Vol 2 Chapter 804: Huge loss

In Hollywood, every company is not very active about payment and splitting. It is normal to drag it for a year and a half. It is not uncommon to drag it on indefinitely and end up in court. From the moment "Under the Device" was released, the Harry Potter actor and the agent of a British agency signed by director David Yates flew to Los Angeles and kept chasing Robin Grande. Asked behind the of the head of Harry Potter Studio.
Now that the box office profit sharing agreement has been signed, it must be implemented, otherwise the relevant laws are not a decoration.
However, it takes time to calculate the box office profits of the two films in "Harry Potter and the Deathly Hallows".
At present, Warner Bros., as the distributor, receives a share of US$800 million from the total box office of these two films.
Based on this amount, the Harry Potter studio started related financial accounting.
Harry Potter Studios is only the producer of the film. It signed a distribution contract with Warner Bros. According to the agreement, "Harry Potter and the Deathly Hallows" accounted for 10% of the total box office of the two films. The issuance cost of Warner Bros., which is 10% of the US$2.4 billion, is about US$240 million.
This part of the money is to be deducted by Warner Bros. 4, even if this is only a service fee paid to yourself, no one can pick it out.
Then there are the promotional and marketing expenses of the film. In the statement submitted by Warner Bros., "Harry Potter and the Deathly Hallows" spent 120 million US dollars in this regard. The related expenditure is 130 million US dollars.
This part of the funds is basically paid by Warner Bros., and most of the channels used for film promotion and marketing belong to Time Warner.
After deducting the sum of up to 490 million US dollars, the remaining US$ 310 million was transferred to the Harry Potter studio.
But the people who signed the box office profit share could not participate in the ranks of sharing the funds, because the Harry Potter studio had to deduct production costs.
In this regard, the Harry Potter studio did not move anything. Since the two films were shot together, a lot of money was saved. The total production cost of the two films in "Harry Potter and the Deathly Hallows" is 300 million US dollars...
However, this is not over yet.
Harry Potter Studios did not have enough funds to invest in this film. The $300 million investment came from borrowing-Harry Potter Studios loaned to a film foundation from Duke.
Now that more than three years have passed since the original loan, the Harry Potter studio needs to pay Duke's foundation $47 million in interest.
This is of course the cost incurred by the left hand and the right hand. But Harry Potter Studios is a financially independent company. Borrowing to pay interest is not only a matter of natural order, but also in full compliance with relevant laws.
Therefore, from an accounting point of view, the two films of "Harry Potter and the Deathly Hallows" have completely lost money at the box office.
In this way, those creators who have signed a net revenue sharing agreement with the film party will not receive any money.
"Loss?"
In the Harry Potter studio, after hearing Robin Grand’s reply, the agent from the United Kingdom was not only furious, "How is this possible! How can this film lose money at the box office?"
He held the table with both hands. Staring at Robin Grande scorchingly, like a monster that chooses people to eat.
Robin Grande turned a blind eye to his attitude and pushed the thick financial audit report in front of the broker. "This is the relevant financial audit data, which contains the details of box office income and all expenditures in all regions. If you don’t believe it, you can ask professional lawyers and accountants to conduct an audit."
From a legal and financial point of view, Harry Potter Studio's approach is completely legal and reasonable.
Precisely because I know this. Robin Grande doesn't care what the agent thinks, "Sorry. I have other work to do."
Hearing these words like a chasing order, the agent became even more angry, "You have done too much! Don’t forget, they are Daniel Radcliffe and Emma Watson, yes Today’s popular superstar."
Looking up, Robin Grande just looked at him. But said nothing.
The agent's arrogance was disappearing little by little. Looking at Robin Grande, who didn't care much, it seemed that he gradually understood something.
Daniel Radcliffe, Emma Watson and the other small actors of the company have indeed become popular stars because of the Harry Potter series. The first two are not too red to be too purple.
but. The Harry Potter series is over, their value to the Harry Potter Studio...
Taking a deep breath, the agent suppressed his anger and said, "This will not end like this, Mr. Robin Grande, do you want to see a lawsuit?"
Robin Grande smiled faintly, "This financial accounting is completely in compliance with the law. If you want to sue the Harry Potter studio, please."
After speaking, he pressed the intercom, let his secretary enter the office, and invited the British agent out.
Whether it's Robin Grande or Duke and Warner Bros. who stand behind them, they don't care if this turns into a lawsuit. From a legal point of view, there is no problem with the Harry Potter studio's accounting loss.
This involves hundreds of millions of dollars in funds. Duke and Warner Bros. will not give up easily, and of course the actors and their agents will not give up.
They moved around in Hollywood, wanting to put pressure on the Harry Potter studio, and even found a relevant lawyer, preparing to sue the Harry Potter studio to the Delaware Chancery Court.
Like most companies in Hollywood, the Harry Potter studio is registered in Delaware.
"Is there really no profit at the box office?"
In the office of Warner Studios, Joanna Rowling, who came from London, sat opposite Duke, holding a coffee cup, and asked, "Duke, this is unfair to Emma and the others."
"Joe..."
Looking at Joanna Rowling, Duke slowly said, "I believe you can also get the relevant data from the Harry Potter studio. You can ask your own accountant and lawyer to review it."
Joanna Rowling did not answer.
"Our cooperation has always been smooth, and your share has never been less than a penny." Duke continued, "and I believe that our cooperation will continue."
Unlike actors, Joanna Rowling has the right to share all related income, and box office profit and loss has no effect on her income.
"Cooperation?" Joanna Rowling looked at Duke.
"Of course," Duke raised his eyebrows. "Warner Bros. and I both hope to continue working with you, and our cooperation has always been very happy. Joe, I guess you don't want to cooperate with those unfamiliar companies?"
In any case, Duke and Warner Bros. have never fiddled with the income that Joanna Rowling deserves.
After thinking for a few seconds, Joanna Rowling smiled, "Of course I want to continue working with you."
If there is no platform like Time Warner, there will be no craze for the Harry Potter series, and she will not have such a reputation and wealth.
Joanna Rowling is not a fool, knows the importance of a media group to her.
It is not difficult at all to choose between media groups and actors who are basically worthless.
Afterwards, Joanna Rowling stopped mentioning the box office division of the actors, and instead talked to Duke about some of her thoughts on her new work "Where Are The Fantastic Beasts".
However, the Harry Potter movie series has just ended, and "Where Did Fantastic Beasts Go" is still in the stage of imagination. It is a future thing to adapt it into a movie.
After Joanna Rowling was sent away, Duke's energy returned to the preparatory work of "Avengers", but just after half an hour of sub-shot artwork, Tina Fei knocked on the door and walked in.
"Emma Watson is here, she wants to see you."
Hearing what Tina Fey said, Duke thought for a while and said, "Let her come in."
Within minutes, Tina Fei brought Emma Watson into the office.
"Hello, Director Rosenberg."
She took off her sunglasses and greeted Duke on her own initiative.
Duke nodded to her, and pointed to the chair opposite the desk, "Sit down, Miss Watson."
When Emma Watson sat down, Tina Fey brought a cup of coffee. She did not leave and sat behind another desk in the office.
Duke was busy at work and asked directly, "What's the matter?"
The two just knew each other, not to mention that they didn't have any friendship, and they weren't even familiar.
Obviously, Emma Watson had certain illusions about Duke, "Director Rosenberg, I don’t know if you have heard of it. There is something wrong with my contract with Harry Potter Studios."
Hearing this, Duke frowned slightly, "Sorry, Miss Watson, although I am the producer of the Harry Potter series, but this is just a name. The specific matters are Robin Grand and Harry. Potter Studio is in charge, you have the wrong person."
Emma Watson wanted to say something, but Duke raised his hand to stop it, "I am preparing for "The Avengers", what you said has nothing to do with my work."
Without waiting for the other party to continue, he gave Tina Fei a look, and the female assistant walked over and made a please gesture.
A pair of eyebrows were tightly furrowed together, and Emma Watson looked at Duke puzzledly, as if she didn't expect this result.
Perhaps the actress was too much loved by the Harry Potter crew and the agency before, and was obviously a little naive.
It’s just that this kind of innocence is used in the wrong place, and Duke won’t be impressed by her few words. After Tina Fei invited her away, she left the matter behind and focused on the work of The Avengers . (To be continued.)
ps: Ask for monthly and recommended tickets!