Development Finance for Films
By Elliot Grove
You’ve scoured underground theatre and have a list of actors so sizzling hot
you can hardly wait to launch their careers in the movies. At film festivals you
have seen scores of shorts and debut features from which you have shortlisted several directors you would like to work with. All of this has been at your
own expense. Finally, after meeting dozens of writers and reading hundreds
of screenplays, you finally have a script that you really believe in. You visit a
printer and get some flashy business cards made up with your name as
producer on them. But this is still no guarantee that you will get your movie
made. You need money.
Development money is the sum total you need to invest in your idea until it is
in a form (a package) suitable for presenting to investors and capable of
attracting production financing. Development money is used to pay the
writer while the screenplay is being rewritten, the producer's travel expenses
to film markets to arrange pre-sales financing from investors, and location
scouting and camera tests. It also covers the cost of administration and
overheads until the film is officially in pre-production.
Typical Development Budget
While there is no such thing as a typical budget, most development budgets
will include the following items:
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Script payment fees agreed under the terms of a step deal or option
deal
Producer's fee
Travel and accommodation expenses for the writer and producer to
attend development meetings with investors
Location scouting and camera tests
Creating a budget/schedule
Script readings with cast
Script editor
Cost of duplicating scripts and postage
Cost of developing concept for website
Production of key art work
Office overheads usually no more than 15% of the budget
Producer's legal costs
Research expenses
How development finance deals are structured
Development money is the most expensive and financiers who put up
development money typically expect a 50% bonus plus five percent of the
producer fees. The bon