January 1, 2021

Who We Are — The Founding of Film Finances

Film Finances • January 1, 2021

Film Finances (FFI) was formed out of the British film industry’s 1947–1949 financial crisis, when major studios — notably the Rank Organization — stopped directly financing production and shifted to distribution guarantees. Independent producers would raise roughly 70% of a budget from a bank against a distribution guarantee, then seek “end money” from the government’s newly formed National Film Finance Corporation. Because distribution guarantees only paid out on delivery of a finished film, lenders needed assurance their money would be used effectively — the gap FFI’s completion guarantee filled.

In exchange for a percentage of the budget, FFI guaranteed lenders the film would be delivered on-schedule and on-budget, only issuing a bond once satisfied the producer could meet strict conditions. In rare cases of serious trouble, FFI had the right to take over and finish a film itself. FFI acted as both mediator and production consultant, requiring rigorous pre-production preparation and close ongoing monitoring.

Founding

FFI was incorporated on February 24, 1950, by Lloyds underwriter Peter Hope and film producer Robert Garrett. Garrett had been an RAF Wing Commander and head of the Air Section at Bletchley Park during WWII, and postwar was associated with Constellation Films (founded by Anthony Havelock-Allan, producer of early David Lean films Brief Encounter, Great Expectations, and Oliver Twist).

Hollywood Comes Calling

The 1960s saw Hollywood money flowing into UK and European productions, giving FFI an increasingly international role. When United Artists backed Dr. No (1962), the first James Bond film, it required Saltzman & Broccoli’s Eon Productions to secure an FFI completion guarantee. Other notable guarantees from this era include Tom Jones (1963, Best Picture Oscar), The Ipcress File (1965), and Cabaret (1972).

In the early 1970s, Richard Soames became managing director, succeeding Garrett, and expanded FFI into Canada, Australia, and the US — a period that coincided with the rise of new independent studios (Orion, New Line, Hemdale) and new tax incentives in Canada and Australia.

“On Schedule and On Budget”

In 1982, FFI backed Francis Ford Coppola on The Outsiders and Rumblefish (1983), after the over-budget Apocalypse Now (1979) and One from the Heart (1982) had made studios wary of him. A full-page Variety ad congratulating Coppola on completing The Outsiders “on schedule and on budget” became a phrase that stuck as FFI’s calling card. Other guarantees from this era include A Nightmare on Elm Street — which helped make New Line “the house that Freddy built” — The Terminator (1984), Salvador (1986), and Platoon (1986, FFI’s second Best Picture Oscar winner).

Resilience

Not every production went smoothly. The Adventures of Baron Munchausen (Terry Gilliam, 1988) fell badly behind schedule at Cinecittà; FFI took over the production but couldn’t prevent the budget doubling from roughly $23 million to $46 million. The company recovered to remain a major Hollywood and international presence, later guaranteeing Slumdog Millionaire (2008), another Best Picture winner.

In the early 1990s, ownership moved to the US; Film Finances, Inc. became parent company of Film Finances Ltd and our other global subsidiaries. We continue guaranteeing Oscar-nominated films, including four Best Picture winners in the past decade.

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