Offers to option quandary

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  • Offers to option quandary

    Hi all. Green as the grass, but making the effort.

    Feature screenplay. So a small-profile producer has offered $7k up front and X % of the budget. He's excited, touting name 'connections', etc.

    A larger producer is presently working on a project with a big name and a big name s-writer. Has offered zero dough for an option--36 month term, with no money during 1st 18 months. Will get back to me with the entire offer details should I be willing to go into a no-dough deal.

    I started querying a few agents/management/ production co's a week ago... 8 requested--very nice companies- so 6 have only had it a couple of days.

    So #1--considering which way to go: suggestions/opinions are most welcome.

    #2 How much time should I play for in order to see other potential responses? (or if they were going to respond they would have by now?)

    #3 --It's odd, but just last week I did an option deal with no dough up front on a film based on a book I wrote. Medium producer-Nice names. But I got on as a producer (they will drive the project... I got in as a producer cuzz I also secured and control the life rights (biopic) Soooo should I attempt snagging a rep whilst in the midst?

    Any input/insights sincerely appreciated.

    It's not that I'm a great writer and two hit at once. One project took many years to get here. The latter just happens to be subject material trending right now.
    Last edited by Done Deal Pro; 10-17-2020, 04:47 PM. Reason: Added tags

  • #2
    Re: Offers to option quandary

    Originally posted by Jazzed View Post
    Hi all. Green as the grass, but making the effort.

    Feature screenplay. So a small-profile producer has offered $7k up front and X % of the budget. He's excited, touting name 'connections', etc.
    That's a nice option, especially in this time. What is the percent on the budget, it matters. What is the budget? What's the ceiling and the floor. That matters, too, because it caps you. Make sure it's based on the bonded budget.

    A larger producer is presently working on a project with a big name and a big name s-writer. Has offered zero dough for an option--36 month term, with no money during 1st 18 months Will get back to me with the entire offer details should I be willing to go into a no-dough deal.
    You've got a deal for seven Gs. I would not recommend giving my work to someone for 36 months for NOTHING when you have 7 grand on the table. Are you kidding? Take the seven, go with the guy who's excited to work with you and puts up money. HE'S INVESTED.

    36 months with no payment? Means he's not invested and he can BACK BURNER it for the properties he is paying for. You don't want that. You want to get it in the can as soon as you can because **** falls apart all the time or takes years to get made.

    Worse case? First guy's option expires-- you made seven grand and now you can option it to someone else if they don't exercise the extension. There is an extension, right?

    I started querying a few agents/managment/ production co's a week ago... 8 requested--very nice companies- so 6 have only had it a couple of days.

    So #1--considering which way to go: suggestions/opinions are most welcome.

    #2 How much time should I play for in order to see other potential responses? (or if they were going to respond they would have by now?)

    #3 --It's odd, but just last week I did an option deal with no dough up front on a film based on a book I wrote. Medium producer-Nice names. But I got on as a producer (they will drive the project... I got in as a producer cuzz I also secured and control the life rights (biopic) Soooo should I attempt snagging a rep whilst in the midst?
    Things are moving along nicely for you. Take the bull by the horns. It's a tough time right now, so getting serious interest like this is great.

    Tell the managers you have an option deal in the works. Seems to me that people dig your writing, so it's not long before a manager signs you. Pick your manager carefully. Even CALL them.

    Any input/insights sincerely appreciated.

    It's not that I'm a great writer and two hit at once. One project took many years to get here. The latter just happens to be subject material trending right now.
    Good luck. So happy to hear good news like this. You can make this happen.
    FA4

    BTW, I'm a nobody
    "Arguing that you don't care about the right to privacy b/c you have nothing to hide is no different than saying you don't care about free speech because you have nothing to say." -- Edward Snowden

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    • #3
      Re: Offers to option quandary

      Along with what FA4 noted, which is spot on....

      Originally posted by Jazzed View Post
      Feature screenplay. So a small-profile producer has offered $7k up front and X % of the budget. He's excited, touting name 'connections', etc.
      A nice offer for the vast majority of screenwriters out there at any time in the last 25 plus years. You should get around 3% of the budget minus the $7K option. That's pretty standard. But do find out what the anticipated budget will be and get a floor at least for your script -- in other words you'll be paid at least X for the script no matter what, or no deal.

      Originally posted by Jazzed View Post
      A larger producer is presently working on a project with a big name and a big name s-writer. Has offered zero dough for an option--36 month term, with no money during 1st 18 months. Will get back to me with the entire offer details should I be willing to go into a no-dough deal.
      That is a ridiculous offer, and you can quote me on it. No one should be doing free options, dollar options or anything close to that. If someone wants to tie up your script, as I've noted to many, at the very least they should pay you enough for a nice dinner with a good bottle of wine to share with a friend or significant other to celebrate. Plain and simple. 36 months is insane. A real producer wouldn't ask for this, especially not for free. They may be larger than the first person, but they are smaller in stature. That producer should be ashamed of themselves. In general options, should be for 12 months to maybe 18 months at tops. That's it, unless they are paying you boatloads of money. (I've personally optioned stuff from writers for much better than free, on my own.)

      My bosses have written checks for thousands & thousands to option scripts. My writing friends have been paid thousands to option their scripts. Unless you are working with a close, long time friend, "free" is not a word that should ever come into play. Even then, friends of mine have paid me at least something to option a script.

      And as for the other deal(s), I strongly feel (and suggest) they should have given you something. But if you want to be a producer too, then a credit might help if the film turns out well and you are actually involved as a producer. The "producer" credit is frequently given out like candy at Halloween.

      If no money is involved with certain deals that go through, a rep is not going to be interested in repping you in 99% of the cases -- unless your writing is brilliant. 10% of zero is zero, of course. That does them no good. Congrats on any and all, but think about it from their perspective, of course.
      Last edited by Done Deal Pro; 07-02-2020, 03:29 AM.
      Will
      Done Deal Pro
      www.donedealpro.com

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      • #4
        Re: Offers to option quandary

        First & foremost you are a somebody. Great POV and terrific insights.

        Estimated budget at 28M--1.9% 100k floor - 250k ceiling --Love that 'bonded' budget gem. Thanks. Budget not etched in stone of course.

        No money for 18 months on 3 year option means I've gotta figure how much to require at 18 month mark, right? His bait is Team working with recent Oscar nominated S-writer (hey everyone gets re-written, right?) and a Name You Know as producing partner. A one name element, as in recognized by one name. But, concerned about that dreaded back-burner. Salient Point 4. Thanks.

        Re: Extension -- yup 6 month extension if negotiating with entity. Asking for right of first refusal within another six months.

        Re: manager-- I'm an older cat- 55. I understand and appreciate it's a young person's game. So not thinking they'de be all that excited Lol. Don't know what I was thinking.

        I guess the lure of a couple 'big' names seduced me a bit...

        oh... what about giving a few more days for other response from script requested bys.

        In ANY case-- you adroitely pointed out the pros and cons. I thank and appreciate you 4!

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        • #5
          Re: Offers to option quandary

          As someone who got a $2000 option for a year with their writing partner (so 1000 if your'e doing the math at home kids) and never got paid -- yet I still think it was worth it only because his name helped get us repped. However, I think the script on it's own would have done the same as I got 2 offers to get repped and one of them didn't even know producer history until after...

          So this is all to say -- the best course to me would be to get a rep FIRST and let them handle any offers and hopefully get you the best deal -- and probably use the interest of proudcer to get another producer to want to jump on board hopefully for better terms finacially and time wise.

          So I'd wait to hear from reps first.

          But what is the time frame of smaller 7K producer?

          What does your gut tell you?

          If 2 producers are interested in this project something tells me a rep will be too... and you'll have more control that way.

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          • #6
            Re: Offers to option quandary

            Hi Will sound and extremely concise information and suggestions. Strong and quite logical... and fair. Thank you.

            I'm going to avoid the no dough Team. Maybe they throw some dough and rectify terms after the 'No thanks". Lol But not holding my breath.

            Re: the deal I'm a 'producer' on. Yes, a colleague and friend has kept the faith-- he's in the industry and kept interest stoked-- though never quite found a home, despite nice attachments he brought in. A project that we've been through a few wars with together-- so in consideration of that, and in conjunction with our agreement: I'll get credit --and dough for film rights to book-- and also credit as a producer--not exec, co, or associate-- and I get 15% of producer fees on project and any subsequent monies that stream their way.

            Get to 'consult' on all creative and access to set--Lol. I wanted the producer credit cuzz I brought the book, the life rights, and wrote the original script (which they have someone re-writing of course-- and that's cool)

            Thanks a million Will.

            I guess I'm going to wait a few days to see if any hits on the other script submissions-- but I won't let the 7k deal get away. He's on the phone to me every day! Thanks again. All great stuff
            Last edited by Done Deal Pro; 07-02-2020, 03:30 AM. Reason: Add paragraph breaks

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            • #7
              Re: Offers to option quandary

              Hi Bono. The guy litterally said he'd meet up and pay cashier's check immediately. I'm an hour outside of LA. So all his money is up front-- which is great. He did impress the hell out of me with his fire and passion. He said most options are 2k-5k but I told him there was significant interest and what $$-- up front it would take for me to consider getting taken off the market.

              The rep-- a bit reticent due to the age factor. Doesn't hurt on my book projects but leery on this industry. But I'm up for what's best for The Project

              Very interesting input Bono. Thank you for certain. Hmmmmm

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              • #8
                Re: Offers to option quandary

                I'd be focusing on the option with money on the table. That's me. Don't be lured by the FLASH of the name droppers in the second deal, that's what their relying on and they're taking advantage of you.

                Think about that, they're taking advantage. Is that really someone you want to work with? Someone you want to GIVE your hard work to?

                Every deal is about them paying you as little as possible and you trying to get the most you can. Keep that in mind, it will better help you understand their negotiating tactics.

                Doesn't sound like they're being greedy with the TIME of the option, but the floor/ceiling seems short with a $28 million budget. At 1.9% they still have room to hire a big gun to come in and rewrite you.

                Do you have two steps provided in your contract? One rewrite and a polish? At WGA min for an original screenplay that's in the $104k range for guild minimum, I think, so consider that that is included in your FLOOR.

                Your ceiling for a $28 million budget is about $840k. They won't go for that, highly unlikely, but it should be more than the $250k. At $250k the norm for a 2.5% of budget on a $10million budget, so you have to consider where you want to be. Can they make it for $10?

                Think about what you'd be happy with. Is $200k floor and a $350 (or $400k) ceiling okay with you? That way they still have half a million to play with to hire another writer over you.

                Ideally, your floor would be 2.5% of the low end of the budget. Then you determine your rewrite fees so they add up to that floor. That's the minimum you're guaranteed to make, even if the film never gets made. Which, unfortunately, is more likely.

                The ceiling can be based on the high-end of the budget, but not necessarily the ultimate budget. Remember, once the ceiling is made the budget can sky rocket and you are capped. Which is okay if you agree to it.

                Their offer will be on the low end. Always.

                It's really tough, I know. A lot to consider. Consider it carefully.

                I would call/email those managers that you really like and explain that you're negotiating an option right now and you would feel more comfortable with having a manager with eyes on it. Maybe they'll read it sooner. I would think a week is long enough to poke them. You're not being rude, you're actually helping them make money.

                Also, don't worry about your age. They don't give two shits about your age. They want a writer that can give them an ongoing stream of good material to sell.

                BTW, you CAN do the deal without a manager, don't let the deal slide because you don't have a manager secured yet. Try calling a few entertainment lawyers tomorrow. Tell them you have a deal you're negotiating right now and they might be able to sign on.

                You can do this. You're doing pretty good on your own already. I know a few writers who are not repped that do their own negotiations, so it's possible. I think Ed Fury has done several on his own.

                Just food for thought. I'm not a lawyer, but I read contracts very carefully. ☺

                Good luck and let us know how it turns out... it keeps us going.
                FA4
                "Arguing that you don't care about the right to privacy b/c you have nothing to hide is no different than saying you don't care about free speech because you have nothing to say." -- Edward Snowden

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                • #9
                  Re: Offers to option quandary

                  Originally posted by Jazzed View Post
                  Hi Bono. The guy litterally said he'd meet up and pay cashier's check immediately. I'm an hour outside of LA. So all his money is up front-- which is great. He did impress the hell out of me with his fire and passion. He said most options are 2k-5k but I told him there was significant interest and what $$-- up front it would take for me to consider getting taken off the market.

                  The rep-- a bit reticent due to the age factor. Doesn't hurt on my book projects but leery on this industry. But I'm up for what's best for The Project

                  Very interesting input Bono. Thank you for certain. Hmmmmm
                  I don't understand the whole situation -- but my guy not paying me I've heard more often than a guy giving you a bag of money (casher's check) in a parking lot outside a supermarket... That makes me more nervous than the other guy trying not to pay you as that seems more "normal"... fire & passion I do like...

                  That's why my side was on the "don't worry about the money" part as it's small potatoes -- it's more what are they trying to do with your script? Make it themselves? Option money is nice -- and yes most of us could use it-- but that will be gone fast -- I'm more interested in the long term rewards of the deals... getting a movie made and paid a % for the script if it is... real money.

                  I'm more worried about tying up script for 3 YEARS -- even if they paid you -- still the years seems the problem with the deal not even the zero option which does seem insane since you assume they have money, but everyone is trying to get free work. It's very annoying. I don't like this btw. I'm just pointing out the facts.

                  I'm more focused on the people themselves. How did you meet these producers in the first place? Blind query?

                  There are never clear cut answers sadly... it's more a go with your gut feeling.

                  What is your goal overall? To become a screenwriter? At 55 -- i don't know if you're like a lot of us who have been working at this dream a long time or you just had a career change...

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                  • #10
                    Re: Offers to option quandary

                    Whew. A lot to digest. will sleep on it and give my thoughts manana with this info in mind. Yeah I went to law school but never practiced--still these clauses have me looking very, very closely Lol thanks for everyinsight and approach angle I need it.
                    Thank you!

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                    • #11
                      Re: Offers to option quandary

                      Hi Bono. The guy was discussing how some deals never get the money exchanged and he wanted me to know how bad he wants this project. It is tantalizing cuzz it's a trendy thing Just lucky It's time came, maybe.

                      Blind queries on the pending offers. On the first deal, my book agent was approached. Guy loved the book. Met in LA-- he is successful actor, loved the material so hustled it. Moons passed-- finally actor, became established, introduced me to a seasoned producer also passionate.

                      Funny thing-- guy just texted said he had something significant to bring to the table to talk manana We'll see

                      Yeah Bono--like-minded I'm looking to get it made . My goal is to get a couple of projects done... then acquire high-profile interesting rights... do the book, and bring to screen. Hoping these get done so the process would be a lot smoother. Lol
                      Don't think I've got the chops to really go A List writer. Mucho thanks Sir Bono! Great instincts.

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                      • #12
                        Re: Offers to option quandary

                        I had several offers over the last couple of years for low dollar (3-5k) options on a project that was just sitting there. I didn't take them because I didn't think the people could get them made. Because it necessarily requires A list talent based on the price point.

                        My manager got a call recently from a big producer with a first look inquiring about the project. He has an A list director interested. He had a few small notes. I implemented for free and passed it along last Friday. We were on the phone Monday morning. He's securing life rights. We can get the script to the target talent. This isn't an approach for everyone but I'm pleased it's not tied up at some place where it would be a slog to get second tier talent involved.

                        I don't disagree with anything anyone has said here about the money. But the script is written. And even if this doesn't go my feeling is that I've shown I can take notes and I'm not a pain in the azz to work with.

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                        • #13
                          Re: Offers to option quandary

                          Going over info and insights---- just wanted to add --as it should clarify the interest on the latter project: The subject of the screenplay co-wrote it with me. He is a noted pioneer in a high-profile entertainment industry. So, that aspect, not my writing, is likely what drew heightened interest; and the option dough.
                          Last edited by Done Deal Pro; 07-02-2020, 06:59 AM. Reason: Format

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                          • #14
                            Re: Offers to option quandary

                            I'm re-reading your post and I want to make sure I got this right:

                            1. Current spec you don't know what to do with option 1 or 2 or wait for reps?

                            2. You already optioned another spec based on book -- is that the one you are referring to as noted pioneer

                            Is that right?

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                            • #15
                              Re: Offers to option quandary

                              Hi Bono.

                              1. Take option now or buy a lil tme to see what very nice managment and prod. co's. who accepted submission might offer?

                              2. Noted pioneer is not involved in already optioned spec based on book

                              So spoke today with $ offer: Sweetened the pot. So as now stands:
                              story by credit. Written by to be determined. 2-step re-write/polish (thanks 4!) EP credit.

                              Also EP $ participation; says typically 1%.
                              Creative involvement. Set access.

                              On the EP compensation I requested a most favored nations standing or pari-Passu equal footing cutting the pie clause (a Canandian producer friend suggested that term Lol) --So as to avoid the $ okie-doke.

                              Nothing based on net. From producer fees and any streams they see on back end. Whew. Quite involved stuff. Also took the pulse on interest of a few more of his connections. All favorable. Nice networking but just prelim of course. Things are looking up. Y'alls guidance is a blessing. Thank you!!

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