Running a company and managing personal affairs are two entirely different endeavours. Seashore Entertainment's investment in "The Purge" was a corporate decision, while Michael Davenport's role as producer was personal.
Thus, Michael signed an employment contract with Seashore Entertainment as a producer.
This was a legitimate way to allocate the Arab investment.
Most film companies hire producers to oversee all production activities. Underneath the producer, a line producer or production manager often handles budget preparation, equipment rental, location coordination, and accounting supervision.
However, small crews don't always adhere to these distinctions. A line producer's responsibilities were divided among Michael, George, Mary, and Robert.
Michael treated his core team reasonably well. In addition to their regular salaries, these three also received a producer's salary from the production.
The Arab investment generously funded it.
Strictly speaking, "The Purge" was not a Seashore Entertainment project but one initiated by Michael. Seashore Entertainment's investment in this project required a development fee payable to Michael.
This wasn't Michael taking advantage of the Arab investment but a standard industry practice.
Producers like Jerry Bruckheimer often operate this way.
Jerry Bruckheimer, often referred to as a "project initiator," represents the pinnacle of the industry. Production companies typically pay standard initiators between $10,000 and $60,000.
For a top-tier producer like Jerry Bruckheimer, project initiation fees often reach seven figures.
In accordance with industry regulations, Michael's project, which involved an $11 million investment, entitled him to a $25,000 payment from Seashore Entertainment.
Half of this amount had already been paid, with the remainder due when shooting commenced.
Producer remuneration includes initiation fees, project guarantees, and production fees.
"The Purge" lacked third-party guarantees, making project guarantee fees irrelevant.
Production fees, however, vary widely. Influencing factors include previous box office success, involvement in successful productions, the film's budget, and the producer's industry standing.
Producers are the actual power players in the film industry. The going rate for a first-time producer is typically between $20,000 and $150,000.
This amount increased significantly in the early 2000s.
Compared to novice writers and actors, this is a hefty sum.
Michael operated within industry norms, with Seashore Entertainment paying him $35,000 in production fees.
Thus, Michael's total producer fee amounted to $60,000.
Additionally, there was the script's transfer fee.
Michael personally wrote "The Purge" script, and without a creation agreement with Seashore Entertainment, the copyright was clearly his.
U.S. copyright law stipulates that if an agreement is in place, the employer owns the copyright to works created by employees.
In other words, if a project initiator hires a screenwriter to develop a script, the screenplay's copyright belongs entirely to the employer, not the writer.
Michael adhered strictly to these principles, charging only $5,000 for the script.
For a new screenwriter outside the Writers Guild, this was standard pricing.
Michael was the second-highest-paid member of the crew, just behind director James Wong.
Then there was the matter of credits.
Credit is crucial because if the film is a hit, the producer's name, like the director's and lead actors', will gain significant recognition.
Hollywood film credits typically list producers separately, rarely alongside others.
Using his position, Michael ensured his name appeared independently, with a dedicated frame.
The production company wouldn't object to this.
With locations secured, equipment rented, and actors signed, Michael held two meetings with the core team. These weren't for task assignments but to foster familiarity.
His workload would soon lighten.
Most production tasks now fell on James Wong, the independent project's director and highest-paid member. As is expected, directors are deeply involved in pre-production.
Michael remained vigilant, overseeing the project through Mary, George, and Robert.
A producer must neither micromanage nor completely let go.
Many directors have wild ideas. If untethered, they might stray far from reality.
In the production office, Michael reviewed Mary's latest financial report. With his past experience and recent studies, he could understand it well enough.
"Money really flows like water," he remarked at the changing numbers.
Mary asked, "Do you think the Arabs will scrutinize the funds?"
With nearly $4 million already spent, Michael was pleased with the expenditure rate. "Just in case," he replied.
Being prepared for any scenario was prudent. Avoiding complications was ideal, as Arab investors had deep pockets, and Michael needed their funding.
Working with Arab investors for several more years would be beneficial. The UAE was known for its wealth, sometimes extravagantly so.
After all, money is money. An American dollar isn't inherently more valuable than an Arab one.
Looking through the financial report, Michael thought of Netflix, a company he'd followed closely. He told Mary, "Find a reliable market research firm, one that's highly competent. I need them to track Netflix and its founder, Reed Hastings, and provide weekly updates."
Not fully understanding Michael's intent, Mary still agreed, "Okay, I'll get on it."
Michael considered another matter and asked, "Do you know anyone in the San Fernando Valley who makes romance films?"
Mary, concerned, warned, "Michael, delving into that genre is a big no-no in our industry!"
Michael quickly clarified, "You misunderstood. I'm writing a novel with scenes set in the San Fernando Valley and need some field research."
Lately, he'd been struggling with writer's block and thought visiting the Valley might help.
Mary, convinced, said, "I'll ask around." She inquired, "When do you plan to go?"
"The sooner, the better," Michael replied.
His blog hadn't been updated in a while. Luckily, he had no readers yet, or he'd be receiving complaints.
Mary glanced at Michael but said nothing more and left the office. On her way to the finance room, she saw a sweet-looking blonde girl walking down the hall carrying a paper bag.
Mary recognized her as Amanda Seyfried, the youngest actress in the crew.
"Hi, Mary," Amanda greeted her politely. "Is Mr. Davenport in?"
Charmed by Amanda's sweetness and manners, Mary smiled and said, "Michael's in his office. Go ahead, but remember to knock first."
Amanda smiled back, "I will."
Waving to Mary, Amanda reached the office door, knocked lightly, and entered after hearing "Come in."
Seeing the blonde girl enter, Michael put down his book. Amanda waved and said, "Hi, Mr. Davenport. Am I interrupting?"
"No," Michael replied, holding up his book. "I've finished my work and was just reading."