ABOUT THE BROADWAY INVESTOR'S CLUB
The Broadway Investor's Club was founded to bring like-minded investors together to help produce works in the theater, film, tv and music industries. Founder Jason Turchin is a successful attorney and entrepreneur with a passion for the entertainment industry and support of the arts. Jason enjoys developing theater from an entertainment business mindset.
Have you ever wanted to invest in a Broadway show?
The Broadway Investor's Club can help you make that dream a reality. Our members invest in Broadway, West End and other international productions and tours, music projects including cast albums, and film. If you're interested in joining, submit your information through our contact form today! Investing in Broadway can be easy.
Why our Club is different
While Broadway and the entertainment industry is often funded by teams of producers and co-producers, access to opportunities was often limited to connections. Our network of lead producers, theater owners, creators and investors led us to many opportunities both now and in the pipeline.
Some points about The Broadway Investor's Club:
There is never an obligation to invest
There are no fees to join
Members may get invited to free industry-only readings, concert presentations and other developmental events
We have social networking events
We have private educational webinars
Our members may have opportunities to be co-producers themselves
We often have access to creative teams in early development of new Broadway-bound musicals and plays for early investment opportunities
Investment Opportunities for Accredited Investors
There are many opportunities to invest in the entertainment industry for accredited investors. The SEC has rules which allow people who meet their definition to invest in a Broadway show or other project. There is generally no certificate given to an accredited investor. If you want to find out if you qualify as an accredited investor, look at the latest SEC rules. There is typically either a financial requirement or a professional requirement. If someone meets any one of the qualifying factors, then then are generally allowed to invest in a movie, Broadway, tour or west End production, or other entertainment venture. The SEC updates their definition from time to time, and recently expanded the definition to allow more people to invest in start ups, or Broadway, for example.
How much are Broadway investments?
Most Broadway shows are offered to co-producers to help finance the projects. The co-producers often have a network of accredited investors who hope to get access to these opportunities. The show's total capitalization is generally broken down into units which may be made available to accredited investors. A typical unit is $25,000, while some shows may be a bit higher starting at $50,000. Some shows also offer fractional shares. For example, a 1/2 unit may be offered for $12,500. Some of the perks may vary depending on the amount invested. Some shows will include a pair of opening night show tickets and an invite to the after-party with a minimum investment amount. A show typically has a capitalization of $5million-$10million for a Broadway play to $10million-$20million for a Broadway musical.
A Club For Broadway Investors
After more than a decade of investing in Broadway shows, West End productions, cast albums, live stream concerts, and more, The Broadway Investor’s Club was founded as a home for us to really enjoy the business of Broadway and entertainment. We invest in Broadway shows, help new shows get funded so they can be performed around the world, work with theaters to find new shows to produce, have a place for investors to network at social events, where we can enjoy, create and celebrate new works, and where we have access to invest in Broadway shows.
How does a Broadway investment work
When you make a Broadway investment, most people are hoping for a return. So how does it work? When a Broadway investor buys a unit, they are provided with formal subscription documents to complete. Once the paperwork is completed, the investor will generally wire the funds to either the master company for the show or to an SPV (Special Purpose Vehicle) set up for that co-producer's allocation. An SPV is typically a company set up for that project or group of projects in order to fund a larger project. These are often set up when investors are splitting shares or where the master company for the show only wants a lump sum from the co-producer and the co-producer will collect the funds from the investors.
Once the investment is made, the show can move forward. There may be more development of the show, or furthering the show forward. Let's say, for example, that someone invests in a show which already has a Broadway opening scheduled and the investor buys a $25,000 unit. As the show opens and runs, there are weekly expenses for the show. Any money generated above that will typically go into an investor pool. Once that pool reaches the initial investment amounts, the investors generally get paid back their full investment, called recoupment. After that, any profits are generated is generally split 50/50 with the producers, where 50% goes to the investor pool and 50% goes to the producer pool.
How do Broadway producers get paid
Producer earnings can vary by show. Most producers do not charge you any fees to invest. Co-producers generally only get paid if they bring in enough investors to reach their allotment, then the show has to run, then it has to pay back investors, then they get a share of any profits, if at all. All the while, they are constantly working with investors, theaters, lead producers, sourcing projects, etc. and may never get paid for any of that work. However, if the show is successful, both the investors and producers can make money. There are some shows which will return a percentage of the weekly box office receipts to the co-producers and lead producer.
Reasons to invest in Broadway
Over the years, we found that investing is a very personal decision. There are many reasons someone may invest in a Broadway show or other entertainment project. Some of these reasons may include:
1) Invest in something you love- Investing in a Broadway show is a great way to support the arts.
2) Invest for potential financial return- While there are no guarantees, many investors see investing in Broadway as a way to make money.
3) Invest for fun and excitement- Being a part of a Broadway show can be a lot of fun. You may get to go to opening night and other events, meet the cast and crew, and be part of something special.
4) Invest to make a difference- Investing in Broadway can help ensure that these shows continue to entertain audiences for years to come.
5) Invest for tax benefits- In some cases, investing in Broadway can offer tax benefits. Consult your tax advisor to see if this applies to you.
What are the risks of investing in Broadway?
1) Investing in Broadway is a speculative investment and there are no guarantees that you will make money.
2) Investing in Broadway can be risky and you could lose all or part of your investment.
3) You should only invest money that you can afford to lose.
4) Investing in Broadway is a long-term investment and it can take many years to see a return on your investment, if any.
5) There is no secondary market for these investments and you may not be able to sell your investment when you want or for how much you paid.
6) The value of your investment may fluctuate up and down and you may not make money even if the Broadway show is a success.
7) Investing in Broadway is a illiquid investment and it can be difficult to sell your investment when you want or for how much you paid.
8) The Broadway market is small and there are a limited number of new shows produced each year.
9) There is a lot of competition for investors’ money and many shows never get funded.
10) Most Broadway shows lose money and only a small percentage make a profit.
Contact us today to learn more about how you can become a member of the Broadway Investor's Club. There are no fees to join.
About Founder and Producer Jason Turchin
Prior to his legal and producing career, Jason was President of Gavel Entertainment, Inc., a music management company focused on developing the careers of songwriters and bands. Their debut album featured several artists who have gone on to successful entertainment careers, including Latin dance sensation Tito Puente, Jr. and Oscar Isaac (Star Wars) of The Blinking Underdogs. During law school at University of Miami School of Law, Jason was Vice President of the Entertainment and Sports Law Society. Upon graduating law school, Jason continued his entertainment and litigation work as an associate with famed-attorneys Roy Black, Esq. and Larry Stumpf, Esq., where they represented entertainment talent, including musician Enrique Iglesias, tennis star Anna Kournikova, and auto racing star Helio Castroneves.
He has since opened his own law firm, and has been featured on the CBS Evening News, CBS This Morning, Bloomberg News, NBC, Sun Sentinel, Miami Herald, USA Today, American Bar Association Journal, New York Daily News, The Japan Times, and many other national and international publications and media. He often provides legal commentary and corresponding to media throughout the US. Jason is a #1 best-selling author on Amazon, and creator of the My Attorney App, the first mobile app for lawyers. He also founded Pleadfast, which provides mobile application software for legal pleadings and estate planning documents.
As a philanthropist and supporter of the arts, Jason and his wife, Kira, founded non-profit Betty Cares, Inc. which supports caregivers of children who are sick, injured or disabled while in the hospital. Every year, Betty Cares strives to support these caregivers of children through fundraising events often focused around Broadway and the arts. Its Cars, Cocktails & Cuisine events have brought in amazing Broadway stars to South Florida to perform at the gala, and raised significant money for hospitals, including Nicklaus Children's Hospital (formerly Miami Children’s Hospital) and Joe Dimaggio Children’s Hospital.
We developed a nice community of producers and investors to help bring more great shows to the stage. We'd love to speak with you more about our projects and how you may be able to become part of them!