A thing about Broadway investments, which, at very least, is 95% true, as I know it.
A show costs X amount of money to put up and running, initially. This money is put up by the producers (who get it from their investors). This is just the capitalization cost, alone.
Don't forget that the show still costs Y dollars to run. If a show earns more than Y weekly, whatever is left over goes to paying off the investors. If there isn't enough money taken in weekly, the producers have to put in whatever's left to keep it running, with nothing going to the investors.
The capitalization cost comes 2nd to the weekly running costs.
Wedding Singer is obviously the best example to use. The show cost roughly $8 million alone to mount. Weekly running costs, given the large cast, sets, lighting, stage crew, musicians, costumers, dressers, make-up people, and unions, were, roughly, over $600,000 a week. Most of the time, Wedding Singer didn't even crack $550,000. The producers had to put in whatever was left over. The weeks that it did go over the weekly-nut (break even point), the investors were paid off.
If anyone wants to chat, I'm in the chat room.
Updated On: 10/25/06 at 09:00 PM