Gross Points
Profit participation calculated as a percentage of a film's total revenue before deductions.
Definition
Gross points are profit participation calculated from a film's gross revenue rather than net profits. "First dollar gross" participants receive their percentage from the very first dollar of revenue, before any costs are deducted. This is the most valuable form of profit participation.
Modified gross or adjusted gross deals deduct certain costs before calculating participation, sitting between true gross and net profit deals in value.
Why It Matters
Gross points are the gold standard of backend compensation, reserved for the biggest stars and most powerful filmmakers. They guarantee payment regardless of how studios account for costs.
Understanding the distinction between gross and net points explains why major talent demands gross participation.
Examples in Practice
A major star receiving 10% of first dollar gross, earning $50 million on a $500 million worldwide hit.
Adjusted gross points kicking in after the film earns twice its production budget.
A director's gross participation making them more than their upfront fee on a successful franchise entry.