| re: One of the few upcoming Broadway shows I was looking forward to | |
| Posted by: ryhog 06:08 pm EDT 03/16/23 | |
| In reply to: re: One of the few upcoming Broadway shows I was looking forward to - NewtonUK 01:12 pm EDT 03/16/23 | |
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| First of all, following up on Mike's post below yours, ShowTown is Nathan Gehan. I have no information on who pulled out or the circumstances except to say that the release clearly says a lead producer, not someone who was a co-producer. So prsumably it is one of the three, or ShowTown. What you describe in the remainder of the 1st paragraph is typical but it is important to remember that these entities are creatures of contract and not all contracts are identical (especially in these regards. Obviously, when you get into state organizational laws and federal securities laws, some things are fixed.) You can have someone contractually obligated without having written a check, and the cashing of the check is not a ritual. You can also, as you know, have investors who freeze their money until the capitalization freezes, or allow it to be used. You can also have a lead producer/managing member, etc return money to someone who had already "invested." (I believe it was Book of Mormon where Rudin did exactly that, deciding he did not need all of the money that had been subscribed (and didn't want to dilute the percentages by holding it). The bottom line is that you can (or can't) do anything that is provided for (or violates) a contract in a material way. Now having said all that, I don't think most of these things are good practices. In this case, for instance, someone has just wasted a bunch of money and someone else has probably had their reputation ruined, at least in this business. As I said I don't know what happened. My guess is that the leads (and/or others) had put in a bunch of money unconditionally, that the defaulting producer had something really bad happen (maybe they were heavily invested in Signature stock or something like that), and with the advance in the gutter, no one (including the remaining producers) had the appetite to shell out more cash. One sort of footnote to all this is that, again as you no doubt know, the means of financing shows [sorry Aleck :-) ] is evolving. Uncle Milton, who just sold his dress factory, has been replaced by what are looking more and more like hedge funds. |
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| Previous: | re: One of the few upcoming Broadway shows I was looking forward to - NewtonUK 01:12 pm EDT 03/16/23 |
| Next: | re: One of the few upcoming Broadway shows I was looking forward to: Makes sense - NewtonUK 10:52 am EDT 03/19/23 |
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