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
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]
