Greg Answered:
Generally you do not tell the buyers the budget but simply say under $x, or in your case, yes, you are right, under $1 mil. If you tell the buyers its $500,000, they will limit their offers based on that . However, what you actually spend is not relevant. The perceived value of the film, based on cast, director, visual effects, etc, is what matters. I have had clients spend millions and no one values the film at more than $1 mil, and I have had others spend under a million and with the cast and look etc it looks like a $5 million film. As to when you might have to reveal the actual budget, the only place that comes up is in the delivery schedule. One of the items a domestic distributor might require is a certified final cost (they deed the amount for the MPAA registration). Generally I don’t agree to provide a full certified final cost itemized statement, but simply will provide them a statement as to the total final cost. |