As previously blogged, film tax credits may be popular in many states, but in Louisiana, there are at least 27 members of the NFL’s New Orleans Saints who are not yet ready for their close up.
A number of people associated with the team including Kevin Houser, Drew Brees, Sean Payton, Archie Manning (dad to Peyton and Elijah), Charles Grant, Mitch Berger, and Jeremy Shockey made investments totaling nearly $2 million by purchasing state film industry tax credits from Louisiana Film Studios. The studios boast such projects as Meet the Spartans (2008, with Carmen Electra, Method Man and Sean Maguire), Cirque du Freak (2010 release, with Sean Reilly, Salma Hayek, Willem Dafoe, and Jane Krakowski), The Expendables (2010 release, with Sylvester Stallone and Jet Li) and Dead of Night (2009, with Taye Diggs and Jason Routh) on their web site.
The investments were to be used as part of an expansion of the film studios, providing more than 500,000 square feet of space for movie sets, soundstage, and other film production work. Those who invested in the expansion were expecting a return on their investment in the expansion after tax credits were obtained by the company.
The problem? Louisiana Film Studios never made an application to the state of Louisiana for the credits. According to the director of the Office of Entertainment Industry Development, “They never submitted the required documents to receive tax credits.”
Is it a scheme or just bad judgment? Law investment officials have been reportedly been asking questions about the investments but the FBI has refused to “confirm or deny” their involvement. In the meantime, at least one of the players, Kevin Houser, is considering legal action against the company.
