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| re: Post reporting Comet investors are demanding an audit! They are right ... | |
| Posted by: NewtonUK 07:42 am EDT 08/16/17 | |
| In reply to: Post reporting Comet investors are demanding an audit! - Naughty_Rob 06:59 am EDT 08/16/17 | |
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| If the Post is even close to accurate, the show's running costs balooned from $545,000 to $700,000. OK. Lets assume the running costs were that high from day one. Their average adjusted gross (not the reported gross gross) for 43 weeks of the run was $980,000 a week. So the show should have averaged a return of around $250,000 a week, conservatively - for 43 weeks. Do the math - weekly surplus of $250K, 43 weeks = $10,750,000. A 76% return. Not 20%. A 20% return means that the show has only earned back $2,800,000. That would mean that the average weekly net operating profit was only $65,000. There is no way that is true - unless the show was actually spending around $900,000 a week. Investors certainly have the right to say WTF - especially after the recent mismanagement of casting, and inability of producers to find a way to keep a show grossing around $1 million or more a week from simply dissolving overnight. |
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| Only 60% of that above weekly cost goes to investors | |
| Posted by: dramedy 04:22 am EDT 08/17/17 | |
| In reply to: re: Post reporting Comet investors are demanding an audit! They are right ... - NewtonUK 07:42 am EDT 08/16/17 | |
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| 40% goes to royalties ( creative team, director set designier, sound designer, costume designer all get a weekly percentage), plus lease percentage, etc. And if grobin got 10% of gross like many stars, it is easily calculated at 20% return. The problem is that the show was selling well, but really not exceptional where it should have been averaging $1.5m with groban. | |
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| re: Only 60% of that above weekly cost goes to investors | |
| Posted by: mikem 05:16 pm EDT 08/17/17 | |
| In reply to: Only 60% of that above weekly cost goes to investors - dramedy 04:22 am EDT 08/17/17 | |
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| Shouldn't Groban's salary (or at least most of it) be considered to be part of the weekly nut? If the show's finances were set up that the investors only got a tiny bit of the profits each week (which sounds like was the case), I can understand why they're upset if that wasn't clear up front. | |
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| Most likely it would show up as a separate line item | |
| Posted by: dramedy 05:49 pm EDT 08/17/17 | |
| In reply to: re: Only 60% of that above weekly cost goes to investors - mikem 05:16 pm EDT 08/17/17 | |
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| If i recall correctly, groban extended his original run. So it would make sense to show costs for no star and add percentage for star. It can be even more complicated where star gets base salary and then percentage when above base. I even saw one that percentage kicked in for weeks above,weekly nut. $-550 to 700 is big jump, but $550k was most likely unrealistic for medium size musical at large imperial. | |
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| I'm eagerly awaiting Ryhog's perspective on this | |
| Posted by: broadwaybacker 11:01 am EDT 08/16/17 | |
| In reply to: re: Post reporting Comet investors are demanding an audit! They are right ... - NewtonUK 07:42 am EDT 08/16/17 | |
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| He or she seems to have a great understanding of this type of issue. | |
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| Jesse21 also seems very knowledgeable with the numbers | |
| Posted by: Naughty_Rob 12:02 pm EDT 08/16/17 | |
| In reply to: I'm eagerly awaiting Ryhog's perspective on this - broadwaybacker 11:01 am EDT 08/16/17 | |
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| He knows a huge amount about all this stuff. Rob |
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| re: Jesse21 also seems very knowledgeable with the numbers | |
| Posted by: Singapore/Fling 01:36 pm EDT 08/16/17 | |
| In reply to: Jesse21 also seems very knowledgeable with the numbers - Naughty_Rob 12:02 pm EDT 08/16/17 | |
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| Jesse has shown an ability to keep track of and tabulate reported grosses, much like a baseball fan might track a player's stats, but Jesse has not shown professional knowledge as to what the numbers mean or how they operate. | |
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| re: I'm eagerly awaiting Ryhog's perspective on this | |
| Posted by: ryhog 11:42 am EDT 08/16/17 | |
| In reply to: I'm eagerly awaiting Ryhog's perspective on this - broadwaybacker 11:01 am EDT 08/16/17 | |
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| Harvey Boy is closer to accurate, except that the royalties and rent are off the net gross, but none of these numbers add up. I'm not at my desk so I can't easily check what's amiss but something is. If this hasn't been clarified by tonight, I'll gring the numbers and reply. Dramedy also has a handle on all this, but my sense is that we don't have the right capitalization, nut or much of anything else. And also remember that for the Groban weeks, that royalty amount was likely skewed (much) higher. | |
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| re: Post reporting Comet investors are demanding an audit! They are right ... | |
| Posted by: AnnieBlack 10:00 am EDT 08/16/17 | |
| In reply to: re: Post reporting Comet investors are demanding an audit! They are right ... - NewtonUK 07:42 am EDT 08/16/17 | |
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| As a local New Yorker, I was always surprised during the run about the lack of TV ads for this show. There were a bunch in the beginning of the run but that is all that I noticed- compared to the usual blanketing of Wicked, Bronx Tale and Dolls House TV ads this season. I could see the increased expense for advertising, but it seemed to even have a muted print presence. This going to end up being a very interesting story of mismanagement (especially after reading NewtonUK's post) | |
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| re: Post reporting Comet investors are demanding an audit! They are right ... | |
| Posted by: TheHarveyBoy 08:18 am EDT 08/16/17 | |
| In reply to: re: Post reporting Comet investors are demanding an audit! They are right ... - NewtonUK 07:42 am EDT 08/16/17 | |
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| If those running costs don't include rent or royalties, those expenses could eat up 50% or more of any overage there is, reducing your $250K to $125K a week or less. | |
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| re: Post reporting Comet investors are demanding an audit! They are right ... | |
| Posted by: JereNYC (JereNYC@aol.com) 08:57 am EDT 08/16/17 | |
| In reply to: re: Post reporting Comet investors are demanding an audit! They are right ... - TheHarveyBoy 08:18 am EDT 08/16/17 | |
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| I found these two accounting books. This one says "Show to the IRS." And what's the other one say? "Never show to the IRS." |
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| re: Post reporting Comet investors are demanding an audit! They are right ... | |
| Posted by: PurpleMoney 12:07 pm EDT 08/16/17 | |
| In reply to: re: Post reporting Comet investors are demanding an audit! They are right ... - JereNYC 08:57 am EDT 08/16/17 | |
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| Thank you for making me laugh today. I've had a painful 24 hours and could use a few more lighthearted moments. | |
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