Producer Recoupment Corridors
Responding to inquiries from the industry and present international practice, Bord Scannán na hÉireann/The Irish Film Board (BSE/IFB) is introducing standardised Producer Recoupment Corridors in the recoupment schedule of Production Loans for feature films.
BSÉ/IFB sees the introduction of corridors as a way of incentivising producers to, and rewarding producers who, attach sales agents and Irish/UK distribution from script stage with competitive commissions and recoupment structures.
BSÉ/IFB wants Irish producers have more of a stake in the in the deal and financial outcomes of their films. By incorporating standard producer recoupment corridors, there is potential to facilitate the advancement of production companies by allowing for re-investment of returns on successful films.
As BSÉ/IFB is reliant on recoupment monies to further the funding of projects, corridors are limited.
Corridors will be provided in the following BSÉ/IFB co-financed feature film situation:
- an international sales agent and UK/Irish distribution is attached prior to the commencement of principal photography, with competitive commissions;
- an investor recoupment corridor of no less than 10% is provided through any sales advance; and
- all deferrals are recouped after equity investments.
- once BSÉ/IFB has recouped 25% of its investment, it will provide a 5% producer recoupment corridor;
- once BSÉ/IFB has recouped 30% of its investment, it will provide a 10% producer recoupment corridor;
- once BSÉ/IFB has recouped 40% of its investment, it will provide a 15% producer recoupment corridor; and
- once BSÉ/IFB has recouped 50% of its investment, it will provide a 20% producer recoupment corridor thereafter.
Revenue from corridors will be disbursed to the production company on a six monthly basis or whenever BSÉ/IFB receives revenue (whichever is the less frequent).
Only those producers in full compliance with all BSÉ/IFB contracts shall be eligible (ie: no outstanding payments due, no outstanding sales reports, delivery items etc from other projects).
Corridors will not be offered to low budget projects that utilise deferral financing and recoupment structures.
It is expected that revenue from the recoupment corridor will be applied by the producer to the production company to advance its business and projects.
Producer recoupment corridors (as outlined above) for films meeting the above criteria will be automatically incorporated into the recoupment schedule for any feature films first co-financed at BSÉ/IFB production finance panels from January 2005 onwards.