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02-14-2010, 07:16 AM
Todd,
I put this toppic on the NNJR PCA site, and to my surprise here are some comments I received:
"Well, maybe not an outright scam. It sounds more like some guys came up with an idea for a show and haven't sold it yet. Instead, they have set up a schedule of events and have lined up participants who are paying the costs of producing the show. I suspect after the events have been run, they will then try to sell the product. Clearly, they were not able or did not try to line up financing before hand.
In my opinion, all the participants should be treated like investors, and should share in the profits if and when the show sells."
and.........
"I looked through the details of what your friend has experienced with the production so far and I think that MoreIBNR's post above is correct. They seem to making this show on their own, "on spec" is the term used for that process, with no money from a network or channel. This isn't necessary a bad thing except that when you make a show "on spec" you usually only shoot the first episode and then take that episode around to networks and channels to get full funding to complete the series.
They seem like they might be semi-legitimate but if the participants are paying money to be involved then also as MoreIBNR wrote they should be treated like investors. They should get contracts with the producers saying that if the show sells the participants get a cut of the sale price. It is called "getting points" on the project.
Your friend should approach the producers and ask what channel this show is going to air on and who is financing the production, he should also see some proof. Network contracts, letters of intent, something on network letterhead. If they say they are financing it themselves then they have no deal for broadcast and there is a very very good chance the show will never air. He should then ask for "points" since his entry fee is obviously paying for part or all of the production. He should also be sure to get "points on the gross" meaning that he gets paid from the sale as soon as the deal is completed not after all expenses have been paid which is know as "points on the net". "Points on the net" are worthless. If they reject him and say they are not giving points to the participants then they are jerks and he should walk away and use the money to race on his own."
I am trying to look after you.
I put this toppic on the NNJR PCA site, and to my surprise here are some comments I received:
"Well, maybe not an outright scam. It sounds more like some guys came up with an idea for a show and haven't sold it yet. Instead, they have set up a schedule of events and have lined up participants who are paying the costs of producing the show. I suspect after the events have been run, they will then try to sell the product. Clearly, they were not able or did not try to line up financing before hand.
In my opinion, all the participants should be treated like investors, and should share in the profits if and when the show sells."
and.........
"I looked through the details of what your friend has experienced with the production so far and I think that MoreIBNR's post above is correct. They seem to making this show on their own, "on spec" is the term used for that process, with no money from a network or channel. This isn't necessary a bad thing except that when you make a show "on spec" you usually only shoot the first episode and then take that episode around to networks and channels to get full funding to complete the series.
They seem like they might be semi-legitimate but if the participants are paying money to be involved then also as MoreIBNR wrote they should be treated like investors. They should get contracts with the producers saying that if the show sells the participants get a cut of the sale price. It is called "getting points" on the project.
Your friend should approach the producers and ask what channel this show is going to air on and who is financing the production, he should also see some proof. Network contracts, letters of intent, something on network letterhead. If they say they are financing it themselves then they have no deal for broadcast and there is a very very good chance the show will never air. He should then ask for "points" since his entry fee is obviously paying for part or all of the production. He should also be sure to get "points on the gross" meaning that he gets paid from the sale as soon as the deal is completed not after all expenses have been paid which is know as "points on the net". "Points on the net" are worthless. If they reject him and say they are not giving points to the participants then they are jerks and he should walk away and use the money to race on his own."
I am trying to look after you.
JUST CALL NICK
__________________
The deer in the headlite
PCA DE instructor #200904037
__________________
The deer in the headlite
PCA DE instructor #200904037