September 22nd, 1978.
Fantasy Pictures.
One week made a surprising amount of difference.
The office that had once been almost silent now had telephones ringing, typewriters clacking and people walking up and down the stairs.
James stepped into his office with a cup of coffee.
Linda was already waiting.
"You look happy."
"I am."
Linda slid the first folder toward him.
"Final staff list."
James opened it.
Reception, Administration, Marketing, Accounting, Story Department, Kitchen, Maintenance.
Nearly thirty names filled the pages.
"We hired this many?"
"Twenty eight."
"I thought there'd be fewer."
Every employee had already been assigned to a department, Working hours, Salary, Starting dates all sorted.
Linda crossed her arms and resting her head on the desk.
"It's certainly good to order people around, I have lot more free time now but you don't."
Linda slid another sheet in front of james.
"What's this ?"
"Operating Cost, Estimated one's per month of current Fantasy pictures, It includes salary and bonus of staff, Utitlity bills, office supply expense, regular operating expense, Budget allocation of each department and time you have before we got bankrupt."
James baffled took a serious look at the sheet.
Employee salaries, including Jerry's and the rest of the staff, came to $42000, Total expenses including other things $72000 per month. Estimated Annual Expense was $870000.
Allocation of budget to each department annually.
Administration $100000 including kitchen expenses, Marketing $1 million, Story & copyright department $1.5 million, Finance department $1 million.
"These aren't expenses," Linda said.
"Maximum spending authority for each department."
Current Finance situation of Fantasy pictures.
Footloose production budget $7 million, Acquisition of Contemperary Records $7 million, Acquisition of Fantasy headquarter building and warehouse $1.5 million, Estimated $2 million for Warehouse renovations. Total Expenses $17.5 million, Remaining in bank account currently $12.3 million.
James was utterly disgusted with the amount left.
"Don't we have money coming from paramount for Friday the 13th ?"
"Yes, but in installments and we still need to pay the loan with interest every month. Full amount of the movie profits would take till next year February or so if your next movie flops we won't have any money left and only option is bankruptcy, so you better get moving james."
James slumped on the desk head down in his arms.
"Just a week ago, I was looking at $30 million, I want to cry."
Linda couldn't help smiling.
"Too late, Sulking won't change anything,"
Just as james was sulking telephone on the desk rang.
Linda reached for it.
"Fantasy Pictures."
She listened for a moment before holding out the receiver.
"It's Howard."
James lifted his head with a groan and took the phone.
"Morning, just say what you want, I am in real bad mood."
Howard laughed.
"Rough day already?"
"You have no idea."
"I'll make it better."
"Kenny Loggins and Mike Reno are officially in, paperwork should be on Martha's desk this afternoon."
"Good, That was quicker than I expected."
"Shalamar is interested, But...They're touring."
"Their schedule is the problem, So they're still considering."
"For now."
James nodded.
"Bonnie Tyler, Deniece Williams, Ann Wilson from them nothing yet, They are still considering, It will be a waiting game for now."
"It's been only a week, Great Job Howard."
Howard laughed.
"Okay, Stop the flattery, There is one more thing, I've narrowed the choreographer list."
"Oh?"
"I've got four names."
"I'm setting up meetings next week."
"Any favorites?"
"Not over the phone."
"I'd rather discuss them in person."
"Works for me."
"As for the rest, I'll keep you updated."
"Thanks, Howard, Talk to you soon."
James slowly placed the receiver back.
Linda looked up at him.
"Good news?"
James nodded and they continued their work later.
Jerry pushed the office door open without knocking.
Paul followed behind him with a file.
Paul dropped it onto James's desk with a heavy thud.
"What's this?"
"The consultant list."
James pulled the file closer, It was filled with names of Electrical consultants, Mechanical engineers, IATSE technical supervisors, Teamster transportation coordinators,Equipment installation specialists.
"We spoke with a few people in the union, They've worked on studio renovations before."
James nodded as he flipped through the pages.
"This'll save us some time."
Jerry leaned against the desk.
"It'll save us a lot more than time."
James looked up.
"Speaking of saving money,I wanted to ask you something."
"I met David Picker last week."
"So?"
"He suggested Fantasy Pictures become a signatory with the unions."
Jerry froze.
"He what ?"
Paul slowly looked toward James.
"You didn't agree, did you?"
"I said I'd think about it."
Jerry let out a breath of relief before rubbing his forehead.
"Jesus Christ..."
"What?"
Jerry pulled out a chair and sat down.
"Listen carefully, A full signatory pays year-round, You've got obligations, Administration, Benefit funds, Pension contributions, Paperwork, Fees, You're paying whether you're shooting or not."
Paul picked up the conversation, "With a single-picture agreement, You hire the same union crews, You follow the same rules, When production wraps...So does your obligation."
"So why would David tell me to become a signatory?"
Jerry laughed.
"Because David Picker didn't become President of Paramount by giving every independent producer good advice."
Jerry pointed at Financial report.
"He smiled, He gave you advice, And if you'd followed it, you'd be burning through cash every month."
"A company drowning in debt doesn't stay independent very long."
James understood immediately.
"They become dependent."
"It's Hollywood, People like David stab you in the back with a smile or give you the knife to slice your throat yourself."
"Nobody lies to your face, They just let you make expensive mistakes."
Paul pointed at the consultant list, "Whenever you need IATSE technicians, We sign a project agreement, When we need Teamsters We sign another, No permanent commitments."
Jerry grinned.
"You've already borrowed thirty million dollars."
"Let's not find creative ways to spend even more."
James looked down at financial report still lying open on his desk.
The remaining balance of $12.3 million suddenly looked even more precious.