Sunday, January 17, 2010

Selena Gomez million dollar contract contains problem

TMZ.com reports that pop star Selena Gomez, while not getting "Miley Cyrus money", is "worth millions at 17" and points to the earnings for the movie she's working on, Ramona, at $65,000 (net), and then...

if the movie gets huge box office numbers, Fox Pictures has to fork over more cash -- Selena could collect anywhere from $250,000 to $1 million extra depending on how much it makes over the cost of production.


That's the problem.

TMZ's account reveals a "net", rather than "gross" contract. The rule in entertainment is never settle for a "net" contract; make sure you get money before production costs are paid.  Jack Nicholson learned this when he signed on to play "The Joker" in Batman.   His gross percentage revenue contract paid him $60 million.



Selena Gomez

What could happen in Selena Gomez case is the production numbers could be adjusted to avoid paying Selena Gomez the back end money she could get.  If the production cost is greater than revenue, then the movie fails to show a profit and Gomez doesn't not get the extra money.

But if Selena Gomez just took, say, 10 percent of the movie's revenue, she would get that, period, profit or not.

The the future, Selena should make sure she gets a Jack Nicholson-style contract, otherwise she will always feels that she's not getting what she's worth.

She would be right.

1 comment:

  1. Fahay7:13 AM

    Her agent/management should have been aware of this. If there was a meeting prior to contract signing where they (Gomez's people) were led to believe that they didn't need to ask for gross, because the movie would definitely make a profit...and they went for it, that's on them, and just inexperience...However, things might be toough right now, but they needed to seek out and HIRE a lawyer that is savvy in this area...They had to pay up front to get the best in the end. Maybe they needed to walk away...Wah? This is Hollywood and we just don't walk away. we don't know when (if) the next one will come, and that's what they're banking on
    Peace

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