I'm really surprised that no one has mentioned this yet, but it sounds pretty interesting. I'm not sure how well it will work, but props to Ken Davenport for thinking out of the box and trying something completely new and original in terms of producing.
To be fair, he's quite careful to say only that an investment unit is $100. That's not the same as saying that the minimum investment is $100. The minimum investment is in fact 10 units, and therefore $1,000.
A little nimble with the wordplay, sure, but Ken has always been a cunning linguist.
"No matter how much you want the part, never let 'em see you sweat." -- Old Dry Idea commercial
I was actually talking to a friend recently about how I wished that Broadway-bound shows accepted monetary "donations" from your average non-producer theatergoing people... because a lot of us don't have the kind of money producers need, but certainly find ourselves in positions where we believe in something enough that we want to make some kind of difference. I'm not sure how practical this is, or if it'll work, but it's interesting to see someone trying it. Not that I have 1,000 bucks laying around or care enough about Godspell to get in on this, but I am curious to see how it pans out.
Eh, a movie producer tried this several years ago and it never panned out. I'm of the belief that crowd-funding works best when there is a common community or strong shared belief. Is that really the case with a revival of Godspell?
I can't wait to see how they pulled this off legally. The whole point of the SEC requiring only accredited investor have the ability to invest in Broadway shows is to protect naive people because of how incredibly risky these investments are. It seems like it would take only one person who claims a producer played on their love of a show and wasn't clear about the risk involved, didn't know what they were doing, to sue and this whole thing would fall like a house of cards.
Obviously, his lawyers have addressed it so I guess I'll see how soon.
If the audience could do better, they'd be up here on stage and I'd be out there watching them. - Ethel Merman
If I didn't have a New York trip coming up and some other stuff going on, I'd totally cough up the $1000 just to see what happens. Oh well! Interesting idea.
"This thread reads like a series of White House memos." — Mister Matt
BrianS, you are correct; since the website states that the offering is exempt from SEC registration, the shares in the LLC must fall under one of the exemptions. Those exemptions generally require that the investors be accredited (which means someone who has a lot of money) or sophisticated (sufficeiently knowledgeable to evaluate the risks). I guess Ken will go through some kind of qualification screening process.
same, i would love to do this, but i just dont have 1000 bucks to throw around. i also agree with the above question of is Godspell the right show to try this out with? I think it would work much better with a musical like say, My Fair Lady, or Annie (if the upcoming revival hadnt already been announced), or something that is more treasured by the general public.
There is a difference between an investor and a producer. The people participating in this would be investors with no input what so ever in the day to day operation of the production like a producer would have.
Tazber not sure if you are saying that "you're not going to get a return" becuase of the chance of the show recouping or because you believe this is solely a donation...
But, according to Ken's blog: "Investment in the Godspell LLC involves a high degree of risk, and investors should not purchase Units unless they can afford to lose their entire investment. Please see "Risk Factors" beginning on page 14 of the Offering Circular to read about important risks that prospective investors should consider before purchasing units."
So it appears to truly be an investment - whether you will get a return from the show's profit is another question.
Not being terribly familiar with the Securities Laws, I do wonder what happens if the SEC ultimately determines that it is not subject to the exemption(s) that are referred to in the legalese. That is, if it is deemed to be a public offering of sorts, is it still possible to prevent the shareholders from having a vote that could overrule the will of the lead producer.
Or, perhaps, is Ken planning on only offer $2,499,000 of the capitalization to the "crowd" and financing $2,501,000 in some other fashion that allows him to maintain a majority voting interest overall, even if the investors are shareholders and get a vote.
In truth, it would be kinda interesting if he was required to have an annual shareholders meeting for a Broadway show -- I'd enjoy being a fly on the wall at that! :)
"No matter how much you want the part, never let 'em see you sweat." -- Old Dry Idea commercial
Oh no! If Godspell wins a Tony Award, they'll have to hold The Tonys at the Javits Center to fit all the "producers". Maybe someone can recycle Elaine Stritch's joke about a Greek chorus behind her.
If anyone ever tells you that you put too much Parmesan cheese on your pasta, stop talking to them. You don't need that kind of negativity in your life.