New Line's Robert Shaye Blacklists Peter Jackson

[Kaodi]

As a side note, looking at that list, I think it is impressive how well TMNT did. Especially when you consider that if those values aren't all in equivallent 2006 dollars, it ranks even higher.

 

[LightPhoenix]

I've read speculation (that IMO is spot on) that were the books to be opened up, it isn't so much Jackson that they're worried about, but when the audit is done they'll owe money to many more people involved - cast, crew, and what have you. By precedent, New Line will have to pay all of them - even though they didn't file the complaint. That would have a heavy impact not just on their profit line, but on their credibility. As it stands, it looks like Weta will never work with New Line again either, and neither will many of the actors associated with LotR. Imagine how many people will avoid them if it's found they shorted a lot of people.

 

[Vraille Darkfang]

Didn't realize that "blacklisting" has a deeper political connotation.

In any case, Mr. Shaye have vowed that New Line will not work with PJ for as long as he holds his position there.

And IF the Audit comes through (I'm guessing it will, even if it comes via a Court Order).

And New Line is found to have swept millions under the rug AWAY from those it should have gone to (and not just PJ; Grips, Actors, & other Union Members)....

I'm confident in saying Mr. Shaye's employment at New Line may end up pretty short.

 

[The Grumpy Celt]

How many "A" pictures, or blockbusters did New Line produce under Shaye's leadership before Jackson came along? Wasn't it just a studio that mostly did "C" stuff and a lot of slasher flicks?

 

[Hand of Evil]

How many "A" pictures, or blockbusters did New Line produce under Shaye's leadership before Jackson came along? Wasn't it just a studio that mostly did "C" stuff and a lot of slasher flicks?

See my post # 17 (unless I am on your ignore list ) for year on their top 25 - their last best movie was 1999, with the Spy who Shagged me! If you minus out the 3 LoTR films those years would be in line with 2006 (my math may be off as I am figuring in my head).

Market share for New Line
2006 - 2.7% of 9.02 Billion $$$
2005 - 4.8% of 8.84 Billion $$$
2004 - 4.6% of 9.38 Billion $$$
2003 - 10.1% of 9.21 Billion $$$
2002 - 9.5% of 9.15 Billion $$$
2001 - 6.7% of 8.12 Billion $$$
2000 - 4.9% of 7.57 Billion $$$

 

[The Grumpy Celt]

See my post # 17...

Well, they are doing better than I thought, but aside from the LotR Trilogy, they are still a B Material Studio. That's what Shaye's leadership does for the company, produce B Material and fight A List Directors.

 

[Ranger REG]

Well, they are doing better than I thought, but aside from the LotR Trilogy, they are still a B Material Studio. That's what Shaye's leadership does for the company, produce B Material and fight A List Directors.

"B" Material?

In Hollywood, any fantasy films (or made by Troma) are "B" by default.

 

[Hand of Evil]

Well, they are doing better than I thought, but aside from the LotR Trilogy, they are still a B Material Studio. That's what Shaye's leadership does for the company, produce B Material and fight A List Directors.

Yep, and that drop of 40% market share from 2005 (average minus LotR) has to be driving something, Jackson may be seen as a scapegoat by Shaye. I will have to look and see what they have planed for release this year.

 

[Steel_Wind]

From what I recall, the dispute is over whether New Line unfairly gave preference to their own companies for other marketing such as toys or whatnot, as opposed to soliciting for bids from lots of companies.

Correct.

I have litigated this issue upon behalf of clients, in the film and TV industry and here is how the scam works.

(This is a completely separate issue from net vs. gross points, btw).

In essence, there is a production company and a distribution company. (Though in reality there may be many sub-distributor companies on a per country/region basis, and the studio may not be an owner in all of them per se, but has an associated corp take a profit participation in the venture. This complicates things a lot and makes access to books much harder to get. When you are dealing with a license heavy property like LotR, it's far murkier).

The point shares of director, producers and other talent are in the earnings of the film after recoupment (net) or before recoupment (gross) are in the production company.

To minimize this number, studios often sell the product to another corp it owns or has a stake in - and then uses the distributor to make the money.

Fox did this with the syndication of the X-Files to screw over David Duchovny, you may recall.

If you make the dollar in the production company, it must be shared 100 ways.

Instead, you make the dollar in the distribution company, and pass on 35 cents (say) of that to the production company. The other 65 cents vanishes into costs of distribution and "fair profit" for the distributor.

And that's how you make hundreds of millions in sales disappear.

At its heart, when these methods are used (and they are common enough) this is self-dealing and oppression. It is as simple as that.

Now - I have no specific information on this case and I don't know the underlying facts. I am not saying who is right and who is wrong.

However....

If Jackson wants to see the books in these other companies and New Line does not want to show them - you don't need to know anything else. You already know who is right and who is wrong and what those books are going to show. Really. It IS that simple. Not a lawyer or accountant in the business who needs to hear more than that. The rest is accounting details, fights over source documents, motions, refusals and more motions.

It is a lengthy battle.

 

[Ranger REG]

However....

If Jackson wants to see the books in these other companies and New Line does not want to show them - you don't need to know anything else. You already know who is right and who is wrong and what those books are going to show. Really. It IS that simple.

*stares blankly*

Assume I'm NOT a pre-Law student, who's more in the right? PJ or New Line?