Suppose that a billionaire with a love of cinema but no movie making experience walked into a big-name studio with a script and checkbook in hand.
He says, “I’ve always wanted my script to be made into a blockbuster movie. Here’s $300 million for the budget. I only want a fraction of the profits and box office revenue; the rest is yours. Also, I’ll try to avoid meddling as much as possible, but I retain final veto power over casting, story, editing decisions, etc.”
How would the studio respond?
I can’t see why a studio won’t take up the offer. Even if the script sucks, they can easily budget things to make a profit even if the film isn’t released. Any additional money is gravy.
George Harrison did something similar to what the OP describes. When funding fell through for Monty Python’s “Life Of Brian”, Harrison stepped in and footed the bill.
I would imagine the billionaire would prevent this - i.e., the studio can’t spend just $60 million on the movie and pocket the remaining $240 million. He could demand rigorous accounting and auditing and also insist all $300 million be spent productively.
There have been a number of Christian-themed movies over the years, that I got the impression were financed this way. Mel Gibson? Roma Downey? Kirk Cameron?
Sure, but so what? The billionaire is footing the entire budget - everything the studio makes on top of his investment is gravy. Even if the billionaire demands rigorous accounting and even if the movie tanks at the box office, they’re still going to make millions in profit.
For example, 47 Ronin (cited by Wikipedia as the biggest box office bomb of all time based on absolute loss on worldwide gross) grossed $151 million dollars on a $225 million dollar budget.
If that budget had been entirely covered by a crazy billionaire, the $151 million would have been pure profit and the studio execs would have been pleased as punch.
Likely, The Outlaw and Incheon were two examples. I doubt it would be good but if the money is guaranteed upfront and it gets say a limited or just foreign market, or direct to video release the studio would have no reason not to.
That fraction of the profits could be a problem if you intend to use real accounting to determine it. If you’re satisfied with Hollywood accounting that won’t be a problem. Box office revenue? No way. Your script is a dog, they’re not giving up their guaranteed revenue.