Hello!

I really hate that my first post in this forum is a problem, but we have a problem. And before anyone says "You needed it in writing", please hear me out.

In January of 2006, I was approached by a local dance instructor to see if I wanted to help out with starting a community theater in our town. My 20 years of stage experience with her 40+ years in dance and show was a good combo. We decided to do SMOKE ON THE MOUNTAIN.

She knew of a local eating place that had a huge stage that we could use. They also put up the initial investment over the rights of the show. However, the our city matched it on a fine arts grant, so we were now already breaking even and the initial risk was over. Over the next few months, we all discussed the fact that we would become non-profit after our first show. While the place served food, we weren't considering a "dinner theater" at first but decided that we should and it was a major success. We even did 2 extra shows without dinner and the crowd just bought food on their own.

The production was a smash hit. The actors, director, musical director and everyone involved in the production did not get paid. I was the director and even played the Pastor and just invested all my time into it for the love of the art and to raise money for future shows.

We made over $5900.00 but the place said after their expenses (payroll, food investment for the dinner theater shows, etc) that the profit was $3800.00. While we have requested a run down of these numbers, the owner has also said that they need to keep the majority of the remaining "profit" because they had the initial risk. With the city matching the funds, the risk was gone.

He has asked us what we think is "fair". Again, we are in the process of being non-profit and we expected all funds to go to our new and successful theater. He said he is in it for the money and expects most of it.

NOTHING, either from our end or his end said (in writing) who gets what with the early understanding that we throw most of it back in the theater. (we have him in email saying it would go back to the theater group.)

We believe he is just getting greedy because this was a smash hit. If he wants to take the profit, then I believe he needs to pay the people who made it happen (actors, directors, etc) or give is all the money. With SMALL CLAIMS being a last resort, what do you all suggest?

Sincerely,
Brian

Question: Who handled the box office and has the money right now? Unless it is you, it doesn't sound like he is going to give you your money without a fight. The question for him would be, "Is the money worth the bad publicity?" That maybe all you have to bargain with. You can try giving him a bill for director's fees etc., but I wouldn't count that money. Without a contract it is going to be hard to prove that the money is owed you, and it sounds like he knows it. This sounds like a lot of lessons learned the hard way.  

Congratulations on the success of your show and I hope you come out of this with enough money and energy to do it again in a DIFFERENT venue with a CONTRACT. Heck, I even have the nice old ladies at the Grange we rent sign a contract.

Good Luck,

Linda

Well, he is quoted in saying the money will go back into the association. Plus, he is showing signs of "cut and run" by saying we aren't welcome back into May when we had plans to do shows in January and March.

Rather than going to small claims court another option might be to hire an idependent accountant (or your legal society might be able to find one) who is empowered to examine Mr. Cook's books and records to see where the money went.   However, the cost of the accountant might easily absorb any profits you might win back.

I'm no lawyer but I have to agree with the previous posters -- without an existing contract you'll have a hard time collecting the money -- even if you do go to small claims court.

The matching funds provided by the city certainly reduced the venue owner (let's call him Mr. Cook) risk, but now he can claim (despite whatever rental fees he might tack on) using his place of business put extra demands on his electric bill, his water bill, his maintenance, his waste management, his insurance liabilities, his employees and dozens of other "hidden costs" and thereby claim entitlement to any profit.

Plus the fact that without Mr. Cook's building or facility (and his initial investment to purchase the rights to the show) a judge could easily claim that your production wasn't viable without Cook's cooperation.

Since Mr. Cook is operating a place of business and not a charity he would be expected to enter into this venture for a profit.  If, however, you were staging this show to benefit a charity (and not doing it to try and establish a non-profit organization that has no paperwork) then Mr. Cook would be foolish to try and abscond with the money as that would certainly make him look greedy.

No matter how this turns out, your group will need to seek another venue anyway (do you really want to work with Mr. Cook again?)Again, chalk it up to a hard lesson in experience and the reality that not everybody is into theater simply because they love it. 

Hello...I have an update.

I called the city's promotion's committee who signed the check over to our group for the grant. I explained our situation to him and he basically said the check was written to the theater group and not the restaurant. If the money is going to the restaurant and not the group, then they have a problem with that. They requested we and the restaurant owner (Mr. Cook, ha) attend their next meeting a week from today to see how their money was spent.

I am hoping that at the very least, we get the amount of the grant. Plus, because of our success, they may feel good about giving us another one. They also suggested we try a new venue.

Here's to hope!
Brian

Well, we meet with Mr. Chook (ha) on Thursday and the city next Tuesday. I am going to stress that NOTHING was in wrting about who gets the funds and that again we all said non-profit. I think a netural person needs to take possession of the funds until it is resolved as well.

We shall see!

Update

Well, we are still having issues. We did record a timeline of our events and email quotes of where Mr. Crook went from 100% non-profot to just yesterday, only offering me and the producer a small Stipend and nothing else for our group.

We meet tonight to hear as to why his business deserves more but we are very sure they are false numbers or expenses they had they had but labeled as for the show and not for what they were intended to be for.

Boy, I can't wait to join the other discussions on Community Theatre.

I wish you could see the wonderful theatre that we have created from an old gym... It too is owned by the town we are in, but we've been able to work a mutually agreeable deal with them.  Last year we made some huge improvements to the building, including a new roof.  We don't get a lot of grants, but we get some and that helps.  We could probably get more if we wanted to focus on that, but writing them is such a chore and we'd rather be doing theatre.  Good luck on your make over!