ABSTRACT
The majority of independent films financed outside the Hollywood Studio system depend on a myriad of sources of finance and investment to enter film production. Industry texts and analysts talk about ‘jigsaw puzzles’ and often suggest that there are ‘no rules’ to independent financing of films. Beyond the fact that the film production business is prototypical – meaning that each film is essentially a “one-off” and therefore unique (even sequels) – there have evolved certain structures and risk-managed approaches that continue to underpin the independent film finance business. But just as no films are the same creatively, few independent films are ever financed in precisely the same way (or repeated) as regards to the specific detail of partners, financing, investment, recoupment, secondary rights, and net profit share positions. This chapter looks at the key difference between finance and investment, and examines the range of sources of finance available in return for varying demands and recoupment positions. A detailed case study on the financing and packaging of George Clooney’s Confessions Of A Dangerous Mind, which the author was directly involved with in the mid-2000s, is included.
