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Chapter 87: Dividing the Spoils
🕑 Added 2024-10-03 16:27:28 +0000 UTCGetting the profit share from The Rock* in North America as quickly as possible is not easy. According to the contract signed between Duke and Warner Bros., the latter will settle within six months after the film leaves theaters. Compared to the situation with 20th Century Fox, which had to make payments for *Speed* due to the involvement of Lucasfilm, this timeline may seem long, but it is actually quite normal in Hollywood.
As a director, Duke cannot always rely on Lucasfilm and George Lucas for assistance. Warner Bros. might not necessarily buy into Lucasfilm's reasoning. Frankly speaking, six months is almost the shortest settlement time Nancy could negotiate.
In Hollywood, settling the investment share of a film can be very complicated, often dragging on for years. There's almost no place to complain except for the courts, and many companies investing in films endure long waits until their firms go bankrupt, often receiving nothing owed to them.
As for directors, if a production company does not want to continue working together, the payment they should receive can also be delayed for a long time. Prominent directors like Michael Bay and Peter Jackson have faced such situations.
Fortunately, Duke had cast a line early on, demonstrating that he had the ability to turn that line into a big catch. Warner Bros. is actively pushing forward the preliminary investigation for the *Independence Day* project, and both sides are expected to collaborate in the future, so receiving the North American share on time should not pose significant issues. Warner Bros. might play some tricks overseas, but it would be kept within a range that Duke can tolerate.
Even if Duke hires a professional legal and accounting team to supervise, it cannot fully guarantee the authenticity of the final overseas earnings; it can only keep it within a manageable range.
Compared to overseas, North America is subject to much stricter oversight. Shortly after *The Rock* left theaters, Duke's accountants, Rock Studios, and Warner Bros. all sent over detailed accounts.
The accounts are very clear, even for someone like Duke, who isn't particularly knowledgeable about finances, to understand.
*The Rock* had a total North American box office of $157.52 million. According to the signed distribution agreement, after the theater chain deducted taxes and other fixed expenses, Warner Bros. received a total of $76.5 million from the North American box office.
Although Warner Bros. utilized a tax refund for *The Rock*, amounting to $2.8 million, according to the agreement, this amount does not count towards the film's earnings. However, the $3.5 million in advertising revenue from Hummer and Ferrari is included in the earnings.
Thus, the film generated $80 million in revenue. Warner Bros. deducted 10% of the North American box office as a distribution fee, and after deducting $15 million for marketing expenses, the remaining amount was $49.25 million.
This also needs to deduct the $870,000 worth of equipment and props destroyed in the fire, as well as pay remaining salaries to the cast and crew and other industry association expenses, leaving a balance of $45 million.
This time, there is no company like Lucasfilm that will take a cut of the production earnings. Duke's Duke Studios, Warner Bros., and AUG Film Investment Fund and other investors can share according to their respective investment proportions.
Duke's Duke Studios accounted for one-fifth of the production costs, meaning they could take home $9 million. Although taxes would still need to be paid, this gave him hope that he could repay his mother's loan solely through the film's North American earnings.
After *The Rock* left theaters in North America, Warner Bros. began negotiating the basic transfer fees and rental sales shares for video tapes with the largest video rental chain, Blockbuster. This represented long-term income, which did not have much to do with Duke Studios. After four rounds of negotiations, they agreed on a figure of $8.5 million.
Next up is the North American television broadcast rights, which is also a revenue source for Duke Studios. The basic transfer fee of $6.5 million is consistent with the film's box office performance and value.
Warner Bros. can take a cut from both long-term incomes, while Duke Studios only signed for short-term revenue sharing, allowing them to receive $3 million from this.
Thus, Duke Studios would be able to collect a total of $12 million in net income six months later, although $120,000 of that would go to Nancy Josephson and the legal and accounting team, each taking 5% of Duke Studios' earnings from *The Rock*.
Successful films are not solely the work of one director; they require the collaboration of an entire team. Without an agent, Duke would have to negotiate with various companies himself, making it impossible to focus on filming. The role of a professional legal and accounting team is also indispensable, as capital has no conscience.
This income is still in the future tense; it would be commendable if Warner Bros. could settle before 1994. As for the overseas revenue share, that would take time.
After focusing on expected earnings, Duke returned to a more relaxed state, entrusting work and new film projects to Nancy. Over the past two years, he had been on edge; if he continued like this, he might just break.
Even after his mother finished her business in New York and returned to Los Angeles, Duke temporarily moved back to his house in Santa Monica.
"Do you remember the suggestion you made about Victoria's Secret?"
During dinner, Mrs. Leah suddenly brought up something Duke had nearly forgotten. "Santa Fia has already drawn up a detailed promotional plan, and the management of Victoria's Secret basically agrees with our plan. If all goes well, the halftime show at next year's Super Bowl will be a lingerie fashion show."
"If I have the time," Duke said with great interest, "I could go see it live."
It seems that the most famous angels are still young girls, right?
After chatting with his mother for a bit, Duke learned that the headlining models would be Naomi Campbell and Claudia Schiffer. In this era, the most famous names still belong to the big five supermodels.
"Next month, I plan to go to Israel."
Putting down her knife and fork, Mrs. Leah added, "If you have time, check on the house here."
"I know, Mom," Duke stood up with her. "Be careful."
In his mind, Israel was a war-torn place where terrorists could emerge at any moment as human bombs.
After thinking for a moment, Duke said, "Mom, if work isn't busy, I'll go with you."
Knowing Duke's focus on work and that his new film project was progressing, Mrs. Leah waved her hand casually, obviously not taking his words seriously, and walked straight out of the villa to take a stroll along the beachfront.
Suddenly, his phone rang. Duke picked it up and pressed the answer button; it was Naomi Watts.
"Hi, Duke, long time no see."
Her voice was faintly soft and sweet, reminding Duke that it had indeed been a long time since he had seen the Australian actress. He asked, "Yeah, it's been a while. What have you been up to lately, Naomi?"
"I… I moved!" There was a slight hesitation in her voice before she continued, "I just wanted to call and let you know."
"Oh, where did you move to?" Duke asked appropriately.
"To the outskirts of Beverly Hills." There was some noise on the line, and Duke switched hands. Naomi Watts continued, "I rented a standalone house."
Naomi Watts had managed to establish herself in Hollywood, but being a star is not as easy as it seems. The status one has needs to match the image and residence, especially for female actresses, where image is even more crucial. The costs associated with this can add up to a considerable amount, and many newly famous stars even end up in debt for this.
"Why did you move there?"
If Hollywood is a melting pot, then Beverly Hills, as a gathering place for stars, is its epitome.
"Mary's suggestion, and Nancy helped me with the paperwork."
As if fearing Duke wouldn't understand, she explained, "Mary is Nicole Kidman. She suggested we live closer to each other to look out for one another."
"Look out for one another?" Duke scoffed.
At this point, Naomi Watts's standing and fame in the industry were far less than those of Nicole Kidman. In a pairing of strong and weak, they could still coexist harmoniously. However, if Naomi Watts were to rise quickly and create competition with Nicole Kidman, their sisterly bond would undoubtedly evaporate like smoke.
In contrast, even if male actors compete, they often don't end up completely severing ties. Female actresses are different; perhaps it's in a woman's nature that if there's direct or indirect competition, the atmosphere will be one where they would love nothing more than to draw blood.
Of course, this is also related to the shorter shelf life of female actors and the narrower paths they have in Hollywood. Even after twenty years, this industry remains a male-dominated sphere.
Compared to Nicole Kidman, Duke feels more like an outsider. His relationship with Naomi Watts is purely physical, and he wouldn't be foolish enough to say anything. When she tentatively asked if they could share a late-night snack, he simply agreed.
He left a note for his mother and drove away from Santa Monica, heading straight for the western side of Beverly Hills. Such a relationship, devoid of emotional and responsibility pressures, was the best way for him to relax.
This delicate woman lacks the fierce combativeness of Shania Twain but possesses her own unique charm.
Although Naomi Watts was not a particularly good bed partner, Duke would show up at her apartment from time to time while waiting for news from Nancy, and would occasionally meet her friends in the circle, who did not show any strange look on his face. Perhaps in their opinion, Naomi Watts's ability to get the most important female role in "The Rock" must have something to do with director Duke.
On one occasion, Duke also met Nicole Kidman, but the two did not interact very closely and just laughed it off.
Time slowly passed to August, and when "The Rock" had grossed over 320 million U.S. dollars worldwide, good news came from Nancy.
