Guarantee (filmmaking)

In filmmaking, a Guarantee is part of an actor or director's contract that guarantees remuneration if - through no fault of their own - they are released from that contract. It is known informally as “Play-or-Pay”.

Many stars insist on guarantees in their contract due to the major time commitment agreeing to appear in a film can mean. For example, Kurt Russell's decision to appear in the film "Soldier" - for which he was paid $15 million - was a total commitment of 18 months, during which he was not able to appear in another film. If the film were cancelled, or if he were replaced (but not if he withdrew of his own accord), Russell would be paid $15 million, or a large part of that fee, to compensate him for clearing his schedule.

Studios are reluctant to agree to guarantees but accept them as part of the deal for signing major talent.

Examples of “Play-or-Pay”

*Director Guy Hamilton originally agreed to direct "Superman" when it was due to film at Cinecittà Studios in Rome, Italy. When the producers realized that they could save millions by filming in Britain, Hamilton - a tax exile who lives in the Caribbean - had to withdraw. He insisted he was paid his $1 million fee in full.

*Director Brian De Palma had originally wanted his "Greetings" star Robert DeNiro to play Al Capone in his film "The Untouchables". When DeNiro turned him down, De Palma cast a superb second-choice, British actor Bob Hoskins. However, De Palma and producer Art Linson were determined to get DeNiro, and when he agreed after all, Hoskins was released from his contract. Later, Hoskins received a check through the mail for $200,000. He rang De Palma up and asked if he had “any other films you "don't" want me to appear in.”

*In 1991, celebrity couple Julia Roberts and Kiefer Sutherland were supposed to appear together in a Western called "Renegades". When Roberts called off their engagement, Sutherland was paid $3 million to leave the project. For a while, producers kept Roberts on the project as they tried to pair her up with Mel Gibson.

*Arnold Schwarzenegger agreed to appear in a mega-budget historical adventure called "Crusades" for Mario Kassar's company Carolco Pictures. When the projected budget went past $200 million, financing collapsed, despite pre-production expenditure of $20 million. Instead of collecting his “Play-or-Pay” $15 million, Schwarzenegger asked for all rights to the script in the hope that one day he could get it made.

*Another example of a star turning down his guarantee was on Oliver Stone's proposed Manuel Noriega biopic. When the project collapsed, star Al Pacino decided not to increase Stone's misery and asked for no money.

*In the first modern "Batman" film, Billy Dee Williams arranged for a guarantee when he was cast as DA Harvey Dent to ensure he would appear in a sequel as the character's supervillain persona, Two-Face. However, when the character was selected for "Batman Forever", the producers decided to pay the penalty fee to Williams to cast Tommy Lee Jones instead.