Broadway Investing FAQs
This amount varies from show to show. Most Broadway shows offer units at $50,000 (think of a unit like one share of stock in the show) and often a show will accept an investment of a ½ unit, or $25,000. Occasionally you can invest as little as $10,000. There are also sometimes opportunities to join up with other investors to reach the minimum investment amount.
Like investing in any start-up, whether it’s a restaurant or a tech company, investing in Broadway shows is a high-risk investment (with the potential for high reward.) You should invest only if you can afford to lose the entire investment amount without negatively affecting your quality of life (note, however, that investors can never lose more than they invested.) You can help mitigate this risk by doing your homework on the show, producers, creative team, the competitive landscape, etc.
Yes! In general, you will be invited to the opening night performance and party, to the dress rehearsal before opening, to select media and cast events, etc. If the show is nominated for a Tony, you’ll often be invited to the Tony Awards telecast too. In addition, you’ll have access to purchase house seats to almost every show on Broadway, on tour and on the West End. Our investors are also invited to attend industry-only workshops and presentations of works in progress and to other industry events and awards shows. You’ll also be the first to learn about future investment opportunities.
To join the team as a co-producer involves a larger investment but grants more access and involvement. For plays, Co-Producer entitlements usually begin at about $150,000 (but can be more), and for musicals, they usually begin at $300,000 (but can be much more.) You can invest this money yourself, raise it from other investors, or any combination of the two. In addition to being credited above the title in the Playbill as a producer, you are eligible to be nominated for a Tony Award for the production, receive additional profit participation, participate in meetings, and have much more access to the inner-workings of the production than an investor does.
I like to compare investing in Broadway to investing in art. Buy a piece of art because you fall in love with it and want to hang it on your wall and walk past it every day and share it with everyone you know. Do your research beforehand, and hopefully, it will also be a wise financial investment, but you will love it nonetheless. Some people invest because they want to support the art and share it with the world. Some because they want to meet the stars of the show and go to the Tonys. Others because they enjoy including high-risk/high-reward investments in their portfolio. Many investors do it for a combination of those reasons. Tell us why you want to invest, and we’ll do our best to tell you about upcoming projects you may be interested in.
Each week that a show makes money, that profit is paid back 100% to the investors until they recoup their original investment (although checks aren’t sent out every week for practical purposes.) Once a show has recouped, the net profits are usually split 50/50 between the producers (both the lead producers and co-producers) and the investors. Investors also usually share in the ancillary income from the show (merchandise, licensed productions, etc.) Co-Producers (who raise or bundle money from others) share in a portion of the lead producer’s share of the profit, in proportion to the money they raised.
To invest in a Broadway show, you have to meet the criteria for being an accredited investor as defined by the IRS, which means you must meet certain financial requirements to invest. You can read the definition of an accredited investor here. Note that the production won’t ask for personal financial or net worth information, but you will need to sign a document confirming that you are able to invest as an accredited investor.
Consider the show’s creative team, the story’s appeal, the target audience, the competitive landscape, and the producer’s track record. Conduct due diligence before committing. Email the producer and ask questions and ask them what they think the biggest selling points and risks are.
In most cases, investors are limited members in the show LLC. Their risk is limited to the capital they contributed (the managing members , or lead producers, carry the fiduciary responsibility and day to day running of the LLC.) At the end of the year, you will receive a K1 reflecting any profit or loss your investment had for the year.
What's NAGBOR? A Royalty Pool? A Wrap Report?
While existing investors are always given priority, we occasionally have opportunities for new investors. Investing in shows involves risk but can also be highly rewarding. In addition to potential financial benefits, investors often have access to special perks including attending opening night performances and parties, dress rehearsals, awards shows, backstage tours, and meetings with the cast and creative teams. Investors with Cody Lassen & Associates also have access to house seats for Broadway shows and national tours and invites to special invite-only industry events. To be notified of upcoming opportunities, please fill out the form at the link below.