Fatima Pootrakul – Theatre Management

1- How will you go about obtaining property? What will you need to obtain this property?

We would need to acquire the rights to produce the play “Ghetto Klown”. Team awesome would contact John Leguizamo himself and his attorneys. This would be easy to obtain since our good friend Luis Guzman worked closely with John in the past and has kept in contact with him since. We would need small rights since it is a non-dramatic play. If “Ghetto Klown” has musical intros or segways then we would have to obtain a license from either ASCAP, BMI or SESAC. At the end of the day, we will obtain grand rights to avoid any law suits or injunctions with copyright infringement. Even though we will have the assurance from Mr. Leguizamo himself in that he controls the rights we need to produce the play, Team Awesome trusts no one and can easily fall into a false sense of security. Better safe than sorry!

2- Will you need actors? Dancers? Or both? If so what performers-related unions will you have to deal with? Provide some examples of rules and regulations the union dictates.

Since we are using the one-man show “Ghetto Klown” all we would need is one actor. The Actors' Equity Association (AEA) is an American labor union representing the world of live theatrical performance, as opposed to film and television performance. However, performers appearing on live stage productions without a book or through-storyline (vaudeville, cabarets, circuses) may be represented by AGVA. As of 2010, Equity represented over 49,000 theatre artists and stage managers.

Equity requires that its members, as well as employers, live up to their obligations under Equity Agreements. There are certain rules of conduct which all members are expected to observe as professionals, for the dignity of the acting profession and the welfare of all their fellow performers.

Some rules and regulations the union dictates:

• Do not rehearse or perform without a signed contract

• Give your best possible performance; maintain performance as directed or choreographed; make no unauthorized changes in costume, make-up or hairstyle; take proper care of all costumes; and appear at curtain calls as directed

• Be on time for rehearsals and the scheduled half-hour. Notify the stage manager before half-hour if you are ill or unable to reach the theatre on time. Observe the rules as posted on the callboard and fully cooperate with the stage manager

• Consult the deputy or stage manager in case of disputes. If disagreements cannot be resolved by the deputy and/or stage manager, you have recourse to the staff, Equity executives, the Regional Boards, and, ultimately, to the Council

Equity rules prohibit members from working (with or without pay) for any employer who is not a signatory to an Equity Agreement or Code, unless Equity has given prior written permission.

Working without benefit of a contract is a serious breach of our professional responsibility, and is subject to disciplinary action. Working without a contract seriously diminishes Equity's ability to stimulate professional work opportunities, undercuts all other agreements, creates unfair competition, and is ultimately detrimental to the welfare of all the members. Should we have any questions regarding this very important rule, we immediately contact Equity.

3 - After you have chosen a play, what, if any, contracts do you need to produce the play?

The production of an Off-Broadway play involves a series of complex relationships, rights, expectations, and legal obligations, and if these are not carefully attended to, defined, and memorialized in writing at the beginning, there will certainly be trouble later on.

The Production Counsel for an Off-Broadway production will advise the Producer on the legal requirements connected with raising money for a production and the contractual relationships that need to be defined between the Producers and the authors, general managers, co-producers, investors, government regulators, and additional rights-holders, respectively. In addition, to the extent that the Producer and General Manager request it, the production’s attorney will assist the General Manager in negotiating and preparing contracts with theatrical venues, theatrical unions, actors, vendors and consultants.

The Production Counsel will, in consultation with the Producer, undertake the following tasks:

1.Provide the Producer with advice concerning the legal requirements for raising funds for theatrical productions, including rules and regulations regarding the raising and spending of Front Money, federal and state filings and reporting, and disclosures and qualifications for potential investors.

2.Propose terms and prepare agreements with the author or authors granting a defined option to produce the play within an agreed-upon time-frame, including rights to any preliminary try-out, out-of-town, or workshop productions, and rights to produce subsequent productions and participate in profits generated by the exploitation of subsidiary rights in the play.

3.Propose terms and prepare agreements with the holders of any additional copyrights or intellectual property required for the presentation of the play (including, for example, underlying rights and additional music rights).

4.Advise the Producer regarding selection and formation of a legal entity or entities to produce or co-produce the production.

5.Prepare all filings required by State and Federal regulation of theatrical syndications.

6.Prepare an Operating Agreement, Private Placement Memorandum and Subscription Agreement for investors in the production.

7.Advise the Producer regarding negotiations with any co-producers and associate producers and prepare any co-production agreements.

8.Advise the Producer regarding selection of and agreements with the general manager.

9.Consult with and advise the General Manager regarding contracts to be entered into by the production, including theatrical venue agreements, union requirements, and engagement of creative personnel and consultants.

10.Provide general theatrical business advice and counsel regarding all elements of the production of the play.

4 - How much will it cost your playhouse to produce, from a royalties perspective?

For an Off-Broadway show, the average Producer Office Fee is $1,000/week, but it can range anywhere between $500 - $1,500 week. The Producer Office Fee is usually paid to the Producers two weeks prior to the start of rehearsals. Before that, you're on your own.

The Producer Office Fee is traditionally split between the Lead Producers of the production. If there are three Leads, then divide the numbers I've specified above by three, etc. At times, secondary Producers (or other "above-the-title" Producers) also share in a portion of this fee. In that case, the Producer Office Fee can sometimes be split many, many, ways.

If a show is in trouble, this Office Fee is usually one of the first to be waived.

2. Producer Royalty

The Producer Royalty is similar to the royalty paid to the Authors or the Designers of the production. It starts off as a percentage of the gross (customarily about 3%), but usually ends up converting to a percentage of profit through a royalty pool. There are traditionally minimum royalties paid to everyone in the pool, and a 3% Producer Royalty would usually mean about $702 Off-Broadway per week. The hope, of course, is that the show is constantly in profit, and that everyone in that pool is paid more than the minimums.

The Producer Royalty is split between Lead Producers as well, just like the Office Fee. Three Lead Producers who are treated evenly on a $3,000 royalty would get $1k each. And, usually on the bigger musicals, a portion of that Producer Royalty is split between a bunch of those other names above the title as well.

Unlike the other creatives, however, there is no advance paid on a Producer Royalty and the royalty begins with the first performance.

If the show is in trouble, creative royalties to all participants, including Authors, etc. are usually reduced, waived or deferred pretty quickly.

3. Profit after Recoupment

This is the proverbial pot at the end of the rainbow for Producers. Before a show has recouped, 100% of its profit (after the royalties specified above) goes to its investors. After a show pays back its investors in full, profit is treated differently. First, some folks usually take a sliver off the top (some General Managers, Stars, Authors, etc.), and then the remaining profit is split in two . . . half of which goes to the investors, and half of which gets paid to the Producers. However, once again, this profit that gets paid to Producers once again gets divvied up, first to the Lead Producers, and then each Lead Producer pays a portion of his or her profit to all of the other big money raisers on the show. Because the cost of producing Broadway shows is so great, Lead Producers usually "sub-contract" some of their financing, and in exchange for that, they have to give up some of their profit. But this is the profit that all Producers are praying for, because if you can get a show to recoup, and run for years and years, and spin-off tours and subsidiary companies for years and years, this profit can help provide a financial foundation for your office and help you get future shows off the ground.