Experts on Damages, Valuation & Accounting Experts on Damages, Valuation & Accounting

Entertainment

Entertainment IndustryFulcrum’s personnel have extensive experience in most aspects of the entertainment industry including each of the following segments.

Representative Engagements

Motion Picture Production and Distribution

  • On multiple occasions, valued the different results that would have been achieved had films been completed and released as initially desired, when compared to what actually happened.
  • Performed investigation, solvency analysis, and forensic accounting investigation for a major motion picture studio in connection with a lawsuit. Appraised the value of the current slate, film library and minority interests in various foreign exhibition houses. Assisted various attorneys in all discovery. Provided deposition testimony.
  • Testified on behalf of one of the major entertainment companies in connection with the payout due to the former studio head. Project included forecasting revenues for animated features and calculating operating income for certain products over a period of approximately 15 years.
  • Provided bankruptcy consulting to a mid-level studio (including production and distribution) involving valuation of the assets, valuation of the film library, assistance with the sale of the company, evaluation of financial matters affecting the plan of reorganization, classification of claims and acceptance/rejection of contracts, resolution of all royalty, share and participation audits and financial evaluation of all significant claims and disputes.
  • Valued all assets, subsidiaries and intangible assets in connection with a $600 million acquisition of one of the studios by another studio.
  • On multiple occasions, analyzed cash flow projections, valued the film library and analyzed historical results of operations and financial position for a studio/owner.
  • Performed valuation support for an independent motion picture studio. Prepared analyses on its film library and current slate of films in connection with a going private transaction.
  • Analysis of the actions taken by a major studio in its home video release in response to the allegation that the video was not handled in accordance with the distribution agreement. Analyzed potential damages.
  • Assisted a large entertainment company in refuting a claim from one of its participants who claimed the company had not appropriately calculated net profits in accordance with his agreement.
  • Determined the value of a Hollywood movie production company and its related film libraries in connection with a marital dissolution.
  • Analysis of the financial statements and underlying accounting principles used in connection with a merger of two major studios in which the amount received by both shareholder groups was dependant upon such financial statements.
  • Prepared a business valuation of an entertainment production company for transaction purposes. The assets in this company included completed film/participation rights, television rights and the rights to various scripts.
  • Financial analysis of the economic impact of a national chain of movie theaters complying with various implementations of the Americans with Disabilities Act.
  • Financial analysis involving the costs and impact of converting a regional chain of movie theatres to new exhibition technology.
  • Valuation of a larger independent producer and financer of feature firms. The work included an assessment of (i) the transfer of intangible assets between related parties, and (ii) the purchase of several stock interests in the last several years.
  • Court appointed arbitrator Assignment involved determination of a purchase price of a home video enterprise.
  • On multiple occasions, valued a script or other idea prior to the project being green lighted. The most common application of this is a dispute over whether a scrip or idea has been stolen.
  • Valued various film rights including DVD/home video, sequel and remake rights.
  • Valuation of entire company and film library in connection with a fairness opinion.
  • Numerous Participation Audits and Related Disputes – A large number and variety of work performed on behalf of owners, talent and copyright holders.

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Television

  • On multiple occasions, determined and testified to the value of product purchased from related entities in a dispute involving the appropriateness of vertical integration for one of the television studios.
  • Assisted a cable TV operator as the Court appointed referee. Reviewed and evaluated all transactions affecting one of its franchises and valued the franchise.
  • Determined the value of a library of canceled television programs and made-for-TV movies.
  • On multiple occasions, assessed the amount owing for program licensing under either (i) a most favored nations (MFN) clause, or (ii) number of subscribers.
  • Valued television retransmission rights.
  • On multiple occasions, damages assessments involving alleged violation of licensing agreements.
  • Multiple engagements involving damages analysis regarding (i) alleged breach of contract for programming acquisition, or (ii) trademark infringement.
  • Consultant regarding accounting principles and their application to a post-acquisition dispute involving a cable television network.
  • Court appointed referee. Assignment included review and evaluation of all transactions affecting one of their franchises, and a valuation of the franchise as of two different dates.
  • Financial analysis and valuation of the economics of various related party transactions and product development. The technology involved broadcast signals and other wireless communications.
  • Analysis of alleged unfair business practices/pricing in claimed anti-trust/monopoly situation.
  • News Corporation – Valuation of multi-billion dollar television-related technology, advertising, and licensing operations.
  • On multiple occasions, analysis of amounts payable to television programming producers or creators pursuant to their contractual arrangements.
  • To support the amount of a theft loss deduction, determined the fair market value of a public media, entertainment and technology company after removing the impact of fraud perpetuated by its CEO.
  • Determined the economic damages in connection with a contract dispute between a cable television network and the producers of a television show and its related media.
  • Determined the value of a broadcast television station. Provided related expert testimony.
  • Television station carrying specialized (ethnic) content – Analysis of the station’s profitability and value.
  • Forensic accounting involving the financial result of a very successful reality television series, including related home video results.
  • Performed a financial analysis of a television series.
  • See above listing for Motion Picture Production – Each of the major studios had television production units for whom work was performed.

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Radio

  • Analyzed loss of advertising revenues for a radio broadcaster. Valued customer lists and trade secrets in the broadcast industry.
  • Analysis and related testimony regarding the value of radio advertising under circumstances that allegedly did not follow an advertising agreement.
  • On multiple occasions, valued a nationally syndicated program.
  • Forensic accounting regarding advertising sales.

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Merchandising & Licensing

  • Numerous Royalty Audits and Related Disputes – A large number and variety of work performed on behalf of owners to ensure that all royalties have been paid.
  • On numerous occasions, (i) disgorgement calculations involving pirated products and/or uses of celebrity images and likenesses, and (ii) calculation of a reasonably royalty rate to be applied to unauthorized uses of celebrity or other copyrighted images.
  • Valued licensing rights associated with a cartoon character for one of the large studios.

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Publishing (Music, Electronic, and Paper)

  • Served as the consultant to Secured Creditors and as the accountant for the Bankruptcy Trustee for a recording studio. Work included reconstructing the accounting records, performing a fraud audit, assisting with criminal prosecutions of principals and assisting with the sale of company assets.
  • Numerous Royalty Audits and Related Disputes – A large number and variety of work performed on behalf of music talent to ensure that all royalties have been paid.
  • Financial and accounting analysis regarding the stand-alone results of an acquired music company.
  • Valuation of a classic cartoon character in several entertainment markets (not just publishing).
  • On multiple occasions, analysis of market size, and profit potential of an undeveloped game program.
  • A major publisher of specialized magazines for enthusiasts – Valuation of the company.
  • Forensic Accounting and related allegations of inappropriate accounting involving trading card distribution; Valuation of the enterprise.
  • Expert testimony involving a wide range of disputes between owners of a company involved in (i) trading cards publishing, and (ii) procuring and distribution of entertainment collectibles.
  • Expert testimony involving damages to a “book-of-the-month” company resulting from loss of customer information and failures to properly distribute product.
  • Expert testimony regarding the market share, competition and profitability of a print and internet publisher.
  • Valuation of a large library of digitized images.

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Other

  • Provided bankruptcy consulting services to a post-production and duplication services company, including evaluation of fraudulent conveyance claims and due diligence regarding sale of the company.
  • Determined the value of web-based media company in connection with a partnership dispute.
  • Performed a stock analysis and related valuation involving trade names and domain names for an internet entertainment company.
  • Performed a forensic evaluation of financial statements and transactions for a talent agency. Recommended internal control improvements.
  • Financial analysis and other assistance in obtaining a long-term agreement to obtain a performance venue.
  • On multiple occasions, valued internet urls.
  • Valuation of a holding company including numerous scripts for plays, a production company, other theatrical rights, and a playhouse.

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