Re: Taking points on a film's earnings...advice needed

[Chris Taylor] "Wait, so you're saying as a producer I shouldn't even bother with a contingency plan? Because I shouldn't expect anything on the back end, I shouldn't bother with contracts?"

Not at all! You should have a contract! Sorry for the cynicism (I think the whole little thread has been hijacked by it)

I'm not an entertainment lawyer, but Points are typically percentages of NET profit of the film AFTER every single middle-man has recouped their "costs." And they LOVE to cook those books.... Sure you might get a quarterly earnings report, but it'll probably always suspiciously come out to zero. But unless you have the $$ to get a lawyer and accountant involved so you can get into their books - there's not much hope. Just like Nick mentioned - his $25K ended up being $1000 after legal fees.

So in my jaded opinion, work out a contract in which you have whatever Points you feel is fair, but try and get a % of ANY money paid for the film right up front - paid directly you from the LLC who owns the rights to the film. So if the LLC has a theater screen the movie, the theater agrees to pay 50% of the ticket sales after their baseline costs, you should ask for a % of that paid immediately. Or if they sell international screening rights for X amount, get a percentage of that. Which sounds a little what your director mentioned "gross profits."

Cash in hand is better than Points in the bush :)