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FIVE STAR (http://www.fivestarspeakers.com/) Speaker Spotlight Newsletter – Issue 12, December 2008

I think we would all agree that we are clearly experiencing some “interesting times” in our economy and in our nation. We have seen a big shift in the marketplace over the past three months. Our clients are now focusing primarily on the things that create direct success for their businesses. The focus has been on customer events, sales training and more than our share of economists who can tell us how we got here, and what’s coming next. FIVE STAR is excited to continue to bring these resources to our clients in this, our 20th year. We know that the organizations that focus on business growth issues will look back at the end of 2009 knowing they made the right choices. We have the new and cutting-edge ideas ready to share with you. (See also http://www.fivestarspeakers.com/international-speakers-trainers-bureau/speakers-trainers-news.aspx)

Steve Gardner, Partner

Paul Schmidt, Partner

Five Star Speakers About Us: http://www.fivestarspeakers.com/international-speakers-trainers-bureau/about-us/about-us.aspx

Hot Speaker

Todd Buchholz – Trend Forecaster, Investor, Author & Political and Global Economy Expert

A former director of economic policy at the White House, a managing director of the $15 billion Tiger hedge fund, and an award-winning economics teacher at Harvard, Todd Buchholz targets his entertaining remarks to the cutting edge of economics, finance, and business strategy. Todd Buchholz “lights up economics with a wickedly sparkling wit,” says the Associated Press. Todd recently jousted with James Carville and Ben Stein, and Successful Meetings Magazine named him one of the “21 Top Speakers for the Twentieth Century.” His editorials in the Wall Street Journal correctly forecast the 2001 slowdown in the U.S., and the New York Times has turned to him to decipher terrorist threats and the job market. “Witty, iconoclastic, and engaging” says the Wall Street Journal of Buchholz, while BusinessWeek raved about his book Market Shock, which warned of quicksand facing the stock market. He entertains audiences, showing them how to thrive in a chaotic economy, while gearing up for prosperity….more on Economic, Financial and Political Speaker, Todd Buchholz

Fee Range: $15,000 +;

Travels From: California, USA United States of America

Ask An Expert

Top Economic Speakers

Jordan Goodman – America’s ‘Money Answers Man’ & Practical Financial Advisor

Fee Range: $7,000 +;

Travels From: New York, New York, USA United States of America

Barry Asmus - A dynamic, world-class economist who communicates his insights in a captivating and entertaining manner.

Fee Range: $15,000 +;

Travels From: Phoenix, Arizona, USA United States of America

Ed Barlow – Futurist; “The Art of Looking Backwards From Tomorrow”

Fee Range: $8,000 +;

Travels From: St.Josephs, Michigan, USA United States of America

David Zach – Dave is one of the few people on this planet with a degree in Studies of the Future.

Fee Range: $10,000 +;

Travels From: Milwaukee, Wisconsin, USA United States of America

Gary Hoover - Founder of Bookstop (later became the cornerstone of Barnes & Noble) and Hoovers.com.

Fee Range: $10,000 +;

Travels From: Dallas, Texas, USA United States of America



Jeff Thredgold - The only economist in the world to have earned the CSP honor.

Fee Range: $12,500 +;

Travels From: Salt Lake City, Utah, USA United States of America

Musical Entertainment

Mike Rayburn – The World’s Funniest Guitar Virtuoso

Mike Rayburn is an award-winning speaker and entertainer with a truly unique presentation. Known as the Worlds’ Funniest Guitar Virtuoso, Mike uses his astounding guitar creations, uproarious songs and presentation skills to encourage, challenge and inspire his audiences to step beyond their perceived limitations. Mike draws from a wealth of life experiences as an adventurer, comedian, published songwriter, author, philanthropist, and father, to deliver a keynote presentation which is completely energizing and entertaining….more on Corporate Entertainer & Musician Mike Rayburn

Fee Range: $8,500 +;

Travels From: Aldie, Virginia, USA United States of America

Featured Business and Leadership Speaker’s Book Review

David Houle – A futurist and strategist who has been involved in launching such brands as MTV, Nickelodeon, VH1 and CNN. Author of The Shift Age

The Shift Age is about humanity’s new era. As the Information Age gives way to the Shift Age, we are entering a time of transformation and change that offers both great risk and incredible opportunity. Why do things happen so fast? Why do we feel unsettled, even out of control? David Houle identifies and explains the dynamics and forces that already have reshaped and will continue to reshape our world for the next 20 years. He comments from the front lines of the Shift Age on issues and topics that affect our lives. We have entered the final, global stage of humanity’s cultural, social, and economic evolutionary journey: the Shift Age…more on Futurist Speaker and Economic Author David Houle

Fee Range: $7,500 +;

Travels From: Chicago, Illinois, USA United States of America

Sports Celebrity

Jim “The Rookie” Morris – Subject of the award-winning Disney hit film “The Rookie,” starring Dennis Quaid

The Cinderella story of Jim “The Rookie” Morris is testimony to the power of dreams and their ability to inspire and transform human life. His story is the subject of the blockbuster film from Walt Disney, “The Rookie,” starring Dennis Quaid which won the ESPY for “Sports Film of the Year.”….more on Motivational Speaker, Business Speaker, Leadership Speaker Jim “The Rookie” Morris

Fee Range: $10,000 +;

Travels From: Dallas, Texas, USA United States of America

BELIEVE:

Joan Brock – Inspirational Speaker speaking on overcoming great obstacles [with her blindness as the perfect example]

Motivational speaker Joan Brock was forced to re-evaluate and transform her life when she lost her sight in just three weeks. At the time, ironically, Joan was a teacher of the blind and she was able to apply the skills she had been teaching to her own circumstances. Now, in her individually tailored presentations, Joan offers to organizations the benefit of her own experience. t transforming organizations by inspiring individuals to live their life at a higher level of performance. …more on Motivational Speaker and Author, Joan Brock

Fee Range: $10,000 +;

Travels From: Tucson, Arizona, USA United States of America

CONNECT:

Jim Carroll – A world-renowned futurist, trends & innovation expert – who will help you deal with the challenges of the economic correction through a focus on innovation.

Economic and Business Speaker, Jim Carroll is one of the world’s leading futuri
sts, trends & innovation experts. And it’s his inspirational, transformative thinking that will help you discover opportunity in an era of high-velocity change. And in his most recent keynotes and leadership sessions, he has been helping his clients meet the challenges of the economic contraction by focusing on innovation, and by aligning their strategy to fast-paced future trends….more on Economic and Business Speaker Speaker Jim Carroll

Fee Range: $12,500 +;

Travels From: Toronto, Ontario, Canada

INSPIRE:

Andrew Razeghi – A writer, educator, and adviser to organizations on growth strategy, creativity, and innovation.

Andrew Razeghi is a best-selling author, educator, and adviser to organizations on growth strategy, creativity, and innovation. As founder of StrategyLab, Inc. and a popular lecturer on innovation at the Kellogg School of Management at Northwestern University, his work spans industries, from consumer packaged goods to healthcare, tourism to media, and non-profit organizations to professional sports teams. His most-recent book, THE RIDDLE: Where Ideas Come From and How to Have Better Ones (Jossey-Bass/Wiley), was chosen by FAST COMPANY magazine as one of its “Smart Books” of the year. Andrew has appeared in a number of media outlets including BusinessWeek, CBS Interactive, The Chicago Sun-Times, China Daily, El Norte (Mexico), FAST COMPANY, Investor’s Business Daily, NPR, and The San Jose Mercury News…more on Growth Strategy, Creativity and Innovation Speaker, Andrew Razeghi

Fee Range: $30,000 +;

Travels From: Chicago, Illinois, USA United States of America

GROW:

David L. Smith – Economic, Futurist & Market Strategist Speaker

Internationally known speaker and author of Cyclical Investing and The Cassandra Chronicles, David L. Smith offers penetrating insight, accurate forecasts and profitable advice regarding: – U.S. and World economies – Financial and Investment markets – International Trade Global Energy Markets – U.S. Monetary and Fiscal policy – Specific industries and companies David L. Smith explains what is going on in the global economy and financial markets – the good, the bad and the ugly – and how investors and businesses can avoid surprises and deploy resources so as to avoid losses and capture profits in volatile times. If you want “nothing but blue skies,” try a sunshine pundit. However if you want to know what is really going on and how to profit from it, listen to David L. Smith….more on Economic and Futurist Speaker, David L. Smith

Fee Range: $10,000 +;

Travels From: Houston, Texas, USA United States of America

CELEBRATE:

Lisa Earle McLeod – Wickedly funny entertainer, inspirational author, and expert

at surviving economic angst with your dignity – and profit margins – in tact.

With her trademark wit and humor, Lisa reframes the economic challenges to show people how to stay optimistic, and productive, in the face of adversity. A syndicated humor columnist who took her family owned-business from the brink of bankruptcy to profitability, Lisa is a favorite of entrepreneurs, franchisors, real estate professionals, teachers and healthcare workers…more on Corporate Entertainer and Inspirational Humorist, Lisa Earle McLeod

Fee Range: $7,500 +;

Travels From: Atlanta, Georgia, USA United States of America

Sarah Whitten, Marketing Director

Meet Sarah Whitten. Sarah is the Marketing Director at FIVE STAR and has been with organization since March 2006…more on FIVE STAR Speakers Marketing Director, Sarah Whitten.

“As flies to wanton boys are we to gods they kill us for their sport”-everyone at one time or other in their life, when the going gets tough should have praised the bard for these words full of wisdom. But why should we curse our fate, every time when something does not turn out the way we want. You can now avail the help of a personal finance manager to overcome these hurdles. We often blame it on our stars when we fail, without thinking about the possibilities around us. A plethora of opportunities are wasted because of our ignorance. A powerful and flexible personal finance manager could allow you to control your budget using as less time as possible. Nothing helps you as accounting software at a time of financial ailment. Even your most trusted friend may turn you down when you are in deep waters. This is where a little bit of planning by using a personal finance manager keeps you going. Just one week after the payday you will be on the lookout for next payday, even if you are paid a handsome amount. Expenses are on the rise and incomes are falling. Personal budgeting can keep your woes at bay. Personal finance brings about a discipline in our spending habits which hitherto went unbridled. The tools & facilities make accounting and personal finance management easier. Many people are not aware of various features that a personal finance manager would offer. This association with personal finance gets you in touch with these tools and you could direct your finances into investments with returns. If we can spend and save then why should we waste money in areas that do not yield? Choosing the right personal finance manager is not a problem now. Many companies provide you with powerful tools which are adept in helping you handle your money. These tools will give you an estimate of your daily spending and savings and prevent you from overindulging. Prudent spending and saving is the soul of any life. A person might end up in disaster owing to his irresponsible way of spending.

Alright, so you woke up one day, checked your Swiss Bank Account, called your family office planner, had breakfast with your private client service wealth manager, got your tax accountant on the phone, and between three of you, you decided to invest your proceeds from your latest company’s Merger or Acquisition not into some dubious hedge fund or start-up biotech venture, but into financing Hollywood films because you figure you need the State tax Credits, the Federal tax write-offs, as well as a nice hedge of revenues from a few movies.

Now, this may not ring too well initially with your hedge fund manager neighbors in Connecticut or your oil and gas investor friends in Bahrain or Dubai, but aren’t these the same guys who are financing Hollywood blockbusters? And the only question for you, how do you get in the game without feeling like the Uncle of the film school student who wrote his nephew a $1,000,000 check for a film that starred his theater department classmates and ended up as a free download on youtube.com?

So after doing your share of homework, here’s what you discover may be the opportunity to spice up your wealthy but boring life:

*Sergey Brin And Larry Page Of Google, Fred Smith, the CEO of Federal Express, Norman Waitt, the Co-Founder of Gateway Computers, Jeff Skoll Of Ebay, Todd Wagner and Marc Cuban (formerly of broadcast.com), Max Levchin and David Grodnick Of PAYPAL, Marc Turtletaub of The Money Store, Roger Marino Of EMC Corp, former Chicago bulls co-owner Jim Stern, Sidney Kimmel Of Jones Apparel Group, Minnesota Twins owner Bill Pohlad; Real Estate Developers Tom Rosenberg, Bob Yari; and, financiers Robert Sturm, Sheikh Waleed Al Ibrahim, Zeid Masri of SilverHaze Partners, Michael Singer, Mark Esses, David Larcher, Michael Goguen, Richard Landry, Michael Reilly, Rafael Fogel, and Philip Anschutz are just a handful of high net worth entrepreneurs who entered the motion picture finance and production business with successful results.

*There are various tradable state, federal, and international tax credit incentives that would offer a premium based on an equity position. Assuming there is a 10 million dollar budget film, where 50% of it is in equity, and 50% is through international distribution guarantees prior to release. Now assume there is a 20-25% tax credit on the entire amount of $10 million dollars, which will immediately translate into $2-2.5 million tax credit to an investor.

*Numerous hedge funds such as Reed, Conner & Birdwell (DISNEY), Legendary Fund (Warner Brothers), Melrose Fund (Paramount Pictures), Ingenious Media’s 700 Million dollar Float on London’s AIM, Benjamin Waisbren Investments, and a host of other funds and fund managers are entering the film finance arena.

*The explosion of international DVD, pay-per-view, home video, cable, megaplex theaters, the future of multi-lingual Internet video on demand downloads, and cross-market digital distribution including low-cost theatrical digital projection, the movie industry is accelerating at an unprecedented growth rate.

*The American Jobs Creation Act of 2004, which amends the Internal Revenue Code of 1986, was signed into law . The Act creates three tax incentives expressly applicable to motion pictures, one of which – § 181 of the Internal Revenue Code – is especially significant to independent film producers and their passive investors on qualifying films with budgets under $20 million dollars.

*The filmed and other entertainment sectors are constantly outperforming and beating analyst expectations with regards to growth, and are the only industries resistant to untimely global events and adverse economic conditions.

*Movie Investor returns may be more favorable and more liquid than holding direct equity positions in most public entertainment and other public companies, real estate investments, and other alternative investments.

*There is a huge demand, audience, and growing distribution structure for specialty independent, ,crime, horror, and other low budget films as exemplified by the success of such films as “Brokeback Mountain”, “Sideways”, “Capote”, “Garden State”, “Napolean Dynamite”, “Y Tu Mama Tambien”, “My Big Fat Greek Wedding”, “Memento”, “Crash” , “Saw 1 &2”, Friday The 13th”, “Halloween”, “Texas Chain Saw Massacre”, “Hostel” and “WOLF CREEK”, which was made for $800,000, bought for nearly 4 million dollars prior to its release by Dimension, as well as “Hustle and Flow” which was made for $2 million dollars and bought for $16 million by Paramount Pictures.

*Apart from large blockbusters such as “King Kong”, “Harry Potter”, and other large scale studio films, the majority of studio-produced films have been under performing at the box office. The films that have been successful for studios were all externally financed and or co-financed with studios, sold for 2-3 x their costs, and a majority of them retained foreign sales rights to maximize revenues.

So after looking at all the great benefits, how do you actually go about finding a deal or movie project where you are certain that half your money isn’t going to be used by a Hollywood producer as a down payment on a new mansion in Pacific Palisades?

The key that separates the successful film financiers vs. the newbie Oil magnates who come to Los Angeles with a pocketful of money and end up leaving with half a pocketful of money is called several things: structured finance, leverage, risk minimization, multiple exit strategies, tax credits, and the ethical consciousness of the filmmaker/producer.

What does that translate to you in a real world scenario. Lets say you want to finance 100% of a $1.5 million dollar low budget genre film whose worst case scenario is a DVD release and profits from international sales and perhaps some other equity sweeteners in the conversion of the securities that you subscribe for as part of the deal.

Well, if you write a check for $1.5 million, and the film is shot in a state that has 30% in tax credits, you get back $450,000 in tax credits + under Section 181, you are able to write off that amount under Federal. So you are already making a nice return before the profits kick in. Then you figure you sell the film to 50 countries, and if you are really lucky, you sell the film for 3-4 times it cost to a studio at a swanky festival like Sundance, Toronto, Cannes, etc. Do this over 5-10 films and you can make a very profitable name for yourself among the Hollywood elite.

But lets really take this a step further and see how the bigger boys leverage film investing because they can get a bigger star which can translate in larger overseas sales.

Lets say a filmmaker/producer has a $10 million film and you want in on the action. You would park $5 million in equity, receive an 20-30% tax credit on $10 million which will be $2-$3 million, the producer will get the biggest star he can, get a studio to kick in the other $5 million dollars, you wont worry about ever seeing a penny from the theatrical release because you know your DVD profits and international sales will cover your equity position. Make sense?

Now leverage this with different budgets, genres, stars, distribution, places where you can get high tax credits (Ie Puerto Rico is 40%), other exit strategies where you can find your shares on the London AIM, and you are on your new career path as a sophisticated and educated film financier. Off course, if you want to go even further and guarantee 100% of your capital, there are tricks to that as well.

If you have any further questions on your quest to a movie premiere on the French Riviera at the Cannes Film Festival, and its a burning a hole inside your heart and soul, contact yours truly at filmhedge@aol.com or yuri@noci.com