The Sundance Suckers

Most recently tapped, and then tapped out, was America‘s own Pulp Fiction generation: kids from rock-solid and recession-proof family fortunes based on oil or real estate or banking, like Denver’s Robert Sturm. His independent film production and talent management company, Catch 23, was to produce three to five films a year budgeted in the $3 million--to--$5 million range. But first they wanted to make a splash with a few bigger-budgeted prestige indies. Catch 23 was said to be tanking until its $6 million equity investment in One Hour Photo paid off big time. Although well-known executives have left his two-year-old firm, Sturm pledged in November that ”despite some bumps in the road, we are excited about continuing in the film industry.“

Contrast that with another Denver mega-millionaire, Charlie Lyons, who on his own built Ascent Entertainment (assets at one time included the Nuggets, the Avalanche, Denver‘s Pepsi Center and films from producer Armyan Bernstein) and then sold it to Liberty Media. Now Lyons is CEO of Beacon Pictures (and the newly minted Beacon Television) with hundreds of millions of dollars in capital from himself and other private investors to make 20 to 25 films to be distributed by Disney. Lyons is seen as just the right tight-fisted businessman to keep rein on Bernstein, the company chairman. ”The most dangerous thing a newcomer to the movie business can do is walk in and think this is easy,“ Lyons tells the Weekly. ”Where people get in trouble is they don’t approach it as building a company but instead as investing capital in individual movies.“

That won‘t happen to Bob Yari, the canny Los Angeles--based commercial real estate tycoon who began his career with a degree in cinematography working for Edgar Scherick and as an assistant director on miniseries and movies. After a long hiatus, he re-entered show biz two years ago with the purchase of an interest in Cutting Edge Entertainment, which he later sold to what is now Splendid Pictures. Yari resurfaced again just recently as the backer of the newly formed independent film financing and production company Stratus Films topped by producer Mark Gordon and Miramax refugee Mark Gill. Yari told the Weekly he is ready to reach deep into his pockets. ”To be honest, I haven’t even quantified it. I‘ve left it open-ended depending on performance.“

Talk about a sucker’s bet -- or is it?

Yari calls Hollywood a minefield for investors. ”Simply because even the most credible sources are eager to gobble up capital and toss you up the other end once they strip you of that capital,“ Yari noted. Still, he doesn‘t expect to lose his shirt. ”But stupidity is not a prerequisite for losing your money. You can lose your money even if you’re smart.“

If you want to reach Nikki Finke, send her an e-mail at deadlinehollywood@gmail.com.