Standard Payment for Scripts Sold to Cable????

[Gonzo82]

I am, potentially, on the verge of making a deal with someone who is connected to HBO.

He's interested in either optioning the script for a year and/or buying it out-right.

Though I know that feature scripts can go anywhere from $10,000 to $3,000,000 - is there a standard out there for selling a script that will be produced by a cable channel?

Does anyone have any idea what the Guild says?

Thank you.

[cmmora]

Go to the Writers Guild website, www.wga.org, they have their Schedule of Minimums posted.

[LIMAMA]

When I sold my script to Showtime, they were not a Guild sig at the time. I was paid close to Guild min, however.

[d5517]

The producer is not going to buy your script. He/she will option the script and get it set up with the network. When your option is being negotiated you should ask for a floor say, WGA minimum for an original screenplay. In no event, however, will your purchase price exceed (if its your first sale) $75,000 or so. HBO is a fee based company. Meaning, that they have a cap on above-the-line fees, excluding talent. Also, if the producer is a company like Abandon or Hearst, they are a deficiter. Meaning they pay for a portion of the budget and in return retain foreign distribution rights so they can sell it, after a specified number of air dates by the network, to make up the deficit. Also, in most cases the producer will create a single purpose entity (XYZ Productions, LLC) to produce the picture; And will procure a loan for the entire budget based on a guarantee from HBO to buy it upon completion. This is called a negative pick up. If this were the case XYZ Productions, LLC will not have to be WGA signatory. Of course, XYZ will have to be SAG signatory, but will also avoid being signatory to other guilds to save money on fringes (pension and health payments) to the applicable guilds. Many sister companies like MTV Films make all of their movies this way to keep budgets down. They get a loan based on a guarantee from Paramount to buy the picture upon completion. Essentially its a Paramount movie, but not on paper. Guilds can't do a thing. So just becuase HBO is, for all intent and purpose, making the movie your production may not be signatory so its possible they could offer you less, but unlikely. WGA minimum is not a lot of money on a 2.5 - 5 million dollar budget. I would say you can expect WGA minimum and might get more, but not likely over $75,000

[Gonzo82]

Thank you all for your comments. That helps a lot. We'll see what happens next..... :\