November 05, 2014

Daily Journal quotes Alex Weingarten on slate film financing

1 min

Venable partner Alex Weingarten was quoted in a November 5, 2014 Daily Journal article on the reemergence of slate film financing. Under this model, investors partner with studios and production houses to finance a year’s worth of films at one time. The practice eased during the recent recession but is seeing a comeback which is also producing an increase in contract disputes between studios and investors. 

“When operating as designed, slate deals provide the money to get pictures made and mitigate risk for investors,” said Weingarten. “One would think that the financing of these projects would make it less fraught with peril, but that's not the way it worked out.” One reason the disputes can become so fierce, according to Weingarten, is because there is so little money to fight over. He noted that many people only invest in films “for the sex appeal of the project” even though most movies lose money.