Under this scheme, the equity investor floated cash flow to make the movie. They would recoup their $5 million investment, plus a 20 percent premium — so, $6 million goes to the investor. The sales agent would also take a 10 percent fee from the sale; that’s $700,000. From the $7 million sale, that leaves $300,000 to split between the investor and the filmmakers.

I get why the investor is getting that split at the end that I’ve emphasized, but put in these terms it reads as such a clear dick move, and this is supposed to be a rosy scenario. Like they recoup their investment with an additional million on top, and they want a cut of what little’s left to the creatives? As if they need another $150k when they’re out there floating millions for productions. 😒

One can only imagine how much worse the real terms are if this is anything close to okay terms for indie productions.