Studio Pivot: Independent Treaty Structure
Production Deal Memo: International Co-Production
Formulated for Independent Production Legal & Packaging
Reference
DOC-COP-2026-904
I. Production & Treaty Framework
Approved Production Budget
$12,000,000 USD
Primary Treaty / Incentive Body
UK & European Sovereign Treaty Co-Production
Domestic Distribution Posture
Hollywood Studio Revoked / Independent Carve-out
Packaging & Talent Tier
A-List Indie Veteran / European Festival Draw
II. Capital Stack & Gap Allocation
Sovereign Tax Rebate / Soft Money
$4,200,000 (35.0%)
Banked Pre-Sales Advance (Net 78%)
$2,964,000 ($3.8M Gross)
Private Equity Investment
$2,500,000 (with 120% Preferred Return)
Gap / Mezzanine Senior Debt
$2,336,000 (9.5% p.a. + 2% Facility Fee)
III. Worldwide Recoupment & Risk Findings
Project successfully insulates creative leadership from domestic cancellation risk. By shifting 35% of below-the-line spend into certified European co-production jurisdictions, domestic studio gatekeeping is bypassed. Recoupment begins with senior sales agency costs and senior gap debt, followed by private equity preferred return at 120%, leaving unencumbered back-end net profits to producer/creative corridors.