If you're not Jerry Bruckheimer or Steven Spielberg, no one will bring money to you willingly. You might have produced one or two films but remain unknown, or you might have grand ambitions in filmmaking without ever having participated in it. Moreover, if your family isn't wealthy enough to hand you millions of dollars to play with, you must know how to find money before learning to produce.
In Hollywood, if you were to detail the intricacies of raising funds, it would be far more complex than a film's script. Michael Davenport's personal experience is quite representative in this regard. Hence, he clearly understands the importance of securing funds and has discussed this extensively with Tony over the past few days.
Michael cannot be perpetually tied to the Arabs in Abu Dhabi; that would be unwise. Although the pitfalls he set are well-hidden, too many of them will eventually be noticed. This trip to Germany has yielded significant insights for Michael, revealing that German funding is also a viable option. The Germans seeking tax avoidance are particularly interested in investing in Hollywood films. Unfortunately, many of them think they have escaped the clutches of the German tax authorities, only to fall into the pit of Hollywood.
Tax rebates are also a form of fundraising. At this stage, Michael has initially opened a funding channel. Seashore Entertainment's films can all be categorized as independent films, making it very challenging to find investments for such films. Michael knows that he is doing much better than 99% of independent filmmakers.
Typically, even an experienced independent producer takes three to five years to bring a project from concept to the big screen. At the Cannes Film Festival, a producer once claimed that his grandfather initiated his film fifty years ago and took three generations to complete the financing.
Michael has just joined this game. His company is large, but without a distribution company under him, many of the game rules are temporarily out of his reach. He needs to use profits and successful films to attract more funding, making him one of Hollywood's most conscientious producers and company owners.
With the assistance of Helen Koch and a professional team of intermediaries, the operations for "Final Destination" and "The King's Man" went relatively smoothly. Mueller's team resolved any issues encountered during the approval process.
With Helen's efforts, Tony's Koch Film Company raised $40 million from friends and relatives. This money was transferred to Seashore Entertainment as the copyright buyout fee for "Final Destination" and "The King's Man." According to the legal agreement between the parties, Michael prepaid $30 million in film revenue to lease all rights, including sequel rights, for 20 years, with a one-time buyout option for $100,000 after three years.
The remaining $10 million was promised to be paid to Koch Film Company as soon as the film revenues came in. Koch Film Company also benefited significantly by helping Helen and the meat company legally avoid taxes and charging a 5% handling fee from all investors.
Financially, this job was more lucrative for Tony Koch than his work in finance in Munich. With most of the work done, Mueller's team continued lobbying, leaving only the approval process to wait for. With work temporarily concluded, Michael turned his attention to other matters.
For example, Carmen Kass primarily developed her career in Europe. Michael and Carmen had agreed that she would visit him in North America, and he would see her in Europe. Michael called, and after a long wait, someone answered.
"Am I interrupting your work, Carmen?" Michael asked.
A tired voice replied, "No, I'm just resting. Did you come to Europe, Michael? Is this... a German number?"
Michael laughed, "I'm in Berlin, considering visiting you."
"It's a bit far," Carmen Kass said. "I'm in Estonia and can't get away now."
"Back home?" Michael was curious. From his impression, successful models from Eastern Europe rarely liked to stay in Eastern Europe.
"I'm handling some business," Carmen explained.
"Investing in business?" Michael was even more curious.
"Yes," she said, "Most of the money I earned from modelling has been invested in the business."
Knowing how most models lived in debauchery, Michael genuinely praised her, "That's impressive, Carmen."
"Just some simple clothing business," Carmen Kass seemed very humble.
Michael continued, "That's still impressive."
They chatted a bit more before someone called Carmen from the background. Michael said goodbye, ending with a playful, "Carmen, I wish you to become the richest woman in Estonia soon."
Indeed, supermodels can carve out a career if they manage their income and fame seriously. Michael vividly remembered Gisele Bündchen as an unprecedentedly successful supermodel in business.
After the New Year, "The Purge," distributed by Sony Columbia Pictures, was released in Germany. Michael took Helen and Tony to watch it in the cinema. Like in North America, the film wasn't viral, with average attendance and mixed audience reactions. Horror films are usually like this; even highly acclaimed ones like "The Shining" and "Saw" have their fair share of detractors.
No film in this world is loved by everyone.
The results of Mueller's intermediary team's operations were now coming in.
"Michael! Michael!"
In Koch Film Company's newly renovated office, Tony rushed in excitedly, "Good news! Great news!"
Michael looked at him and asked, "The approval came through?"
Tony nodded repeatedly, "Your phone was unreachable, so Lawyer Mueller called me directly. Both 'Final Destination' and 'The King's Man' projects have passed approval, receiving a $5 million tax rebate!"
Michael clapped his hands, "Finally approved!"
Five million dollars was a significant sum for him and Seashore Entertainment.
"Yes!" Tony laughed heartily, "5% handling fee in hand! It feels fantastic! This money is easy!"
Michael slapped him on the back, "Lunch is on you!"
Tony immediately agreed, "Alright, I'll treat you to a feast! You can choose the most expensive restaurant in Berlin!"
Michael checked the time, pushing Tony out the door, "Let's go."
Five days later, the tax refund was transferred to Koch Film Company's account and then to Seashore Entertainment. Michael settled the fees with Mueller's team, paying the 10% commission, $500,000.
Before Tony's Koch Film Company could fully open its business, Michael might continue cooperating with Mueller's intermediary team.
The plan for Michael's trip to Germany was now complete, with all goals achieved. He bid farewell to Helen and Tony, returning to Los Angeles with $4.5 million to advance the next phase of his plan.