With the Sovereign business opportunities, Premiere Picture arranges for various traders to purchase film distribution rights in available territories in a suitable film production from the rights-holder/producer in return for a recoupment position negotiable on a case by case basis.
Premiere raises funds using Enterprise Investment Schemes (EIS) which are intended to encourage investment into new business ventures by providing a range of tax benefits to the purchasers of shares in qualifying businesses.
Premiere’s EIS companies either undertake the film project as the production company, with a production services contract arrangement with the developer of the project, or as a provider of marketing services to the film’s distribution company.
The range of film budgets that Premiere would usually finance with EIS funds is in the range £100,000 to £1m. Provided the production company is trading and registered in the United Kingdom, the funds may be used for international projects.
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There is no such spend requirement for Sovereign finance.
Sovereign financing should be compatible with most other forms of financing including the UK tax credit, other forms of soft financing, regional financing, post production deals, EIS, commercial equity and some UK tax-based equity schemes.
We normally exclude pre-sold territories from a Sovereign purchase as this should allow producers to maximise the potential lending against pre-sales. Excluding pre-sales does reduce the overall contribution from Sovereign traders so, whilst seeing some pre-sales is desirable, too many can be detrimental to the maximum benefit available to the producers.
Sovereign traders take a variable corridor in perpetuity from first dollar (after standard sales and distribution commissions) from the territories they trade. The size of the corridor is negotiable. Once the traders have fully recouped and are in profit, the agreed corridor may be reduced, subject to negotiation. Please note: As the Sovereign traders are not working in partnership, their income streams CANNOT be cross-collateralised or pooled in any way.
As the availability of rights will vary from film to film, the benefit may also vary. As an obvious rule of thumb, the more territories sold via the Sovereign proposal, the higher the benefit could be.
The total Purchase Price is usually equivalent to the sum of the “Take” prices (i.e. the low estimates) given by the sales agent for any unsold territories in selected feature films, less a small discount subject to valuation. Premiere Picture will arrange for an independent external valuation of the available unsold territories, based on sales figures from the sales agent, future revenue estimates and other supporting data. Based on the independent external valuation, Premiere Picture will arrange for the Purchase Price to be agreed with the Sovereign traders.
Premiere Picture works with companies who trade feature film rights for profit through the Sovereign rights trading structure. Premiere Picture can arrange for a number of corporate traders to buy territorial rights in a film for an agreed amount or “Purchase Price”. The Sovereign traders will then sell rights on to a distributor and retain a share of revenues.
Premiere Picture will consider projects from reputable producers at all stages of the financing process. However priority will be given to projects with most of their finance secured.
Sovereign should be compatible with most other forms of financing, including senior and mezzanine debt, pre-sale, tax credit and gap lending, sales advances, other forms of soft financing, regional financing, post production deals, EIS, commercial equity and some UK tax-based equity schemes. This can be considered in more detail on selected projects on a case by case basis.
No, we will consider productions shooting at any time of the year.
No, our primary criterion is commerciality.
No, Premiere Picture can contribute to projects with a range of budgets, although we are currently looking for projects with budgets up to $25 million dollars.
As a guideline, Premiere Picture will require a company credit and at least two executive producer credits in the main titles for the film. Other Premiere Picture staff and the traders or Media Pro companies will require to be credited in the end titles.
The benefit payable to you is usually calculated net of all our fees, including a legal fees contingency of around £25,000, and these costs may not need to be included in the budget.
For Sovereign funding, we prefer to get involved in films that are approaching the principal photography stage. In some circumstances, they may get involved in films which are at a more advanced stage, such as in post-production or post-completion, however, this is more the exception rather than the rule.
Sovereign is sensitive to deadlines arising at i) the end of the financial year and, in certain circumstances, ii) the end of each month. If our clients wish to formalise their interest in a film in time for such deadlines and yet it seems unlikely that financial completion will have taken place by that date, then we can sometimes arrange a “soft close” by execution of certain agreements. In the case of a soft close, funds are paid by the traders and Media Pro companies and are subsequently held on account and released upon financial completion.
Funds are usually released to the producers after all the production documentation (including but not limited to the completion guarantee, collection agreement, etc) have been agreed by the relevant parties (ie on financial completion).
Once submitted, projects are considered in detail and strong contenders are ultimately presented to the Premiere Picture board for scoring and selection. Such board selection meetings happen regularly (usually once a month). It is important to be aware that projects are not necessarily selected right away, as this is often dependent on various factors beyond the control of Premiere Picture, including the current amount of funds raised. We often track interesting projects for presentation at future board selection meetings. As such, it is essential for you to keep us regularly updated on how your project is progressing.
Suitable projects are sourced, assessed and recommended to Premiere Picture Ltd, acting on behalf of the traders and partnerships by Premiere Picture Productions Ltd. In the first instance, producers should contact Premiere Picture Productions Ltd. Producers will be expected to provide acceptable due diligence documents, including chain of title, sales figures from a reputable international sales agent, cast and talent commitment letters, finance plan, proof of other financing and completion guarantor commitment, etc. The emphasis for producers will be to demonstrate to Premiere Picture the commerciality of their film , the viability of their finance plan and its likelihood of completion. Endorsements from established industry representatives such as reputable sales agents and distributors are also required.