How to Invest in Broadway

The way Broadway investment is set up: investors receive their entire investment back before the production company begins to share in the profits. After receiving their initial investment back, investors share, based on their percentage, 50% of net weekly profits of the production.

Breakeven or recoupment depends on the average ticket price, the theater capacity and the number of seats sold during the run of the performances. Since plays usually are for a fixed run, Walking Path Entertainment’s strategy is to optimize the conditions that will result in a successful production, i.e., a long enough run to be profitable, Broadway investors have the first chance to invest in a first-class or touring productions internationally. This is usual for an original play and is documented in the operating agreement. Minimum investment units are often $25,000 for investors who qualify as accredited.

A tip: Producers like to hear from interested potential investors and may be able to suggest some options, e.g., sharing a unit with another investor.

A Brief Crack of Light (former title Exit Strategy) is an exceptional and unique opportunity with an original play by two new Broadway playwrights. Walking Path Entertainment LLC managing members formed Exit Strategy Theatrical LLC as the investment vehicle for A Brief Crack of Light.

Walking Path Theatrical is its the second phase, production funding, which includes contracts for celebrity actors and a Broadway theater. Our team, spearheaded by Casting Director Pat McCorkle is working to pull together an outstanding cast.

Producer Michael Laskin describes the potential for A Brief Crack of Light.

A Brief Crack of Light (former title Exit Strategy) is an exceptional and unique opportunity with an original play by two new Broadway playwrights. Walking Path Entertainment LLC managing members formed Exit Strategy Theatrical LLC as the investment vehicle for A Brief Crack of Light. 

Walking Path Entertainment’s investors who back the Broadway performance then have subsidiary rights for other performances in the U.S. and Canada. A Brief Crack of Light, like other original plays, has a “long tail” of potential profit, in our case, 18 years.

An Example of a Broadway Investor’s Return

For example, with a production capitalization of $3.3 million, a theater of 1040 seats, a $110 average price, and 90 percent average occupancy, and a weekly net operating profit of $238,000, investors would breakeven in 14 weeks.

WHAT HAPPENS AFTER  BROADWAY:

• After the A Brief Crack of Light script is published, investors collect residuals on any production of the play for a potential 18 years. With a timeless message, only 3 actors and 1 set, it’s expected to be popular with theaters at all levels, which would generate ongoing returns, even after investors’ principal is returned. 
• In addition, our Broadway investors receive right of first refusal for additional investments in future productions of A Brief Crack of Light, e.g., on the West End of London.
• This is the difference between an original play and a revival, which ordinarily only has revenue from a Broadway production.

HOW TO INVEST IN A BRIEF CRACK OF LIGHT:

• Each investment unit is $25,000 and investors may own multiple units. 
• Also, there are additional financial benefits for major investments, starting at $150,000 
• The producers will be happy to talk with you more about A Brief Crack of Light and what we anticipate will be its bright future.

NOTE:

Every production is like a start-up business. There is no guarantee of return for a Broadway way and investors may end up with a tax deduction.

This summary is hypothetical, not an actual A Brief Crack of Light example. This does not constitute an offer for or advice regrading the sale, purchase, or transfer or securities; but rather is for general information purposes only. Any offering or related information regarding financial participation in a specific theatrical production can be made only in accordance with offering documents prepared and distributed in accordance with applicable Federal, New York, and other state and local laws and regulations. Investors must qualify as accredited or as a sophisticated investor. Broadway is a speculative investment with a high degree of risk. Accordingly, it’s suitable only for persons who can afford a total loss of their investment.