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Important |
This
section is intended for accredited investors
only. Julia Quinn and most Broadway producers
will not accept investments from
anyone who does not qualify either by income or
accumulated assets to participate in private
placements. It is not a matter of bias, just the
law. If you have never invested in a Broadway
show before, please consider the
following:
- This type of investment will
fall into your "high risk" category. You need to
be financially sound so you can withstand a
financial loss, if it happens. You also have the
potential of making a substantial return on your
investment, if the show is a
success.
- Depending on the show, there may
be a minimum investment level. Our productions
typically require $10,000 minimum in the early
stages and $100,000 minimum during
production.
- By investing in a show you are
purchasing shares in the company under
Regulation D section 506. Investors are
considered limited partners in the LLC which is
set up for a particular
production.
- As limited partners, investors
receive 50% on the back end after their entire
investment has been paid back. The producers are
considered general partners and receive the
other 50% of the net profits after
recoupment.
- Investors and producers
participate equally in the profits of subsequent
tours, foreign productions, merchandizing, and
subsidiary rights. Sometimes those can equal or
exceed the profits from a Broadway
run.
Your single most important
decision is picking the right
project.
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Consider this: |
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Someone who invested
$10,000 in the
Off-
Broadway show STOMP,
has a total
payout of
$880,000 to
date
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Last year, a show called
HIGH opened and closed
in the same week,
losing
it’s entire
capitalization.
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Original investors in
"Rent"
made back 675 percent on
their
investments, according
to John Corker, the
show's
general manager.
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In 2010, THE SCOTTSBORO
BOYS and BLOODY BLOODY
ANDREW JACKSON
closed
without returning
anything |
The megahits like
PHANTOM,
LES MIZ, THE LION KING,
CATS,
JERSEY BOYS, WICKED
have or will pay their
original investors profits
one to two
hundred times
the initial
investment.
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Readings |
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09.24.2012 “The Cotton
Club”
Location TBA.
Industry
guests only.
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The Odds |
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All available data suggests
that
one in five Broadway
shows recoups the initial investment.
Everyone tries to be part of the 20%, yet some
people tend to choose better than
others. Revivals and plays are generally
safer bets than musicals but they also tend to
last a year or two at the most. New
musicals, however, have the potential of running
for a very long time. Film adaptations
have produced mixed results in recent
years but ever-optimistic producers have
already lined up another slate of popular films
to stage. | |
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To diversify or
not?
Unlike the stock market, there
is no hard evidence that you can minimize your
risk and increase the possibility of
recoupment by investing in several
shows. It may be better to treat a Broadway
investment like a horse race. Focus on choosing
a potential champion and that choice can pay off
handsomely. | |
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Staying power
If
there was a reliable method to predict staying
power for any of our productions, most of the
guesswork would be eliminated. Unfortunately,
such method does not exist, yet
producers can implement a
few strategies to prolong the run of their
show. This is where good producers earn their
stripes with creativity and persistence.
Opening Night is not the end of the jouney, just
the first
milestone.
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