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Hollywood Trims Star Deals

It's curtains for deals that pay actors before studios recoup losses

By Clay Dillow,  Newser Staff

Posted Apr 2, 2009 7:50 AM CDT

(Newser) – In this economic climate, even Hollywood has become risk-averse, forcing actors to share in a film’s success or failure, the Wall Street Journal reports. “First-dollar gross” deals, which pay actors handsomely even when films flop, are out of favor. For years, top actors drew deals paying a percentage—as much as 20%—of a studio’s box-office take from the very first dollar made, regardless of whether the studio recouped its losses.

"They're just not going to keep losing vast amounts of money while paying out millions to the first-dollar-gross players," one agent said of the studios, who have been stung by slumping DVD sales and evaporating Wall Street investment funding. Back-end deals, which call for smaller up-front payments and a percentage of receipts counted after the studio recoups its investment, have recently attracted talent like Steve Carell and Harrison Ford.

Potential losses from the underperforming Duplicity,  for which Julia Roberts was paid several million dollers up front, underscore the pressure on Hollywood to drop such guarantees  for stars.
Potential losses from the underperforming "Duplicity," for which Julia Roberts was paid several million dollers up front, underscore the pressure on Hollywood to drop such guarantees for stars.   (AP Photo/Evan Agostini)
Harrison Ford recently accepted a back-end deal that will pay him handsomely, provided the film is a success.
Harrison Ford recently accepted a back-end deal that will pay him handsomely, provided the film is a success.   (AP Photo/The Weinstein Company, Dale Robinette)
Actor Steve Carell signed on to Dinner for Schmucks for a smaller up-front fee and a percentage of profits if the film is successful.
Actor Steve Carell signed on to "Dinner for Schmucks" for a smaller up-front fee and a percentage of profits if the film is successful.   (AP Photo/Dan Steinberg, file)
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COMMENTS
Showing 1 of 1 comment
bacimom
Apr 2, 2009 12:59 PM CDT
Makes sense for the headliners. I don't care how good of an actor they are... if it doesn't sell and make money then their name recognition is meaningless and the more they make up front the harder to get a film to profit. Now if the sports superstars could be paid on success or failure I'd be happy.

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