The problem of raising money for a producer who wants to restart a rotating project is greater than that of regular production. You have to pay to get the property under the control of the current owner. The price tag is more than the cost of buying the original property. The previous producers spent a lot of money themselves before they stopped production, and if there is an opportunity for them to get that effort back, they will try. That`s where it can get sticky. A clean and clear accounting of past expenditures is necessary to know what debt is legitimate for the present value of production and what debt, if any, was totally external, reckless, or even the cause of the shutdown of production (was it really necessary to spend money for it?) This is usually a walk on the eggshells to navigate a tight proposal to reach a point where the original producers do not feel their original investments were in vain or are deceived, but also, does not overwhelm new producers with debts too high to recover the assembly of a new production. The original author of the novel, frustrated, adapted his own novel and submitted it to the studio. They loved him, but a lot of time passed, nothing happened, and it was restarted. Our turnaround specialists in our global network understand the risks and benefits of a big turnaround. We have the methods tested, combined with our deep knowledge of the industry and the foresight that comes from experience to help you quickly stabilize your cash position and liquidity and identify pockets of value. A novel was published in the mid-1990s and became a bestseller. A studio paid a small fortune and bought the book. For several years, they recruited writers who adapted the book, but the studio never advanced to take the picture.
You made it change its state. No other studio has recovered it. It`s hard to return a movie. It`s possible. But it`s not easy. With planning, attention to detail and a little luck, a great movie can come out of its ashes like a phoenix. As the song says, from time to time… Turnaround.
But as usual… That depends. So why would a studio ever want to enter into a rotation agreement, since the total purchase price was already paid? A stock speculator can benefit from a reversal of the trend if he or she specifically anticipates the improvement of a company that does not have results. However, a rotation agreement is only applied after the purchase of the work by the studio or the production company. In other words, the purchase price has already been paid and now the studio is the owner of the work. The price to pay for the rotation is indicated by the rotation agreement, but is generally more than the initial payments to the scribe for the option and purchase. How much more will be done by the first negotiations of the writer or his agent or lawyer when the studio bought the script in the first place. Thanks for a great question about a very complicated part of the options purchase process.
While the terms of a rotation agreement can vary considerably from project to project, as it is up to the author to first negotiate a rotation agreement as part of the purchase of the property, there are many elements that share most of the rotation agreements.