Indies Need Cash and Lawyers

A good lawyer is an indie's best friend. Heading into Sundance, THR Esquire, which focuses on entertainment law, addresses the thorny issues that face indie filmmakers:

Arranging financing for small- to midbudget independent films has never been easy. But with the recent influx of Wall Street money, coupled with countries and states fighting to lure productions and banks that are less reluctant to extend bridge loans to complete shooting, one might expect the cost of putting together a film fund to be on the decline.

But don't tell that to independent producers like Holly Wiersma ("Factory Girl," "Wonderland"). With "so many cooks in the kitchen," she says getting money has never been so expensive. Financiers, banks and tax credits may promise an influx of new capital, but with them come the high-priced lawyers who are increasingly necessary to arrange complex financing terms.

In most cases, the producers themselves must pony up the high fees generated by these attorneys. According to insiders, fees on even the smallest pictures have risen to as much as $500,000-$750,000 per film, or 5%-10% of a typical independent film budget. That's five to 10 times what they were just a few years ago.

"We used to just hire a production lawyer to do the (one) financing deal," Wiersma says. "Now all these deals are so complex and time-consuming, it's law fees that are emerging as the biggest issue that film producers face."

Producers' lives might be easier if they were responsible only for the cost of their own lawyer or law firm. But many newcomers to film production are surprised to learn they also can be on the hook for outside counsel costs of their financiers.

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