Chapter 41: Profit Sharing

Chapter 41: Chapter 41: Profit Sharing

Surrounded by praise, Irene wasn’t distracted by success. She kept to her filming schedule, determined not to be a brief phenomenon.

Besides, until the money arrived, everything else was hypothetical.

International release, TV fees, and rental revenue had nothing to do with her.

She only shared in the North American box office, and that only because she was the investor’s daughter. Without that, she’d have received just $200,000 of the $136 million.

From concept to script to directing, Irene handled everything, but without her background, she’d get only that small salary. That was typical in Hollywood.

In October, Irene focused on filming, and in her downtime, she anticipated the profit distribution.

Normally, within two weeks of a film leaving theaters, exhibitors transferred the share to the distributor.

But when the distributor paid the production company and investors was uncertain.

Fortunately, the Coppola family’s American Zoetrope wasn’t a small or new company.

Even if MGM declined future work with Irene, as long as Francis was involved, they wouldn’t delay payments indefinitely.

After exhibitors deposited the 50% box office share—$68 million—into MGM’s account, American Zoetrope sent accountants to audit all film-related accounts with MGM.

As distributor, MGM took 12% of the North American box office as a fee under the contract, totaling $16.32 million.

They also deducted advanced publicity and PR costs, plus print costs, storage, surveys, and various fees. One could imagine the margin in those.

Thanks to Britney’s help, publicity costs were lower than Eyes Wide Shut and Runaway Bride, released around the same time. MGM totaled these costs at $9.6 million.

Irene didn’t know if the charges were fair, but she couldn’t influence them.

After MGM took its share, $42.08 million remained. From that, they paid actors and crew, including over $1 million still owed to Irene and others.

The remaining nearly $40 million was profit for American Zoetrope.

Per Irene’s contract with Francis, if the North American box office was profitable, 80% of the profit was hers—$24 million. After taxes, she’d net around $20 million.

A year ago, no one expected Irene to receive that. Few knew the father-daughter agreement, and Irene had earned well.

It looked like American Zoetrope worked for little, investing $10 million and ending with less than Irene.

But North American box office was just the start. North American home video and TV fees were shared with MGM, but overseas rights were held by American Zoetrope, and with a $136 million domestic gross, they should sell well.

Irene wasn’t present for profit-sharing talks, but she had Shelly attend everything. Since he got a percentage, he was willing.

According to Shelly, American Zoetrope made nearly $60 million profit on the $10 million investment.

A 6x return in one year. That kind of return drew outside investors to Hollywood.

...

At lunch, Irene took her phone from Vera Cecil and saw an unread text.

She opened it. A bank deposit notification.

Seeing the eight-figure transfer, Irene was elated.

All afternoon, she was in a good mood. Even flubbed takes didn’t bother her.

Filming ended early, and to celebrate her previous film’s run, she invited the main team to dinner.

People didn’t quite get it—why celebrate leaving theaters? Wouldn’t $100 million be the milestone?

But they were still happy the director was buying dinner.

Only Vera and Edward likely knew why she was so happy.

"I think she looks better in Notting Hill, and Hugh Grant is more handsome."

"Yeah, I agree. Richard Gere looks too old."

"What are you talking about?"

Irene returned from the restroom to find her actors in discussion.

"Director, we were talking about Julia Roberts’ two films," said Jessica Alba, who played Regina’s friend Karen Smith.

She was a new CAA signing, packaged into the crew.

Irene raised an eyebrow. Aside from her and Edward, no one knew about her issues with Julia Roberts, and she wouldn’t mention it.

"This year was Ms. Roberts’ year; both films were hits. When will we be actors like her?"

Rachel McAdams spoke up when Irene didn’t respond.

"To be like her takes timing, luck, and talent. You can’t lack any. But don’t sell yourselves short. You’re young, and the future is yours."

Irene sipped champagne. Her assessment of Julia Roberts was neutral.

"The internet says you, Director, will be the next Garry Marshall, good at understanding audiences, making warm, hopeful stories with a fairy-tale feel. And Marshall is working with Ms. Roberts again, so another hit comes next year."

Hearing that, Irene’s first thought was: would they compete again next year?

She wasn’t afraid, just felt the entanglement was lasting.

"Oh? What film are they doing this time?"

Irene ate her steak, seeming uninterested.

"It’s an adaptation, called...."

Jessica tapped her head. "Right, The Princess Diaries!"