[Chapter 194: Pentagon's Generous Sponsorship]
The next morning, with the cooperation of Goodman and Mary, Linton smoothly signed a contract with the Gulfstream company's representative for an order of a Gulfstream IV-SP, paying a $5 million down payment. The delivery period was set for eight months.
Next, the Gulfstream company's designers and engineers would further communicate with Winnie to finalize the specific interior design and equipment for the cabin.
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Universal Pictures also brought good news. The Rock project had completed all internal approval procedures at Universal.
Linton, along with Robert and Goodman, went once more to the office of Universal Pictures' Lou Wasserman. Both sides quickly reached a partnership agreement on the The Rock project.
The film would be produced jointly by Linton Films and Universal Pictures, with a total investment of $55 million. Linton Films invested 60%, Universal Pictures 40%.
Linton Films would mainly control the production. After the movie's theater run, they could prioritize extracting 10% of the total film revenue as production management fees. The remaining income would be split based on investment shares. Both parties would share the film's rights proportionally.
For distribution, the North American market would be jointly distributed by Universal Pictures and Linton Films, with Universal holding 70% and Linton 30%. Distribution fees were as follows:
- 20% of North American box office revenue
- 20% of all video and television rights revenue
- 50% of merchandise revenue
The film was tentatively scheduled for a June release. The exact date would be negotiated once the final cut was ready.
The overseas market would be distributed by Universal Pictures. The rights would be bought outright for an amount equal to 43% of the North American box office total.
Following the model of Speed, the two sides established The Rock Studio, with separate accounting.
The studio rented office space near Universal City specifically for the film crew.
Robert served as the producer, Michael Bay as the director, Kenneth as the executive producer, and Universal's producer Tim took the role of associate producer.
Linton Films, as per the contract, consolidated the previously invested $6 million and early project expenses into The Rock Studio.
However, this project differed somewhat from Speed. Given the huge investment and the fact that Michael Bay was still a newcomer director, at Universal's strong insistence, the crew spent $2.2 million to purchase third-party completion bond insurance through the Firefighters' Fund Insurance Company.
...
Third-party completion bond insurance was an important innovation and system in the Hollywood film industry. It effectively protected investors and producers against production delays, unfinished films, and various unexpected losses.
Its basic function was to ensure the film's timely completion.
This insurance provided production guarantee for both the crew and investors. Should issues arise during production, the insurance company must assume responsibility.
For example, if shooting was delayed, main actors suddenly quit, or budgets exceeded limits, the insurance company would cover the resulting expenses.
If major problems occurred, such as the production company going bankrupt, or the director or lead actors leaving, the insurance company might step in to manage the project, find suitable staff, and complete the film.
Otherwise, they would owe substantial compensation.
Of course, the insurance premiums were not cheap. For an average movie, completion bond fees usually cost about 2.5% of the film's budget.
Action, war, or sci-fi films -- those involving stunt risks -- typically paid around 4% of the budget.
...
Linton Films transferred the remaining $27 million into the insurance company's account, while Universal, as agreed, transferred $22 million to the same account.
With the third-party completion bond insurance, every expense of the production required auditing by the insurance company.
Michael Bay was displeased but knew these were standard Hollywood procedures. Even top directors like Spielberg or James Cameron had to accept such constraints for big A-list productions.
Only if filmmakers like Linton funded their films entirely on their own could they bypass these rules, accepting all risks personally.
...
Michael Bay was truthful when he explained he had a relative working at the Pentagon's Hollywood liaison office. After the crew submitted the script and application, Bay used his connection to schedule a meeting with the liaison chief, Colonel Roger Kahn.
Linton, Roman, and Michael Bay brought the project plan and script to meet Roger, seeking support.
Roger, after reading the script, was intrigued by the movie's patriotic themes and special forces spirit. Learning that Speed, which was currently screening, was also written by Linton and co-produced by Universal and Linton Films, and remembering how Speed greatly improved the image of American police nationwide, he was fully impressed.
He was initially worried why Linton was replaced by Michael Bay as director and whether Bay could deliver the script's effects.
But upon hearing Bay was a former first assistant director on Speed and that Linton would serve as co-producer, his doubts vanished.
Roger promised full support for the film's production and would personally report to the Pentagon to secure more backing.
He also expressed his fondness for Speed, being a fan of Linton's films and music, mentioning his two children were also Linton fans. He spoke with Linton privately for a while, requested a few autographed photos, and exchanged contact information.
...
No surprises emerged. After Roger flew to Washington to report to the Pentagon, they agreed to sponsor The Rock. The film's themes of patriotism and military spirit perfectly matched the Pentagon's interests.
The Pentagon's sponsorship was extremely generous. They provided the crew with F-18 Hornet fighter jets, missiles, M-16 assault rifles, and other advanced active military equipment for filming. They even deployed an active Marine Corps unit to cast as the special forces in the film.
All personnel and equipment, even including aircraft fuel, were donated free of charge, showing the Pentagon's high regard for the project.
Linton and Michael Bay calculated that this support saved the production at least $6 million in costs.
*****
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