Guarantee (film)
Encyclopedia
In filmmaking
, a guarantee is a term of an actor or director's contract that guarantees remuneration if, through no fault of their own, the artist is released from the contract. Such an arrangement is known informally as a “play-or-pay” contract.
Many stars insist on guarantees in their contract due to the major time commitment agreeing to appear in a film can mean. For example, Kurt Russell
's decision to appear in the film Soldier
, for which he was paid $15 million, was a total commitment of 18 months, during which time he was not able to appear in another film. If the film were cancelled, or if he were replaced (but not if he withdrew of his own accord), Russell would be paid $15 million, or a large part of that fee, to compensate him for clearing his schedule.
Studios are reluctant to agree to guarantees but accept them as part of the deal for signing major talent. They also have the advantage of enabling a studio to simply remove a player under such a contract with few legal complications.
For example, in 1996
, when Kirby Puckett
suffered a career-ending glaucoma
in his right eye, he was only two years into a five-year, $15 million contract; he was then paid for the subsequent three years. The balance owed can be mitigated if the player signs with another team, with the balance owed by the cutting team subtracted from the amount paid by the new team. A notable exception to this rule is in the NFL, where only the bonuses outlined in player contracts are guaranteed. NFL players are not guaranteed the salaries outlined in their contracts; they are only paid the salaries outlined while they are actually still employed by their team.
In the business world, high-level executives are often guaranteed to receive their salary for a specified period of time outlined in their contract, regardless of whether the company continues to employ them or not; a so-called golden parachute
. Similar clauses are often negotiated during mergers and acquisitions to protect the management team that is being merged or acquired into the new company.
Filmmaking
Filmmaking is the process of making a film, from an initial story, idea, or commission, through scriptwriting, casting, shooting, directing, editing, and screening the finished product before an audience that may result in a theatrical release or television program...
, a guarantee is a term of an actor or director's contract that guarantees remuneration if, through no fault of their own, the artist is released from the contract. Such an arrangement is known informally as a “play-or-pay” contract.
Many stars insist on guarantees in their contract due to the major time commitment agreeing to appear in a film can mean. For example, Kurt Russell
Kurt Russell
Kurt Vogel Russell is an American television and film actor. His first acting roles were as a child in television series, including a lead role in the Western series The Travels of Jaimie McPheeters...
's decision to appear in the film Soldier
Soldier (film)
Soldier is a 1998 science fiction-action film directed by Paul W.S. Anderson. The film stars Kurt Russell as Sgt. Todd, a soldier trained from birth...
, for which he was paid $15 million, was a total commitment of 18 months, during which time he was not able to appear in another film. If the film were cancelled, or if he were replaced (but not if he withdrew of his own accord), Russell would be paid $15 million, or a large part of that fee, to compensate him for clearing his schedule.
Studios are reluctant to agree to guarantees but accept them as part of the deal for signing major talent. They also have the advantage of enabling a studio to simply remove a player under such a contract with few legal complications.
Examples of “Play-or-Pay”
- When a writer's strike halted all production at Warner Bros.Warner Bros.Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,...
Studios in 1960, James GarnerJames GarnerJames Garner is an American film and television actor, one of the first Hollywood actors to excel in both media. He has starred in several television series spanning a career of more than five decades...
demanded that his "Play or Pay" contract be honored, and that he be paid for the time off. WB refused, saying that the strike shutdown was outside of their control, and honoring all such contracts for ancillary causes would cost them millions. Garner sued the studio for breach of contract and won, the first such case ever won by an actor against a Hollywood studio.
- Director Guy HamiltonGuy HamiltonGuy Hamilton is an English film director.Hamilton was born in Paris, France where his English parents were living. Remaining in France during the Nazi occupation, he was active in the French Resistance...
originally agreed to direct Superman when it was due to film at CinecittàCinecittàCinecittà is a large film studio in Rome that is considered the hub of Italian cinema.-History:The studios were founded in 1937 by Benito Mussolini and his head of cinema Luigi Freddi for propaganda purposes, under the slogan "Il cinema è l'arma più forte"...
Studios in RomeRomeRome is the capital of Italy and the country's largest and most populated city and comune, with over 2.7 million residents in . The city is located in the central-western portion of the Italian Peninsula, on the Tiber River within the Lazio region of Italy.Rome's history spans two and a half...
, ItalyItalyItaly , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
. When the producers realized that they could save millions by filming in BritainUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Hamilton –a tax exileTax exileA tax exile is one who chooses to leave a country with a high tax burden and instead to reside in a foreign nation or jurisdiction which takes a lower portion of earnings. Going into tax exile is a means of tax mitigation or avoidance.-Legal status:...
who lives in the CaribbeanCaribbeanThe Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
– had to withdraw. He insisted he be paid his $1 million fee in full.
- Director Brian De PalmaBrian De PalmaBrian Russell De Palma is an American film director and writer. In a career spanning over 40 years, he is probably best known for his suspense and crime thriller films, including such box office successes as the horror film Carrie, Dressed to Kill, Scarface, The Untouchables, and Mission:...
had originally wanted his GreetingsGreetings (film)Greetings is a 1968 film directed by Brian De Palma. The film, which featured a young Robert De Niro in his first major role, is a satirical film about men avoiding the Vietnam War draft....
star Robert De NiroRobert De NiroRobert De Niro, Jr. is an American actor, director and producer. His first major film roles were in Bang the Drum Slowly and Mean Streets, both in 1973...
to play Al CaponeAl CaponeAlphonse Gabriel "Al" Capone was an American gangster who led a Prohibition-era crime syndicate. The Chicago Outfit, which subsequently became known as the "Capones", was dedicated to smuggling and bootlegging liquor, and other illegal activities such as prostitution, in Chicago from the early...
in his film The UntouchablesThe Untouchables (1987 film)The Untouchables is a 1987 American crime-drama film directed by Brian De Palma and written by David Mamet. Based on the book The Untouchables, the film stars Kevin Costner as government agent Eliot Ness. It also stars Robert De Niro as gang leader Al Capone and Sean Connery as Irish-American...
. When De Niro turned him down, De Palma cast British actor Bob HoskinsBob HoskinsRobert William "Bob" Hoskins, Jr. is an English actor known for playing Cockney rough diamonds, psychopaths and gangsters, in films such as The Long Good Friday , and Mona Lisa , and lighter roles in family films such as Who Framed Roger Rabbit and Hook .- Early life :Hoskins was born in Bury St...
. However, De Palma and producer Art LinsonArt LinsonArt Linson is an American film producer, director and screenwriter.He was born in Chicago, Illinois. His directorial debut was the 1980 comedy, Where the Buffalo Roam, which was loosely based on stories by Hunter S. Thompson and starred Bill Murray as the writer...
were determined to get De Niro, and when he agreed after all, Hoskins was released from his contract. Later, Hoskins received a chequeChequeA cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
through the mail for £20,000. He rang De Palma up and asked if he had “any other films you don't want me to appear in”.
- In 1991, celebrity couple Julia RobertsJulia RobertsJulia Fiona Roberts is an American actress. She became a Hollywood star after headlining the romantic comedy Pretty Woman , which grossed $464 million worldwide...
and Kiefer SutherlandKiefer SutherlandKiefer Sutherland is an English-born Canadian actor, producer and director, best known for his portrayal of Jack Bauer on the Fox thriller drama series 24 for which he has won an Emmy Award , a Golden Globe award , two Screen Actors Guild Awards and two Satellite...
were supposed to appear together in a WesternWestern (genre)The Western is a genre of various visual arts, such as film, television, radio, literature, painting and others. Westerns are devoted to telling stories set primarily in the latter half of the 19th century in the American Old West, hence the name. Some Westerns are set as early as the Battle of...
called RenegadesRenegades (1989 film)Renegades is a 1989 crime film starring Lou Diamond Phillips and Kiefer Sutherland. Floyd Red Crow Westerman debuted in this film as "Red Crow", Hank Storm's father....
. When Roberts called off their engagement, Sutherland was paid $3 million to leave the project. For a while, producers kept Roberts on the project as they tried to pair her up with Mel GibsonMel GibsonMel Colm-Cille Gerard Gibson, AO is an American actor, film director, producer and screenwriter. Born in Peekskill, New York, Gibson moved with his parents to Sydney, Australia when he was 12 years old and later studied acting at the Australian National Institute of Dramatic Art.After appearing in...
.
- Arnold SchwarzeneggerArnold SchwarzeneggerArnold Alois Schwarzenegger is an Austrian-American former professional bodybuilder, actor, businessman, investor, and politician. Schwarzenegger served as the 38th Governor of California from 2003 until 2011....
agreed to appear in a mega-budget historical adventure called Crusades for Mario KassarMario KassarMario F. Kassar is a film producer and industry executive whose projects are frequently in association with Andrew G. Vajna.Kassar was born in Beirut, Lebanon. Working for Columbia Pictures and TriStar Pictures, he was executive producer of several movies starting with Victory in 1981...
's company Carolco PicturesCarolco PicturesCarolco Pictures, Inc., Carolco International N.V., or Anabasis Investments was an American independent film production company that, within a decade, went from producing such blockbuster successes as Terminator 2: Judgment Day and the first three movies of the Rambo series to being bankrupted by...
. When the projected budget went past $200 million, financing collapsed, despite pre-production expenditure of $20 million. Instead of collecting his “play-or-pay” $15 million, Schwarzenegger asked for all rights to the script in the hope that one day he could get it made.
- Another example of a star turning down his guarantee was on Oliver StoneOliver StoneWilliam Oliver Stone is an American film director, producer and screenwriter. Stone became well known in the late 1980s and the early 1990s for directing a series of films about the Vietnam War, for which he had previously participated as an infantry soldier. His work frequently focuses on...
's proposed Manuel NoriegaManuel NoriegaManuel Antonio Noriega Moreno is a Panamanian politician and soldier. He was military dictator of Panama from 1983 to 1989.The 1989 invasion of Panama by the United States removed him from power; he was captured, detained as a prisoner of war, and flown to the United States. Noriega was tried on...
biopic. When the project collapsed, star Al PacinoAl PacinoAlfredo James "Al" Pacino is an American film and stage actor and director. He is famous for playing mobsters, including Michael Corleone in The Godfather trilogy, Tony Montana in Scarface, Alphonse "Big Boy" Caprice in Dick Tracy and Carlito Brigante in Carlito's Way, though he has also appeared...
decided not to increase Stone's misery and asked for no money.
- One such example is Billy Dee WilliamsBilly Dee WilliamsWilliam December "Billy Dee" Williams, Jr. is an American actor, artist, singer, and writer.-Early life:Williams was born in New York City, New York, the son of Loretta...
's contract when he agreed to play Harvey Dent in the film BatmanBatman (1989 film)Batman is a 1989 superhero film based on the DC Comics character of the same name, directed by Tim Burton. The film stars Michael Keaton in the title role, as well as Jack Nicholson, Kim Basinger, Robert Wuhl and Jack Palance...
. Williams hoped that this contract would help guarantee a starring role in a sequel to the film when his character became the villainVillainA villain is an "evil" character in a story, whether a historical narrative or, especially, a work of fiction. The villain usually is the antagonist, the character who tends to have a negative effect on other characters...
, Two-FaceTwo-FaceTwo-Face is a fictional comic book supervillain who appears in comic books published by DC Comics. and is an enemy of Batman. The character first appeared in Detective Comics #66 , and was created by Bob Kane and Bill Finger....
. However, when Tim BurtonTim BurtonTimothy William "Tim" Burton is an American film director, film producer, writer and artist. He is famous for dark, quirky-themed movies such as Beetlejuice, Edward Scissorhands, The Nightmare Before Christmas, Ed Wood, Sleepy Hollow, Corpse Bride and Sweeney Todd: The Demon Barber of Fleet...
declined to direct Batman ForeverBatman ForeverBatman Forever is a 1995 American superhero film directed by Joel Schumacher and produced by Tim Burton. Based on the DC Comics character Batman, the film is a sequel to Batman Returns , with Val Kilmer replacing Michael Keaton as Batman...
, the new director, Joel SchumacherJoel SchumacherJoel T. Schumacher is an American film director, screenwriter and producer.-Early life:Schumacher was born in New York City, the son of Marian and Francis Schumacher. His mother was a Swedish Jew, and his father was a Baptist from Knoxville, Tennessee, who died when Joel was four years old...
, decided to pay Williams' penalty fee to cast Tommy Lee JonesTommy Lee JonesTommy Lee Jones is an American actor and film director. He has received three Academy Award nominations, winning one as Best Supporting Actor for the 1993 thriller film The Fugitive....
instead.
- Also in the Batman franchise Marlon WayansMarlon WayansMarlon L. Wayans is an American actor, model producer, comedian, writer, and director of movies, beginning with his role as a pedestrian in I'm Gonna Git You Sucka in 1988...
, considered for the role of Robin in both Batman ReturnsBatman ReturnsBatman Returns is a 1992 American superhero film directed by Tim Burton. Based on the DC Comics character Batman, it is the sequel to Burton's Batman , and features Michael Keaton reprising the title role, with Danny DeVito as the Penguin and Michelle Pfeiffer as Catwoman.Burton originally did not...
and Batman ForeverBatman ForeverBatman Forever is a 1995 American superhero film directed by Joel Schumacher and produced by Tim Burton. Based on the DC Comics character Batman, the film is a sequel to Batman Returns , with Val Kilmer replacing Michael Keaton as Batman...
reportedly received full pay for both movies even though he wasn't used in either. Robin was portrayed by Chris O'DonnellChris O'DonnellChristopher Eugene "Chris" O'Donnell is an American actor. He has played Robin in two Batman films, Batman Forever and Batman & Robin, Charlie Simms in Scent of a Woman, Finn Dandridge in Grey's Anatomy, Peter Garrett in Vertical Limit, and more recently, Jack McAuliffe in The Company. O'Donnell...
in the latter.
Similar clauses outside of filmmaking
Additionally, elements of guarantee clauses can be found in other industries, under different names. In the sports world, standard player/coach contracts are guaranteed for the life of the deal, regardless of whether the player or coach actually works for the full duration; hence the name for such contracts being guaranteed contracts. In another example, if a baseball player is signed to a 5-year, $30 million deal but is cut by his team after year 3, the team will still owe the player the balance of the $12 million due, regardless of whether the player is performing services for that team or another team.For example, in 1996
1996 in baseball
-Major League Baseball:*World Series: New York Yankees over Atlanta Braves ; John Wetteland, MVP*American League Championship Series MVP: Bernie Williams**American League Division Series*National League Championship Series MVP: Javy López...
, when Kirby Puckett
Kirby Puckett
Kirby Puckett was a Major League Baseball center fielder. He played his entire 12-year baseball career with the Minnesota Twins and he is the Twins franchise's all-time leader in career hits, runs, doubles, and total bases...
suffered a career-ending glaucoma
Glaucoma
Glaucoma is an eye disorder in which the optic nerve suffers damage, permanently damaging vision in the affected eye and progressing to complete blindness if untreated. It is often, but not always, associated with increased pressure of the fluid in the eye...
in his right eye, he was only two years into a five-year, $15 million contract; he was then paid for the subsequent three years. The balance owed can be mitigated if the player signs with another team, with the balance owed by the cutting team subtracted from the amount paid by the new team. A notable exception to this rule is in the NFL, where only the bonuses outlined in player contracts are guaranteed. NFL players are not guaranteed the salaries outlined in their contracts; they are only paid the salaries outlined while they are actually still employed by their team.
In the business world, high-level executives are often guaranteed to receive their salary for a specified period of time outlined in their contract, regardless of whether the company continues to employ them or not; a so-called golden parachute
Golden parachute
A golden parachute is an agreement between a company and an employee specifying that the employee will receive certain significant benefits if employment is terminated. Sometimes, certain conditions, typically a change in company ownership, must be met, but often the cause of termination is...
. Similar clauses are often negotiated during mergers and acquisitions to protect the management team that is being merged or acquired into the new company.