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Going to the movies isn’t cheap anymore. By the time a ticket and a snack are purchased, many fans can easily spend $10 or more at the concession stand without thinking twice about it. But a new film financing concept currently being explored is asking a different question:

What if that same $10 could go toward the movie itself instead of the popcorn?

As part of a planned Regulation A offering currently in development, a new model for financing sports-themed motion pictures is being considered that could allow fans to purchase small interests in a fund designed to produce multiple films. The goal of the structure is to move away from the traditional Hollywood financing system, which often relies on layered debt, high overhead, and complex accounting that can make it difficult for outside participants to follow how revenues are distributed.

Under the model being discussed, films would be financed using equity rather than production debt, meaning projects would not carry the same interest and repayment obligations that are common in studio-backed productions. Supporters of the approach believe that reducing reliance on debt may allow more of a film’s revenue to flow through the project’s distribution structure, although results can vary and no outcome can be guaranteed.

Another difference is the use of a multi-film fund rather than a single-picture investment. Instead of relying on one movie to perform successfully, the fund would be structured to produce a slate of sports-related films, allowing the performance of multiple projects to contribute to overall results. This type of structure is sometimes used in the entertainment industry as a way to spread production risk across several titles rather than concentrating it in one.

The proposed offering, if qualified, could allow participation at a relatively low minimum amount, potentially around the cost of a typical movie theater snack. The intention behind a lower entry point would be to make participation accessible to a broader audience, including sports fans who may simply enjoy following the films being produced. However, any such investment would involve risk, including the possibility of loss, and would only be available through official offering materials once the filing process is complete.

Because this approach represents a different way of thinking about film financing, feedback is being encouraged from fans and potential participants.

Would people be interested in a model where fans can participate in the financing of sports films?
Does the idea of funding multiple movies through one structure make sense?
Would a lower minimum investment make fans more likely to follow and support the films being made?

Sign up to learn about fund launches and IPO”s.  www.athletefilmsfund.com

This article is for informational purposes only and is intended to solicit comments and feedback. It does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offering, if made, will be made only through the applicable offering circular or other qualified disclosure documents, which will contain important information regarding risks, fees, expenses, and investment suitability. Investing in motion pictures involves a high degree of risk, including the possible loss of the entire investment.


IMPORTANT LEGAL DISCLOSURE: REGULATION D, RULE 506(c) OFFERING

This offering is a private placement of securities pursuant to Rule 506(c) of Regulation D under the Securities Act of 1933, as amended. The following conditions strictly apply:

  1. Accredited Investors Only: All securities offered by the Fund are available only to Accredited Investors as defined by Rule 501 of Regulation D.
  2. Mandatory Verification: The Issuer is required to, and will, take reasonable steps to verify the accredited status of every purchaser. Your self-certification is insufficient. You will be required to provide evidence of your accredited status (e.g., income verification or professional certifications) before your investment can be finalized.
  3. General Solicitation: Due to the use of Rule 506(c), the Fund engages in general solicitation and advertising, including this website.
  4. Risk Disclosure: Investment in the Fund involves a high degree of risk, is speculative, and is suitable only for accredited investors who can bear the entire risk of the loss of their investment. The securities have not been registered under the Securities Act of 1933, as amended, or any state securities laws.

Review of the Private Placement Memorandum (PPM) is required prior to any investment decision.


1. Statutory Safe Harbor for Forward-Looking Statements

This legend protects the Fund’s management from liability under federal securities laws for projections and expectations, provided the statements were made with a reasonable basis and identified by specific cautionary factors.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This website, along with all associated materials, including the Private Placement Memorandum (PPM) and all oral statements made by the management of the Fund, contain certain “forward-looking statements.” All statements other than those of historical facts are forward-looking statements.

These statements generally relate to the Fund’s planned activities, projected performance, financial expectations, and investment goals, and can often be identified by words such as “will,” “aim,” “target,” “anticipate,” “project,” “expect,” “potential,” “goal,” “estimate,” “may,” “should,” “intends,” or the negative of these terms or similar expressions.

Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results of the Fund, or the performance of its investments, to differ materially from those expressed or implied by such statements.

Such risks and uncertainties include, but are not limited to:

  • Risks inherent in real estate investment and development (e.g., construction delays, cost overruns, changes in zoning/permitting).
  • Economic and market risks .
  • The Fund’s ability to successfully raise the target capital
  • Reliance on the expertise and continued involvement of key personnel, including the Fund’s sponsor and management team.
  • General business, financial, and economic conditions.

You are cautioned not to place undue reliance on these forward-looking statements. The Fund is under no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. All prospective investors must consult the “Risk Factors” section of the Private Placement Memorandum for a more complete discussion of the risks and uncertainties associated with an investment in the Fund.


2. Mandatory Rule 506(c) Disclosure Legend

This is a non-negotiable compliance legend that must appear prominently on the website and all offering materials to maintain the integrity of the private placement exemption.


MANDATORY LEGAL DISCLOSURE (REGULATION D, RULE 506(c))

THE SECURITIES OFFERED HEREIN HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

THE FUND IS RELYING ON RULE 506(C) OF REGULATION D. ACCORDINGLY, ALL PURCHASERS MUST BE ACCREDITED INVESTORS (AS DEFINED IN RULE 501 OF REGULATION D), AND THE ISSUER IS REQUIRED TO TAKE REASONABLE STEPS TO VERIFY THAT PURCHASERS ARE ACCREDITED INVESTORS.

THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS OFFERING MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

INVESTMENT IN THE FUND INVOLVES A HIGH DEGREE OF RISK AND IS SUITABLE ONLY FOR ACCREDITED INVESTORS WHO CAN BEAR THE ECONOMIC RISK OF THE COMPLETE LOSS OF THEIR INVESTMENT.

 

Required Regulation A Disclaimer for Marketing Materials

Regulation A Testing the Waters Disclosure

No money or other consideration is being solicited, and if sent in response, it will not be accepted. No offer to buy securities can be accepted, and no part of the purchase price can be received, until an offering statement filed with the Securities and Exchange Commission has been qualified. Any indication of interest in response to this communication involves no obligation or commitment of any kind.

A potential investor’s indication of interest is non-binding. Any offering of securities will be made only through an Offering Circular that forms a part of the qualified Offering Statement. Before investing, you should carefully review the Offering Circular, including the Risk Factors section, and the other documents the issuer has filed with the Securities and Exchange Commission.

Forward-Looking Statements

This communication may contain forward-looking statements that are based on current expectations and assumptions. Actual results may differ materially. Neither the SEC nor any state securities regulator has approved or disapproved of the securities or determined whether this communication is truthful or complete.

State (Blue Sky) Notice

The securities referenced in a Regulation A offering may be offered and sold only in states where they are permitted under applicable Blue Sky laws. Qualification by the SEC does not imply approval by any state securities regulator.