Gross Participant
From ForcaWiki, the simple encyclopedia
| In one sentence | Someone entitled to a slice of a movie's adjusted gross receipts, either starting from the very first dollar or once a certain milestone is reached. |
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| Category | Film and Television |
| Related | First Dollar Gross, Adjusted Gross Receipts, Actual Break-Even |
Imagine two different helpers at a lemonade stand. One gets a slice of every single dollar taken in, right from the very first sale. The other only starts getting a slice once the stand has been running successfully for a while. Both are sharing in the stand's earnings, just starting at different points.
A gross participant is someone entitled to a share of a movie's Adjusted Gross Receipts, either as First Dollar Gross, meaning their share starts immediately, or only after the movie reaches a pre-defined milestone, such as Actual Break-Even.
Fun facts
- Being a gross participant is usually a much better deal than only sharing in Net Profits, since gross receipts are counted long before most costs are subtracted.
- Only the biggest stars, directors, or writers typically have enough bargaining power to become a gross participant on a movie.
- Studios are often reluctant to hand out gross participation deals, since they can end up paying out a share of the movie's earnings even if the movie never shows any actual net profit at all.