I know it's a flop on Broadway, and will be a difficult show to tour. So, blaxx, if I'm understanding correctly, an investor might receive back a portion of their initial investment, but, more than likely, no profit, correct? Would it be possible for an investor to not receive any return on their investment and lose everything they've invested?
Yeah, I doubt the Rocky investors will see any of their money back. Pretty much anyone who invests in a show should consider that investment a charitable donation to the arts. Most shows on Broadway don't recoup.
"You drank a charm to kill John Proctor's wife! You drank a charm to kill Goody Proctor!" - Betty Parris to Abigail Williams in Arthur Miller's The Crucible
"Would it be possible for an investor to not receive any return on their investment and lose everything they've invested? " When we say a show flops, that's what it means.
"Look smart ass, if I was a position to ask them, I would. I'm asking here. And regardless of whether or not I know someone who invested, I'd still like to know how it works. So, if you don't know or want to answer the question, then kindly have the common courtesy to keep your snide and useless comments to yourself."
neonlightsxo wrote: "Would it be possible for an investor to not receive any return on their investment and lose everything they've invested? " When we say a show flops, that's what it means."
Actually, not necessarily true. Variety will define a "flop" as anything that doesn't recoup its investment. But not recouping its investment does not mean that the investor didn't receive some portion of their investment back.
In Rocky's case, I do believe the Broadway investors will lose all of their money -- perhaps making it a "major flop" -- but in any number of other instances, a show will still be officially labeled a "flop" despite having returned a significant percentage of the original capital to the investors.
"No matter how much you want the part, never let 'em see you sweat." -- Old Dry Idea commercial
The original Jekyll and Hyde was a 'flop' despite running so long, I understand that it did make most of its money back and would certainly of recouped on the road.
If a show is making weekly operating losses (as posters often suggested this one was)how is that generally funded, is it out of a contingency in the original budget and what are they typically?
Why don't you go? Why don't you leave Manderley? He doesn't need you... he's got his memories. He doesn't love you, he wants to be alone again with her. You've nothing to stay for. You've nothing to live for really, have you?
If a show is making weekly operating losses (as posters often suggested this one was)how is that generally funded, is it out of a contingency in the original budget and what are they typically?
Often when a show is capitalized, the producers will hold a certain amount of money in reserve to cover weeks when the show doesn't make its nut. However, if the show is constantly operating at a loss week after week, that reserve doesn't last very long.
"You drank a charm to kill John Proctor's wife! You drank a charm to kill Goody Proctor!" - Betty Parris to Abigail Williams in Arthur Miller's The Crucible
It's not often publicized if any payments are made to investors. It's certainly possible for them to lose everything. There is a long path between losing everything and breaking even. If I invested a million bucks, I'm gonna be pretty bummed even if I get 750K back. Sure, it could be worse, but oh, that 250K that I lost is still going to hurt.
If we're not having fun, then why are we doing it?
These are DISCUSSION boards, not mutual admiration boards. Discussion only occurs when we are willing to hear what others are thinking, regardless of whether it is alignment to our own thoughts.
Actually, considering "If/Then" swapped Tuesday for Sunday night, they did well this week, only dropping $27,000. The Sunday night performance was an unknown, likely close to a secret kept from audiences (it wasn't heavily advertised, certainly). One might assume the other 7 did rather better to compensate. $27,000 is peanuts on B'way.
"I'm a comedian, but in my spare time, things bother me." Garry Shandling
The costs of a load out after a show closes are pretty high. The Rocky producers lost everything as did the producers of Bullets. I would say close to 40 million for both when all is said and done.
Depending on the the agreement, investors sometimes receive a piece of the profit from subsequent productions (touring and even regional licensing). I have known investors who lost money on the Broadway production but gradually, over time, did make back their money in this way.
^ I doubt if the percentage the originating company gets from a road company is large enough to recoup a total loss unless that road company was out on the road for years. If they got most of their money back and only lost a small percentage on Broadway the road could make them whole.
I think that's true Up-In-One. In the example I site, which was a modestly budgeted show on Broadway, this investor actually ended up making his money back partly through a tour, but mostly through regional licensing (the show he invested in became a hugely popular title on the amateur/high school circuit). Extremely rare, but it can happen. In the case of ROCKY, this is of course a very unlikely scenario.
Unless the investors also put money into that German production I can't imagine how a contract could be worked out that would give them any profit-share in a pre-existing production that they didn't invest in. While some of them (probably based on the amount they invested) may have some future subsidiary rights I've never heard of subsidiary rights being retro-active.