Joel Silver Vs. Goldman Sacs

In keeping with the times, and to give many who want to enter the entertainment industry a realistic focal point of the behind the scenes deals that go on, I have decided to post this blog article. It reads like the beginning of a movie that could have very well been produced by the plaintiff in this legal drama. In December of 2010 Joel Silver filed a lawsuit against Goldman Sachs. Goldman Sachs is a large investment bank, for those that do not know. Mr. Silver claims that the Wall Street giant was fraudulent and misleading in a deal that was brokered orally between Silver and Goldman. This is what it would sound like in terms everyone can understand. Let’s say that you and a friend that you knew were talking. Your friend wanted to get into the same business you are in, even though they are already successful at what they are doing. You agree to connect your friend with the person who helped finance your business venture, for a small fee of course. So you now you have an oral contract with your friend that upon the financing of his or her venture you would be paid what ever the amount is that you agreed upon. So now time passes your friend’s new deal has gone through and he is flourishing in his new venture. Everything should be great right, right? Except for one thing, you have not been paid yet. So you go to your good buddy and ask him about the money, he agreed to pay you. Without blinking an eye your friend says wait just a little longer until we raise a little more money. So you, ask can you at least be compensated a percentage, even if the deal did not go through like it was supposed to. So your friend agrees. Long story short you never see any of that money. Essentially that is what happened, and now we get to see it play out in the courts like a John Grisham novel. This brings to mind a couple of tips. Always get it in writing, no matter what, or whom the agreement is with. Never give up your assets without compensation. Finally learn from the mistakes of others, remember that even though we are in the business of entertaining, let’s not forget the business that goes along with it. Just in case you think Goldman Sacs gets a bad wrap check out the video.