Geldof and John O’Shea to reap Avatar rewards
By Niamh Hennessy
Thursday, January 28, 2010
BOB GELDOF and Manchester United star John O’Shea are among the Irish investors in line for a windfall following the runaway success of Avatar.
They are among a raft of celebrities who are set to make an average €58,000 each after investing in a scheme established by British financing firm, Ingenious Media.
The money invested in the scheme was used to back a number of movie ventures, including Avatar.
Other investments included X-Men Origins: Wolverine, Hairspray and Die Hard 4.0.
Avatar alone is set to make almost €280 million for Ingenious Media.
The film fund was established four years ago because it enabled investors to defer income tax and capital gains tax in return for backing films.
They benefited from the tax relief irrespective of the success of the films.
Ingenious Media backed Avatar, which is the most expensive film ever made, along with American private equity firm Dune Entertainment.
The two are believed to have put up 60% of the film’s production budget of €300m, while 20th Century Fox studio, director James Cameron and others picked up the remainder.
Ingenious and more than 2,000 of its investors raised about €53m towards the film’s overall production costs.
Half of the profit on the film will be taken by the firm and the rest will be shared between investors.
The minimum stake in Ingenious Media fund was thought to have been £100,000 (€115,000).
It has been reported that when Geldof was told about his windfall from Avatar he said: "Thank you very much for the good news. I haven’t seen the film yet but I will now that I own a brief second of it. I’ve got even more incentive to go see it."
Other investors included footballers
Wayne Rooney, Steven Gerrard and David Beckham and Andrew Lloyd-Webber, Guy Ritchie and Anne Robinson.
Avatar has replaced Titanic as the highest grossing film of all time, having already raked in almost €1.3bn.
This story appeared in the printed version of the Irish Examiner Thursday, January 28, 2010
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Geldof and John O’Shea to reap Avatar rewards | Irish Examiner