What this is
The guaranteed minimum royalty for the Pokémon master toy licence for 2001–2003: 4Kids’ share at least $7.5 million if paid in full to The Pokémon Company LLC.
How it’s built
- Read from 4Kids Entertainment’s quarterly report for September 2001 filed with the US SEC: the licensee “will pay a minimum royalty for the period starting January 1, 2001 and ending December 31, 2003”.
What we assumed
Nothing. The figure is used as published.
Sanity check
Gives the structure, a three-year guarantee, but not the licensee’s total guarantee. About $2.5m a year for 4Kids, against about $15m a year before.
Where it comes from
4Kids Entertainment Form 10-Q (Q3 2001) 4Kids Entertainment (SEC EDGAR) · 14 November 2001 Open the original ↗
The line in the source
the parties have agreed, inter alia, that Licensee will pay a minimum royalty for the period starting January 1, 2001 and ending December 31, 2003.
Related figures
Built from this one