SANTA FE – Did the New Mexico State Investment Office miss a chance to make a killing on "Breaking Bad?"
Former Gov. Bill Richardson's film adviser, Eric Witt, told the Journalon Wednesday that he tried in 2008 to persuade the state's chief investment officer at the time, Gary Bland, to grant a loan to "Breaking Bad's" producers.
However, the plot lines of the soon-to-be TV blockbuster were deemed too "culturally sensitive" to be considered for a loan, Witt said.
"I'll tell you this: The (investment) return profile of the SIO film loan program would look a lot different today had they granted that application," Witt said in a letter to the Journal.
"Breaking Bad," which ended a five-season run last week with a finale that drew more than 10 million viewers, told the story of Walter White, a high school teacher who turns to selling meth to support his family after he is diagnosed with cancer.
State Investment Council spokesman Charles Wollmann confirmed Wednesday that there were internal discussions about a loan for the Albuquerque-based television series.
However, Wollmann said no vote was ever taken, in part because the producers of the proposed series balked at the state's financial terms.
"While the show's subject matter may have initially been an issue, what was ultimately the big sticking point was concern over whether the state would get a guarantee of its loan being repaid from Sony Pictures – a Sony subsidiary – or an irrevocable letter of credit from a bank, which is what the council preferred," Wollmann said.
He also said it's unclear how much – if any – money the state would have received in return for providing such a loan, citing the difficulties in enforcing and collecting on so-called "profit-sharing" agreements.
"There's just no guarantee that had SIC invested, even in this wildly successful show, which was great for New Mexico and its film industry, that the state would have seen a financial return on its investment," Wollmann told the Journal .
Bland, who resigned under fire in 2009 amid an investigation into state investments, could not be reached for comment Wednesday. He had been appointed as state investment officer by Richardson in 2003.
Meanwhile, the state's film loan program – which is distinct from the more commonly used film rebate program – was revamped in 2011 and has not issued a loan since 2008.
Under the original program, the state offered no-interest loans of up to $15 million for TV shows and movies being made in New Mexico. It was intended to lure jobs and production spending to the state while also providing for possible investment returns.
However, the loans have not been a big moneymaker for the state.
Just two of the 25 projects that received loans from the SIC since 2002 have resulted in any investment returns for the state – the movies "The Book of Eli" and "Employee of the Month" – although all productions except for one have paid back their loans. Repayment on the one outstanding loan is due by March 2014.
Witt, who is now an independent film consultant, said Wednesday that he does not blame the State Investment Council for failing to strike gold with the loan program.
"They don't know the entertainment business," he said in a telephone interview. "They do institutional trading."
It's unclear exactly how much money "Breaking Bad" has generated since it first hit televisions nationwide in 2008.
However, the show has been a huge success for AMC, the network that carries it. The cost of commercials for the Sept. 30 finale of "Breaking Bad" were expected to run between $200,000 and $300,000 for a 30-second spot, according to The New York Times.
In terms of consumer economics, "Breaking Bad" has also been a cash cow for New Mexico and specifically Albuquerque, where much of the show was filmed.
Albuquerque Mayor Richard Berry has said the TV show brought in $1 million in direct spending to the city per episode.
Spinoff businesses sparked by the show include public tours of "Breaking Bad" locations. In addition, local merchants have created candy, doughnuts, bath salts and beers that were inspired by "Breaking Bad" and its characters.
