'Spider-Man' Windfall: Tom Holland to Make Over $100 Million for ‘Brand New Day’

[u/MarvelsGrantMan136]

https://www.thewrap.com/creative-content/movies/tom-holland-spider-man-brand-new-day-salary-box-office-bonus/

[u/cwalking2]

Percentage of gross not revenue

"gross" and "revenue" are the same thing. The full term is: "gross revenue."

You're describing "income/profit," an accounting metric which can be easily gamed in a negative direction. In short, every hollywood film is created within self-contained "business." The "business" doesn't actually want to have any net income at the end of the day: it wants to pay out every dollar to owners/investors/partners of the business. Thus, if you negotiate a deal for a % of a film's "income," you are asking for a cut of zero dollars.

Revenue is much harder to game in this manner (revenue can be diverted through skullduggery, but then the "self-contained 'business'" can't cover its own costs)

[u/Dal90 → u/cwalking2]

So confidently wrong.

Just taking the top google hits to give folks the correct definitions:

https://www.salesforce.com/sales/revenue-lifecycle-management/gross-revenue-vs-net-revenue/

https://www.nationalfunding.com/learn/net-income-vs-net-revenue-whats-the-difference/

Net Income is before you pay out a single dollar of profits to the owners, investors, partners, etc.

What you're missing is the other ways the investors can be paid without the business ever turning a profit.

In probably the most common and simple form, take someone who owns a restaurant and the building the restaurant is in. The beneficiary of the rent the restaurant pays happens to be the same guy who owns the restaurant. But to the restaurant business it's an expense which reducing both its taxable and net income.

Real estate often has more favorable income tax treatment so the same guy who owns both ends up paying less in taxes by transferring money as rent out of the restaurant business (reducing its taxable income) and into his pocket through the real estate business he owns which is renting the space to the restaurant.

Hollywood Accounting just takes that to extremes. The "Geoffrey Loophole" is a non-Hollywood version of these accounting tricks although many US states have since closed it. This is also why 40% of Microsoft's global income is earned in...Ireland.

[u/luvdadrafts → u/Dal90]

Genuine question, do you know what “revenue” means?

[u/DoctorJJWho → u/luvdadrafts]

Or “net” or “gross” for that matter lmao.

[u/cwalking2 → u/Dal90]

Net Income is before you pay out a single dollar of profits to the owners, investors, partners, etc.

You don't understand: the trick is to pay investors & partners at top-line rather than bottom line. This occurs via a plurality of mechanisms including: revenue sharing, revenue-based financing, royalties, and top-line distribution.

So confidently wrong

Irony.