Chapter 304: Contracts Worth Tens of Billions
Ye Jiayi took the team of Dimension Entertainment and stayed in Shencheng for almost a whole week.
There was very little time to rest, and most of the time, she and her team stayed in the Penguin building, having the final tense negotiations with Zhang Yanping's people.
The reason why it took so long was not because the delegates had encountered difficulties in negotiations. On the contrary, it shows that the communication between the two sides has reached a very deep level.
Otherwise, what's the? It broke early.
A week later, Ye Jiayi returned to Shenghai with an unsigned contract.
This contract is the result of their discussion for a week, and the two sides have basically discussed and approved the content of this contract.
The contract is very complicated, and there are many details in it, but the most important thing is actually these few articles.
"Wedo Entertainment has signed a ten-year contract with Penguin, and in the next ten years, all film and television cooperation on all content of "League of Legends" will be carried out between the two of them and have exclusivity."
Under the agreement, the total investment of each film and television work is jointly funded by both parties, and the investment ceiling is 50%. Either party has the right to reduce or abandon the investment, and the vacated investment quota will be filled by the other party. ”
"Under the agreement, when the production of any "League of Legends" movie is completed, a series of copyright revenues such as film and television, animation, peripheral derivatives, and character image authorization of all the main characters appearing in the film will be jointly enjoyed and distributed by both parties."
"Penguin Pictures' profit distribution ratio is equal to the proportion of their investment in the film, plus an additional five percent, and the rest is enjoyed by Wedo Entertainment."
"Wedo Entertainment promises that in the next ten years, at least eight or more movies about League of Legends will be opened, and the investment amount for each one shall not be less than 600 million yuan, of which the first one must be completed within two years."
That's the big picture.
Of course, there are many, many more details in this, but they are basically not particularly important.
In addition to these, there is also a rule that penguins have the right to terminate the treaty when any film under this framework has a global box office of less than $100 million.
This is a very normal guarantee clause.
Suppose a "League of Legends" movie does not even reach the global box office of 100 million US dollars, it is equivalent to a huge loss.
According to the contract, the investment of each "League of Legends" movie is 600 million yuan, which translates into a cost of about 80 million or nearly 90 million US dollars. As a result, the global box office was 100 million, which was obviously a big loss.
In this case, the penguins needed to have a floor that would give them the power to terminate the partnership when the film was losing money. Instead of after the blood loss, I have to accompany Dimension Entertainment to play together on this boat.
Actually, the lower limit of this article is very low.
At a cost of more than $80 million, the film must get at least $300 million at the box office before it can recoup its cost — of course, this refers to pure box office revenue, not other copyright development.
The so-called commercial film, to put it bluntly, is still a kind of commercial investment. And as long as it's an investment, no one can guarantee 100% money – and it's not a bank fixed deposit!
It's not difficult to make a movie with a $100 million global box office. Even 300 million, 500 million, and even higher box office are possible.
However, even big Hollywood companies dare not pat their chests and say that every big-budget movie they make can make money.
There are many loss-making movies, and there are many of them with ultra-high investment, and in the end, a group of people jumped off the building.
Regarding the lower limit set by Zhang Yanping, Ye Jiayi also agreed.
"If we invest 80 million or 90 million US dollars to make a movie, and the global box office is not 100 million US dollars, then Wedo Entertainment will simply close its doors."
These are her exact words.
……
The contract between the two parties has basically been finalized, but it has not yet been signed.
This is a long-term cooperation involving the two companies in the next ten years, and the funds involved may reach tens of billions of yuan, and it is not something that can be settled by a discussion.
For now, this is only a draft. Next, the legal departments of both parties will conduct a more in-depth study of the contract to ensure that there will be no ambiguity in each clause and that there is no legal risk.
In addition, on the side of Wedo Entertainment, Fan Zhe is also needed to finally nod; On the Penguin side, the top management of their group headquarters also needs to be seen.
After Ye Jiayi returned to Shenghai, Fan Zhe saw the contract as soon as possible. Under Mr. Ye's explanation, Fan Zhe basically figured out what this contract was about.
"It's acceptable, as long as the legal side is sure that there are no problems in the contract, we can sign it."
"Hmm." Ye Jiayi nodded, and then said: "Then next, the content department on your side will have a lot of pressure." ”
"It's fine." Fan Zhe said, "Eight movies in ten years, it's not a big problem. ”
"There may be more than eight." "If the series does well, we may be able to do more projects under this framework. ”
"I hope so." Fan Zhe nodded, and sighed again: "To be honest, I have played the game "League of Legends" myself for many years, and in the past, I was still looking forward to seeing a movie about this game in the cinema. It's just that at that time, I never imagined that the movie "League of Legends" would be made by myself. ”
Ye Jiayi smiled, and then said with a straight face: "To be honest, this is a series that may eventually involve tens of billions of funds, and if it becomes popular, it will be even more, and this is also an opportunity for our company to take this opportunity to fly to a bigger stage." You're going to have to come on. ”
"That's a must." Fan Zhe touched his face, and his expression was already excited.
……
came and went, and by the beginning of December, the contract was finally signed and officially had legal effect.
The talks, which began to have preliminary contacts between the two sides in early October, and which lasted for two months, have finally come to an end.
But this is just the beginning of the cooperation between the two companies.
And then, the two sides began to prepare for the first film under the agreement.
Obviously, Penguin has been preparing for the film and television of the huge IP of "League of Legends" for a long time.
However, in the past, it was only in the preparatory stage. Now that the signing is complete, it's time to put it on the agenda.
On the third day of the official signing of the contract, Fan Zhe received a plan from Penguin.
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