Chapter 406: A Big Contract Amounting to 100 Million
Chapter 406 A big contract worth 100 million
Author: Jianzoufeng
Chapter 406 A big contract worth 100 million
Ark Culture's headquarters building project in Ningyun Cultural Industrial Park has been launched and is planned to cost 2 billion in three years.
Therefore, Fang Xing now needs to make as much money as possible, reduce the loan ratio of the project, and optimize the company's asset structure.
Three years ago, I endorsed HONOR mobile phones and the cooperation was very pleasant.
It was later discontinued simply because the brand needed to change its face to attract more potential customers.
This is a common strategy in the celebrity endorsement industry.
For brands, they actually prefer to sign short-term endorsements.
For example, a certain mobile phone brand launched a flagship model this year, signed a star who had a hit TV series this year as an endorsement, and used the celebrity's popularity to promote the mobile phone.
When the new generation flagship model is released next year, look for next year's most popular celebrity to endorse it.
However, the celebrities prefer to sign longer endorsement contracts.
If the endorsement contract period is longer, the endorsement fee will decrease.
However, long-term endorsement is actually risky for the brand.
Especially today's popular celebrities, because one drama became popular, but there was no new drama, they became popular very quickly.
If a celebrity performs badly during the endorsement period, the brand will be in bad luck.
Even if there is a compensation clause in the endorsement contract, the negative impact on the brand will be huge.
Especially in recent years, the country has begun to control chaos in the entertainment industry, and bad artists have accidents every year.
Therefore, brands are becoming more and more cautious when signing spokespersons.
besides.
Brands also need new faces to tap potential customers.
After one or two years of endorsement by a celebrity, fans who are willing to pay for the celebrity will basically be found.
At this time, brands need new faces to broaden their customer base.
Taking a variety of factors into consideration, celebrity endorsements have now basically formed an industry standard of signing every two years.
Of course, the specific method of signing depends on how the brand and the celebrity agent negotiate.
Fang Xing endorsed HONOR mobile phones three years ago. That endorsement was a very successful endorsement for HONOR.
Because Fang Xing came out three years ago and won three consecutive Golden Melody Awards, the annual top music variety show Singer, the Spring Festival Gala, and international competitions. He was simply a god.
HONOR Mobile signed an endorsement deal with Fang Xing when he was just starting to rise, and he was taken along by the endorser all the way.
As Fang Xing's strength and popularity increased, the price of endorsements also increased, reaching a very exaggerated figure.
After two years of endorsement, HONOR mobile phones also need a new spokesperson to find new customers.
Therefore, after the endorsement contract expired, it was not renewed.
Of course, there is another more secret reason why HONOR did not choose to renew the contract.
A large company like HONOR has information channels in the investment industry.
Therefore, HONOR's company executives knew that Ark Culture was having trouble with a certain capital, and the overt and covert fights were fierce.
Unconventional means such as tax inspections were even used.
HONOR has nothing to do with either party in the fight and has been supporting Fang Xing during the endorsement contract.
However, HONOR is not a company that makes decisions based on personal emotions, and the company's decision-makers will inevitably tend to be rational.
Therefore, HONOR executives are not sure whether Fang Xing can withstand this wave of pressure from capital. For the sake of safety, it is a wise decision not to renew the endorsement contract after fulfilling it.
…
Fang Xing didn't know about these secret reasons, and even if he knew, he wouldn't think there was any problem.
The grievances between myself and Pengcheng Capital and Dingsheng Capital are inherently personal grievances and do not require the intervention of other companies.
In the shopping mall, as long as you don't add insult to injury, it is the greatest goodwill.
This time Li Changyan invited me to dinner, and the endorsement contract he proposed was signed together with the advertising contract for the third season of "Hurry Up". The price and terms were very sincere.
After explaining the general framework of the contract, Li Changyan added a cup of coffee and said:
"Brother Fang, the commercials for the third season of "Crazy" will definitely be sold, and they only last for one week.
"It's boring to fight each other, and if you sign an endorsement, the filming of commercials is more demanding and time is tight.
"Let me tell you the bottom line. The advertising price for the third season of "The Rush" is 5.2 million for a single episode. I can make a decision.
"The endorsement price is 36 million for two years. This price is basically fixed."
After listening to the price he offered, Fang Xing knew that the other party offered a maximum price.
According to the current market price, the price for Fang Xing to endorse a brand is about 35 million for two years.
This price is basically the ceiling for domestic endorsement prices.
There may be individual kings and queens whose endorsement prices are higher than this, but these are all exceptions.
The price of advertising spots for the third season of "The Furious" is as high as 5 million per episode.
Therefore, the price Li Changyan directly offered was 5.2 million, which was already the highest price.
What's more, if the two contracts are negotiated together, some discounts will be given.
Li Changyan didn't even lower the price because of this, he gave the highest price.
"Mr. Li is indeed very sincere. Has your company already discussed this in a meeting?" Fang Xing still wanted to ask clearly.
"Not yet. However, I can basically make a decision on this matter. As long as Brother Fang agrees, go back and have a meeting and the contract can be signed on the same day." Li Changyan was very confident about this.
After all, he is the CBO of HONOR, and brand endorsements fall within his scope of work.
The commercials for the third season of "Rush" are now very popular, and many companies are competing.
As long as we can get the advertising for the third season of "Horse", the price of 5.2 million is not too high.
Fang Xing nodded, thought about it, and replied: "If the two contracts are signed together, the contract amount will exceed 100 million."
"Isn't this more courageous?" Li Changyan replied with a smile.
If according to the price mentioned by Li Changyan, the advertising price of the third season of "Hurry Up" is 5.2 million per episode, then the total price of 13 episodes is 67.6 million.
Adding in the 36 million from the endorsement contract, the total amount will be 103.6 million.
A contract of this level is a super big contract even for HONOR and Ark Culture.
"In this case, Mr. Li can go back to the meeting. If it is confirmed, the contract will be sent to Ark Culture. After the company's legal affairs review it, it can be signed. In terms of price, I will not raise the price. After all, time is tight. If it is an endorsement,
The commercial film really needs more time." Fang Xing did not hesitate, since both parties have worked together before and know each other very well.
Li Changyan was very sincere about this cooperation, so it was finalized.
"Just wait for Brother Fang's words. It's a pleasure to work with you. I'll go back to the company now. I'll send you the contract later. We'll find a time to sign the contract." After Li Changyan finished speaking, he stood up to shake hands and immediately returned to the company.
Call a senior management meeting.
Since the value of the two contracts exceeds 100 million, even if he is the company's CBO, he still needs to hold a high-level meeting and go through the motions when making such a big decision.
Moreover, time is very tight this time.
Therefore, what I signed this time was not just a commercial for the third season of "Rush".
If it's just a commercial break, with Ark Culture's shooting capabilities, if we rush the work, we can shoot the short commercial break in one day.
After all, the short film that inserts an advertisement is actually very simple. It doesn't even need a plot. It just requires actors to put on makeup and shoot an advertising slogan.
Endorsements are different.
If it is an endorsement contract, then the commercial film must be shot carefully.
Even at the level of Ark Culture, with shooting and post-production, it would take a week to come out.
Therefore, time is very tight.
After Li Changyan returned to the company, he convened a meeting with the top management to announce new endorsements and commercials for the third season of "Hurry Up."
When the senior management of HONOR company first heard that they were going to sign a new spokesperson, they thought they were still negotiating for a new spokesperson and might have to wait until next year to sign a new spokesperson.
But I didn't expect that things would be so urgent this time.
"Is the time too urgent?" A senior executive expressed objections to this decision.
After all, it is not safe enough to sign a large contract worth more than 100 million in such a short period of time.
"Ark Culture is responsible for the advertising shooting. If the endorsement advertisement cannot be released within a week, the interstitial advertisement of "Hurry Up" can be released as a short film first, and then the official advertising film will be released later." Li Changyan proposed this plan.
In fact.
The current spokesperson contract for HONOR mobile phones has not ended yet and will not end until the second half of the year.
However, brands usually sign spokespersons several months in advance.
Even signing a spokesperson for next year this year.
As long as the current contract is fulfilled in accordance with the endorsement contract, there is no problem.
"Time is indeed a bit tight, but as far as I know, many manufacturers are now competing for the commercials for the third season of "Hurry Up". If we can negotiate, it would be a good idea to sign the two contracts together." The president said seriously.
After thinking about it, I thought this solution was feasible.
Li Changyan smiled and said: "To be honest, if Fang Xing and I hadn't known each other, we wouldn't have been able to negotiate this contract. I just received news this morning that Lan Factory Mobile also wanted the third season of "Hurry Up"
For interstitial ads, the price may go up.”
The high-level meeting did not discuss it for long before the matter was laid before our eyes.
There are too many competitors for the commercials in the third season of "Rush".
If they hadn't cooperated before, Li Changyan wouldn't even be able to find Fang Xing to talk to.
Being able to sign the two contracts together is already the best solution.
Therefore, after the top management made the decision, Li Changyan immediately asked the legal department to start preparing the contract.
…
the other side.
After Fang Xing returned to the company, he also held a meeting and called Zhang Yigao over to make preparations for shooting the commercial.
Although HONOR company has not sent the contract yet, Li Changyan is very sincere.
This contract has a high probability of being successful.
Fang Xing promised that Ark Culture would be responsible for the advertising shooting.
Time is very tight now and we must start preparing the crew to shoot the commercial.
Only halfway through the meeting, the president's assistant walked into the conference room holding a faxed contract and said, "Mr. Fang, the contract from HONOR has been sent over."
Fang Xing stretched out his hand to greet the person in charge of the company's legal department and said, "Go through the contract and ask if you have any questions. If there are no questions, just write back to HONOR."
"Then I'll go back and go over the contract with other legal staff, and I'll get back to Mr. Fang later." The head of the legal department immediately took the contract and went back to the legal department's office to work.
Fang Xing snapped his fingers and asked, "Has the contract been copied?"
The assistant nodded quickly: "Xiao Xu is making copies. I sent the first copy over as soon as I got it. I'll go take a look right away."
The assistant hurried out, quickly brought in the copied contract, and distributed it to the company's senior executives.
Fang Xing opened the contract and looked at it.
The contents of the two contracts are similar to what Li Changyan discussed before.
Fang Xing only needs to look at the general framework of the contract. As for the details, the company's legal affairs department will check it.
More than an hour later, the head of the legal department came back with two contracts.
In the contract, some key terms have been circled in pen.
"Mr. Fang, our legal department has preliminary reviewed the contract. There are no problems with the contract as a whole. There are only a few key clauses that need to be mentioned with Mr. Fang."
Fang Xing waved to him to sit next to him: "Sit down and talk."
After the person in charge of the legal department sat down, he pointed at the circled area with a pen and said: "Mr. Fang, in the advertising contract for the third season of "Hurry Up", there is a clause stating that the advertising short film will be shot by our company and marked
The main actor in the commercial short film is Mr. Fang himself.”
Fang Xing nodded and said, "Li Changyan mentioned this before, and I agree."
The two parties have negotiated an endorsement contract, so Fang Xing, as the spokesperson, appears in a commercial short film, which is a very reasonable request.
The inclusion of this clause in HONOR's contract is just to prevent Ark Culture from randomly grabbing people to shoot because they are in a hurry.
After the person in charge of the legal department finished talking about the contract for the commercial spot in the third season of "Hurry Up", he turned to the endorsement contract and continued:
"Mr. Fang, there is a breach of contract clause in the endorsement contract.
"During the contract, if Party B damages Party A's brand image due to personal reasons, Party B has the right to terminate the contract and demand compensation.
"The amount of compensation is not specified here. If something goes wrong and we demand compensation through litigation, HONOR has the right to demand compensation equal to the contract amount, which is 36 million."
Fang Xing nodded slowly and asked, "Is there any problem with this clause?"
The person in charge of the legal department thought about it and replied: "Strictly speaking, in the past two years, similar contract terms have basically become the standard for endorsement contracts.
"This is also because in the past few years, there have been more celebrities involved in scandals, and many brands have suffered heavy losses.
“Following endorsement contracts will basically add this clause, and some require higher compensation amounts.
"However, just like a lawsuit, the court will calculate the amount of compensation based on the actual situation."
After a pause, the person in charge of the legal department added: "To put it bluntly, the brand side is worried that the spokesperson will get negative news, which is a clause to protect the brand's rights and interests. Nowadays, endorsement contracts of major brands basically have this clause."
"This doesn't matter, is there anything else?"
Fang Xing was not worried about this.
Today's celebrity endorsements, if the celebrity has a scandal and damages the interests of the brand, then it is very reasonable to be required to compensate.
"There is nothing left. The framework of this contract is very loose and there are no major problems. At present, we have only gone through it initially. Our legal department will work overtime tonight and review it carefully again," said the person in charge of the legal department.
"That's it. Send a reply to HONOR and ask them to set up a time to sign the contract." Seeing that there was no problem with the contract, Fang Xing made the decision, and then arranged for Zhang Yigao to prepare the crew for the endorsement commercial.
