Russo's Comments on HBO's Loss of $20 million on His Films

I thought Bay Area Libs might find this of interest since there is a big LP convention coming up...

May 7, 2004
    As we all know, Aaron Russo has claimed he is the best candidate for the LP Presidential Nomination in part because he's such a successful film producer. His boasts -- combined with his harping on past candidates being failures and losers -- frankly have become a big grating. (See his newest statement on Amazon.com.)
    Aaron Russo writes on his webpage "In an industry known for severe budget overages, Russo has managed to complete every film, TV, Broadway, and music production, on budget and on time." However, a search of Hollywoodreporter.com turned up the following short note:

http://hollywoodreporter.com/thr/search/search_results.jsp?text=Aaron+Russo&simpleSearchButton=submit&simpleSearch=true&sortByDate=on
May 24, 1993 - The Hollywood Reporter
In an effort to avoid a lengthy trial regarding its year-old legal claims against Film Finances, HBO filed a summary judgment motion Friday afternoon in Los Angeles Federal Court hoping to recoup over $14 million advanced toward two Aaron Russo films.

Another article provided more details -- most relevant excerpt below.:

http://print.google.com/print/doc?articleid=VEvjzxMstc5
Film Finances on the mend
Matt Rothman Paul Noglows
Jul 21, 1993
.....
    HBO has a $ 20 million suit pending against Film Finances that is set to go to trial in Los Angeles federal court Aug. 24 if its motion for summary judgment is not granted.
     HBO looks for $ 14 mil
     HBO is trying to recoup $ 14 million (interest and lawyers fees have pushed the figure to about $ 20 million) it advanced for two Aaron Russo films --"Off and Running" and "Paradise Paved"-- which it claims weren't delivered on time.
.....
Copyright � 1993 Reed Business Information (NOTE: HBO is suing Film Finances because it is an INSURANCE firm that insures film productions which are not completed or on other basis contracted for; evidently Film Finances contested HBO's reasons for trying to get their money.)

AARON RUSSO RESPONSE
        Russo gave the following response to my questions about this. He claims that he did produce the films on time and on budget. So the logical assumption by those of us who have worked in the Hollywood film industry, as I did in the late 1980s in Los Angeles, is that the film studio rejected the films as being of poor quality and un-marketable and tried to collect $20 million on that basis. Russo did not choose to answer my direct questions about that.
      Anyway, the conclusion is that Russo is was not as successful at the end of his career as he boast of being and pursued his political career in part because it was clear his days as a film producer were over.

Carol in DC, because inquiring libertarians want to know
http://www.carolmoore.net/libertarianparty

Dear Everyone;

Some of you may be wondering what movies were produced by Aaron
Russo? From AMC Movies see the list.

http://www.amctv.com/person/detail?CID=19063-1-EST

The only ones which appear to be highly popular were " The Rose "
with Bette Midler( Aaron was rumored to be having an affair with her
as he guided her initial career )and Trading Places with Eddie
Murphy/Dan Akroyd. The Oscar nominations came mainly for the Rose
and Bette Midler ( the movie was reputed to be loosely based on
Janet Joplin and her rise to fame and flame out). Now there is a
rumor Pink(!!???!!!) will be doing the new Janis Joplin movie
story.

Ron Getty
SF Libertarian

I thought Bay Area Libs might find this of interest since there is

a big

LP convention coming up...

May 7, 2004
    As we all know, Aaron Russo has claimed he is the best

candidate for

the LP Presidential Nomination in part because he's such a

successful

film producer. His boasts -- combined with his harping on past
candidates being failures and losers -- frankly have become a big
grating. (See his newest statement on Amazon.com.)
    Aaron Russo writes on his webpage "In an industry known for

severe

budget overages, Russo has managed to complete every film, TV,

Broadway,

and music production, on budget and on time." However, a search

of

Hollywoodreporter.com turned up the following short note:

http://hollywoodreporter.com/thr/search/search_results.jsp?

text=Aaron+Russo&simpleSearchButton=submit&simpleSearch=true&sortByDa
te=on

May 24, 1993 - The Hollywood Reporter
In an effort to avoid a lengthy trial regarding its year-old legal
claims against Film Finances, HBO filed a summary judgment motion

Friday

afternoon in Los Angeles Federal Court hoping to recoup over $14

million

advanced toward two Aaron Russo films.

Another article provided more details -- most relevant excerpt

below.:

http://print.google.com/print/doc?articleid=VEvjzxMstc5
Film Finances on the mend
Matt Rothman Paul Noglows
Jul 21, 1993
.....
    HBO has a $ 20 million suit pending against Film Finances that

is

set to go to trial in Los Angeles federal court Aug. 24 if its

motion

for summary judgment is not granted.
     HBO looks for $ 14 mil
     HBO is trying to recoup $ 14 million (interest and lawyers

fees

have pushed the figure to about $ 20 million) it advanced for two

Aaron

Russo films --"Off and Running" and "Paradise Paved"-- which it

claims

weren't delivered on time.
.....
Copyright © 1993 Reed Business Information
(NOTE: HBO is suing Film Finances because it is an INSURANCE firm

that

insures film productions which are not completed or on other basis
contracted for; evidently Film Finances contested HBO's reasons

for

trying to get their money.)

AARON RUSSO RESPONSE
        Russo gave the following response to my questions about

this.

He claims that he did produce the films on time and on budget. So

the

logical assumption by those of us who have worked in the Hollywood

film

industry, as I did in the late 1980s in Los Angeles, is that the

film

studio rejected the films as being of poor quality and un-

marketable and

tried to collect $20 million on that basis. Russo did not choose

to

answer my direct questions about that.
      Anyway, the conclusion is that Russo is was not as

successful at

the end of his career as he boast of being and pursued his

political

career in part because it was clear his days as a film producer

were over.

Carol in DC, because inquiring libertarians want to know
http://www.carolmoore.net/libertarianparty
+++++
May 6, 2004
Dear fellow Libertarians,

My name is Aaron Russo. I am a candidate for the Libertarian

Party's

2004 presidential nomination.

I am also a producer of films, television programs and stage shows.
I've been successful in that career, both by my own reckoning and

by

that of the industry, which has recognized my efforts with an Emmy
and a Tony and my films with six Oscar nominations.

I believe that my experience in the entertainment industry,
particularly marketing films, is a considerable asset to me as a
candidate and to a political party which, for years, has needed and
sought such skills in its candidates.

By having said as much, I've put my career on the table. It's

there to

examine, and I would never discourage anyone from examining it.
Libertarians should determine for themselves if the claims I make

are

true, and whether the skill set that I offer as a candidate is

unique

and worthy of their support versus what my opponents have to offer.

At least one activist within the Libertarian Party, based on her
reading of an article in an industry magazine, has questioned my
claims of performance as a producer. Her question deserves an

answer.

I have claimed that every project I've produced has been delivered

on

time and on budget. I stand by that claim.

Some years ago, I produced three films for HBO. Each of those films
was delivered on time. Each of those films was delivered on budget.
HBO did not choose to accept all of those films for release in the
United States, but the films were delivered as promised and saw
overseas releases.

Subsequent to the completion of these films, litigation occurred
between HBO, investors in one of its partner companies called

Cinema

Plus, and a completion bond company called Film Finance. In that
litigation, two of my films were cited in claims by HBO against

Film

Finance. Litigation against myself and my company, Aaron Russo
Productions, was filed and then withdrawn -- precisely because I

had,

in fact, delivered the films on time and on budget. There is no
question as to whether I performed the terms of the contracts, nor

is

there, so far as I know, any outstanding claim to the contrary.

It is always healthy to question the claims of candidates, and I

thank

the Libertarian in question for raising the issue, but I stand by

my

words. Every film I've made has been delivered on time and on

budget,

a claim that only a handful of producers can make.

To my fellow Libertarians, thank you for the time and care you're
taking in choosing our party's presidential nominee, and thank you
for your willingness to consider all sides of claims that may be

made