Implied total minimum guarantee under the 1999 Pokémon master toy licence for 2000–2001

What this is

Implied total minimum guarantee under the 1999 Pokémon master toy licence for 2000–2001: $75–300m.

How it’s built

1. 4Kids’ share was about $30m.
2. 4Kids usually kept 10–40% of the owner’s royalties as commission: $30m ÷ 40% = $75m; ÷ 10% = $300m.
3. Per year, $15m was 23% of 4Kids’ estimated 2000 Pokémon licensing commission of $64.2m.

What we assumed

• 4Kids’ commission on this deal was within its usual 10–40%.That range is for its business generally, not this contract; it is why the result spans four times.
• The $30m was split evenly across the two years.The filing gives a two-year total paid in two advances.
• 4Kids’ 2000 Pokémon licensing commission was $64.2m.Derived by assuming its whole TV and film segment was Pokémon and removing it.

Sanity check

The guarantee went to Nintendo, licensor of record at the time, not to The Pokémon Company. A four-fold range is a bracket, not an estimate.

Where it comes from

Our calculation from other figures in the trainer’s notes:

• Filed4Kids’ share of the minimum guaranteed royalties under the 1999 Pokémon master toy licence for 2000–200130000000
• FiledThe commission 4Kids’ licensing agent kept on Pokémon and other licences around 1999–200010-40
• FiledWho handled Pokémon merchandise licensing outside Asia around 1999
• EstimateImplied Pokémon owner royalties and wholesale 2000, FY2000

Where it’s used

• ProfileNintendo
• Profile4Kids Entertainment
• Profile4Kids Entertainment 10-K filings