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Sleepless the Musical

Musical based on the film Sleepless in Seattle

18%

Investors

15

Time to Invest

Security Offered

Revenue Share

Minimum Investment: $100

  • Anticipated Fall 2019 opening at the Theatre Royal Plymouth in the UK prior to debuting on the West End of London, home to some of the most famous theatres in the worldi

  • Based on the movie Sleepless in Seattle, which grossed over $227 million worldwideii and is listed as one of the top-ten romantic comedies of all timeiii

  • Co-produced by industry veterans David Shor and Michael Rose

Terms

Security Type: Net Operating Profit Participation Rights

Round Size: Min: $25,000 Max: $107,000

Payment Provision: Net operating profits (that is, gross receipts in a performance week plus other sources of income such as subsidiary rights income, cast album and merchandising receipts, interest income, licensing fees for additional companies, etc., less all operating expenses) will first be paid to Investors until the they have recouped, pro rata and pari passu with one another, their aggregate investment. Following Investor recoupment, 50% of the adjusted net profits (that is, net profits less any contractual "off-the-top" net profit payments due to third parties, including but not limited to: cast salaries, union and guild charges, and orchestra salaries) derived from the presentation of the Play will be allocated to the Investors. The other 50% will be allocated to the producers.

Overview

Opportunity

Since its debut in 1993, Sleepless in Seattle has earned a spot as one of the best romantic comedies of all time. Receiving both critical and commercial success, the film has grossed over $227 million dollars worldwideiv and is listed as one of the top-ten romantic comedies of all time by the American Film Institute (AFI).v Sleepless The Musical is written by the same original story writer and screenplay co-writer as the movie, Jeff Arch. The play, which is anticipated to premier in the UK in late 2019, aims to recreate the charm, romance, and wit of the much-loved movie. The producers of Sleepless The Musical—David Shor and Michael Rose—believe the film on which the play is based is beloved by many and has become a part of the American—and worldwide—lexicon.vi

David Shor will be the show’s lead producer and is the Sole Member of Sleepless Musical, LLC. Through Sleepless Musical, LLC, Mr. Shor has secured the exclusive dramatic rights to develop and stage Sleepless The Musical. Sleepless Musical, LLC is working with London Management LTD, which is managed by co-producer Michael Rose, to raise additional capital for the production of the musical. The show is expected to open in late 2019 in the UK’s Theatre Royal Plymouth prior to a run in the West End of London, home to some of the most famous theatres in the world.vii In the future, the producers hope the musical will transfer to the U.S. as well as tour worldwide.

Sleepless The Musical includes a book written by Jeff Arch and Michael Burdette, music by Robert Scott, and lyrics by Brendan Cull. The musical is planned to be directed by Morgan Young with a set designed by Morgan Large, lighting by Tim Lutkin, video design by Ian William Galloway, costume design by Sue Simmerling, wig and hair design by Richard Mawbey, sound design by Avgustos Psillas and Terry Jardine from Autograph, and musical supervision by Larry Blank. In the UK, advertising, marketing, and graphics are planned to be overseen by Dewynters.

Synopsis

Like the much-loved movie, Sleepless The Musical is the heart-warming tale of Sam who moves to Seattle with his eight-year-old son Jonah, following the tragic death of his wife. But when Jonah phones a radio show and gets Sam to talk about his broken heart and sleepless nights live on air, he suddenly finds himself one of the most sought after single men in America and a great news story for feisty journalist Annie on the opposite side of the country. It looks like love is in the airwaves, but how do you know if someone is the one for you when you’ve never even met? Sleepless The Musical seeks to add a fresh and lively take to a classic film with a brand-new musical score to bring this romantic comedy to life on stage.

Sleepless in Seattle - The Movie

The American Film Institute lists the 1993 film Sleepless in Seattle among the Top 10 Best Romantic Comedies of all timeviii and the film grossed over $227 million worldwide.ix The film was nominated for two Academy Awards, two BAFTA Awards, three Golden Globe Awards, four MTV Movie Awards, one Writers Guild of America Award, and won an American Comedy Award and a Casting Society of America Award.x It was at least in part inspired on the 1957 film An Affair to Remember starring Cary Grant and Deborah Kerr, cementing the iconic status of the Empire State Building rendezvous.

Past Theatrical Performances – Pasadena Playhouse

The historic Pasadena Playhouse opened the pre-Broadway world premiere of Sleepless in Seattle – The Musical on May 24, 2013, which ran for 44 performances over a period of four weeks. Pasadena Playhouse is a LORT (League of Resident Theatres) theater and has enhanced many pre-Broadway/West End productions, including Sister Act and One Night With Janice Joplin. In addition to the practice of LORT theaters investing in the enhancement and production of the show through “soft dollars” (e.g. staffing, set shop, production team, director and other craftsmen), Pasadena Playhouse made a cash investment in the enhancement and production of Sleepless in Seattle – The Musical.

Use of Proceeds and Production Timeline

The proceeds from this raise will go towards working capital. Working capital will be used for pre-production expenses including the hiring of creative, marketing, and public relations teams within the U.S. to complement the work being done in London by Dewynters and London Management LTD. Proceeds will also be used for administrative and office costs, legal and accounting fees, license and royalty fees, travel to and from London, and other production costs to be incurred prior to the show opening. 

The producers plan to start building the set in March 2019 at the Royal Theatre in Plymouth and then open with a  ten-day run in late 2019 at the Royal to make any last-minute production changes before transferring to the West End. Discussions and negotiations are underway to finalize the dates and specific West End theatre to which the show will transfer. Upon the completion of the West End run, the Company plans to tour the show in Western Europe before transferring to North America for U.S. and Canada tours. Discussions are underway with theatre owners in other territories (i.e. Asia, U.S., South America, Eastern Europe) for touring productions. 

Once the show has opened, Sleepless Musical, LLC in conjunction with the presenting theatre, co-producers, and others will seek to implement a marketing and advertising campaign to advertise tickets to the public. This will include developing marketing and advertising programs, group rates, special offers, and television and print advertisements. The producers plan to launch that campaign once arrangements with a West End theatre are finalized. Additionally, the producers have been in discussions to televise live performances of the show in the UK.

The producers estimate that the final cost to launch the production will be approximately £4 million. Sleepless Musical, LLC is working with London Management LTD to raise £3 million for the production of the musical. Additional capital may need to be raised for a West End launch, the amount of which cannot be determined until actual production costs are finalized. These costs would likely include the build-out of the stages, sets, sound and lighting systems, costumes, casting, and other expenses. Additionally, more capital will be required to tour the show in Western Europe, the U.S., and Canada.

Business Model

The primary source of revenue will be gross receipts from ticket sales. A cast album, other merchandising sales, and licensing fees could generate additional income.

Seats for the showings at the Royal Plymouth Theater are expected to be priced as follows:

Monday through Thursday (7:30pm): £34-£49

Friday (7:30pm) and Saturday (2:30pm & 7.30pm): £39-£54

Pricing for group rates and special offers will also be available.

Ongoing Litigation

On June 1, 2017, David H. and Judi B. Shor executed a Loan Agreement, secured by a second Deed of Trust on a residential real property owned by the Shors, for $1.1 million with lender Strategic Emerging Economics, Inc. (“Strategic”) in order to assist with the ongoing production of Sleepless the Musical. The loan carried an interest rate of 11.5% per annum, which under default increased to 23% per annum until such time that the default was cured. The terms of the loan mandated monthly interest and fee payments, with the $1.1 million principal amount due in a single balloon payment on the December 6, 2018 maturity date.

Alleging failure to make the May 1, 2018 payment, Strategic executed a Notice of Default and Election to Sell Under Deed of Trust on June 19, 2018. The Shors maintained (and continue to maintain) that they performed all necessary obligations related to the loan and filed a breach of contract complaint against Strategic and related parties on September 20, 2018. On September 25, 2018, the Shors made an application for a temporary restraining order and foreclosure injunction against Strategic et. al. On September 27, 2018, the temporary restraining order and order to show cause were granted and a hearing set for October 24, 2018.

In November 2018, the Shors and Strategic et. al. agreed to certain stipulations pursuant to a court order compelling arbitration with respect to the disputed Notice of Default.

On December 26, 2018, David Shor filed a voluntary petition for Chapter 13 Bankruptcy in an effort to prevent foreclosure upon the residence that secured the loan with Strategic and on January 9, 2019 filed to convert the case to Chapter 11 Bankruptcy. On February 20, 2019, the Motion to Convert Case was withdrawn, and on February 22, 2019, Mr. Shor requested voluntary dismissal of the Chapter 13 Bankruptcy case. The dismissal order and notice have been filed and are awaiting close.

At this time, the parties have begun arbitration procedures, and counsel for David Shor expects they will be able to initiate hearings starting on or about April 2019.

Historical Financials

Please see Exhibit A of the Form C for the past two years of financial statements for Sleepless Musical, LLC. Note, the financial statements have not been audited, nor subjected to financial review by an independent CPA. 

The Company has the following debt outstanding:

On June 1, 2018, Sleepless Musical, LLC assumed an accrued liability from Sleepless in Seattle Management, LLC totaling $631,000. The creditors are David and Judi Shor and HFMC Corporation (which is owned by David Shor). If and when the Required Initial Production of Sleepless the Musical is fully funded, $300,000 of such debt will be due to Judi Shor and David Shor and to HFMC Corporation. The remaining $331,000, plus any additional accrued amounts beyond those subsequently detailed, will be repaid through ticket sales, before Investor recoupment, until the amount is fully paid. As of December 31, 2018, Sleepless Musical, LLC has additionally accrued an $11,800 short-term expense payable to HFMC Corporation and a $50,724 long-term expense payable to David Shor.

Per an agreement signed and dated as of June 14, 2012, between Sleepless in Seattle Management, LLC and Stage Entertainment Productions B.V. (“Stage Entertainment”), Stage Entertainment shall be credited as an Investor for all pre-production expenses paid by Stage Entertainment. This agreement was transferred from Sleepless in Seattle Management, LLC to Sleepless Musical, LLC on December 14, 2015. As of December 31, 2018, Sleepless Musical, LLC has accrued a long-term liability $1,363,725 related to the pre-production expenses paid by Stage Entertainment. This liability will convert into a non-debt investment upon completion of the Required Initial Production of Sleepless the Musical, which may dilute existing Investor rights.

Once the Company fully determines the total financing amount needed to complete Required Initial Production of the Play (i.e., the total capitalization), it will calculate and release a recoupment schedule detailing each Investor’s percentage of the total capitalization. For example, if the total capitalization is $12,500,000 and an investor invests $100,000, then such investor’s percentage of total capitalization is 0.8%.

Team

Producers

Co-Producer

Sole Member of Sleepless Musical, LLC

David Shor is the founder and CEO of The Shor Group of Companies headquartered in Santa Barbara, California. He has an extensive background in entertainment management, motion picture and live performance production, consulting, and finance. He has served as the Chief Executive of the Shor Group of Companies for over 30 years, serving startup clients as well as multinational companies across numerous industries in the U.S., Western Europe, and the Middle East. He provides leadership and management expertise in the health care, financial services, and entertainment industries.

David is the founder and CEO of David Shor Productions (DSP), headquartered in Santa Barbara, California. DSP is involved in producing live entertainment, motion picture, and television content. David is also a Principal and Managing Partner of Labrador Media Group, a company that provides financing, production, development, and distribution for filmmakers, writers, and other artists, and of Labrador Pictures, a motion picture production company.

David has also served as Executive Producer for The Flying Cranes (cirque performers), Producer for Goodman Productions (live events in Las Vegas), Producer for TJ Productions (live events), Production Adviser/Consultant for Delaware Pictures (motion pictures), and Producer for Liberty Jam Corporation (live concerts). He also represents performers, writers, filmmakers, and other entertainment professionals as manager. David produced and executive produced Dave Barry’s Complete Guide To Guys (starring John Cleese, Dave Barry, Christine Moore), We Played Marbles (documentary production), and the national tour of National Lampoon Live.

Co-Producer

Manager of London Management LTD

Michael Rose has been producing for over 30 years. Productions include: Chitty Chitty Bang Bang (London Palladium, Broadway, UK Tour, Dublin, and Singapore), A Steady Rain starring Daniel Craig and Hugh Jackman (Schoenfield, Broadway) Footloose (Novello), Duke Ellington’s Sophisticated Ladies (Gielgud), Pam Gem’s Marlene (Lyric), Sweet Charity (Victoria Palace), Irving Berlin’s White Christmas the Musical (venues across the UK and Ireland), Chariots Of Fire on stage (Gielgud), Aladdin starring Lily Savage, Once (Phoenix Theatre) and Strangers on a Train (Gielgud). More recently, he helped produce Irving Berlin’s White Christmas the Musical (Dominion Theatre), Elf the Broadway Musical (Dominion), and Big the Musical (Plymouth Theatre Royal and the Bord Gais Energy Theatre, Dublin).

Creative Team

Morgan Young, Director: Morgan graduated from the Bird College of Performing Arts in 1977 and has performed in several musical shows and films including Marilyn at the Adelphi Theatre, Dear Anyone at the Cambridge, and  Absolute Beginners, and a Zucker Brothers film Top Secret. He recently directed and choreographed BIG the musical (Plymouth & Dublin) and directed Elf the Musical (Theatre Royal, Plymouth and Bord Gais Energy Theatre, Dublin). Other directorial credits in the UK include the following: Tomfoolery, Peter Pan, Beauty and the Beast, Aladdin, Santa Claus and the Return of Jack Frost, and Cinderella at the Mayflower Southampton. He is also the Resident Director on La Cava at the Victoria Palace. Morgan also directed Me & My Girl and Singin’ in the Rain at Lincoln’s Theatre Royal.

Larry Blank, Musical Supervisor: Larry Blank is a prolific composer, conductor, and orchestrator in the entertainment industry. His work has been presented all over the world, including on Broadway and at Carnegie Hall, as well as through television and film projects. He was the music director/conductor and/or vocal arranger for many shows including the following: They're Playing Our Song, Evita, Sugar Babies, La Cage Aux Folles, Phantom Of The Opera, Onward Victoria, Copperfield, Colette, A Chorus Line, and A Little Night Music. He has been nominated three times for the Tony award for his orchestrations in The Drowsy Chaperone, Irving Berlin's White Christmas, and with Marc Shaiman for Catch Me If You Can. Larry has also contributed to the orchestrations for both the stage and film production of The Producers and for the film of Chicago. He is also the music director and orchestrator (along with Mark Cumberland) for the Olivier Awards in London.

Robert Scott, Composer: Robert trained at the Royal Scottish Academy of Music and Drama. He has served as musical director for numerous UK theatre productions including: Mack and Mabel (Chichester Festival Theatre/ National Tour), A Date with Doris (Cork Opera House/ The National Concert Hall Dublin- Irish Tour), Singin’ in the Rain (Chichester Festival Theatre/ Palace Theatre/ International Tour), White Christmas (Edinburgh, Cardiff, Dublin, Manchester), Carousel (Chichester Festival Theatre), Funny Girl (Minerva Theatre, Chichester), Chitty Chitty Bang Bang (London Palladium, UK Tour, Hilton Theatre New York, US Tour), She Loves Me (Savoy Theatre London), Me and My Girl (Adelphi Theatre London), Radio Times, Oliver! (UK National Tour and Toronto), and Crazy for You (UK National Tour).

Other productions throughout the UK include: Into the Woods (RSAMD 150th Anniversary Production), Closer Than Ever (Buxton Opera House & Manchester Library Theatre European Premier), A Funny Thing Happened ... (Piccadilly Theatre London), Seven Brides for Seven Brothers (Leicester Haymarket Theatre and Plymouth Theatre Royal), Cabaret (Crucuble Theatre Sheffield), Annie (Liverpool Playhouse Theatre), Mr. Cinders (Fortune Theatre London), You’re a Good Man Charlie Brown (Princess Theatre Stockholm), and The Wizard of Oz (RSC Version and Leicester Haymarket Theatre).

Brendan Cull, Lyricist: Brendan has been working in and around professional theatre for the last 13 years. He trained professionally at the Arts Educational Schools London gaining a BA (Hons) in Musical Theatre and has performed a varied body of work ever since. His performing credits include Spamalot (Palace Theatre), Singin’ in the Rain, Flashdance (Shaftesbury Theatre), White Christmas (the Dominion), and, most recently, The Book of Mormon (Prince of Wales Theatre). Brendan wrote and directed A Date with Doris which has toured venues in Ireland including Cork Opera House, the National Concert Hall, Dublin and, the National Opera House, Wexford. He is also writing books and lyrics for The Monster Bride and The Canterville Ghost and a book for The Hundred-Year-Old Man who Climbed out of a Window and Disappeared.

Industry

Industry and Market Analysis

In the UK, theatre ticket revenue reached nearly £1.28 billion in 2018, drawing in audiences of over 34 million people across 62,945 performances. These figures include data from both the West End and across the UK. Theatre performances included musicals, plays, and other entertainment (opera, dance, performance, and entertainment). London’s West End theatre industry is attracting larger audiences than ever, having hit a record year in attendance. In 2018, West End theatres generated more than £765 million in revenue and drew in audiences totaling of over 15.5 million people across 18,708 performances. In the West End, the average amount paid per ticket was £49.25 in 2018, up 5.5% year-over-year. Musicals generated roughly £504 million, up 15.4% year-over-year, and were attended by more than 9.4 million individuals, a year-over-year increase of 8.2%.xi Known as London’s “Theatreland,” there are roughly 40 theatres located in the West End.xii

During the 2017/2018 season, gross revenue of all Broadway shows in New York including musicals, plays, and specials totaled approximately $1.70 billion. These musicals and plays were performed across 40 professional theaters with over 500 seats, and were attended by 13.79 million people. The majority of this audience, 11.45 million people, attended musicals. Revenue from musicals performed on Broadway has grown by more than 75% over the last 10 years. In the 2017/2018 season, musicals performed on Broadway generated over $1.44 billion in gross revenue, up from $820.41 million in the 2007/2008 season. The average amount paid for admission in the 2017/2018 season across all categories was $123.07. The average amount paid on admission for musicals was slightly higher at $125.70.xiii

Comparables

Dirty Dancing

Dirty Dancing – The Classic Story On Stage was first performed in Sydney, Australia at the Theatre Royal in November 2004. The production then toured Australia and New Zealand, selling out shows over 18 months. In March 2006, a new production opened at the Theater Neue Flora in Hamburg, Germany, where it broke records for the highest advanced ticket sales in European history. Dirty Dancing – The Classic Story On Stage broke more records in London where it opened in October 2006 at the Aldwych Theatre. The production began previews with £11 million in advance sales – a West End Theatre record at the time. It ran sold-out performances for six months and is the longest running show in Aldwych theatre history. Between 2011 and 2013, the musical completed a nationwide tour across the UK and Ireland, which was seen by over one million people. The show has gone on to perform in Toronto, Canada, Utrecht, Holland, Chicago, Boston, LA, Johannesburg, and Cape Town. The show ran from April 2009 to November 2010 in Berlin, Germany, and was the longest running show in the history of the Potzdamer Platz theatre. Dirty Dancing – The Classic Story On Stage returned to tour North America in August 2014, opening at the National Theatre, Washington, D.C.xiv It went on to play at over 80 cities. In October 2017, a new production opened at the Harris Center in Folsom, CA.xv

Billy Elliot

Billy Elliot the Musical premiered on London’s West End in 2005 at the Victoria Palace Theatre. Its last show there was in April 2016. Over that time, it was seen by over 5.25 million people and nearly 11 million people worldwide, and grossed more than $800 million worldwide and won over 80 theatre awards internationally. The show also ran on Broadway, where it won the Tony Award for Best New Musical, and was also shown in Sydney, Melbourne, Chicago, Toronto, Seoul, the Netherlands and São Paulo in Brazil.xvi To date, it has been seen by almost 12 million people across five continents. The first Japanese-language production premiered at the Akasaka ACT Theatre, Tokyo in July 2017, and a South Korean production ran through April 2018.xvii

Legally Blonde

The Broadway production of Legally Blonde began in April 2007 and ran for 30 preview performance and 595 regular shows before closing in October 2008 at the Palace Theatre. Its first U.S. tour began in September 2008 through which it scheduled showings in 35 cities across the country.xviii The Broadway production was nominated for seven Tony Awards and ten Drama Desk Awards, and grossed over $56 million.xix During the week that ended on June 24, 2007, the Broadway production grossed more than $1 million in weekly ticket sales. In January 2010, The West End production premiered at the Savoy Theatre. It became one of the most popular shows on the West End, closing in April 2012 after 974 performances. A national tour across the UK ran from July 2011 to October 2012. Outside of the UK, the musical has also been produced in Australia, France, South Korea, Sweden, Austria, the Philippines, and Panama.xx

Sister Act

Sister Act the Musical began initial engagements at the Pasadena Playhouse in Los Angeles. At the Pasadena Playhouse, tickets sales set a theatre record, reaching $1,085,929 as of December 7, 2006. It ran through December 23, 2006 after which it transferred to Atlanta's Alliance Theatre in January 2007.xxi Sister Act premiered on London’s West End in June 2009.xxii The West End production closed in August 2012, after 561 performances. The musical also launched two tours: one in the UK and Ireland that ran from October 2010 to October 2012, and one in North America that opened during the fall of 2012. Sister Act the Musical has also been produced in Germany, Italy, the Netherlands, Australia, South Korea, and Mexico. It opened on Broadway at the Broadway Theatre in April 2011.xxiii The musical ended its Broadway run in August 2012 after 28 preview performances and 561 regular showsxxiv and grossed over $52 million.xxv

Discussion

Endnotes

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