Money never sleeps

Arrear sharing was a customary practice for Hollywood film and television companies. However, it's not just about making money; it's primarily because of a classic financial adage – money begets money.

Without delving into questionable investments or activities, simply having money in the company's account allows it to earn interest from the bank. Millions of dollars in income can cover the salaries of several employees. It's that straightforward. There's no love without reason, and there's no animosity without reason.

In reality, most companies worldwide would engage in this practice given the opportunity. Hollywood film companies are notorious in this respect because they have more chances to do so. Before the era of Internet cloud data, tracking box office statistics and subsequent revenues was an opaque process, involving many operations. Even theater lines were sometimes unclear.

In this context, marking prices was acceptable. But as for the division of box office shares? Hardworking accounting staff had to toil daily to compile statistics. Is it fair to ask?

In short, due to the involvement of box office sharing, delays can easily occur, allowing money to accumulate in your account and continue to grow. Why pass up on this opportunity? Accountants who endure these delays can receive bonuses from the money they helped generate.

So, your ability to secure this arrangement depends not only on the agreement but also on the strength and standing of both parties. If you lack the means to ensure the other party won't cheat you, you must rely on the other party's company's integrity.

But do companies that rely on capital have integrity? Classmates, you probably haven't read "Capital: The Fundamental Theory".

In the United States, there's no initiative to teach counter-literature like "Capital: The Fundamental Theory."

Even superstars like Matt Damon and Ben Affleck were swindled by the Weinstein brothers' Miramax company when dividing the screenwriter's share for "Good Will Hunting." This happened after they won an Oscar for Best Original Screenplay and began rising to fame.

You can opt to hire experienced accounting professionals or an accounting firm to handle the film's finances. Although they may not be able to uncover all the film and television company's hidden operations, they can ensure your account remains financially sound.

However, there's a caveat here: you must ensure the income share you receive is at least worth the commission paid to these senior accountants—sometimes including attorney fees. Otherwise, you may find yourself in a situation where you have a significant share in your account but not enough to cover the costs.

Christian estimates that, based on the previous producer's share, the money he could receive could have covered the expenses of the financial staff and lawyers. In any case, it's better to pass on this complex matter to the rest of the crew as an incentive.

Of course, not every revenue-sharing arrangement involves arrears.

It's easy to do something wrong on your own, and it's challenging to live a life solely engaging in misconduct. Even Hitler helped revive the German economy.

The rest of the crew may not understand all the intricacies, but they're still enticed by Christian's offer because, at the end of the day, it's money.

However, reality reaffirms Murphy's law—if something bad can happen, it will happen.

"How is the new deal going to affect us? Didn't Tony mention it?" Old Gun asked Christian while wearing a concerned expression.

Christian shrugged. "You're more familiar with him than I am. You should ask and see for yourself."

"...he won't say."

Old Gun sighed.

Indeed, he and the producer, Anthony Westwood, go way back. But that also made Old Gun aware that Westwood wasn't much of a talker. He even suspected that there might be more to it when Westwood shared information with Christian.

People may be close to their end, but their words remain calculated. Now that the producer is retiring or leaving, Old Gun didn't rule out the possibility that the producer was trying to win over Christian. After all, Christian had already demonstrated his directing prowess with "Wrong Turn" and was valuable to the producers.

However, the producer is, ultimately, the producer. His reputation is at stake, and no matter how many reasons he may have, he can't entirely side with his workers. Revealing some information is already pushing the limits.

"But not knowing the tactics they might employ puts us at a disadvantage when responding."

Arrears, despite being a common issue, can differ in how they are handled. Some companies have specialists for this. They chat and dine with those in arrears, portraying their financial struggles as not deliberate defaults, but rather due to recent difficulties in the capital chain or a need to wait a bit longer.

This emotional approach contrasts with the more technical route taken by some companies. When asked about revenue sharing, they provide extensive box office statistics and financial statements. To understand all of this, you'd need to complete a four-year finance and economics degree or become a qualified accountant over another four years.

You might truly excel in accounting or have hired a senior accountant at no cost, but if you can't make any headway, there's another strategy to consider.

Our company has recently initiated a new project and is in the process of raising funds. Would you like to invest in your sub-CDs? The amount is substantial, and it's first-come, first-served.

If you decline, they'll use various tactics to keep grinding you down. If you agree, congratulations, you become a shareholder.

In a new project, whether you lose or earn money, you will be at the forefront of the financial loss. Meanwhile, the money that's nominally yours stays in the accounts of other companies, enabling them to earn a bit.

And what about you?

Even if you consistently generate profits, with your books always in good shape, you still won't see real money...

This is considered acceptable behavior.

After all, they never explicitly said they wouldn't pay you, and they didn't hide their earnings significantly. The reason the New Line company excels in this area is that it manages the first two.

It's not clear if they lack excellent public relations and accounting personnel. When the New Line company decides to default on payment, it doesn't resort to emotional appeals or technological maneuvers. It adopts a determined posture.

Of course, the New Line also has different categories. Otherwise, if they deal with investors who can monitor them or have high status and great prospects with potential future cooperation, they may control their greed. Money today is still money tomorrow!

But remember, this is just a "try." If you can't tolerate it...

If you don't fall into the first two categories and you're just an insignificant recipient of the share for various reasons, then congratulations, you might find yourself on the New Line's arrears list.

"We're in this situation now" In the shares Christian relinquished, Old Gun also had a stake. Like Christian, he wasn't particularly concerned about the money. He had a comfortable lifestyle, and some family resources, and had been through a divorce, which had reduced his expenses.

However, the situation changed when his relationship with the makeup artist Annika evolved. Living together with Annika, and her son, would undoubtedly incur more expenses.

"Should we consider hiring a lawyer?"

Legal recourse is a method Americans are accustomed to, but after careful thought, Old Gun decided against it.

The reason was simple. Just like Christian, Old Gun realized that even if they obtained those shares, the money might not be enough to cover the lawyer's fees.

This is even a tactic some companies use when they default on payments. They aren't afraid of the weak party hiring a lawyer because they know that as long as they can delay the lawsuit, the weak party's income won't cover the lawyer's fees.

Naturally, this approach is limited to those owed relatively small sums, which, unfortunately, included Old Gun. But...

"Christian, now that you've brought this up, do you have any other ideas?" Old Gun inquired.