Chapitre 265: Chapter 265: Sequel Salary
Even facing one of Hollywood's six major studios, Walt Disney, along with the industry's golden producer Jerry Bruckheimer, and with the blockbuster success of "Pirates of the Caribbean: The Curse of the Black Pearl" as a precedent, Matthew, Johnny Depp, and Keira Knightley were in a position of strength during the sequel negotiations.
Their advantage in negotiations was even greater than that of director Gore Verbinski, given they were the main actors appearing on screen.
Catching a big-selling movie that's set to become a series, both the actors and their agents naturally wanted to make as much money as possible.
As for the production and investment side, Disney and Jerry Bruckheimer Films naturally wanted to keep salaries low to avoid a sequel with an astronomical budget.
Successful movie sequels are easier to achieve, but nobody can guarantee 100% success. The higher the investment, the greater the risk.
Matthew didn't know the specifics of the negotiations for Johnny Depp and Keira Knightley. His negotiations through Helen Herman with Disney were not going smoothly, with the real point of contention being the amount of the salary.
Initially, Helen Herman demanded a $12 million salary for Matthew from Disney, which obviously wouldn't agree to such a high amount for Matthew, considering Johnny Depp's salary was definitely more, and Keira Knightley's wouldn't be far behind.
Agreeing to Matthew's $12 million demand would inevitably trigger a chain reaction in salaries. Johnny Depp, being more popular and his character more beloved than Matthew's, would undoubtedly command a higher salary. Keira Knightley, now a second-tier star with the title of leading lady, would also command a significant number, even though actresses generally earn less than actors.
Just the salaries of these three main actors would exceed $40 million, which would be difficult for Disney to bear.
Moreover, this was just for the second movie. Although the second and third movies were to be shot back-to-back, actors and their agents wouldn't be foolish enough to accept the same salary for the third movie. The salary for the third would definitely be higher than the second, which is a normal practice in the industry and something Disney couldn't refuse.
Helen Herman's demand for the third movie was $16 million!
Yes, she demanded $16 million for Matthew from Disney for the third movie. If Disney agreed, Matthew's income would firmly place him among the top-tier stars.
Of course, Disney couldn't accept such a demand.
Thus, the negotiations over salary dragged on, becoming a three-month tug-of-war.
After three months, Helen Herman, representing Matthew, finally reached an agreement with Disney and the co-producers.
Matthew signed the agreement.
This was a contract detailed down to the smallest aspects of an actor's life, spanning over a hundred pages, with the core being the salary.
To reduce upfront costs and investment risk, Disney proposed paying Matthew's compensation in the form of a base salary plus a share of the profits, with a base salary of $8 million, fully meeting Matthew and Helen Herman's expectations.
Considering Matthew's status and influence after the blockbuster success of "The Curse of the Black Pearl," receiving $6 million for a well-funded commercial film was reasonable. However, for a sequel, an automatic 20% increase to $8 million was both fair and logical.
The success of the first movie gave the main actors leverage to demand higher salaries. Despite its reluctance, Disney agreed to Helen Herman's condition to "lower the base salary but include profit sharing," albeit at a very low percentage. North American box office profit sharing started at 1% if revenues reached the break-even point, increasing to 2% if revenues exceeded $300 million, capping at 2%.
The salary for the third movie was more complex. Matthew took some time to understand it, even with Helen Herman's simplified explanation.
In short, Matthew's salary for the third movie was directly linked to the box office performance of the second movie.
His base salary was $11 million, automatically increasing by $3 million if the second movie's North American and global box office surpassed the first movie.
There was also profit sharing, with the same break-even point as the second movie. A notable addition was if the second movie's North American box office exceeded $400 million, Matthew's share would exceed the 2% cap, reaching 3%.
Other agreements included shares from TV, DVD, and online streaming, but all at very low percentages, none exceeding 1%.
The contract specified costs based on Disney's announced budgets, with $225 million for the second movie and $250 million for the third.
Lowering upfront salaries and adding profit sharing was Disney's desired outcome, effectively controlling investment and minimizing unnecessary risks while closely tying stars to the project.
This was also the result of negotiations between Matthew and Helen Herman. It appeared as a concession, reducing guaranteed pay, but Matthew knew the "Pirates of the Caribbean" series would not end with three movies and these sequels would surely be successful.
He and Helen Herman demanded a share of the North American box office, not profits, since box office figures are tracked by numerous authoritative institutions and publicly disclosed by the North American cinema alliance. Even though box office sharing percentages are far lower than profit sharing, there's no concern about Disney manipulating profit figures.
The next two sequels, also produced by Disney and promoted by Buena Vista, involved many costs transferring within the Disney conglomerate, making it very convenient for Disney to manipulate figures.
Hollywood's six major studios have a stellar reputation but won't hesitate to cut deep when it comes to money.
Normally, for a Hollywood star like Matthew, participating in movie profit sharing isn't difficult, but securing a share of the North American box office is. However, the success of "The Curse of the Black Pearl" and the popularity of Johnny Depp and Matthew's characters made Disney relatively passive in negotiations.
Additionally, Helen Herman learned that Johnny Depp's salaries for the two sequels were $15 million and $20 million, respectively, while Keira Knightley's were $4 million and $5 million.
Whether they had profit sharing was a business secret, unknown to Matthew and Helen Herman.
Like Matthew's contract, besides the base salary, those profit-sharing agreements were confidential, not to be disclosed.
The salaries showed the tiering among Matthew, Johnny Depp, and Keira Knightley, with Johnny Depp enjoying top-tier star treatment, Matthew's deal being upper second-tier due to the sequel, and Keira Knightley also in the second-tier. The discrepancy in pay between male and female stars in Hollywood is a long-standing issue, with women often earning significantly less for the same work.
After finalizing the contracts with Matthew, Johnny Depp, and Keira Knightley, Disney held a press conference to officially announce the return of Jerry Bruckheimer, Gore Verbinski, Johnny Depp, Matthew, and Keira Knightley for the "Pirates of the Caribbean" sequels, with the second and third movies slated for summer releases in 2006 and 2007, respectively.
"I'm thrilled to return to 'Pirates of the Caribbean'. It's going to be a great journey," Matthew said in an interview, eager to return to the set. "We have the best director, the finest actors, and the most talented cinematographer..."
He praised everyone involved with the project and concluded, "I believe 'Pirates of the Caribbean' will become one of the most successful series
in film history!"
After these statements, Matthew didn't address rumors about reconciling with Keira Knightley and left the press room, joining Johnny Depp in a nearby meeting room.
"Hi, Keira," Matthew greeted Keira Knightley upon entering. "You've gotten tanner."
She responded naturally, "From filming outdoors."
Matthew, speaking quietly so only they could hear, asked, "Are you free tonight?"
Keira hesitated, then shook her head, "I have a flight back to London at six."
Jerry Bruckheimer entered and announced, "Folks, we're collaborating again. There's just one thing: you must coordinate your schedules. Filming is tentatively set for late 2004 to 2005. I'll send the exact schedule to your agents once it's finalized."
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