Message Font: Serif | Sans-Serif
No. of Recommendations: 1
This is exactly why I think deals should be made where talent takes no profit participation. The sweetheart deal rears its ugly head again. This involves "Home Improvement."

The thing that's really terrible about this is I'm certain the talent in this case is correct about what Disney promised. From what I've read, what usually happens is -- and I'm sure everyone knows this already -- Disney makes a deal and then tries to prevent distributing monies due by shielding revenue through various overhead charges, company divisions, etc. So, in my mind, Disney (as well as other studios) make false promises so that they can get talent to work for it. In the article, you will note that supposedly Disney promised 75% of net profits to certain participants in the production company that made Improvement. Again, I'm sure Disney did, but Disney needs to stop doing this. Bigger talent have ways of combating ambiguous accounting practices, but for the benefit of everyone, including shareholders, studios should pay talent one-time fees for the delivery of projects, forget setting up annuity streams tied to future exploitation of content via ancillary distribution mechanisms.

Shareholders want, and expect, Disney to use vertical integration to its benefit -- but without the frictional costs of litigation.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.