Do business on a nobody-needs-to-know basis



Now that the shouting and the stress is over, we can revisit, in the quiet of our laboratory, some of the lessons of the recent unauthorised release of Sony Pictures Entertainment executive emails.

Not to point fingers or make fun, because, let’s be honest, that kind of exposure and embarrassment is going to happen to most of us at some point. It’s just a fact of the digital, portable, unlimited-bandwidth age.

We thoughtlessly tap out our most personal feelings and most treasured data, sending them floating through multiple unsecured Wi-Fi hubs and strings of unprotected servers – and we do it daily, sometimes hourly.

Eventually, we’re all going to have our private emails distributed across the web. So, your wife will read that you called her fat in a message to an old friend, and your boss will discover that you and your co-workers think he’s “brain-dead”, and when your bank information is made public it will seem like a relief, because no one will have hacked into your Google search history to discover that you’re unusually interested in male cosmetic surgery.

Still, there’s something about business and negotiations that we can learn from the unearthed Sony emails, so it’s worth taking another look at what is, essentially, someone else’s private communication.

Here’s what I noticed: when a Sony studio executive was trying to make a deal with what we in Hollywood call, without irony, “a piece of talent” – an actor, director, writer or producer – there was a habit of sending a swaggering and overconfident email to the lawyer in charge of the negotiation and saying something like: “This deal is going to close. Let me tell you something, he needs the money.”

Deal-making in Hollywood is a complicated business. The studio or network executive picks the talent, but it’s a lawyer working in a department called “business affairs” who makes the actual deal, who wrangles and argues and haggles and threatens the agent representing the talent.

This is designed to keep the crucial relationship between talent and executive on a happy and warm note – all of the real street fighting and trash talk is done by their representatives.

So when the talent calls his or her agent to say: “Please make a deal with the studio”, they usually add something like, “and get me lots of money. They love me. I’m the only one who can do this project.”

And when the studio or network executive emails the business affairs lawyer to set a deal in motion, they – according to the Sony emails – often say: “Don’t pay the talent too much; I hear he’s broke.”

That’s what people say to each other, and themselves, when they’re trying to muster some confidence for a sure thing. He (or she) needs the money. They’re broke. They need this. They don’t have any other choice.

It’s remarkable how many times I’ve heard that said – or, humiliatingly, said it myself – about actors or writers I’ve tried to hire and networks I’ve tried to sell projects to. But the truth is, if you find yourself assessing your chances to close this or that deal or sell this or that script based on your totally flawed and delusional measurement of the other party’s needs and desperation, you’re probably in for a sad shock.

Because – and here’s the nasty truth underlying pretty much every transaction in the entertainment business, and probably every other business, too – there’s always an alternative, somewhere in the shadows.

“Here’s what’s working for us,” a network president once said to me, about the programming on his network – a network that had just fallen four places in the rankings.

“Nothing is working for you,” is what I wanted to say. “You need me. You need what I’m about to pitch.”

And sometimes what you want to say leaks out, somehow, in your tone or your body language. What I said was: “Great, yeah, let me know what you guys are finding success with.” But what the network president heard was: “Gimme a break. You’re desperate and you need me.”

There were an awful lot of deals hashed over in those pirated Sony emails, so it’s nearly impossible to know which ones got made and which ones blew up. Past experience suggests that most of them didn’t reach an agreement.

The network president in my meeting didn’t buy my pitch. He needed something, I guess – everyone needs something – but he didn’t need what I was pitching, or if he did he didn’t need it from me.

However, I’m absolutely certain that if, when I went in, I’d remembered that there’s always an alternative, that they can always say no, that no one needs what I’m about to pitch, he would have heard my pitch and thought: “Hey, we need that.”

Rob Long is a writer and producer in Hollywood

Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

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Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

The specs
 
Engine: 3.0-litre six-cylinder turbo
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Price: From Dh330,000 (estimate)
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The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes
'Panga'

Directed by Ashwiny Iyer Tiwari

Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta

Rating: 3.5/5

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  • Disruption Lab and Research Centre for developing entrepreneurial skills
Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Thanksgiving meals to try

World Cut Steakhouse, Habtoor Palace Hotel, Dubai. On Thursday evening, head chef Diego Solis will be serving a high-end sounding four-course meal that features chestnut veloute with smoked duck breast, turkey roulade accompanied by winter vegetables and foie gras and pecan pie, cranberry compote and popcorn ice cream.

Jones the Grocer, various locations across the UAE. Jones’s take-home holiday menu delivers on the favourites: whole roast turkeys, an array of accompaniments (duck fat roast potatoes, sausages wrapped in beef bacon, honey-glazed parsnips and carrots) and more, as  well as festive food platters, canapes and both apple and pumpkin pies.

Ruth’s Chris Steakhouse, The Address Hotel, Dubai. This New Orleans-style restaurant is keen to take the stress out of entertaining, so until December 25 you can order a full seasonal meal from its Takeaway Turkey Feast menu, which features turkey, homemade gravy and a selection of sides – think green beans with almond flakes, roasted Brussels sprouts, sweet potato casserole and bread stuffing – to pick up and eat at home.

The Mattar Farm Kitchen, Dubai. From now until Christmas, Hattem Mattar and his team will be producing game- changing smoked turkeys that you can enjoy at home over the festive period.

Nolu’s, The Galleria Mall, Maryah Island Abu Dhabi. With much of the menu focused on a California inspired “farm to table” approach (with Afghani influence), it only seems right that Nolu’s will be serving their take on the Thanksgiving spread, with a brunch at the Downtown location from 12pm to 4pm on Friday.

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5