The Walt Disney Company was unable to convince a jury that it’s convoluted accounting practices that strips the profit from any production was just the way of doing business. The result is that they now owe British production company Celedor $270 million as their share of profits in the “Who Wants To Be A Millionaire” franchise. Oops.
Disney, of course, says they will appeal. They lay the blame at Celedor’s agents who negotiated the deal. Until the appeal is settled, we don’t know how this will affect typical Hollywood accounting practices. But anyone signing a deal in Hollywood should continue to remember that if you take points on a production, make sure they’re Gross not Net. Okay.
More at the NY Times.
Previously: Millionaire could cost Disney.