| Commentary

406 Share in net profits

| Commentary

406 Share in net profits

A rule of thumb which is often used as a rough starting point in negotiating the level of profit to which an investor is entitled is that a person providing 100% of the finance for a film should receive 50% of the net profits, in other words ½% of net profits for each 1% of the budgeted production costs. The remaining 50% of net profits is often divided between the financier and the producer leaving the producer with a 25%-40% share. Out of the producer's share, the producer will be expected to bear all participations

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