The Fantasy Entertainment Empire

Ye Jiayi led the Dimension Entertainment team and stayed in Shencheng for almost a whole week.

There was very little rest time. Most of the time, she and her team stayed in the Penguin Building, conducting the final intense negotiations with Zhang Yanping's people.

The reason why it took such a long time did not mean that the negotiations encountered difficulties. On the contrary, this just shows that the communication between the two parties has reached a very deep level.

Otherwise, what's the point? It broke early.

A week later, Ye Jiayi returned to Shenghai with an unsigned contract.

This contract is the result of their discussion for a week. The two parties have basically passed the discussion on the content of this contract.

The contract is very complicated, and there are many detailed rules in it, but the most important ones are actually these few.

"Dimension Entertainment signed a ten-year contract with Penguin. In the next ten years, all film and television cooperation on all content of "League of Legends" will be carried out between the two of them and will be exclusive."

"Under the agreement, the total investment of each film and television work is jointly funded by both parties, and the upper limit of investment is 50%. Either party has the right to reduce or give up the investment, and the vacated investment amount will be determined by the other party. Make up for one side."

"Under this agreement, when any "League of Legends" movie is completed, a series of copyright income such as film and television, animation, peripheral derivatives, and character image authorization of all the main characters appearing in the movie will be paid. It becomes shared and distributed by both parties.”

"The profit distribution ratio that Penguin Films reaps is equal to their investment ratio in the film, plus an additional 5%, and the rest is enjoyed by Dimension Entertainment."

"Dimension Entertainment promises that in the next ten years, at least eight films about the content of "League of Legends" will be launched, and the investment amount for each film will not be less than 600 million yuan, and the first film must be completed within two years. make."

These are the overall framework.

Of course, there are many, many details in this, but they are basically not particularly important.

In addition to these, there is another stipulation that when any film under this framework has a global box office of less than 100 million US dollars, Penguin has the right to terminate the agreement.

This is a normal guarantee clause.

Assuming that a "League of Legends" movie does not even reach the global box office of 100 million US dollars, it is equivalent to a huge loss.

According to the contract, the investment for each "League of Legends" movie is 600 million yuan, which translates to a cost of more than 80 million or nearly 90 million U.S. dollars. As a result, the global box office is only 100 million, which is obviously a big loss.

In this case, Penguin needs to have a lower limit that allows them to have the power to terminate the cooperation when the movie suffers a huge loss. Instead of having to play with Dimension Entertainment on this boat after losing blood.

In fact, this lower limit is very low.

Still based on the cost of more than 80 million U.S. dollars, the movie must earn at least 300 million U.S. dollars at the box office before it can possibly pay back—of course, this refers to pure box office revenue, not other copyright developments.

The so-called commercial films, to put it bluntly, are still a type of commercial investment. And as long as it is an investment, no one can guarantee 100% profit-it is not a bank fixed deposit!

It is not difficult to make a movie with a global box office of 100 million US dollars. Even 300 million, 500 million, or even a higher box office is possible.

However, even the big Hollywood companies dare not say with confidence that every big investment movie they make can make money.

There are too many movies that are losing money, and many of them have super high investment, but in the end, a group of people jumped off the building.

Ye Jiayi also agreed to Zhang Yanping's request to set this lower limit.

"If we invest 80 to 90 million U.S. dollars to make a movie, and the global box office cannot reach 100 million U.S. dollars, then Dimension Entertainment should simply close down."

These are her exact words.

...

The contract between the two parties has basically been finalized, but it has not yet been signed.

This is a long-term cooperation involving the two companies in the next ten years, and the funds involved may reach tens of billions of RMB, which cannot be settled through a discussion.

For now, this is only a draft. Next, the legal departments of both parties will conduct more in-depth research on the contract to ensure that there will be no ambiguity in each clause and that there will be no legal risks.

In addition, on the Dimension Entertainment side, Fan Zhe needs to nod in the end; on the Penguin side, the senior management of their group headquarters also needs to look over it.

After Ye Jiayi returned to Shenghai, Fan Zhe saw the contract immediately. Under Mr. Ye's explanation, Fan Zhe basically understood what the contract was about.

"Acceptable, as long as the legal side confirms that there are no problems in the contract, we can sign it."

"Yeah." Ye Jiayi nodded, and then said: "Then next, the content department on your side will have to bear quite a lot of pressure."

"It's okay." Fan Zhe said, "Eight movies in ten years, it's not a big problem."

"There may be more than eight." Ye Jiayi said, "If this series is done well, we may do more projects under this framework."

"I hope so." Fan Zhe nodded, and said with emotion: "To be honest, I have played the game "League of Legends" for many years. In the past, I was still looking forward to seeing it in the cinema. The movie of the game. But, at that time, I never imagined that the movie of "League of Legends" would be made by myself."

Ye Jiayi smiled, and then said seriously: "To be honest, this is a series that may eventually involve tens of billions of funds. If it becomes popular, it will even be more. This is also our company. Take this opportunity to fly to a bigger The opportunity of the stage. You have to work hard."

"That must be." Fan Zhe touched his face, his expression was already filled with excitement.

...

After coming and going, at the beginning of December, the contract was finally signed and officially became legally effective.

Since the beginning of October, the two sides have had preliminary contacts, tossed and tossed, and the two-month negotiations have finally come to an end.

But for the cooperation between the two, this is just the beginning.

And then, the two sides began preparations for the first film under the agreement.

Obviously, Penguin has been preparing for the film and television of the huge IP of "League of Legends" for a long time.

However, it was only in the preparatory stage in the past. Now that the signing is complete, it's time to put it on the agenda.

On the third day after the contract was formally signed, Fan Zhe received a proposal from Penguin.