo! Photos
> Got holiday prints? See all the ways to get quality prints in your hands
> ASAP.
>
>  ________________________________
>  YAHOO! GROUPS LINKS
>
>
>  Visit your group "Film_F_and_I" on the web.
>
>  To unsubscribe from this group, send an email to:
>  Film_F_and_I-unsubscribe@yahoogroups.com
>
>  Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
>
>  ________________________________
>

----- Original Message -----

From: Chad Sekerchak

To: Film_F_and_I@yahoogroups.com

Sent: Wednesday, January 18, 2006 7:01 PM

Subject: Re: [Film_F_and_I] Re: Great question to start the forum

Hey Lawrence.  I'm at the exact spot as you. A screenwriter.... learning the production side.

 

I've started a ProdCo as a DBA under another one of my companies.  But I have decided that either: 1) I sell (not option) one of my scripts this year, or 2) produce one of them myself.  And if I sell one, I'll probably take the money and write a cheepy script and produce it as well...

 

---

Yahoo! Photos
Got holiday prints? See all the ways to get quality prints in your hands ASAP.

I'm pretty new to the whole film financing area. I'm a screenwriter
so my job was always one of writing something that had either got
the finance or of submitting specs to my agent who used it to get me
jobs on other projects. I of course grumbled that he should be
finding directors and producers wanting to do my script but that's
another story.

The point is, as a screenwriter you can be pretty removed from the
whole business side of the equation. So I'm trying to catch up
quick.

As far as I can work out there are only a small number of strategies
that really work and anyone who manages to raise money by other
means is just lucky.

So, you apply for grants from, in the UK for instance, the Film
Finance board. You seek out co-producers with track records and most
importantly production funds to invest. You look for distribution
deals to secure gap funding with the few banks specialising in this.
And if you have private sources of investment then throw them into
the mix as well.

Somewhere in there you need to have a package put together in order
to secure the distribution deals.

I've put in applications for grants. That's relatively easy if
you've a script that people like and it fulfils local production
requirements. Whether you get the grant is another matter. But
applying is simple.

I've been talking to potential co-producers and distributors and
have come up against the fact that I don't have the package locked
in. I have a wish list of cast and directors but nobody committed.

I've been saying that we should contact ICM, as they seem to be the
agents of most of the guys we're interested in, but the co-producers
who we're been talking to have been telling us not to. They warn of
the costs of this. They also warn that distribution deals are not
happening nowadays and that private funding is the only way to go.

So they say one: they "know" the people we'd like to attach, and
two: they will go to private investors.

Now... I talked to guys from the banks and they tell me this is
crap. That private sources have a habit of being flakes and jumping
as soon as you request the money to start shooting. Or worse you
start shooting with one guys money hoping the others will start
paying and you end up running out of money on the first week. And
that unless these producers are cousins or sleeping with the people
we're after, they are bullshitting. Why they would do this is a
mystery to me but I suspect most producers are bullshitters and if
they aren't they should be. The problem is, some just don't know
when to stop.

Now, your experience would indicate that getting an agent involved
in the packaging was the way to go.

Of course ICM might well tell us to get lost but if we don't
approach them we will never know.

So... advice here:

Does what I say make sense? Does it chime with other's experience?

Is the Agent and pre-sales agreement the only way to go?

What's the best way of approaching the Agent? I have a script
essentially and that's it. But I don't want to just sell  it on and
take a screenwriting fee. Especially since most producers actually
aren't producing anything much and you can end up selling a script
to someone as clueless as me and never see much more than the
derisory option money. Been there, done that, and decided I'd have a
go at production myself.

So what's the deal then? Which order should I do things? What do I
need? What will it cost me other than my sanity? Sanity I can afford
to lose, money I can't.




--- In Film_F_and_I@yahoogroups.com, "Bill Baker"
<OnTheFastTrack01@a...> wrote:
>
> To all,
>
> Sam has posed a good question which brings me to my request.  I
would
> like to see the forum dialogue begin with everyone throwing out
their
> ideas and methods for raising film finances, the pitfalls
associated,
> what worked and what didn't etc...
>
> An anecdote from my experience, I was working with the writer and
> director for an Indy comedy last summer.  We were in negotiations
> with 3 groups of private investors.  One turned out to be a flake,
> the other two only had 1/2 of the investment needed.  We had a
time
> schedule due the directors commitments on another show so we were
> running out of time.  In the end, Screen Gems worked a deal with
> Columbia Tri-Star and we started production immediately.  One of
the
> key figures in the deal was the agent of our director who was
pushing
> the studios to give her client his directorial debut.  In the end,
> the agency, being high profile, sealed the deal for us and the
film
> is in post right now.
>
> Any others have stories to share?
>
> Bill Baker
> Fast Track Entertainment Group
>

Basically, you invite folks with means to a party, pitch them, and have
materials there for them (script, investment contracts, fact sheets,
etc.). I show my reel and my DP's reel, to give them a taste of what
the feature might look like.

But check with your lawyer about Securities Commission stuff. You can
only make so many "Public offerings" legally. And the folks have to
have means, or it's not cool. So the parties have to be on the small
side.

Good luck,

Corrie Moore
http://www.thedarkhorsemovie.com

On Jan 18, 2006, at 6:03 PM, Film_F_and_I@yahoogroups.com wrote:

>  Date: Tue, 17 Jan 2006 22:13:29 -0500
>    From: Steven Gladstone <Steven@...>
> Subject: Re: Need advice in regards to raising  money..
>
> I've heard of funding parties, but I'm not sure how they work.
>
> Can someone enlighten
>
>
> --
> Steven Gladstone
> New York Based Cinematographer
> Gladstone Films
> www.gladstonefilms.com
> 917-886-5858
> CML East Coast List Administrator
>

I've heard of funding parties, but I'm not sure how they work.

Can someone enlighten


--
Steven Gladstone
New York Based Cinematographer
Gladstone Films
www.gladstonefilms.com
917-886-5858
CML East Coast List Administrator

To all,

Sam has posed a good question which brings me to my request.  I would
like to see the forum dialogue begin with everyone throwing out their
ideas and methods for raising film finances, the pitfalls associated,
what worked and what didn't etc...

An anecdote from my experience, I was working with the writer and
director for an Indy comedy last summer.  We were in negotiations
with 3 groups of private investors.  One turned out to be a flake,
the other two only had 1/2 of the investment needed.  We had a time
schedule due the directors commitments on another show so we were
running out of time.  In the end, Screen Gems worked a deal with
Columbia Tri-Star and we started production immediately.  One of the
key figures in the deal was the agent of our director who was pushing
the studios to give her client his directorial debut.  In the end,
the agency, being high profile, sealed the deal for us and the film
is in post right now.

Any others have stories to share?

Bill Baker
Fast Track Entertainment Group

Sam,

Can you be more specific with what type of project you have, who your
audience is and how your project will recoup the investors investment.

Bill Baker
Fast Track Entertainment Group


--- In Film_F_and_I@yahoogroups.com, "samheer2005" <samheer@p...> wrote:
>
> Hello everyone,
>
> I'm new to the group.  I was wondering if anyone could talk to me
> about raising money for a project I'm working on.
>
> Trying to see if I missed any new avenues.
>
> Thanks,
>
> Sam Heer
> Producer
>

Hello everyone,

I'm new to the group.  I was wondering if anyone could talk to me
about raising money for a project I'm working on.

Trying to see if I missed any new avenues.

Thanks,

Sam Heer
Producer

FREE SCREENING TONIGHT

"On The Outs" Kicks Off The 2006 LatinoWood® Film Series

TIME: 7:00 P.M.
SAG Theater
5757 Wilshire Blvd.
Los Angeles, CA 90036-3600

Latin Heat VIP members should RSVP at rsvp@.... SAG members are on a
first
come first served basis. *Now open to general public - SAG and non-SAG, all
industry
professionals*

Hollywood, CA -- Latin Heat Entertainment, a multi-media company and the Screen
Actors
Guild team up to present the 2006 LatinoWood® Film Series. The purpose of this
film
series is to promote Latino talent in feature films and to promote Independent
Latino
filmmakers and their projects. Since most of the films being made by Latino
filmmakers
fall under the low budget independent film realm this series will help create a
buzz.

The first up in the Latin Heat/SAG 2006 LatinoWood Film Series is On the Outs
produced
and directed by Michael Skolnik and Lori Silverbush who also wrote the
screenplay. The
film stars Judy Marte (Raising Victor Vargas), Anny Mariano (Making her film
debut) and
Paola Mendoza (Yo Soy Latina) who is also credited with co-creating the project.
On the
Outs is a provocative, hard-hitting look at three young girls from the same
neighborhood
who make all the wrong choices for reasons even they don't understand. A
fictional film
based on real stories of girls from the streets and juvenile jail who lent their
voices and
unique stories to the filmmaker, On the Outs represents girls everywhere who
struggle
with all of the highs and lows of teenage life in an inner-city world that make
its own
rules.

On the Outs takes a long hard look at the lives of young people in America today
and the
family and social environments that shape their choices and the worlds in which
they live.

It is a well know fact that low box office results are detrimental to the
success of a film
and without proper marketing and promotion, many excellent films cannot survive
in this
highly competitive market. Unfortunately, we tend to find this phenomenon very
common
among Latino films in particular because of the lack of support from the studios
putting
their marketing dollars behind them. It is for this reason that Latin Heat and
SAG believe
that by increasing awareness of a film by reaching out to the community will
greatly
improve the films box office numbers and in turn make a statement about the
Hispanic
market and their demand for more Latino films.

All screenings will feature a Q&A session with the filmmakers and a reception if
and when
time and space permit. All SAG members will be invited to attend and admitted to
the
screenings free of charge. Latin Heat VIP members will also be able to attend
the
screenings free of charge.


Pura Vida,

Henry K. Priest
Nosotros American Latino Film Festival
Festival Director

The new motion picture tax incentive law in Belgium apparently lets
investors deduct 150% (that's one hundred and fifty percent!) of their
film investment from their tax bill, essentially making it impossible
to lose money on a production that's shot there.  And, as I read the
law, it applies to productions originating in any country, as long as
most of the production principals are hired from the Belgian film
community, and it's physically shot there.  The country has a long
tradition of very high-level filmmaking, but it would never pass for
Southern California for beach flicks.  Still... has anyone had any
experience with the law, and can vouch for my reading of it (or point
out the hidden stiletto)?

Hello,

This email message is a notification to let you know that
a file has been uploaded to the Files area of the Film_F_and_I
group.

   File        : /USIncentivesrev091604.doc
   Uploaded by : onthefasttrack01 <OnTheFastTrack01@...>
   Description : State by State Incentives

You can access this file at the URL:
http://groups.yahoo.com/group/Film_F_and_I/files/USIncentivesrev091604.doc

To learn more about file sharing for your group, please visit:
http://help.yahoo.com/help/us/groups/files

Regards,

onthefasttrack01 <OnTheFastTrack01@...>

Thank you to all who have joined.  Please spread the word.  I will be
up0loading info to files section and I encourage everyone to do so.
The information we want is anything related to the finance world.
Important news articles, lists of helpful links, boiler plate financing
or distribution contracts for those who may need to compare language.
Even individual producing contracts are ok, as long as it pertains to
this group.

The first set of documents will be information regarding federal tax
incentives as well as state by state incentives.  Please remember that
you should contact your tax attorney regarding any of this info prior
to making decisions.  As we always need reminded, protect yourself and
your production.  Enjoy!

Bill Baker - The Mod
Fast Track Entertainment Group

Hello,

This email message is a notification to let you know that
a file has been uploaded to the Files area of the Film_F_and_I
group.

   File        : /AFMQ&A11-4-04.doc
   Uploaded by : onthefasttrack01 <OnTheFastTrack01@...>
   Description : Federal Tax Info sheet - DGA and Independent Film & TV Alliance

You can access this file at the URL:
http://groups.yahoo.com/group/Film_F_and_I/files/AFMQ%26A11-4-04.doc

To learn more about file sharing for your group, please visit:
http://help.yahoo.com/help/us/groups/files

Regards,

onthefasttrack01 <OnTheFastTrack01@...>

Hello,

This email message is a notification to let you know that
a file has been uploaded to the Files area of the Film_F_and_I
group.

   File        : /Chairman'sMarkHR4520-10-05-04.doc
   Uploaded by : onthefasttrack01 <OnTheFastTrack01@...>
   Description : HR 4520 part 1

You can access this file at the URL:
http://groups.yahoo.com/group/Film_F_and_I/files/Chairman%27sMarkHR4520-10-05-04\
.doc

To learn more about file sharing for your group, please visit:
http://help.yahoo.com/help/us/groups/files

Regards,

onthefasttrack01 <OnTheFastTrack01@...>

Here is a link to a conference at the end of Jan 2006 in Los Angeles
for the Atlas Information Group film financing conference.  Members
that attend should give their feedback to the group and also try to
spread the group name to other professionals.

http://www.atlas-sfi.com/film05/index.htm

Sincerely,
Bill Baker - The Mod

To all who have chosen to join this group now and in the future,
welcome.  Your input is appreciated and encouraged.  Let's get the
dialogue started and please do not hesistate to invite anyone you feel
would benefit from this group.

Best Regards to all,
Bill Baker - The Moderator
Fast Track Entertainment Group