Hannover House Inc (HHSE)

[Chance To See]

Financial Arrangements

From the Money TV interview

”And it’s a very high-profile release for us that’ll be substantially supported by a multi-million dollar sponsorship and cross-promotion that we’re doing with SeaWorld.”

“And it’s, you know, the amount of marketing capability and in-house marketing capability that SeaWorld is bringing to the table is monumental for any film. It’s the type of promotion that Disney or Fox or one of the major studios would covet to have. Besides a financial sponsorship of the theatrical releasing costs for the film Turtle, they’re also opening the floodgates and creating cross-promotions at every level through the SeaWorld and the Anheuser Busch Park system as far as signage in the stores, placement on advertising. We’re holding our premier at SeaWorld in San Diego on June 21st. And it’s just, it’s a profound level of marketing support for any film, and it’s very monumental for an independent company to have that level of support.”

So it sounds like SeaWorld has taken on the vast majority of the financial risk. That takes away the risk for TDGI, but I wonder how much of the profit it may also take away, i.e., I wonder what the financial arrangements are.

Possibly:
1. TDGI gets it’s expenses covered, which should be pretty small – maybe in the $100K range?
2. Then SeaWorld gets it’s millions of dollars covered.
3. Then a split of the rest, which would include SeaWorld, TDGI, and the film’s producers.

So besides box office receipts, profit would depend on how much SeaWorld spends, including how it values things like its in-house promotions. It doesn’t sound like they are pinching pennies. Hopefully, TDGI has got something in the contract where TDGI can make a profit before ALL SeaWorld’s expenses have to be covered. I would hate to see the film bring in $8 to $10 million at the box office and TDGI end up with practically nothing.

Does anyone have any insight on the likely financial arrangement in this type of partnership?