First-dollar gross

First-dollar gross is a practice in filmmaking in which a participant receives a percentage of the gross box-office revenue, starting from a film's first day of release.^[1][2] The participant begins sharing in the revenue from the first ticket sale, not waiting until the film studio turns a profit.^[3] It is a film finance and distribution term used primarily in the United States film industry.^[4] In France, as of September 2003, one condition for filmmakers to get government support is that money must be reimbursed on the first-dollar gross basis.^[5] First-dollar gross has become a rare arrangement,^[6][7] and compensation has increasingly shifted away from first-dollar gross to back-end compensation.^[8] Some contracts define "first dollar" as a net figure after certain expense deductions rather than a true distributor's gross.^[9]

Examples

 

For Inception, DiCaprio chose to forgo his normal rate in favor of first-dollar gross.^[10]

If a film does well, a first-dollar gross arrangement can be very lucrative for the participant.^[11] Natalie Wood took 10 percent of the first-dollar gross on Bob & Carol & Ted & Alice, which according to Freddie Fields earned her more money than she did on any other movie.^[12] Cameron Diaz negotiated first-dollar gross on Bad Teacher, and netted $42 million.^[13] Sandra Bullock made more from her 15 percent first-dollar gross deal on Gravity than from her upfront pay of $20 million.^[14] In his heyday, Arnold Schwarzenegger received 25 percent first-dollar gross.^[15]

When Warner Bros. thought Inception was a risky investment, Leonardo DiCaprio agreed to cut his then-normal $20 million salary to a minimal salary with a first-dollar gross to make the film, which eventually paid him $50 million.^[10] Tom Hanks and Steven Spielberg shared a 40 percent first-dollar gross on Saving Private Ryan.^[16] Some other filmmakers known to have made first-dollar gross deals are Tyler Perry,^[17] Eli Roth,^[18] Clint Eastwood,^[8] Quentin Tarantino,^[19] Christopher Nolan,^[20] actor Tom Cruise,^[21] and film producer Jason Blum.^[22] Many actors had earned $100 million later, after an initial payment.^[23] For example, Tom Cruise was paid between $12–14 million for his performance in Top Gun: Maverick, which was revised to over $100 million after his share of the film's box office gross.^[24]

See also

•  Film portal
•  United States portal

• Film budgeting
• Hollywood accounting

References

1. Kelly, Kate; Marr, Merissa (13 January 2006). "Sweetheart Star Deals Go Sour". The Wall Street Journal. Retrieved 30 March 2019.
2. Weinstein, Mark I. (13 August 1998). "Guide to Deal Structures" (PDF). University of Southern California. p. 4. Retrieved 30 March 2019.
3. Cieply, Michael (3 March 2010). "For Movie Stars, the Big Money Is Now Deferred". The New York Times. Retrieved 30 March 2019.
4. "first dollar / first dollar gross - Lexikon der Filmbegriffe". University of Kiel (in German). 2 August 2011. Retrieved 30 March 2019.
5. "House of Commons - Culture, Media and Sport - Sixth Report". Parliament of the United Kingdom. 18 September 2003. Retrieved 30 March 2019.
6. Cones, John W. (1997). The Feature Film Distribution Deal: A Critical Analysis of the Single Most Important Film Industry Agreement. Southern Illinois University Press. p. 31. ISBN 978-0-8093-2081-3.
7. Goldstein, Patrick; Rainey, James (3 August 2009). "Hollywood gets tough on talent: $20-million movie salaries go down the tubes". Los Angeles Times. Retrieved 30 March 2019.
8. Vogel, Harold L. (2011). Entertainment Industry Economics: A Guide for Financial Analysis. Cambridge University Press. p. 228. ISBN 978-1-107-00309-5.
9. Kroon, Richard W. (2010). A/V A to Z: An Encyclopedic Dictionary of Media, Entertainment and Other Audiovisual Terms. McFarland & Company. p. 280. ISBN 978-0-7864-4405-2.
10. Bacardi, Francesca (22 January 2014). "Jonah Hill Was Paid $60,000 for 'Wolf of Wall Street'". Variety. Retrieved 30 March 2019.
11. Cieply, Michael (11 November 2007). "Hollywood strike underlines bleak outlook for movie business". The New York Times. Retrieved 30 March 2019.
12. Welkos, Robert W. (15 December 2007). "Freddie Fields, 84, talent agent to stars". The Boston Globe. Retrieved 30 March 2019.
13. Fisher, Luchina (18 October 2013). "Role Reversal: Actresses Over 40 Top Hollywood". ABC News. Retrieved 30 March 2019.
14. "Hollywood's biggest paydays". The Daily Telegraph. Retrieved 30 March 2019.
15. Finke, Nikki (29 April 2011). "Arnold's Payday: $10 Million Plus 25% First Dollar Gross For Schwarzenegger's Next Film". Deadline Hollywood. Retrieved 30 March 2019.
16. Bart, Peter (17 January 1999). "Movie Math: A Study in Profit and Gloss". The Washington Post. Retrieved 30 March 2019.
17. Fernandez, Jay A. (11 September 2008). "Film mogul Tyler Perry takes his biggest risk". Philadelphia Media Network. Retrieved 30 March 2019.
18. Ago, Alessandro (2009). "SCA Alumni Screening Series: INGLOURIOUS BASTERDS". USC School of Cinematic Arts. Retrieved 30 March 2019.
19. Kit, Borys (18 November 2017). "How Sony Nabbed Quentin Tarantino's Manson Movie". The Hollywood Reporter. Retrieved 30 March 2019.
20. D'Alessandro, Anthony (16 May 2020). "Is 'Tenet' Still Sticking On Its July 17 Release Date?". Deadline. Retrieved 16 May 2020.
21. Fleming, Michael (13 June 2008). "Hollywood all grossed out". Variety. Retrieved 30 March 2019.
22. Masters, Kim (27 February 2014). "Jason Blum's Crowded Movie Morgue: Downside of a Microbudget Empire". The Hollywood Reporter. Retrieved 30 March 2019.
23. "Actors Who Made over $100 Million from One Movie". 7 May 2023.
24. "Tom Cruise will reportedly get at least $100 million for 'Top Gun: Maverick' — one of the biggest paydays for an actor ever".