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Sunday, April 14, 2019

Short Post on Hard Costs

Just to set the record straight from previous comments about one of the main reasons entertainment banks ignore film budgets under 10m.The traditional finance model (via senior banks and mezz lenders) does not willingly service films with budgets under $10m because there are numerous hard costs that (as a percentage of budget) cannot be reasonably sustained by low budgets.

Why Films Under $2m Can’t Catch a Break

Something that bigger-budget producers unknowingly take for granted is the availability of different types of financing. But any ultra low budget producer (under $2m) can tell you with frustrating familiarity that they can fit their financing structure on a postage stamp.

All Lawyers are Not Created Equal

You can find good lawyers at all size firms and you may even know some (or be related to some, I know I am). However, even within the entertainment business not all lawyers are created equal.

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