Topic: Cleveland: Nehst Studios News & Info

[jpop]

I do agree about their lack of transparency. That's what really gives me a bad feeling about it.

Did anyone go to their open call? Was a fee charged then?

[327]

R&R is right, and she even posted an outside source confirming her take on the industry.  How hard would it be for these guys to just drop the $10 fee?  How much of their business plan is premised on revenue from that fee?  If the answer is "a lot" they're clearly scammers.  If not... drop the fee.

[baseballmn907]

R&R is right, and she even posted an outside source confirming her take on the industry.  How hard would it be for these guys to just drop the $10 fee?  How much of their business plan is premised on revenue from that fee?  If the answer is "a lot" they're clearly scammers.  If not... drop the fee.

Colleges make you pay upwards of $100 for application fees for both undergrad and grad schools.  It sucks, but it's not because these colleges are "scammers".  They just don't want to sift through pointless applications (pitches) of people that aren't serious about the institution.

[327]

That's not why colleges do that, in my opinion.  I think they're scamming money.  Colleges scam money in every possible way, they're some of society's worst offenders in that category.  And the fact that this practice is widely shunned in the entertainment industry is very very telling.

[rockandroller]

R&R is right, and she even posted an outside source confirming her take on the industry.  How hard would it be for these guys to just drop the $10 fee?  How much of their business plan is premised on revenue from that fee?  If the answer is "a lot" they're clearly scammers.  If not... drop the fee.

Colleges make you pay upwards of $100 for application fees for both undergrad and grad schools.  It sucks, but it's not because these colleges are "scammers".  They just don't want to sift through pointless applications (pitches) of people that aren't serious about the institution.

How colleges work is not related to how the entertainment industry works, any more than anything else you pay an application fee for.  I'm not talking about other business vertical's business models, I'm talking about the entertainment industry, and it is widely known and accepted as well as warned against throughout the business that you do NOT pay to audition somewhere.

[snothouse]

"There's a nominal ten dollar fee that goes to cover website overhead and admin costs." - From http://www.pitchnehst.com/ You can like it, you can not like it, but that's their logic.

[MuRrAy HiLL]

Thanks for the info...but how can you like it?? 

[sky]

Nehst Of Vultures

This link says it all: 
http://clevelandindependent.com/The_Independent/Arts_%26_Film/Entries/2009/9/7_Nehst_of_Vultures.html


scam artists

[cardsnxtyr]

^ I'm not sure which thread, but im pretty positive that article has been posted here before.

[MyTwoSense]

^ I'm not sure which thread, but im pretty positive that article has been posted here before.

The CC/MM thread. Search before posting always works for me.  hint..hint.

[MuRrAy HiLL]

HMMM....

3 New Movies Hope To Bring Hundred Of Jobs To Northeast Ohio
Vivica A. Fox To Star In 1 Movie

POSTED: 4:39 pm EST January 6, 2010


CLEVELAND -- Three new films will be made in northeast Ohio in 2010.

The state of Ohio has approved the applications for three projects to be filmed in Northeast Ohio using the Film Tax Credit.

The three projects are independent films produced by New York and Cleveland-based Nehst Studios.

MORE AT http://www.newsnet5.com/mymoney/22160447/detail.html

[rockandroller]

I told you these people were unethical:

"Larry Meistrich's Nehst Studios is asking actors to pay to get a role in his movies being made in Northeast Ohio, something that the Screen Actors Guild frowns on and might investigate..."

more at:
http://www.cleveland.com/movies/index.ssf/2010/01/nehst_studios_web_site_asks_so.html

[jeremyck01]

^Most def unethical.  If I had to pay everytime I submitted a headshot I'd be broke.  I sent out 100 the other day and by the time postage and the price of the reproductions is included it cost $200.  This "studio's" system would cost me two times that amount. You can post yourself, your headshot and your resume on Actor's Access for $15 a month and then other casting directors can search you out, but that is a totally different system from what Nehst is proposing.

[8ShadesofGray]

City of Cleveland gets into the movie business with loan guarantees for three films
By Mark Gillispie, The Plain Dealer
March 09, 2010, 5:24PM

CLEVELAND, Ohio --- While it's a long shot to visualize Mayor Frank Jackson someday walking the red carpet before the Academy Awards, the city of Cleveland is about to get into the movie business.

A City Council committee on Tuesday approved $1.2 million in loan guarantees for three planned feature-length films produced by Nehst Studios, a New York-based production company that has established an office here ...

... More at http://www.cleveland.com/cityhall/index.ssf/2010/03/city_of_cleveland_gets_into_th.html.

[rockandroller]

I forgot about this dedicated thread, should have posted here:

Good article about Nehst studios' head honcho.  I really wish Cleveland and the state were not falling all over themselves to do business with this guy: 
http://www.villagevoice.com/2001-07-17/film/the-shooting-gallery-1991-2001/

Also, from http://chipstreet.wordpress.com/2009/09/15/sling-blade-producer-larry-meistrich-sued-for-fraud/

"...Nehst’s principle investor is Andrew Madoff, the son of Bernard Madoff, who is serving a 150-year prison sentence after pleading guilty in a $65 billion Ponzi scheme. Not exactly the pedigree one looks for in a startup business ostensibly managing tens of millions of dollars.

Now, Meistrich, Nehst Studios and Madoff are being sued by Dana Offenbach, former President of Production at Nehst Studios, for fraud, for a minimum of $300,000 in damages plus $5 million in punitive damages."

[3231]

also from the article:

"I have been more tempered in my response, saying that to me he seems like a guy who’s using some admittedly kind of crass methods to develop his studio, but whose pedigree is legitimate… and that I’d rather find ways to work with people who are in a position to be valuable to me than call them names and question their ethics. Although I’ve never paid to pitch myself, I wonder why some pay-to-pitch formats are acceptable and some are not."

http://chipstreet.wordpress.com/2009/09/15/sling-blade-producer-larry-meistrich-sued-for-fraud/

[Loretto]

I was on board for giving them space to operate, tax breaks, hell pick up their garbage for free, but loan guarantees scare the bajeebus out of me.

[327]

Agreed, Loretto... hell no we can't finance basic retail, but we'll put 1.2 million of an impoverished city's money behind some independent films.  Shall we also buy some rare coins?  How about some fine collectors plates from the Franklin Mint?  I'm told those just shoot up in value. 

Economic development can be straightforward and logical... there's no need to impress 15-year-olds with how cool we are. 

[StrapHanger]

Agreed, Loretto... hell no we can't finance basic retail, but we'll put 1.2 million of an impoverished city's money behind some independent films.  Shall we also buy some rare coins?  How about some fine collectors plates from the Franklin Mint?  I'm told those just shoot up in value. 

Ha ha- those were my exact thoughts as well.  I agree that this sounds like an absolutely terrible idea.

[willyboy]

I wonder if they even included any type of safegaurds.
 
I mean its not that big of a secret that there some ethical issues with Nehst.  I understand that they would want to come across as embracing of the industry, but it shouldnt come without using common sense.  I see a scathing Roldo piece coming.     

[McCleveland]

just so we're clear, this isn't exactly a loan.  It's a guarantee...

"Cleveland's guarantee, which does not require the city to put up any cash, would "burn off" if the studio raises enough money through foreign sales and marketing to pay off its completion bonds for the films, Nichols said. "

I'm not saying this isn't without risk, or that I think it's a good idea, but there is definitely a difference.  The city guarantees a portion of a separate Nehst Loan, which allows them to produce movies, which should in turn produce money in the city and generate revenues.  And Nehst, though they certainly seem to have questionable ethics practices has actually made movies that have made money, and have at least some known quantity of talent for at least one movie... so there's a reasonable chance this will work.  Like I said, they may have questionable practices, but they aren't exactly some tin hat company that has never done anything.


...and as per usual this has nothing to do with retail, so let's please just keep this to Nehst.

[327]

Opportunity costs exist.  And it seems like the "guarantee" nature of this is only relevant to the extent one believes that independent films tend to be profitable.  Under no ascertainable standard is this a wise public investment, in fact it borders on appalling.

[sky]

SCAM    SCAM    SCAM    SCAM    SCAM

Cleveland will get screwed on this deal. They've been duped!! Ken Silliman and Tracey Nichols are incredibly naive. Doesn't anyone research backgrounds?

Larry Meistrich  =  swindler who burned over 60 people out of millions of dollars when he ran the now defunct "The Shooting Gallery"

Ivan  =  blackballed from Hollywood and winds up here. Latches on to Nehst because he can't make anything else happen (at least Chris Carmody had some real successes).

Ari  =  Nehst President and former head trader for Bernard L. Madoff Investment Securities

Andrew  =  lead investor for Nehst (Bernie Madoff's son who is being investigated)


If these films get completed, they will LOSE MONEY (98.75% of independent feature films without A list celebrities lose money, similar story for documentaries).

And, no McCleveland, Nehst has not released any films that have broken even.

[McCleveland]

I never said I thought it was a good idea.  Just making sure it was understood this is not a straight up loan.

[StrapHanger]

Argh, loan guarantees like this certainly aren't going to help the city's credit rating:

Moody's Investors Service assigns negative outlook on Cleveland's debt

http://www.cleveland.com/cityhall/index.ssf/2010/03/moodys_investors_service_assig.html

But wow, what a moronic/inaccurate headline for that story.

[CleveChiNola]

If Nehst's reputation is anywhere near as bad as some of the articles linked on this thread make it seem, could the city's involvement with them actually hurt our ability to develop a segment of the movie industry?

[rockandroller]

YES!  That's a huge part of it for me, this is going to actually make things WORSE for us.

[327]

YES!  That's a huge part of it for me, this is going to actually make things WORSE for us.

Agreed.  This is a very bad move. 

[mdpeter]

Clarifying the level of film production in Northeast Ohio
Two recent articles from the Plain Dealer that detail the success of the Cleveland (and Ohio) film industry:

http://www.cleveland.com/movies/index.ssf/2010/09/ohios_motion-picture_tax_credi.html

http://blog.cleveland.com/pdextra/2010/09/ohio_film-tax_credit_has_broug.html

"In the motion-picture tax credit's inaugural year, the state attracted nine films that are expected to spend a combined $33 million in Ohio, according to the Ohio Department of Development".

9 films have qualified for the tax credit program, but only 5 are expected to have been completed by the end of 2010.

"Unstoppable” filmed some scenes in southern Ohio but it mainly used crew members from Pittsburgh.
"25 Hill" has a budget of $500K and it shot many scenes in Akron. 
Jeff Nichols shot his latest film in Lorain and his budget was around $900K. 
"Freerunner" with Sean Faris shot in Northeast Ohio on a $2M budget.   
Larry Meistrich's first completed Ohio film, "Lilith," was budgeted at $300K with a crew of less than thirty people.

That means the total budget for all films that shot at least some scenes in Northern Ohio this year is approximately $3.5 million, and not all of this was spent in Ohio.  In terms of the film industry north of Columbus, the progress has not been as promised 

The figure of $33M included 4 movies (totaling $16.3 million) that apparently won’t be filmed in 2010.  3 of those 4 are Nehst Studio film projects. 

Here is a quote from 2 years ago (November 17, 2008) that predicts the effect Nehst Studios will have on Northeast Ohio:

“Nehst is committed to spending $125 million in Northeast Ohio if the state legislature passes a proposed tax credit for filmmakers, officials say.  The deal would grant the company occasional use of other areas of the convention center, provided the areas aren't rented out at the time. Comparable space in Detroit could fetch more than $1 million in rent a year, the mayor's chief of staff said last month”.

Increasing the number of film projects shot in Northeast Ohio is beneficial to all of us, but it is essential that the statistics and updates provided by the film commissions, prominent members of the local film industry and the local media are correct.  Too often the meager information that is provided to the public is reminiscent of glorified press releases and overly optimistic portrayals.

http://clevelandfilm.blogspot.com/2010/09/clarifying-level-of-film-production-in.html

[CleveChiNola]

Welcome and thanks for the info!