<![CDATA[Defamer: Money Talks]]> http://cache.gawker.com/assets/base/img/thumbs140x140/defamer.com.png <![CDATA[Defamer: Money Talks]]> http://defamer.com/tag/money talks http://defamer.com/tag/money talks <![CDATA[ Errol Morris Reveals Pay-For-Play Secrets of Documentary Success ]]> We liked Errol Morris's new film Standard Operating Procedure just fine, and we hope he's right about his Abu Ghraib exploration's chances to buck the persistent Iraq-film box-office curse. We can't say, however, we're as eager to see it popularize the trend in Oscar-Winning Documentarians Paying For Interviews — a surprising and fairly icky career pattern Morris revealed at an SOP screening last week.

Evidently feeling the need to clarify (if not defend) himself, Morris responded today to Hollywood Elsewhere:

"As documentaries have become more and more mainstream entertainment, people are aware that there is money involved. The more successful documentaries become, the harder and harder it is to get people to do them for nothing.

"People [are] aware of my success and respond accordingly. I never paid people for the interviews in The Thin Blue Line, but Stephen Hawking was paid a lot of money for the rights to his book and his participation in A Brief History of Time. ... It is difficult to ask people for such an investment of time without taking care of them in some way — and that may involve paying them.

"I paid the 'bad apples' because they asked to be paid, and they would not have been interviewed otherwise. Without these extensive interviews, no one would ever know their stories. I can live with it."

In other words: "Without these extensive interviews, I wouldn't have had a movie." We don't generally look to Errol Morris for these glib oversimplifications, but there you have it. The whole thing gets us wondering who else has commonly been paying their subjects over the years; we can envision Morris's old friend Werner Herzog wandering into the jungle with a camera and a checkbook as he retraced Dieter Dengler's steps in Little Dieter Needs to Fly, or... Wait, what? That version was called Rescue Dawn? Never mind! As you were, Errol. We just know that Ben Stein would damn well never pay off a source — and God knows he can afford it.

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Tue, 22 Apr 2008 13:25:00 PDT STV http://defamer.com/index.php?op=postcommentfeed&postId=382778&view=rss&microfeed=true
<![CDATA[ Exclusive: Brad Grey's Next Court Battle Could Involve Investor Backlash ]]> bradgrey.jpgWhile we're generally for keeping all-around courtroom bore Brad Grey out of Hollywood's legal spotlight in the future, a source tells Defamer that the Paramount boss and his Viacom overlords could face mutiny from hedge-funders unhappy with the way their studio investment is shaking out. Specifically, we hear the money men behind Melrose Partners — which joined the 'Mount in 2004 under the Sherry Lansing/Jonathan Dolgen regime — may take legal action challenging the underperformance of its $231 million equity fund after Grey came aboard in early 2005.

We can hear the legal saber-rattling from here, but we also know there's precedent — and it favors Wall Street.

In a nutshell, the two-phase Melrose fund underwrote up to 20% of net production costs on films like Mean Girls, War of the Worlds and even The Stepford Wives — titles with wide-ranging but ultimately profitable gross performances based on factors beyond box office (product placement, television licensing, toy deals and more). The Melrose group said that results for Melrose I "collapsed" after Dolgen and Lansing left, with even successful films failing to turn a profit for the investors.

Making matters worse, a source close to the situation tells Defamer that spending on P&A went up almost 50% under ex-Paramount COO Rob Friedman and nearly doubled under Grey; an advisor to the group describes Grey's takeover as "[o]ne of the most stunning exercises in spending (he's) ever seen in his thirty-five years."

A studio source said the results of Melrose II "make Melrose I look like investing in Google pre-IPO," while an investor said: "Since we had no say in what movies were being made, what [we] were backing was Dolgen's conservative risk management strategy which had proven successful in the past. Once he was gone, fiscal controls began to deteriorate and when Brad Grey took over they went out the window altogether."

With Melrose II still in force and Grey apparently tightening the reins of late, we hear the investors reportedly want Paramount to credit a "retroactive reduction in P&A spending" to its account — like, yesterday. Again, this isn't necessarily new: Sony agreed to something similar earlier this year for investors in its Gun Hill Road fund. But Melrose's financial terms aren't specific, and best of all, even Viacom CEO Phillippe Dauman reportedly has told the investors to stand down or face a counterclaim.

It's not the sexiest contretemps in the Official History of Hollywood Pissing Contests, but with Grey on the hook, it bears noting. What do you know about it?

[Photo Credit: Getty Images]

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Wed, 26 Mar 2008 11:53:35 PDT STV http://defamer.com/index.php?op=postcommentfeed&postId=372540&view=rss&microfeed=true