Immediate Release: A Funding Deal, A Minimum Guarantee And New Distribution Terms Have Project Child Support On Its Way To Producing Its Television Series.
It’s been more than a year since Project Child Support announced its television series deal since November 2015, and raising the funds to enable its CEO and Founder to maintain ownership of the series hasn’t been easy. Recently, the company received an agreement to acquire $5 Million in funding to produce the first two seasons of the series (See: Funding Confirmation). Unlike most television shows where a pilot episode or what is known as a sizzle real is produced, and then presented to a television network, where the network invests in the series and owns it, Kai Patterson decided on a different approach to own his own series. Having raised over $14 million in a year for his last venture called AMBER Ready, Patterson decided to raise the funds himself, and own the rights to his own series (See: $12 Million and $2 Million). The benefits of his decision enabled him to acquire a production and funding agreement that gives him full ownership of the series, and an agreement that prevents the distribution of the series from being cancelled. This structure of producing and airing a television series is not new in television, and also known as a ‘first run syndicated time buy’, which is becoming more common in distributing shows.
Producing and distributing a series as a first run syndicated time buy, gives Patterson complete control of the series, including the cast, and content of the series, as long as advertisers agree advertise within the series. It give the distributors of the series the flexibility of choosing an available network, and redistributing the series to have it re-air on another network for a second syndication. It also gives Patterson creative control of the series, and pays much more in earnings than what similar shows pay that are owned by television networks pay. The only major challenge to producing and distributing a series through this model is somebody has to pay for the show other than the network. “I’ve lost business, personal and intimate relationships pursuing this venture, because of the time that it took to raise the funding. I put my personal life on hold, because I understand that it takes delayed gratification to elevate yourself and your causes to the next level,” says Patterson.
Although many people would have given up by now, Patterson’s tenacity appears to have been well worth it. While working to raise the funds for the series, Patterson says that he refined the concept of the series to make it more appealing to viewers, advertisers and sponsors. The company was able to receive another distribution agreement with projections of $8,144,500 million dollars per season, which includes both domestic and international distribution of the series for each season produced and distributed. The new terms acquired by the production and distribution company that executed an 18-season agreement, with a minimum guarantee to pay Patterson and Project Child Support $3.64 million per season that originally totaled $65.5 million over 5 years (See: Original Deal). If all 18 season were distributed under the same terms, the deal would pay gross earnings of $146,601,000 over the 5 years. According to Patterson, even with the average production cost of $2 million per season, which equates to a total of $36 million in production costs over 5 years, the series would net over $120 million in profits.
“I think this story is news worthy, because it provides a insight into funding one's own television series. I was eventually able to learn how to raise the funds for a television series, which is much different than the equity deals I implemented for my prior projects. It takes having the production and distribution agreement that is acceptable to investors, and financial institutions. It also takes knowing where to go to acquire the funding, because I kissed a lot of frogs who represented they could fund the project, but were flakes. Having raised millions for other ventures, I knew to avoid investor groups that required paying them an upfront fee. Why would anyone make you pay them to fund you? I also knew to avoid the deals that prevented me from knowing the names of the investors, and that required I receive an investment through an unknown third party. These are the scams that I sifted through to find the ideal funding source. I’m glad that most of the individuals who believed in the project did not give up me, because it’s not easy; if it were, everyone would be doing it. Those who supported my initiatives throughout the years will financially benefit from the series through a trust that I have created. I am also going to use what I’ve learned to help those with good television projects acquire funding, and I am going to also retire after spending the next 5 years producing this series,” says Patterson.
Now that Patterson and Project Child Support have executed the agreement for the funding of the series, it’s going to take about two weeks to get all of the accounts setup, and financial instruments issued to fund the production account for the series. The funding not only enables the company to produce the series, but parents whose cases are depicted in the series will receive the investigative, legal and collective services at no cost, because the program generates its earnings from the television revenue. "The company is moving into a new office facility in New Jersey that much closer to Manhattan to enable the production of stories that are also in New York City to be produced much easier. The series also provides a solution for parents who don't have the financial means to pay for the services necessary to resolve their child support dilemmas, which results in helping children", says Patterson.
(c) Copyright 2017 by Project Child Support
FOR MORE INFORMATION, PARENTS MAY CONTACT
Project Child Support at (855) 851-HELP or (855) 851-4357