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There is also the important argument that all contracts for a % of revenue or profit immediately become meaningless if you allow this. Create any film in a numb
by TimPC 4y ago
There is also the important argument that all contracts for a % of revenue or profit immediately become meaningless if you allow this. Create any film in a number corporation then transfer the film only to a different corporation. The original shell corporation has all the liabilities but no assets to pay them. Too bad for the creators.
- sandworm101 4y agoThat is mergers and acquisitions 101. Look at any mining or chemical company that merges itself into a new entity without taking along its abandoned worksites in need of environmental reclamation. The interesting part is Lucas's role in all of this. I want to see the purchase contracts. It might actually say in there that Lucas was supposed to buy out these rights and deliver the assets clean of obligations. If I were advising, I would say sue both Lucas and Disney and let them fight it out amongst themselves.
- cmeacham98 4y agoMy understanding is that film companies already do a variation on this, where actors are hired by a shell company that is ""hired"" by the main company to produce the film. Thus, the company that hired the actors (and that they have a %-revenue share contract with) makes little to no profit.
- MereInterest 4y agoThat's my understanding as well. That the fraud is so widespread with very few consequences, that it is also referred to as "Hollywood accounting"[0]. [0] https://en.wikipedia.org/wiki/Hollywood_accounting https://en.wikipedia.org/wiki/Hollywood_accounting