Above‑the‑line (ATL) deals—actors, directors, writers, producers—can swallow 20‑40 % of an entire film budget if not handled shrewdly. :contentReference[oaicite:0]{index=0} Knowing union minimums, market “quotes,” and deal‑structure landmines (pay‑or‑play, MFN, first‑dollar gross, completion‑bond overrides) lets you secure name talent without torpedoing financing. The guide below unpacks each of those levers, adds real‑world numbers, and highlights where a script‑analysis pass from Prescene helps you walk into the room armed with precise scene counts, character days‑out‑of‑sequence, and line totals—data that strengthens your negotiating hand.
1. Map Your Above‑the‑Line Universe
Who’s ATL?
Lead & significant supporting actors, director, head writer/showrunner, executive producers. Treat anyone whose contract includes creative approvals or backend as ATL.
Budget Benchmarks
Average indie feature: keep ATL to ≤30 % of above‑the‑line + below‑the‑line combined spend; studios may push to 40 % when star power drives presales. :contentReference[oaicite:1]{index=1}
Quick Script Intel
Run the screenplay through Prescene to export:
- Number of speaking roles above X lines
- Scene‑by‑scene location breakdown (useful when an actor’s quote includes travel/per‑diem triggers)
- Total page count per character (helpful when quoting Schedule F “day‑player vs guarantee” debates)
2. Do the Quote Homework
| Union | 2024‑25 minimum that triggers negotiation |
|---|---|
| SAG Schedule F (feature) | $80 k salary “break point” → talent moves off day‑rate rules :contentReference[oaicite:2]{index=2} |
| WGA Step Deals | Story + screenplay min. = $112,557 for features ≤120 min. :contentReference[oaicite:3]{index=3} |
| DGA Theatrical Director | $21,350/week (2024) — above this, “overscale” is free‑market |
Insider tip: An actor’s quote (the last salary they received) often stands until they’ve had two “haircuts” at or below that level. If you can point to comparable films or a recent pay cut, agents may concede 10‑15 % without losing face.
3. Money Structures Producers Must Master
Pay‑or‑Play
Guarantees talent full fee even if they’re replaced or the project stalls. Use tiered triggers (e.g., 25 % upon rehearsal start, 75 % at first shoot day) to align risk. :contentReference[oaicite:4]{index=4}
Backend Buckets
- First‑dollar gross – rare, but still granted to A‑listers; payments start at ticket #1. :contentReference[oaicite:5]{index=5}
- Adjusted gross (MAGR) – deduct distribution & marketing; standard on studio pics. :contentReference[oaicite:6]{index=6}
- Box‑office escalators – sliding bonuses when revenue hits cost × P&A thresholds (e.g., 1 × budget + P&A + $10 M). :contentReference[oaicite:7]{index=7}
Negotiation leverage: Offer tiered bonuses tied to aggressive but realistic P&A recoupment—cheaper up front than raising the fixed fee.
Most‑Favored‑Nations (MFN)
Ensures no peer in the same tier gets better terms. Great for ensemble casts, but it caps your flexibility—avoid if you anticipate stunt‑casting a cameo at overscale. :contentReference[oaicite:8]{index=8}
4. Rights, Approvals & “Gotchas”
| Clause | Why It Matters | Producer Counter‑Moves |
|---|---|---|
| Creative approvals (script, co‑star, cut) | Can grind post to a halt. | Limit to “consultation” or define objective veto standards. |
| Sequels / remakes | Studio wants franchise rights; star wants sequel bumps. | Pre‑price bump (e.g., 115 % of first‑picture salary). |
| Merch & AI likeness | New SAG AI provisions require consent & pay for digital replicas. :contentReference[oaicite:9]{index=9} | Narrow to specific use cases, cap residual percentage. |
5. Timing & Windows
- Hold periods – Actors often grant 3‑6‑week rehearsal/fit/shoot holds; anything longer demands incremental “hold fees.”
- Letters of Intent vs Deal Memos – An LOI secures a star for financing presentations; a deal memo triggers legal cost—don’t flip to long‑form until money is escrowed.
- Option vs Shopping Agreements (writers/IP) – Options tie up rights exclusively; shopping agreements cost less but lack purchase certainty. :contentReference[oaicite:10]{index=10}
6. Packaging, Agencies & Post‑2024 Landscape
Packaging fees (agencies taking a percent of budget instead of 10 % commission) are largely defunct after the WGA‑ATA fight, but legacy contracts still surface. :contentReference[oaicite:11]{index=11} Confirm any lingering package before closing; financiers may demand its removal to free cash.
7. Completion Bonds: Read the Fine Print
Bond companies approve your ATL deals—and can veto “unbondable” clauses like huge pay‑or‑play triggers before Week 1. Knowing typical bond premium (2‑3 % of negative cost) helps you weigh whether a star’s quote pushes you over contingency. :contentReference[oaicite:12]{index=12}
8. Tactical Playbook for the Negotiation
- Present comparables with context – Use three films matching genre + budget + star marketability.
- Flip the ask – Offer backend against minimum scale to align incentives.
- Set parity caps – Prevent salary creep by locking MFN within defined cast tiers.
- Escrow & cash‑flow – Pay half of guarantee out of tax‑credit tranche to reduce gap‑lender fees.
- Document every revision – A living term sheet (Excel or Prescene notes) averts “he said, she said” draft fatigue.
9. Closing the Deal
- Deal Memo → Long‑Form – Expect 6‑8 weeks of lawyer reviews; build that into pre‑production schedule.
- Certificates of Engagement – Secure chain‑of‑title for each ATL participant; completion bond won’t close without them.
- Delivery Schedule – Tie final payment to delivery & acceptance of ADR, press junket, and social‑media support.
Final Thoughts
ATL deals hinge on granular knowledge of union schedules, real‑world quotes, and risk allocation. Walk in with concrete data (scene counts, union minimums, comps) and a flexible structure—guarantee + smart backend + controllable approvals. Tools like Prescene supply the hard numbers; the rest is your negotiating savvy.
With the right prep, you can land marquee talent, protect your bond, and still leave meat on the bone for below‑the‑line and contingency.
Happy deal‑making!
