Legal Question in Entertainment Law in New York
financing a movie
An attorney that I know has contacted me for help in obtaining financing for a $10M movie. I know a Hollywood producer who is interested in the project & investing $1M. As a broker, what is a standard written contract that I should enter into? Percentage of the $1M? From both parties? Points on the movie etc?
5 Answers from Attorneys
Re: financing a movie
The information you requested can be obtained by schedualing a consultation with a competent entertainment/sports attorney.You will most likely get a referral or finders fee. I can handle the legalities. Contact my office to set up a consultation.
Re: financing a movie
I agree with the other answers, there is no "standard" and you should hire counsel to draft the agreement. (There is alot to think through legally and practically)
That said, the range is probably 1-10% and I would ask for at least 7% ($70k) and not settle for less than 3 ($30k).
Re: financing a movie
These are all good answers. We can all assist you in drafting this agreement. Our office also has a CA attorney so you'd have NY and CA covered because both state's laws could be relevant in this matter.
Re: financing a movie
Basically, you're asking for an attorney's stock in trade and, in my view, your question(s) should really be answered within the scope of a retainer agreement. There are no standard written contracts for this of which I'm aware. The kind of money you would get as a "finder" would more than cover your attorney's fees.
Re: financing a movie
There is no standard contract for this but "getting points on the film" is unlikely (and may not be a good deal for the broker). The standard way for a finance intermediary to be compensated is to receive a commission on the amount of capital raised (on or after the closing of the transaction) from the film producer/production company. Percentage points vary depending on the amount raised, how eager the film producer is for additional funding and other factors but almost anything is negotiable. You would do well to protect your finder's fee here before introducing the potential investor to the film producer.
Contact a business attorney to assist you with drafting and negotiating a broker agreement if there is a potential for a deal here.