Huayu: From charlatan to great entertainer

Chapter 164 Everything is ready
Jiang Qinqin, Dong Jie and other women might think of Boss Lu in their dreams at midnight and secretly curse him as a scumbag.

But now Lu Kuan not only cheats on women, but also cheats on a number of domestic entertainment companies and state-owned film companies such as China Film Group Corporation and Shanghai Film Group Corporation that are eagerly waiting for his return.

He dragged Tom Cruise to Cannes to promote himself through the live broadcast of the movie channel, but the latter's casual statement about cooperation drove the domestic entertainment industry crazy.

Collaborate with a Hollywood star who earns $2000 million?
There is a ranking of the most powerful movie stars in Hollywood, and Tom Cruise has long topped the list because of his sky-high contract with Paramount.

Why would such a top Hollywood star collaborate with a Chinese director like you?
Han Shanping, Jiang Zhiqiang and others could naturally guess that it was the science fiction film he had mentioned before, but this was too big a step!

The film and television companies and brokerage firms that were unaware of the situation were going crazy, but since they didn't have Lu Kuan's contact information, they could only harass Wenjie relentlessly every day.

Sun Wenwen, director of the chairman’s office, is almost being made the most powerful woman in the domestic entertainment industry.

Since the industry has always maintained a policy of no comment, no one knew that Lu Kuan flew directly to the United States after the film festival and stayed in Los Angeles for almost a month.

He had previously applied for a one-year multiple-entry business visa in China, and this month he was in Hollywood completing the procedures for the co-production film "Alien Land".

"Lu, the reply from the Louisiana government has arrived!"

Emile excitedly entered the office with the faxed documents.

"What do you mean? How much can I get back?"

"18%! That number will increase in this year's bill."

Louisiana is the tax rebate bridgehead for the United States. Since 1991, it has been implementing various tax rebate programs to attract investment and immigration.

By 2014, 45 states, including the large state of Southern California, had introduced film tax rebate regulations. Their annual tax rebates accounted for an astonishing 25% of Hollywood's output value.

Boss Lu pondered, "The intensity is still too small. Our current needs are, first, an early tax refund, and second, a total amount that is favorable to us."

Emil frowned. "Cities like Toronto and Ottawa can offer up to a 50% tax rebate on special effects, but they give the rebate back to the special effects company, so we still need to negotiate."

"Also, the quality of local special effects companies varies greatly, and there isn't a single company that can stand out."

"What about Australia and New Zealand?"

Emil listed them all: "Australia is 35%, New Zealand is 30%, but New Zealand allows early tax refunds, so our capital cost will be lower."

The special effects budget for "Alien Land" is around 3000 million, which accounts for almost 45% of the film's cost. Therefore, the area for special effects production must be carefully selected, which has a huge impact on the overall cost.

The question now is how much cash the industry can put out to invest in the project in advance.

If you are not short of money, you will definitely choose Australia. Even if the tax refund is delayed, you can still get an extra refund of 150 million US dollars.

"By the way, have we settled the monthly payments for Paranormal Activity yet? Lionsgate must be getting anxious, right?"

Previously, Lu Kuan and Jason of Lionsgate had made a bet on the release of 50 DVDs, but this number had been reached long before the Cannes Film Festival.

According to the previous contract agreement, Lionsgate will bear a lower proportion of 50% for the distribution of these 30 DVDs and the movie version of "Paranormal Activity".

When talking about "Paranormal Activity", Emil also looked excited.

"Currently, 64 DVDs have been sold in North America. After deducting Lionsgate's distribution and promotional expenses, our profit is approximately $580 million."

"More than 1000 screens controlled by Lionsgate have already started promotion and marketing, mainly for midnight and evening shows, and theatrical distribution will begin in July."

Qian Zhuang was emboldened and earned another $580 million, so Lu Kuan also decisively chose to put the special effects in Australia.

After all, the special effects of "The Matrix" were handed over to Australia's Beast Logic, which was acquired by Netflix in 2012.

"Alien Land" has high requirements for special effects. The more basic parts will be completed by the domestic special effects company Butian Films, and the more difficult parts will be completed by Beast Logic.

After all, it was a large order worth more than 3000 million US dollars. Lu Kuanhui, on behalf of Butian Film, requested to send technical personnel to observe and learn, including the introduction of advanced equipment.

In a sense, this is far more important than making a successful movie. Technology is priceless, and the $3000 million also covers tuition.

After discussing the details of the special effects, Lu Kuan and Emil split up again. He went to register the company, while the latter went to the trade union to handle the procedures.

Hollywood generally sets up a short-term company for each movie. The fiscal year of this type of company is 11 months, and its main function is to cut risks.

Even if the movie fails, it will not affect the investors' foundation. Moreover, it is convenient to carry out tax avoidance and profit adjustment in the new company in the accounting sense, making it easier for Hollywood capital to reap the benefits of grassroots workers.

For example, if the contract signed by you as a director is for 5% of the film’s net profit, the film company will make the net profit a negative number.

Because these film companies are usually not only investors but also distributors, the film distribution costs are like transferring money from one hand to the other, making accounting very convenient.

Emile went to the American Film Guild in Beverly Hills purely to ensure that the film met the requirements for the completion bond.

Although the special effects for “Alien Land” were filmed in Australia and in Canada, it was only with the status of a union film that a film guarantee agreement could be signed with the insurance company.

But once it becomes a union film, the actors he chooses must be union actors, and he can no longer exploit them with the 996 work schedule as he does in China.

You have to pay extra for everything you do!

This completion guarantee is a prerequisite for pre-sales and financing of film projects.

With a completion bond, the insurance company will ensure that the film is completed within a fixed deadline and budget and delivered to the distributor.

If there is a problem or delay in delivery, the insurance company will be responsible for compensation.

Correspondingly, the investor will register a film company, which is the short-term company established by the above-mentioned Boss Lu.

This company will own the copyright of "Foreign Land". If the insurance company pays compensation, the copyright will be paid to the insurance company due to the previous mortgage. In order to reduce its own losses, the insurance company will then look for a buyer for the copyright.

Lu Kuan then took this completion guarantee and pre-sale terms to the bank for financing and obtained the final $2500 million loan for the film.

This completes the financing process of the entire project. What follows is the step-by-step filming, finalization, and distribution, and finally everyone divides the money.

Of course, before the movie is pre-sold, the main cast needs to be finalized, which is the key to whether the pre-sale price can be raised.

Only with superstars will the film be attractive, and the pre-sale distribution company will sign a contract with you in advance, so that you can go to the bank for a loan with the contract.

Hollywood's independent film financing and production process is closely linked, and all stakeholders in the chain share risks and responsibilities, which has given rise to an increasingly mature film industry system.

The shooting location, special effects production site, new film company, and union film process are all ready. The only thing left is casting.

Casting in Hollywood is a very rigorous process, usually completed by a casting director hired by the crew. The casting director that Lu Kuan asked Tom Cruise to find was Juliet Taylor.

She is also Woody Allen's casting director. "Schindler's List", "The Life of David Gale" and later "Midnight in Paris" are all her casting works.

"Hello, Lu, nice to meet you."

Lu Kuan also responded enthusiastically. Ms. Taylor is about 45 years old, but she is very famous in the Hollywood casting circle.

Not only because she has a keen eye and is familiar with the acting skills and pay of different movie stars, but also because she relies on the master Woody Allen to be very popular in the circle, and first- and second-tier stars all give her some face.

To put it bluntly, she knows who is a fake and how much they are worth, which can save the director a lot of effort and difficulty in making choices.

Taylor invited Lu Kuan and Emil into her office. The desk was covered with biographies of the protagonists in "Alien Land" in different categories. She wrote these biographies based on the script and her communication with Lu Kuan.

Male protagonist: around 30 years old, one of the protagonists, an Earth Federation agent, brave and loyal, familiar with various combat skills, and has basic scientific theoretical literacy
Female lead: around 20 years old, one of the protagonists, Chinese, her father is a Chinese scientist, currently the director of a department at the base, smart and beautiful, agile, proficient in ancient Chinese martial arts
Male Supporting Actor 45: About years old, one of the protagonists, an Earth Federation agent, who likes drinking, visiting prostitutes, eating fatty meat and taking diet pills
Second male supporting role: The heroine's father, a Chinese, scientific expert with a common vision for humanity, the founder of the principle of conservation of time scale, who died together with Dr. Ximai in the end
The third male supporting role: the founder of Ximai Farm, the student of the second male supporting role, the practitioner of the principle of conservation of time scale, a selfish scientist, politician, and federal leader
Lu Kuan looked at the character biography given by Taylor and the actor recommendation at the end and nodded silently. Professional things are useful.

"I will select the female lead and the second male supporting role from domestic actors. Now the main focus is to decide on the male lead and the remaining two male supporting roles."

Taylor nodded. "I heard from Tom Cruise that you prefer Adrien Crowdy and Sean Penn?"

Lu Kuan nodded. "Sean Penn has a great chance at the next Oscars. Now is a good time to sign a contract with him. How much is his salary?"

"$800 million."

"Okay, send him the script first."

When sending audition and performance invitations to Hollywood big names, usually only one person can be sent at a time.

Only when the previous person explicitly refuses or the deal fails can it be shown to the next person.

This is somewhat different from the situation in China where a bunch of people go to the director for auditions. Generally speaking, it's still a money talk and money has the final say.

Valuable people, whether they are stars, directors, or even photographers, always have priority in selection.

Taylor readily accepts advice, but when it comes to his familiarity with the role, he still relies on the director's opinion.

"I'm planning to invite Liang Jiahui, the male lead of 'The Lover', a Chinese scientist."

Taylor has watched many films, and "Lover" was submitted for an Oscar in 1993, so she naturally knew this Chinese actor.

"A very good choice, he is a good fit."

"Then that leaves the first and third supporting actors. For the secret agent, my suggestion is John Travolta."

This is Quentin's favorite supporting role. He has performed very well in movies such as "Pulp Fiction" and has been nominated for the Best Actor Oscar twice.

Lu Kuan stroked his chin and thought for a while, and then he felt that his image was very suitable for the supporting male role who was addicted to eating, drinking, whoring and gambling.

"Okay, what about the male supporting role, Dr. Sanximai?"

"Gary Oldman, Bruce Willis, and Kevin Spacey."

"Kevin Spacey? Not cheap, is he?"

"$1000 million. Supporting roles will be cheaper. We can negotiate. He's had some tax issues recently."

"Let's talk to Gary Oldman first. I know Luc Besson and can negotiate the price with him."

Gary Oldman is the villain in "Léon: The Professional". His age, image and temperament all meet the role requirements of Dr. Simai, who transforms from a scientist to an indifferent politician.

"Lu, is there anything else you want to add?"

Lu Kuan slapped his head and almost forgot.

"Everyone, please help me do a background check on their political leanings. I don't need to exclude actors with anti-flower tendencies or remarks, or those with other extreme political tendencies, and directly move on to the next candidate."

This is to avoid the political risks of the global release in the future, just like Bale in Zhang Yimou's "The Flowers of War", who went to see a blind man for no apparent reason and almost caused a serious political incident, making Zhang Yimou so angry that he vomited blood.

Taylor nodded silently. This young Chinese director didn't look like a rookie venturing into Hollywood at all. He was very thoughtful in every aspect.

Casting takes time, especially important roles have to be negotiated one by one, including the final salary negotiation.

On July 2003, 7, Lu Kuan, who had escaped the hustle and bustle of the domestic entertainment industry, worked hard in the United States for nearly two months and finally arrived in Beijing by plane with A Fei.

(End of this chapter)