First Dollar Gross
From ForcaWiki, the simple encyclopedia
| In one sentence | A participation deal that gives someone a percentage of a movie's earnings starting from the very first dollar, instead of waiting for a milestone to be reached. |
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| Category | Film and Television |
| Related | Gross Participant, Adjusted Gross Receipts, Participation |
Imagine a helper at a lemonade stand who gets a slice of every single dollar taken in, starting with the very first cup sold, rather than waiting until the stand has covered its costs first.
First dollar gross is exactly that kind of deal for a movie. It is a Participation calculated as a percentage of all Adjusted Gross Receipts, starting from the very first dollar the movie earns, though it is almost always offset against any upfront compensation that person already received.
Fun facts
- First dollar gross is considered one of the most valuable kinds of deals in the movie business, since it pays out so early, long before a movie needs to turn any actual profit.
- Only the very biggest stars or directors usually have enough leverage to negotiate a first dollar gross deal.
- Someone with first dollar gross is a type of Gross Participant, sharing in the movie's earnings from the very start rather than after a milestone like break-even.