An Unlucky 13

Creative financing is almost as important to television production as creative development, and that is likely to continue to be the case as we see more network consolidation, new platforms, and expanded distribution opportunities. Lucky 13, produced by Studio 1 out of the UK, recently paved a new path forward in the industry with an innovative financing model, where Studio 1 pre-funded production in exchange for a share of advertising and product placement revenue received by the domestic licensee, ABC. However, when the special purpose entities effectively declared bankruptcy, the fallout was predictably messy. ABC is now making headlines because of its decision to pay out winnings to contestants, which begs the question--where did producers expect those funds to come from in the first place? Advertisers typically foot the bill for prize packages, including on my favorite show, Top Chef, where the host mentions whom the grand prize was "furnished by" at the beginning of each episode. Without a marquee name cutting the check, creative financing models should always take care to ensure that guaranteed payments to talent, contractors, and winners are solidly accounted for, as the sort of publicity this show has been facing is anything but lucky.