Breaking News: REBECCA $4.5 Million Short After Investor's Death - Delays Start of Rehearsals for 2 Weeks; Previews & Opening Night as Well

[CurtainPullDowner]

No, it isn't.

[wonkit]

Amazing the lengths some producers will go to in order to back out on their funding commitments.

[jimmycurry01]

I believe he was an investor, not a producer. Not that it really matters.

[ACL2006]

I do feel sorry for anyone expecting to make their Broadway debut in this. It may not happen with Rebecca.

[SNAFU]

"It is mysterious, who's the dead millionaire?"

Uncle Pennybags!

[ClumsyDude15]

To the poster who mentioned Spider-Man not having money issues, let me direct you to this little gem of information:

Readings of the musical were held beginning in 2007, but the production was delayed several times. By early 2009, the Broadway production ran $25 million into debt, the New York Post reported, and work on it was suspended. The budget for the project was reported in March 2009 to be a record-setting $52 million. In late 2009, Bono asked Michael Cohl to step in as producer, and by May 2010 Cohl had raised the money to proceed with the project, much of it from Jeremiah J. Harris, former Chairman of Live Nation, who is also listed as a producer. Meanwhile, the musical was eventually scheduled to open at the Foxwoods Theatre on February 18, 2010, but the production was delayed again until fundraising could be completed.

http://en.wikipedia.org/wiki/Spider-Man:_Turn_Off_the_Dark

[Phantom of London]

Livent 2!

[bk]

"A friend of mine saw it in Vienna and raved about it. He was worried, however, abut it being translated to english."

There is something terribly wrong and terribly amusing about someone being worried that REBECCA, based on an ENGLISH novel, would not translate well into - ENGLISH.

These producers are amateurs, sorry. They announced this thing without having all the money together. They postponed. Then they announced again, STILL without having all the money in the bank. Rule one: Do not waste your time or ours unless you have all the money in the bank. End of story. You do NOT book a theater, pay unions, build sets, announce an opening date without having ALL the money in the bank. How stupid are these people? You have all the money in the bank or go look for another line of work, because clearly being a producers isn't working for you.

[egghumor]

I wonder if the REBECCA producers have reached out to Ken Davenport? He might be able them raise the needed 4.5 million in $1000 increments.

[g.d.e.l.g.i.]

If they want to pick gullible money people, forget Davenport -- hit up the poor suckers with dough in Spider-Man. Maybe they'll feel like they can turn ****e into shinola again.

[CapnHook]

Unless I misread the article from yesterday, it doesnt seem like the producers have to RAISE 4.5 million from an investor. I took it as that money is still going to be invested, but now instead from the individual, from the estate. The delays are due to HOW they are getting the money deposited into the bank account, from the estate of the investor who died.

Also, it is common for producers to begin spending invested money BEFORE all of it comes in. Pending on the deal and the investors' agreements, once you hit a certain percentage of investment, you may begin to spend that money on predetermined expenses. (For one, a down payment on the rental of the venue. Secondly, the shops needs to start building the set and costumes. Thirdly, some marketing/advertising may need to begin sooner, pending on the calendar and on strategy.)

I also find it hard to believe that the $4.5 million comes from a single investor. It's possible. However, I'd imagine that instead it was a co-producer. Funds would have to channel through differently, if that were the case.

[broadwayjim42]

Translation issues. i wouldn't doubt that's what killed "Kristina" coming to Broadway. The music is gorgeous, but the English lyrics are so ponderous and repetitive.

[bk]

CapnHook, my point is simple. It doesn't matter WHEN you start spending the dough - but you don't announce an opening date and book theaters and pay unions until ALL of it is in the bank. That's just stupid. You think David Merrick did this crap?

[CapnHook]

bk, that's simply not how it works. If you don't have an established relationship with a theatre owner (and even if you do), you may have to spend money on a down payment to book a theatre BEFORE you have all the money in the bank. There are certain expenses that can't wait until all the money is in.

If I'm a producer, and I'm 90% funded, if I am allowed to spend the money, and if I'm sure I can raise that final 10%, I'm not going to wait to finish getting the money in the bank. I'm going to START because time is of the essence! Someone else may book that venue I want. If the shops don't start building TODAY, my sets and costumes may not be ready by my opening night.

Of all the shows I have worked on, and of all the shows my friends have worked on, I don't have a single example of a show that didn't spend any money until 100% capitalized.

[bk]

Well, apparently you or your friends have only worked on shows in the last decade, because this stuff did not happen before then. I understand you may have to put down payments on stuff - I get it. I also get that only fools go into rehearsals not funded. And this thing is now 4.5 million light - not exactly 90% funded.

[Yero my Hero]

But that $4.5 million was pledged. From an accounting standpoint, they had raised the full capitalization.

I also get that only fools go into rehearsals not funded.

Well, that would be why they delayed the start of rehearsals, then.

[CapnHook]

Correct, this recent delay is because they were anticipating receiving a check that is now not able to be signed for by its investor. And bk, you are correct that a show needs to be fully funded before rehearsals start. Not having 100% capitalization does not impede, however, getting a theater and putting a marquee up (as already pointed out).

[AEA AGMA SM]

I will also say that from the producers I have spoken to it is actually helpful to raise the rest of your capitalization once you have announced the theatre and dates for previews and opening. So waiting until you have everything in place could potentially mean you are waiting for a much longer time as that visible presence (i.e. your press release stating the dates and your theatre, the marquee going up, casting notices and auditions, all of that) can help speed up investors who may be on the fence, or bring forward some who may not even be on your radar.

[ClumsyDude15]

I just want to know if it's going to open and play all twelve performances it's going to have.

[uncageg]

bk, my friend was referring to the translation of the lyrics to english, not the story itsef.

[Broadway Local]

Dos anyone known who actually passed away?

Here's the announced producer list from IBDB:

Produced by Ben Sprecher, Louise Forlenza, The Shubert Organization (Phillip J. Smith, Chairman; Robert E. Wankel, President), DC Tours Pty Ltd, Manderley Partners, Julian Spencer, Paul Abrams, Tony Fusco, Nanda Anand, Peter Bogyo, Peter Bezemes and Dennis Grimaldi. Produced in association with David Mirvish, Stage Entertainment and Larry Feinman. Produced by special arrangement with Vereinigte Bühnen Wien GmbH.


Edit: Patrick Healy of the NY Times reported that it was Paul Abrams. IBDB lists REBECCA as his only producing credit.

[wonkit]

If the estate is in probate, no check will be forthcoming any time soon. Just saying.

[best12bars]

^ I was gonna say, two weeks on a check that's held up in probate on a large estate is really being hopeful.

I'll bet it takes more like 6-8 weeks ... and that's if it isn't contested and there aren't any other legal holdups.

Still, it sounds like the check will eventually come.

But could they lose the theatre if they have to postpone the starting date(s) now?

[CapnHook]

The investor died in early August. It's been 3-5 weeks already.

[CurtainPullDowner]

Well, if I was a member of his or her family,
I would certainly contest his money going up in flames.

[averagebwaynut]

Two small points:

bk: it's not just the last decade. It's been happening for at least two decades (which I can attest to first hand) and likely a lot longer (which I can attest to second hand). Merrick and the others spent money on shows long before they were fully capitalized too. The differences were a) the economics (even adjusted for inflation, shows weren't as costly so 25-30% of capitalization meant a much lesser sum than $4.5M if it suddenly dropped out); b) the major producers then were true producers with substantial financial means of their own and not just fundraisers and/or fundraisers who partnered with other fundraisers. If need be, they could and would cover shortfalls with their own money. But their spending habits were no different.

CapnHook: actually, the latest date that a show can typically be fully capitalized is Opening Night. You're correct that most shows set the deadline at no later than first rehearsal. But some set the deadline only as of 1st preview. And still others set the deadline as Opening Night. As long as the deadline is fully disclosed in the Operating Agreement of the entity formed to produce the show, and as long as the show can sustain operations on a cash flow basis without all of the cash in hand (which it sometimes can if it's only a small amount missing since part of the capitalization is often a reserve that may not be spent anyway), there's nothing stopping a producer from waiting that long to have cash in hand. Of course, if the show never makes it to performances and the producers have spent investor money and the investors have not waived their right of refund, the producer is liable to repay the money. So there's certainly a great risk. But in and of itself, the deadline can actually be quite a bit later than first rehearsal.