Funding a TV program that earns fixed returns

7-11-2014 | IslamWeb

Question:

As salaam alaikum, My friend is a creative director on a tv channel he has to sign a contract with the channel for 12 mnths to supply them 8 episodes every month on crime against humanity he has a team ,skill contacts but he is financially very weak he has offered me to fund his skill n project and he will share a pecantage of his profit that is fixed because he is getting a fix returns from the channel that is 16 lac fix every month for supply of 8 episode that is 2lac per episode producers profit , he has offered me 4.5lac inreturns of sharing his profit n supporting him as a partner in the said project so is there any issue in doing this work or is the income because of fix return haram or interest as he is sharing his profit in calculation of 32percent of the shares

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Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

It is permissible for you to be a partner with your friend in a project of producing and directing permissible TV works, in such a manner that you provide the capital money and your partner does the work. The profit is then divided according to the agreement between both of you on condition that the profit should not be a known guaranteed amount; rather, it must be a known percentage.

The fact that your friend earns a known amount and, therefore, the percentage of profit is known does not affect the permissibility as long as he is not held liable to pay this amount to you and the contract is not conducted on this basis.

If there is a loss in the capital money of the project, you are the one who incurs it as long as your friend is not negligent and does not breach the contract.

For more benefit, please refer to Fataawa 82600 and 88633.

 Allaah Knows best.