Those of you who have you sold a script, if you don't mind sharing some details, I am curious about the actual mechanics of the deal, as well as the the sort of fee that's to be expected. For example, what sort of procedure do the studios/producers follow until the deal goes through and the check clears?
film script deals
- Thread starter Pryce
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The answer to this question could easily fill a book, my friend. And in fact, books have been written on the topic.Pryce said:
Whenever there's big dollars involved in a disparate market, sales transactions will inevitable vary all over the lot. I've not sold a script but I have come "this close" and I have waltzed through some deals with friends, and I've gotten up and walked out of a couple deals too.
Basically, you have wares for sale, a script, which is known in the industry as "literary material" (and the script itself is referred to as a "photoplay"). You own these wares, which not only include the photoplay itself but many rights that accrue to it by dint of a copyright.
Buyers are first distinguished into two camps, those that are signatory to the WGA Minimum Basic Agreement (MBA) (sig producers) and those who are not (non-sigs). The MBA is a contract producers sign with the Writer's Guild of America, which defines how a producer must relate to and treat a writer, including fees and their schedules of payment, writing credits, residuals (for television) and a host of other criteria. The Guild represents screenwriters, television writers, radio writers, and other professional writers in the media. To become a member of the Guild you have to sell enough material to satisfy their points system, when you've gained enough points, you become a member. I think the dues are one per cent of your earnings as a writer.
Non-sig producers can treat you any way they choose, and although many are good and decent folks, some are nothing less than animals.
You would much prefer to sell to a sig producer than a non-sig, although you will sell to one of the latter.
Options. Many buyers do not wish to shell out a six-figure sum for literary material from the git go (for good and plenty reasons) and will offer an option instead. Options run from six months to a year or more, uisually with options to extend, and the fees are usually ten per cent of what the script's price is, although no-fee options are common.
When you finally get to the table to close a deal you simply cannot be there alone. Sales contracts for literary material can be beasts an inch thick, with all sort and manner of conditions. You'll need to have a good entertainment industry lawyer at your side and preferably an experienced literary agent. They'll make your deal while you listen in. The agent will take a ten per cent cut (no more by law) and the lawyer will charge you a flat fee for his or her services that will come up to about another ten per cent, perhaps more, depending.
Payments are never lump sums. Usually the first one occurs as a sort of "down payment" and this is followed by a much bigger chunk on the day principle photography begins in the picture; with others following at specified intervals until you are paid in full. This almost always occurs before the picture is released. Some writers take their part of their payment in the form of "points" on the picture's earnings, but this is usually not a good idea (the tradition in Hollywood is if you want your points money you have to get it in court).
The average sales price for a feature spec over the past few years has been right around $250,000. The MBA specifies a minimum price a sig producer must pay a writer for a spec, which stands around $85K as we speak, I think, although it may be up to a $hundred K now, I dunno, haven't checked in a while.
Nearly all or all of the MBA is available on-line from www.wga.org and if you wish to really learn something about deals, consult that contract, it contains tons of relevent information. WGA may even have a sample sales contract up at their site, they used to.
Now, this is just the first page or two of that book about deals I mentioned. We have barely scratched the surface. But if you are an aspiring screenwriter, don't be sweating this very much. The knowledge of how deals are done and what they consist of will come to you as time passes and you become more experienced. You don't need to know the details now, you need to write.
We could of course discuss any detail that you might be curious about and others will surely chime in with additional information.
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Pryce said:
As goodwriter said, it's different every time. It's largely dependent on budget but also on experience and your writing history. Penning a film that grosses a hundred mill will up your rates next time around. For the unknowns there are WGA minimums, something like...
Low budget film under five million - fifty grand.
High budget film over five million - ninety-odd grand.
(those are minimums. And my figures might be a little low there, it's been a while since I've seen the rates.)
You will not get one fat check for your troubles. The studio typically steps a deal so that there are opportunities to fire you/pull out of the project during its development if they get cold feet or if they don't like the way you're doing your job.
Also, when you read about so-and-so got paid a million for his latest script, it's a bit misleading. To get the full million, not only do you have to be the only writer hired on the project and throughout the project but the film has to actually be made and you have to receive the proper credit as well.
You might get a series of checks at varying percentages of the overall price tag (5-25%) for things like;
Optioning the script
Treatment
First draft
First revisions
Second draft (ad nauseum)
Polish
Bonus on shooting
But every deal is different. To answer your other question, I don't know what procedures studios go through while the check clears but I know they can take their sweet time about it.