| Commentary

423 ‘Soft floors’

| Commentary

423 ‘Soft floors’

A producer will normally seek to limit the extent of third party participations to be deducted from his share of profits by providing that the producer's share of net profits may not be reduced below a certain level or ‘floor’, and any excess participations are to be deducted ‘off the top’ (ie in first position from the figure which was previously net profits).

Assuming that a film makes profits of £2,000,000, out of which the producer is entitled to 25% subject to the producer's share being reduced by third party participations to a floor of 20% with the

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