Chapter 181 Small Group
In just two days, Ronan received a call from Hassan and others, and they will cooperate with Shahai Entertainment again to invest in the "Deadly Bend" project, with the total investment of the three people reaching US$20 million.
On the day of settlement of the investment income of "The God of Death", Hassan and the other two also signed a formal investment agreement with Shahai Entertainment.
“Happy cooperation.”
“Happy cooperation.”
Accompanied by the applause, the two parties officially signed a contract.
Ronan shook hands with Hassan, Hussein and Aziz one by one, and said, "This will be the same successful cooperation as the previous two times."
Hassan said with a smile: "It must be."
In the past two days, he learned through various channels that Shahai Entertainment was not affected by the Abu Dhabi Investment Bureau, and its scale has expanded rapidly in the past two years. Ronan Anderson also acquired another film company and its development was very smooth.
The Indians are also working with Shahai Entertainment, and this is also confirmed.
Then, he specially found an Arab lawyer in Los Angeles, consulted some legal issues, and asked the other party to help review the contract and settlement statements, confirming that they all comply with laws and regulations.
The income of "The God of Death is Coming" is much lower than that of "Human Purge Plan", but when I think about the average profit margin of Hollywood movies I know and my years of experience in doing business, the profit margin of 30% is not low.
The average profit margins of import, export and processing industries that the three of them do are less than 10%.
As the two parties signed a formal investment contract, Hassan and others invested $15 million in "The God of Death", plus a profit of $4.5 million, totaling $19.5 million, all of which were invested in the "Deadly Bevel" project.
After signing the agreement and completing the subsequent procedures, the three of them returned to Abu Dhabi with satisfaction.
"Not only did they not take away $19.5 million, they also left $500,000." In the office, George Clint said with a smile: "Ronan, it's better you think of this."
Mary was very calm: "This is not our fund after all."
Ronan said calmly: "If "The Deadly Behind" can be successful and their cooperation with us three times in a row, will they continue to cooperate next?"
George Clint thought for a moment and said, "If it were me, I would definitely continue to cooperate."
Mary understood what Ronan meant: "Can this fund be left in our account for a long time?"
"Yes." Ronan said slowly: "For investors, this is just a number, but it is a real financial support for us. If one day they don't want to work with us anymore, there will be a movie that will suffer serious losses."
George Clint laughed: "Like Agents?"
Ronan didn't speak, but his meaning was very clear.
Mary is the financial director of Relativity Entertainment and knows very well what "Ace Agent" is. The funds invested by the Abu Dhabi Investment Bureau in this project are actually transferred to the legitimate income of Relativity Entertainment's extremely affiliated companies in the process of filming, shooting, production, publicity and distribution.
This is not money laundering, but normal business operations.
“Isn’t the initial budget of “The Deadly Bell” $10 million?” asked George Clint. “Now I’ve got $20 million in investment…”
Ronan thought for a moment and said: "The production budget for this project has been increased to $25 million. We actually invested $10 million in production, and the other $10 million... When this film is released in the future, the promotional budget will be borne by Shahai Film and the promotional cost will be merged into the cost."
Mary and George Clint also agreed with this approach.
This is one of the cost calculation methods that Hollywood often uses. The cost of some movies is not only about production costs, but also about promotion and distribution costs.
For example, some movies have huge investments and the prospects for films are promising. Film companies like the six major companies that integrate production, publicity and distribution can combine promotional expenditures into costs, thereby increasing their share of total investment and enjoying more profit sharing.
For example, the six major companies are very good at promoting the incorporation costs, interest incorporating costs, over-budget fines incorporating costs, etc., and they are all legal means.
Ronan also said: "Once the project is established, Shahai Entertainment's operation and daily expenses will all go to the "Deadly Behind" account."
This project has no third-party guarantees and no financial supervisors.
This is also the reason why Ronan tried his best to continue working with Hassan and others. Compared with Indians who understand the film industry, these Arabs who hovered in front of the film industry are the best Hollywood film investors.
After Mary and George Clint left, Ronan couldn't help but think of an indescribable country far away on the other side of the Pacific. It seems that coal bosses have embarked on the road to becoming rich. These people know less about Hollywood, right?
Then, he forced himself to stop thinking about it.
The risks involved in matters over there are too many.
Maybe we can set up an embassy film office there first? After all, the film market there will be unlimited potential in the future.
Polykin Film previously had a branch in Hong Kong City. After Embassy Film accepted their distribution department, it also set up a branch office in Hong Kong City, which can recruit people who really know about it, go north to the indescribable city and set up a branch office first.
Maybe the films released by Embassy Pictures can appear in the theaters there.
There is no need to think about these horror movies, "The Spy" should have some hope.
Although only 13% of the box office share, no matter how small it is, it is meat.
Besides, we can also make more preparations for the future.
Ronan was not going to deal with this matter himself, so he called Robert Lee. When he and Danny Donald arrived in Port City, he chose or recruited the right candidates on the spot. Then, relying on Polykin's relationship that had been rooted in Port City for many years, he went north to the indescribable city, established a branch office for the Embassy Films, and then made a good relationship with the indescribable scissors as much as possible.
There is also China Film Group.
In this era, most of the power to introduce foreign films was in the hands of this company, and the annual amount in Hollywood was limited.
With the funds in place, preparations for "The Deadly Bend" are also accelerating. Ronan has activated George Clint's deputy Sandro as the production manager of the crew, hired Dustin, who had previously worked with Shahai Entertainment to shoot videotapes as the deputy producer, and met with the Caa agent Tom Cruise contacted.
Afterwards, Ronan met Guilmo del Toro. After talking several times, both sides were quite satisfied with each other and signed a formal director contract.
Caa also actively promoted this cooperation.
Anyone can see that Shahai Entertainment is developing rapidly now, and it belongs to the new territory of Hollywood. Naturally, the agency will not miss such emerging resources.
Ronan will not refuse to cooperate with any brokerage company, the best conditions are the most suitable business partners.
Gilmore Del Toro is very good at horror films, and his pay is not expensive, only $800,000. In addition to the standards set by the director's union, there is no later share.
The current gyroscope director is far from the future Oscar winner.
Since the film requires some young actors and actresses with outstanding appearance, Caa recommended a group of them to Shahai Entertainment, but Ronan did not refuse. These are all potential actors signed by Caa. The conditions are guaranteed and the pay is not high. As long as the audition is appropriate, you can use it directly.
This can also reduce the heavy work of Shahai Entertainment and his producer.
The "Spy Shadows" project is collaborating with William Morris, and "The Deadly Behind" mainly collaborates with Caa. Future projects may also be able to cooperate with other brokerage companies.
Ronan's career territory is expanding step by step.
Relativity Entertainment and its two subordinate companies also settled their revenue for fiscal year 1999.
During this year, Shahai Entertainment filmed two films: "The God of Death" and "Ace Agent"; Embassy Pictures released three films: "The Witch Blair", "The Agent" and "The God of Death"; Relativity Entertainment, as a holding company, mainly provides loan support to the two subsidiaries.
Since the videos cannot be released overseas for the time being, all the copyrights of these three films are sold out at one time, including "Blair the Witch" $50 million, "The God of Death" and the other two videos $50 million, and "Ace Agent" $10 million.
In North America, Embassy Film's release of films has brought diversified revenue, including theater screening revenue, videotape and DVD rental revenue, paid TV revenue, free TV revenue, Internet copyright revenue, and a small amount of copyright revenue from film derivatives.
In addition, a company is talking to Shahai Entertainment about the possibility of gamification of "The God of Death", and this video can also achieve game copyright revenue in the future.
There is also the copyright of the sequel to "Blair the Witch", which was sold to DreamWorks by Ronan for $12 million.
Then there is offline market revenue, whether it is TV copyright, video tape or DVD rental and sale, there are funds that are being recorded continuously.
Although it cannot be compared with the six major Hollywood companies, and it is even worse than DreamWorks, after Ronan worked hard for two years, the film company in his hands has grown from a videotape film company that was in debt and faced bankruptcy dilemma to a small group company with a simple industrial chain.
Among them, the most important thing is to take over Embassy Film and establish its own distribution channel.
The publisher can participate in the movie box office sharing, the family entertainment sharing represented by videotapes and DVDs, the TV broadcasting sharing and various other royalties sharing.
Compared with producers, publishers are always the first to recover the cost of investment and are the first to receive a considerable distribution fee before box office and other revenue flows into the hands of producers or other agents.
Chapter completed!