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August 2008 e-EntertainmentLawArticle Negotiating The Producer Agreement Within the independent film world, a producer is generally considered to be someone who initiates a film project and oversees its various stages, from conception through completion. Sometimes the producer's functions are divided into two domains: the "creative producer" and the "line producer." The creative producer is the dealmaker and is responsible for finding the book or script, supervising the writers, suggesting potential directors and cast, as well as securing financing. On the other hand, the line producer is the manager of the film production and is responsible for hiring crew, preparing budgets, securing locations, ordering supplies and equipment, etc. Since there is no studio-recognized union governing producers, as there is for writers, actors and directors, every aspect of a producer's deal is subject to negotiation. The following article will focus on some of the major deal points in producer agreements for producers who are responsible for both developing the deal and production of the film and who also rely on studios to finance and distribute their films. Compensation Development Fee When the producer is part of developing the deal, (i.e. finding the script, supervising writers, attaching actors or the director, etc.) then the producer may be able to negotiate a development fee as an advance against the producing fee. Depending on the project, development fees can range from $5,000 to $50,000. Typically, the development fee is payable half upon commencement of services and half upon either the studio's abandonment of the project or the studio's commencement of production. Guaranteed Fee Similar to actors, writers and directors, the producer's fee will be influenced by: his quote, the box office performance of his last film, the budget of the present film and the nature of his services provided. Generally, producer guaranteed fees are a flat amount for the entire picture and payments and, like director's fees, are spread over pre-production, production and post-production. Depending on the budget, new producers can earn fees ranging from $20,000 to $200,000, while established producers can secure fees over $1,000,000 per film. Contingent Compensation Established producers are usually successful in negotiating some form of profit participation with the studio. Often they receive a percentage of a film's adjusted gross receipts. Some film producers receive 50 percent of 100 percent of the net proceeds, reducible by all third-party participations. This means that the studio splits 50 percent of its net proceeds with the producer and the producer's share is reduced by any other individual's share, such as the writer or director's net proceed participation. Credit Unlike the studio's collective bargaining agreement with the Director's Guild of America (DGA) and the Writer's Guild of America (WGA), there is no collective bargaining agreement between the studios and producers. Consequently, the studios can freely assign producer credits without any restrictions. The producer must carefully negotiate all aspects concerning the producer's credit. In reference to screen credit, producers must negotiate for: 1) the location of their credit in the main title; 2) a separate card (as opposed to shared card) where no other credits can appear on the screen at the same time that the producer's credit appears; 3) that the size (i.e. width, boldness, etc.) of their credit be a certain size in relation to the title or other individual's (i.e. director or actors) credit and; 4) once the screen credits have been negotiated, the producers should request to have the producer's credit in all of the film's paid advertising materials. Perks Since there is no guild agreement that addresses the issue of perks, producers should be careful to not overlook this particular area of negotiation. They should always request first-class travel and living expenses if their services are required on location. Also, producers should request an invite (for at least two) to all premieres and festivals of the film. And if the premiere or festival is located more than 50 miles from the producer's residence, that the studio will provide the producer with travel, hotel, per diem and ground transportation. Finally, every producer should request a copy of the DVD version of the picture when the DVD becomes commercially available. Conclusion Given that producer agreements are not regulated by a collective bargaining agreement, it is very important that producer agreements are carefully negotiated. To ensure the best possible outcome for the producer, these negotiations are best handled with the help of an experienced entertainment attorney. [ back to top ] |