Gross Participation
Compensation tied to a film's gross revenue rather than net profits, providing more reliable backend earnings.
Definition
Gross participation means receiving a percentage of revenue before most expenses are deducted. "First-dollar gross" pays from the first dollar earned. "Adjusted gross" kicks in after certain costs are recouped.
Gross participation is far more valuable than net profit participation because it's harder to manipulate through accounting. Only A-list talent commands true gross points—it's the most sought-after backend structure.
Why It Matters
Gross points actually pay out. While net profit participants often receive nothing despite apparent success, gross participants get paid regardless of how studios account for costs.
The distinction explains massive compensation disparities. Stars with gross points can earn more from a single hit than their entire career of upfront fees.
Examples in Practice
Tom Cruise's gross participation in Top Gun: Maverick reportedly earned him over $100 million beyond his base salary—demonstrating the value of gross versus net structures.
Two actors in the same film: one has 5% of adjusted gross (after $100M breakeven) earning $8M; the other has 10% net profits and receives nothing despite $500M worldwide gross.