Orrick Advises Investors on the Securitization of the “Got Talent” Franchises

2 minute read
October.05.2022

Orrick advised the investors on the ground-breaking $125 million securitization by Syco Entertainment of Intellectual Property in the "Got Talent" Franchise. Syco is a holding company founded by Simon Cowell that includes his ownership share in the Got Talent television format through its subsidiary, Maidmetal Limited.

The Got Talent Franchise, owned and conceived by Cowell, includes both the U.S. and British versions of the show "America's Got Talent" and "Britain's Got Talent," which have formats commissioned in 72 territories worldwide, including Japan, Mexico, and Kazakhstan.

The deal is the first of its kind, as it includes the securitization of various aspects of the Got Talent Intellectual Property, including digital income, production margins and fees, franchise and original content sales, and sponsorship income. The deal will allow Syco to use the proceeds towards growing the business through organic growth and strategic acquisitions.

Our team advised on the use of this novel structure for TV rights, as it is more commonly applied to the music industry's royalty income streams. The structure, in general, is used to raise capital through debt, equity, or a mixture of both.

Orrick's cross-border and cross-practice team was led by Leah Sanzari and included partners Sushila Nayak, David Klass, Stephen Jackson, David Hosp, and Preetha Gist, of counsel Robert M. O'Connell Jr., senior associates Elizabeth Elias, James Jirtle and Natasha Ahmed and managing associate Andrew Holland, among others.