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Chapter 93 Business Operations

"Priority right?" Alan Shane's face was not very good: "Why?"

Luo Nan knew very well that during negotiations, he could not raise all the conditions at once, as it would break the other party's psychological bottom line, but would force the other party's psychological bottom line back little by little.

To be honest, with the budget of three projects delineating, $1.5 million is not a small number for him.

The pressure to split the $1.5 million is much less.

Ronan smiled and said, "First, I am still conducting research on this project, and second, the funds on hand cannot be turned over for a while. Trading with the right of first refusal is beneficial to both of us."

This is also a common model in Hollywood.

The producer or production company discovers that novels, scripts or other valuable literary materials can be used to pay a small amount of money in advance to buy them at one time, which can effectively alleviate the pressure on funds and increase the room for profit for the company.

Perhaps the previous bargaining lowered the psychological bottom line, or perhaps this kind of trading method is more common, Alan Shane did not refuse at all and asked: "What are your conditions?"

“We signed a priority purchase agreement,” Ronan said. “I pay your company ten percent of the sales fee, which is a $150,000 upfront fee.”

The right of priority refusal is exclusive and irrevocable, which means that during the contract period, others can no longer obtain the item that he has booked.

In this way, only $150,000 was spent, but for some time to control the copyright of "Borne's Identity".

Alan Shane was thinking, and Ronan said: "In the next 18 months, this work will be officially launched, and I will pay the remaining 90% of the fee."

Seeing that Alan Shane didn't say anything, Ronan continued: "This is a win-win transaction method. If the 18-month film cannot be established, the 150,000 USD advance payment will be yours, and you can continue to retain the copyright."

Alan Shane thought for a while and retorted: "18 months are too long, up to 12 months. In addition, this $150,000 is only considered a deposit and does not include future buyout fees."

Ronan calculated in his mind and said, "There is no problem for 12 months, but I requested to have the right to extend the authorization period. The 12 months expire. If the project has not been established, I will pay another $150,000 to extend the period of 6 months."

This is also to prevent it, he refuted the latter condition: "$150,000 will be included in the $1.5 million buyout fee."

When negotiating the right of first refusal, you must negotiate the future buyout transaction price, otherwise the copyright holder will only cry if he temporarily raises the price.

Alan Shane is also a veteran in the industry. He did not get involved in this. He changed the conditions he had not mentioned before: "I require the project prize and box office share." He spoke out loudly: "If you need to pay me $200,000 in project prize for the film. In the future, I will require a box office share of 5%."

After hearing this, Ronan could roughly guess that this was probably what Alan Shane said before.

Ronan shook his head firmly: "You are not the original author, and you cannot enjoy project prizes and box office sharing."

"But the copyright is in my hands." Alan Shane said.

Ronan sighed: "Since that's the case, then keep it in your hands. Anyway, you have been there for 13 years."

Alan Shane couldn't find any rebuttal for a moment. After being exposed, a copyright that had been held in his hands for 13 years really couldn't give him enough confidence.

"We each take a step back." Ronan gave the sweetness in time: "$150,000 as advance payment. When the project is established, you will pay your copyright buyout fee of $1.5 million."

Alan Shane's conditions were originally used for bargaining, and he frowned and thought.

Ronan showed an impatient expression at the right time.

Alan Shane Productions spent $300,000 to buy the 20-year film and television copyright of "Borne's Identity" in 1986. Ronan doesn't know much about the depreciation of the US dollar. It is estimated that the other party should make a profit of about $1.5 million.

Just like he wouldn't be stupid enough to negotiate a box office share contract with Alan Shane, no one is willing to do a losing deal.

Seeing that Ronan was impatient and thought that the copyright was suppressed for 13 years, Alan Shane made a decision: "As a prepayment, you should pay a copyright buyout fee of $1.5 million when the project was established. In addition, you have a 6-month extension of the authorization period, but you need to pay an additional $150,000."

Luo Nan stretched out his hand: "One word is certain."

Alan Shane shook hands with him: "Happy cooperation."

The two company leaders agreed on the most critical copyright fees, so the following people naturally discussed the small matters. After just three days, the two parties signed a formal agreement and filed a copyright change in the copyright office.

Various copyright changes in Hollywood must be registered accordingly, and the Copyright Office is the only agency recognized by law.

For example, a script is only registered with the screenwriter's union. Once plagiarism or other infringement is involved, the screenwriter's union's filing has only industry utility and cannot be used as legal evidence.

As the copyright purchaser, Shahai Entertainment borrowed US$150,000 from Relativity Entertainment through loans, and paid the advance payment on the day the contract was signed.

Of course, Shahai Entertainment will definitely raise funds through borrowing and borrowing.

As for the interest rate of loans, it is not high, with a fixed interest rate of only fifteen percent.

This is also the loan interest rate commonly used by major Hollywood companies on the left and right.

Compared to those like "Nine Outs and Thirteen Returns", they are very conscientious.

Unfortunately, whether it is Shahai Entertainment or Relativity Group, its scale and capabilities are currently limited, and some things can only be used for overseas investors.

Therefore, Ronan's plan to solve the funds for this project is still resolved overseas.

The copyright of "Borne's Identity" has just been obtained, and it is still far from the project establishment. Mary has already started to make accounts with the newly expanded finance department staff.

With three financially independent companies in hand, the operating space has been further increased.

After obtaining the copyright, the project is temporarily included in the copyright library and will be operated later.

George Clint reminded me very well. Ronan himself also has a clear understanding that the resources under his command are almost at their limit, and it is impossible to operate a major project like "Spy Shadows" at the same time.

Ronan's main energy is devoted to the two projects of "Blair the Witch" and "The God of Death is Coming". The destined defeat "Ace Agent" has less energy to be invested, and more to George Clint and Paul Greengrass.

This is also an intentional training for George Clint. If the company grows bigger in the future, he will not be a producer for every project.

It was soon March. After the 1999 Oscars, public opinion across the United States was in an uproar, and they unanimously criticized the Oscars for their best film and best actress in the past decade.

As an insider, Ronan saw a classic business operation case from the chaos.

"Shapes' Love History" and Gwyneth Paltrow's success have nothing to do with the art of film, but a very successful business operation.

The success of this operation is enough to bring tens of millions of dollars in profits to the producers one after another.

Ronan plans to join this Oscar game when he has the ability in the future. Maybe he can make a lot of money and win a few best actresses.

There is another news circulating in secret. In order to impress Harvey Weinstein, the best supporting actress Judy Denqi tattooed the name of the Jewish fat man on her butt. It is said that she took off her pants in the private room and let Harvey Weinstein see it personally.

In contrast, I strictly control the audition check and refuse bad temptations with great righteousness. I am really a decent person.

But Ronan doesn't know how long this style of decent people can last, but he is very clear that when a person is not tempted, the temptation is often not big enough.
Chapter completed!
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