Tax-Motivated Film Financing at Rexford Studios Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Production manager for Rexford Studios should review the terms and price effects of international financing from the German film fund. Financing includes a sale and leaseback structure in which international tax rules results in significant economic pie that is divided between the investors in the fund, the studios and arrangers. For negotiations, the manufacturer must appreciate cash flows for each of the parties and understand the nature of the tax arbitrage in the context of its overall funding needs. As a consequence, the main issues related to financing the film and the character of a sale and leaseback transaction is due to tax reasons are considered to be competition between countries for the production of films. Finally, the main determinants of the opportunities created by the international tax rules are appreciated. For an executable tables (courses), please contact our customer service department at custserv@hbsp.harvard.edu. "Hide
by Mihir A. Desai, Mark F. Veblen, Gabriel J. Loeb Source: Harvard Business School 12 pages. Publication Date: November 14, 2002. Prod. #: 203005-PDF-ENG