The colossal success of Footloose, which showcased Alex Hayes's electrifying talents as its lead actor, singer, and dancer, solidified his position as one of Hollywood's most bankable young stars. The industry was abuzz with anticipation for what he would do next. Even before Footloose became a cultural sensation, Alex Hayes had already cultivated a golden reputation at the box office.
Films in which Alex Hayes had previously starred had consistently demonstrated remarkable commercial viability, often achieving domestic box office returns of at least ten times their production budgets. This powerful track record as a box-office draw, built on his compelling screen presence and ability to connect with audiences, was a key reason studios were now clamoring for him. With Footloose—a film made with an $8 million budget that served as a major vehicle for his dynamic, multi-faceted performance—becoming such a massive hit, his value skyrocketed. Offers were reportedly reaching $5 million for him to headline their next major pictures, a clear indicator of the industry's confidence in Alex Hayes, the star.
His bankability was evident even in projects where he wasn't the sole lead. For instance, the John Hughes teen classic Sixteen Candles, which featured Alex in a memorable supporting role and had recently concluded its theatrical run, proved to be a significant hit. The film amassed $73.12 million domestically and another $29.24 million in foreign markets, for a robust worldwide total of $102.36 million.
From this supporting part alone, Alex's deal, which included a 3% share of the domestic box office, earned him a notable $2,193,600. This success, combined with the industry's eagerness to secure him for leading roles at top dollar, signaled that Alex Hayes's proven ability to draw audiences as an actor was making him a central figure in Hollywood's future plans.
With Footloose solidifying Alex Hayes's status as a bona fide movie star whose presence guaranteed box office success, the industry was not only clamoring for his next acting role but also rife with speculation about his expanding ambitions. A persistent rumor began circulating through studio backchannels and agency corridors: Alex Hayes was reportedly considering wearing the producer's hat for his next film. While neither Hayes's powerhouse representatives at CAA nor any major studio would officially comment, the prospect of the young star taking on producing responsibilities for his future projects added another layer of intrigue to his already meteoric rise.
Elsewhere in the industry, CAA head Michael Ovitz and his colleague Nancy are deeply engaged in negotiations with various studios. Their current focus: securing a favorable distribution deal for the upcoming John Hughes-penned film, 'The Breakfast Club', an independent production aiming for a wide release and significant impact. Landing the right distributor with strong marketing commitments and fair terms was crucial for such a film to realize its potential.
Let's break down a hypothetical example of how domestic box office revenue for a highly successful independent film might have been divided in the mid-1980s.
Scenario:
* Film: An independent production.
* Production Budget: $1 million (paid by the independent studio/producers).
* Domestic Gross Box Office (GBO): $100 million (a massive hit for an indie film).
Hypothetical Revenue Split Example (Mid-1980s):
Here's one simplified way the $100 million could be distributed:
* Gross Box Office (GBO): $100,000,000
This is the total amount paid by moviegoers at the U.S. and Canadian box office.
Exhibitors' Share (Movie Theaters): ~$50,000,000
* Movie theaters (exhibitors) would typically retain a percentage of the GBO. While this could vary week by week (with the distributor getting a higher percentage in early weeks for big films), a common average over the film's entire theatrical run might be around 45-55% for the exhibitor.
* For this example, let's assume an average of 50% goes to the theaters.
* Exhibitors' Take: $100,000,000 * 0.50 = $50,000,000
Distributor's Gross / Film Rentals: $50,000,000
* The remaining amount after the exhibitors take their share is what goes to the film's distributor.
* $100,000,000 (GBO) - $50,000,000 (Exhibitors' Share) = $50,000,000
* Distributor's Deductions (from Film Rentals):
The distributor then makes several deductions from the $50 million in film rentals:
* a) Distribution Fee:
* The distributor charges a fee for their services (booking theaters, managing the release, accounting, etc.). This fee was typically a percentage of the film rentals, often ranging from 25% to 35% (or even higher in some cases, especially for independent films needing more support).
* Let's assume a 30% distribution fee in this example: $50,000,000 (Film Rentals) * 0.30 = $15,000,000
* b) Distribution Expenses (Prints & Advertising - P&A):
* These are the direct costs incurred by the distributor to release and market the film. This includes making the physical film prints, television and newspaper advertising, trailers, posters, shipping, etc.
* For a film that grosses $100 million (especially one that started with a small $1 million budget and became a breakout hit), the P&A expenses would have been substantial, likely ramped up as the film gained popularity. Let's assume P&A costs for such a wide and successful release were $15,000,000. (This figure could vary greatly).
* P&A Recouped: $15,000,000
* Total Deductions by Distributor: $15,000,000 (Fee) + $15,000,000 (P&A) = $30,000,000
Amount Remitted to the Independent Studio/Producers: $20,000,000
* This is the amount left from the film rentals after the distributor has taken their fee and recouped their expenses.
* $50,000,000 (Film Rentals) - $30,000,000 (Distributor's Total Deductions) = $20,000,000
* Independent Studio/Producers' Net Profit: $19,000,000
* From the $20,000,000 received, the independent studio first needs to recoup its initial production budget.
* $20,000,000 - $1,000,000 (Production Budget) = $19,000,000
Summary of Hypothetical Distribution:
* Movie Theaters (Exhibitors): Retain $50,000,000
* Distributor: Earns $15,000,000 (Distribution Fee) + Recoups $15,000,000 (P&A costs) = Total collected by distributor $30,000,000
* Independent Studio/Producers: Receive $20,000,000, resulting in a net profit of $19,000,000 (after their $1 million production cost).
Leveraging Hayes's undeniable star power, CAA was pushing hard, demanding unprecedentedly favorable terms from potential distributors. Their primary target: a distribution fee slashed to just 20%, significantly lower than the industry standard.
The major studios—Paramount, Warner Bros., and Universal, all frontrunners to land the highly anticipated film—were hesitant. While acknowledging Alex Hayes's Midas touch at the box office, proven by the string of hits he starred in, they balked at the low 20% figure. Their usual distribution fees ranged from 25% to 35%, and they were reluctant to set such a potentially costly precedent, even for a star vehicle that promised substantial returns. They had profited handsomely from Alex's previous starring movies from their own studios, but business is business.
As talks seemed to stall with the major players, an unexpected contender entered the fray: MGM Studios. In the mid-1980s, MGM was navigating a complex period. Years of corporate maneuvering, including asset sales and mounting debt, had left the legendary studio in a financially leaner position compared to its dominant rivals. While still possessing a storied name, MGM was widely perceived as being hungrier, perhaps more willing to take calculated risks or structure creative deals to secure potential hits and regain market prominence.
MGM came to the table ready to deal, but with conditions that reflected both their need for a hit and their financial realities. They weren't prepared to meet CAA's flat 20% demand outright. Instead, they proposed a tiered distribution fee structure based on the film's domestic box office performance:
* If the film grossed less than $50 million, MGM would take a 30% distribution fee from film rentals.
* If the film grossed $50 million or more, the fee would drop to 25%.
* And if the film became a major breakout hit and crossed $60 million, the fee would further reduce to 22%.
This performance-based offer presented a dilemma for CAA. While the 22% rate for a big hit was close to their target, the higher 30% fee for a sub-$50 million gross was a risk. Ovitz and Nancy carefully considered the project: The Breakfast Club was being made on a lean $1 million budget, a testament to Hughes's efficient style. But despite starring Alex Hayes, it was fundamentally an ensemble character study set almost entirely within the confines of a school library. Could such a film realistically cross the $50 or $60 million thresholds required to trigger the lower fees? The potential was there, thanks to Hayes and Hughes, but it wasn't a guarantee.
They consulted with their clients, Alex Hayes and John Hughes. Both filmmakers, however, expressed immediate and unwavering confidence in the project's unique appeal and connection with the youth audience. They believed the film's intimate setting and relatable characters would resonate powerfully, overriding any perceived commercial limitations. They readily agreed to MGM's tiered terms.
Before finalizing, CAA added one more crucial condition: MGM had to commit contractually to spending a minimum of $5 million on Prints & Advertising (P&A). This was vital to ensure the distributor wouldn't skimp on marketing if they got nervous, giving the $1 million film the backing it needed to find its audience. Seeing the filmmakers' commitment and sensing the potential, MGM agreed to the P&A costs.
With all terms settled, the distribution contract between the filmmakers (represented by CAA) and MGM Studios was signed.
Interestingly, reflecting their deep belief in the script and each other, Alex Hayes and John Hughes had already begun shooting 'The Breakfast Club' several days prior Maine North High School in Des Plaines, Illinois.