← Back to context

Comment by gamblor956

3 hours ago

Those movies didn't lose money under GAAP. However, the specific legal entities that the talent made their profit deals with did not earn profits due to the way that revenues and expenses were allocated between the companies involved in making and distributing those films. For each of those films, at least one company was and is earning $$$, but the talent doesn't get to make a revenue sharing deal with those companies.

> For each of those films, at least one company was and is earning $$$, but the talent doesn't get to make a revenue sharing deal with those companies.

That doesn't sound right. Traditionally, and in particular in the case of Forrest Gump, the distinction is between people who contract for a percentage of net profit (always zero) and people who contract for a percentage of gross revenue. The revenue is measured at the same point either way; it's just about whether you got suckered or not.