Chapter 93: Business Operations

"Priority purchase agreement?" Alan Shane's expression wasn't very pleasant. "Why?"

Ronan was well aware that during negotiations, it was not wise to lay out all conditions at once. Doing so could break the other party's psychological bottom line. Instead, it was better to gradually push their bottom line further back.

To be honest, given the budget set for the three projects, $1.5 million wasn't a small figure for him.

Dividing this $1.5 million into smaller portions would ease the pressure.

Ronan smiled and said, "Firstly, I'm still researching this project, and secondly, my funds are currently tied up. Transacting through a priority purchase agreement is beneficial for both of us."

This was a common model in Hollywood.

Producers or production companies often discovered valuable literary materials such as novels, scripts, or other literary works. Instead of paying a large sum upfront, they would engage in a priority purchase agreement by paying a small advance, which effectively eased financial pressure and provided more flexibility for the enterprise.

Perhaps the previous negotiations had lowered the psychological bottom line, or maybe this type of transaction was quite common, as Alan Shane didn't outright refuse and asked, "What are your conditions?"

"We'll sign a priority purchase agreement," Ronan said. "I'll pay your company ten percent of the selling price as an advance, which is $150,000."

A priority purchase agreement was exclusive and irrevocable. It meant that during the contract period, no one else could acquire the project that he had reserved.

In this way, by paying only $150,000, he could control the rights to "The Identity of Bourne" for a certain period in the future.

As Alan Shane pondered, Ronan continued, "Within the next 18 months, if this project is officially greenlit, I'll pay the remaining ninety percent."

Seeing Alan Shane's silence, Ronan added, "This is a win-win transaction. If the film isn't greenlit within 18 months, the $150,000 advance will be yours, and you'll still retain the rights."

Alan Shane countered, "18 months is too long, maximum 12 months. Additionally, this $150,000 should only be considered as a deposit and not included in the future buyout fee."

Ronan calculated in his mind and said, "12 months is fine, but I request the right to extend the authorization period. If 12 months pass without the project being greenlit, I'll pay an additional $150,000 to extend it by another 6 months."

This was to guard against any unforeseen circumstances. He rebutted the latter condition, "The $150,000 should be included in the $1.5 million buyout fee."

When negotiating priority purchase rights, it was crucial to negotiate future buyout transaction prices. Otherwise, if the rights holder suddenly raised the price, there would be no recourse.

Being an industry veteran, Alan Shane didn't dwell on this point. He made a slight adjustment to the previous condition: "I demand a project initiation bonus and a share of the box office revenue." He made a bold move, "When the project is greenlit, you'll need to pay me a $200,000 project initiation bonus. And when the film is released, I'll require a five percent share of the box office revenue."

Hearing this, Ronan could roughly guess that this was probably the so-called condition mentioned earlier by Alan Shane.

Ronan firmly shook his head. "You're not the original author, so you can't be entitled to project initiation bonuses or a share of the box office revenue."

"But the rights are in my hands," Alan Shane retorted.

Ronan sighed. "Well then, let's just keep it in your hands. After all, you've held onto them for 13 years."

For a moment, Alan Shane couldn't find a rebuttal. Once exposed, the fact that he held onto the rights for 13 years didn't give him enough confidence.

"Let's each compromise," Ronan offered sweetly. "The $150,000 as an advance, and when the project is greenlit, I'll pay the remaining $1.5 million buyout fee."

Alan Shane's conditions were clearly bargaining chips. After some thought, Ronan showed impatience at the right moment.

Alan Shane, realizing that holding onto the rights for 13 years wasn't much of a bargaining chip after being exposed, made a decision. "The $150,000 as an advance, and when the project is greenlit, I'll pay the $1.5 million buyout fee. Additionally, you'll have a 6-month authorization extension period, but you'll need to pay an additional $150,000."

Ronan extended his hand. "Agreed."

Alan Shane shook his hand. "Pleasure doing business with you."

With the key issue of copyright fees negotiated between the two company heads, the minor details could naturally be handled by their respective teams. Just three days later, the two parties signed the formal agreement and filed for copyright changes at the Copyright Office.

For Hollywood's various copyright changes, corresponding records must be made, and the Copyright Office is the only legally recognized institution.

For example, a script is only registered with the Writers Guild. Once it involves plagiarism or other infringements, the Writers Guild's registration only holds industry relevance and cannot serve as legal evidence.

As the buyer of the rights, Sandsea Entertainment borrowed $150,000 from Relative Theory Group on the day of the contract signing and paid off the advance.

Of course, the later buyout fee would also be raised through borrowing.

As for the loan interest rate, it wasn't too high, fixed at fifteen percent.

This was a common loan rate used by major Hollywood companies.

Compared to the type that charged ninety out of thirteen, it was quite conscientious.

Unfortunately, whether it was Sandsea Entertainment or Relative Theory Group, their current scale and capabilities were limited, and some things could only be used on overseas investors.

Therefore, the funds for this project would still be sourced from overseas according to Ronan's plan.

Just after acquiring the copyright, this project was temporarily placed in the copyright library and awaited further operation in the future.

George Clint's reminder was spot on, and Ronan also had a clear understanding. With nearly all his resources currently stretched to the limit, it was impossible for him to simultaneously operate a big project like "The Bourne Identity."

Ronan's main focus was on "Witch Blair" and "Death is Coming." "Ace Agent," which was destined to be a flop, would receive less attention, mostly delegated to George Clint and Paul Greengrass.

This was also an intentional effort to cultivate George Clint. Once the company grew larger in the future, he couldn't personally handle every project.

Time quickly passed, and by March, right after the 1999 Oscars ceremony, the American public opinion was in an uproar, unanimously criticizing the Oscars' most mediocre Best Picture and Best Actress in over a decade.

As an industry insider, Ronan saw behind this chaos, a classic case of successful business operation.

The success of "Shakespeare in Love" and Gwyneth Paltrow wasn't related to the art of film but was a very successful business operation.

The success of this operation was enough to bring in tens of millions of dollars in profits for the producers one after another.

Ronan planned that when he had the ability in the future, he could also join this Oscars game. Maybe he could make a big profit and even boost a few Best Actress winners.

There was also a rumor circulating quietly. Best Supporting Actress Judy Dench, in order to impress Harvey Weinstein, directly tattooed the name of the Jewish fat man on her buttocks. It was said that she even took off her pants in the private room for Harvey Weinstein to personally inspect.

In comparison, strictly controlling auditions, steadfastly refusing immoral temptations, he was truly an upright person.

But how long could this upright style be maintained, Ronan didn't know. But he was very clear about one thing, when a person isn't tempted, it's often because the temptation isn't big enough.

Just as Ronan was immersed in his work, an official from the Abu Dhabi Investment Authority's Los Angeles office came knocking.