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bob is exciting skip to main skip to sidebar bob is exciting sunday september 2 2007 big budget breakdown have you ever wonder why hollywood keeps cranking out crappy big budget movies especially sequels to movies that everyone knows didn t live up to their potential tomb raider 2 fantastic four 2 well i found this very interesting article on slate com check it out how to finance a hollywood blockbuster start with a german tax shelter by edward jay epstein posted monday april 25 2005 at 12 18 pm et as paradoxical and absurd as it sounds it s cheaper for a hollywood studio to make a big budget action movie than to make a shoestring art film like sideways consider paramount s 2001 action flick lara croft tomb raider on paper tomb raider s budget was 94 million in fact the entire movie cost paramount less than 7 million how did the studio collect over 87 million before cameras started rolling first they used the german tax shelter gambit loopholes in germany s tax code are responsible for a good portion of paramount s profits an estimated 70 million to 90 million in 2003 alone best of all there s no risk or cost for the studio other than legal fees here s how it works germany allows investors in german owned film ventures to take an immediate tax deduction on their film investments even if the film they re investing in has not yet gone into production if a german wants to defer a tax bill to a more convenient time a good way to do it is by investing in a future movie the beauty of the german laws as far as hollywood is concerned is that unlike the tax laws in other countries they don t require that films be shot locally or employ local personnel german law simply requires that the film be produced by a german company that owns its copyright and shares in its future profits this requisite presents no obstacle for studio lawyers the hollywood studio starts by arranging on paper to sell the film s copyright to a german company then they immediately lease the movie back with an option to repurchase it later at this point a german company appears to own the movie the germans then sign a production service agreement and a distribution service agreement with the studio that limits their responsibility to token and temporary ownership for the privilege of fake ownership the germans pay the studio about 10 percent more than they ll eventually get back in lease and option payments for the studio that extra 10 percent is instant profit it is truly as one paramount executive told me money for nothing in the case of lara croft tomb raider paramount sold the copyright to a group of german investors for 94 million through tele münchen gruppe a company headed by german mogul herbert kloiber paramount then repurchased the film for 83 8 million in lease and option payments the studio s 10 2 million windfall paid the salaries of star angelina jolie 7 5 million and the rest of the principal cast paramount made some more preproduction cash by taking advantage of the british government s largesse to qualify for section 48 tax relief in britain the movie had to include some scenes filmed in britain and employ a couple of british actors given lara croft s peripatetic plot neither condition presented an artistic problem again paramount entered into a complex sale leaseback transaction this time with britain s lombard bank through this legal legerdemain the studio netted up front another 12 million enough to pay for the director and script to pay for most of the rest of the movie paramount sold distribution rights in six countries where the tomb raider video games were a big hit with teenage boys these pre sales in japan britain france germany italy and spain brought in another 65 million through this triple play paramount earned a grand total of 87 2 million the remaining budget less than 7 million would be covered by licensing the film s u s pay television rights to showtime a network owned by paramount s corporate parent viacom at no cost to its treasury paramount launched a potential franchise don t forget that sequels can be financed with the same risk management techniques why couldn t sideways which cost just 16 million use these tricks to pay off its much smaller budget because the international financing game favors big budget movies with international appeal even if a 16 million production did entice a german tax shelter for some reason the lawyers bill for arranging the transaction would eat up most of the leaseback skim a movie like sideways which is artistically grounded in california would also have a hard time qualifying for the british tax subsidy and finally sideways lacked the advance name recognition that s required to ring up large pre sales in foreign markets of course it s not only paramount that employs these devices every studio uses them to minimize risk remember all those stories about how new line was betting its entire future lord of the rings trilogy not quite new line covered almost the entire cost by using german tax shelters new zealand subsidies and pre sales if studio executives don t crow in public about such coups it s probably out of fear that such publicity will induce governments to stiffen their rules as for example germany periodically does with its tax code when you ve got a golden goose you don t want to kill it while it s still laying eggs on the posted by bob at 11 48 am 2 comments friday august 17 2007 be kind rewind i know i haven t been blogging much lately a trip to mexico and 2 weeks of montezuma s revenge can do that but something has coaxed me out of hiding i have to say that one of my top 5 directors is michel gondry eternal sunshine science of sleep not only has he come out swinging in the film industry but the music videos he produces are ah may zazing you would not be wasting your money picking up the director s series volume 3 the works of michel gondry the imagination he puts behind everything he works on is pure genius and his new film be kind rewind is no different you can find a better resolution trailer on yahoo movies but here is the you tube version for your viewing pleasure run hokey ok not only is it gondry but freakin mos def and j b plus they remake my all time favorite comedy ghostbusters i will be there midnight december 20th releases on the 21st come on people who is with me posted by bob at 6 32 am no comments saturday june 30 2007 obama raises the roof in what may be the most absurd presidential campaign advertising in recorded history barack obama has released a series of ringtones on his website which you can visit here i guess when the chant go obama go obama interrupts my third viewing of live free or die hard it will ensnare me to vote obama in 08 or burn the theater down posted by bob at 5 09 pm 1 comment saturday june 2 2007 speed racer when i heard that the wachowski brothers would be re imagining speed racer i was as you would assume skeptical would it be all green screen would there be a real chim chim or would they use jar jar s simian cousin would there be extended scenes of speed racer with his mouth gaping wide seemingly eternally stuck in a 3 second space of time like a dust ridden tecmo bowl game on the first generation nintendo the trick is to take out the game and blow on it i was thinking that this was the wachowski s first attempt at an adaptation but then i had to remember they wrote v for vendetta which was of course taken from the graphic novel and the matrix trilogy which was a neo sci mashup of star wars julius caeser and the bible et tu cypher but with the recent casting of christina ricci black snake moan as girlfriend trixie and matthew fox lost as speed s older brother racer x this might be good i am not too sure that emile hersh is the best choice a little to much brooding and not enough acting in lords of dogtown i am guessing that shia labeouf was too busy waiting for a phone call from steven spielberg only time will tell and with a release date of may 9 2008 time is all we have posted by bob at 10 20 am 1 comment saturday may 19 2007 my name is john rambo and i am an aarp member when i heard that stallone had decided to dust the rigamortus off of the rocky series i thought well if george foreman can still box so can the italian stallion soon to be glue stick though i did not see the film most people said it was better than average ok but then during a conference call that i snuck onto in which stallone was hawking the new rocky movie to youth leaders around the country sly mentioned his next project a new rambo movie hold the phone what a new rambo do we need a new rambo movie did we need a new rocky then he proceeded to give a few details on the project rambo is a recluse in the burmese jungles living as far off the grid as possible then he finds out about a burman village that is being persecuted for their christian beliefs so he unleashes a holy war on the villains and saves the day which in turn saves himself this sounds like it could be dripping in hokeyness most movies that walk the spiritual entertainment line usually tend to lean heavily to either side most suck the first christian themed movie i saw in the theater was omega code i wanted to burn the theater down with me in it the second and last i went to the multiplex to see was passion of the christ that was almost unbearable to watch it was so intense so this presents stallone a gauntlet of obstacles to overcome how do you walk such a fine line well in signature rambo fashion the line has been obliterated by an arsenal of explosive tipped arrows if you are opposed to violence please do not watch this trailer if you don t mind bible verses quoted over the sound of an automatic weapon being unloaded into an evil foot soldier please proceed holy crap right that is hizznard core i could be wrong but i don t see churches buying out entire theaters and busing parishioners in like they did for passion but i could be wrong i have attended a junior high youth group meeting that used the entire 8 minute opening scene from saving private ryan to illustrate how we should persevere through adversities as christians maybe they could use the scene where john rambo uses a machete to detach the soldiers head to inspire young christians not to lose their head when presenting the gospel to strangers or maybe basic instinct 2 could inform teenagers about the dangers of sex and the importance of not cluddering theaters with obvious straight to video movies again i could be wrong posted by bob at 9 13 pm no comments friday may 11 2007 spam me baby ok ever since i moved away from my aol account four years ago i relenquished the privledge of wading through thousands of spam emails most were sly come ons to visit elicit sites with clever titles like jennifer from high school or how have you been but since i dropped aol code for moved out of my parents house i have not had to endure the gauntlet until myspace now those who know me know that when trends come around i flee an example is leaving my blessings stranded on page 4 of the prayer of jabez myspace though has the added attraction of easy connection it seemed like everyone i knew had a myspace account emails became passe and messaging became the balls to quote a line from anchorman but it did come with a snag spam so yes i have accidentally clicked on myspace messages with clever titles like jennifer from high school only to find a world of sin one click away now i just delete every message from someone i don t know just to be sure but one caught my eye today i was going through messages that i must have skipped over from months ago and i ran across this now you may not be able to read the title of the message so here it is chrissy would like to invite you to the group sweat hot girls the title alone brings my dinner to the surface sweat hot girls but what you should focus on is the picture what the crap is that supposed to entice someone to check out her page it looks like she is saying i ve been sick either way i have become hardened to the vague message titles and delete them without hesitation so if you haven t spoken to me in many years i suggest using a very specific title because jennifer from high school just won t do posted by bob at 11 01 pm 1 comment thursday may 10 2007 24 jack bauer rouge agent downward spiral note if you are waiting to watch 24 season 6 on dvd please read no further i comment on this season s storyline but no future spoilers the blog title above may be long but very apt for day 6 of 24 after a suspenseful and engrossing day 5 this season has left me wishing the show was called 12 if the eye rolling addition of ricky don t call me rick schroeder and a dragging nuclear threat storyline was not enough to help me change the channel this season also includes an improbable phone call from thought dead now hostage audrey raines only seconds after finding the suitcase nukes this prompts jack to go rouge agent and bring back one of the women he has loved this is just insane even the show runners know that this season is falling short executive producer david fury said that he knows this season isn t working and will fuse the writing methods of season 5 and 6 to make it more unpredictable you can read the article here hopefully something will get the ball rolling next season and maybe we can go back to calling it the jack bauer power hour posted by bob at 10 55 am 1 comment older posts home subscribe to posts atom blog archive september 1 august 1 june 2 may 4 april 1 march 1 to know bob is to love bob bob graphic designer friend lover to say that love pours out of this man is to underestimate him bono view my complete profile friends of mine mati isabel and luis lupita jg mr chris gray links illinois and back design imdb the movie box