This morning the Directors Guild notified directors who've worked for The Weinstein Co films and told them they would be notified about the status of their unpaid residuals with that company. This included the prominent Hollywood helmer who alerted me yesterday that he hadn't been paid a six-figure residual by TWC for the fourth quarter 2007 and had been told by the DGA that TWC hasn't paid any residuals for the last quarter on their 20 to 30 films.
Shortly after, a DGA spokesperson contacted me today with this formal statement about my posting yesterday: "The DGA has had a long and productive working relationship with The Weinstein Company and its predecessor. It is sometimes the case, with various companies, that residuals payments are late. We are working directly with TWC to resolve this issue and see that our members receive prompt residuals payments." (See my previous, More Red Ink? Now DGA vs Weinstein Co.)
Look, I understand that DGA members are quietly thrilled that I've made this problem public. So here's a thought: what other movie companies and/or studios are paying residuals late or not at all to the various guilds? I would like to shame them into paying up. On a related subject, I understand that the Screen Actors Guild has filed arbitrations for the millions of dollars in force majeure payments that remain unpaid and still due.


So Nikki if you get a list of who owes which SAG members what amounts for unpaid force majeure money, you will spill the details here right? Because if certain fans and viewers hear that certain networks and studios haven’t paid certain actors, well let’s just say that certain things can be done if you get my drift…
And they thought the public got ugly during the WGA strike or over certain show renewals…heaven help them if they don’t pay up what they owe cause no $100,000 a month PR firm can spin them out of those obligations…
Comment by VDOVault — May 14, 2008 @ 3:25 pm
Of course other companies/studios aren’t paying residuals in a timely manner, or at all. Also, what about scheduled payments being held back?
This is a GREAT story.
Comment by great story — May 14, 2008 @ 3:28 pm
I will give you the standard studio response to any issue like this: Sue me.
Comment by reelbusy — May 14, 2008 @ 3:47 pm
Nikki, thank you. If it wasn’t for you, no one would ever know shit like this happens. God knows THR and Variety kills these stories faster than Harvey Weinstein kills hot fudge sundaes.
Comment by Morris — May 14, 2008 @ 4:36 pm
The 5 or so major studios always pay residuals (at least for territories they distribute), it’s the indies that don’t. Why else do the Guilds always insist on residuals guarantees from a major and make the indies post bonds? Yet the guilds rush to sign interim deals with the indies; what a joke, if any talent ever works under one of those deals they would never get paid.
Comment by speakingfromexperience — May 14, 2008 @ 4:45 pm
@reelbusy
that’s true when they are not challenged on a collective scale
a site like this, and others, shine a light on fraud and empower individuals with communication and info
Comment by go, nikki! — May 14, 2008 @ 4:57 pm
What about SAG and WGA not paying the foreign tariffs to their own members
Comment by just a thought — May 14, 2008 @ 5:06 pm
Can we do anything about late Warner Bros TV residual payments? I’m still waiting for George Lopez residuals from September. WBTV claims they have to manually enter numbers into their new system. It’s ridiculous.
Comment by bp — May 14, 2008 @ 5:10 pm
And folks wonder why there are signs of a cash crunch in film financing.
Paying residuals should be routine and automatic, no matter the size of the company involved. Revenue from a production comes in, residuals go out. It’s not that complicated, no matter how hard they try to complicate it.
How can investors feel confident putting their money into productions, especially with smaller or independent companies, when what should be simple and routine administrative tasks become boondoggles?
Comment by Furious D — May 14, 2008 @ 6:24 pm
Once again, the WGA sits back and lets the DGA take the lead.
Comment by Scab — May 14, 2008 @ 6:35 pm
This an excellent article for someone like me… I still want to be a DGA member, and this type of information will be stored… because I don’t want to be green when I do become a member, and I haven’t received a payment for a job…
I’ll know why—
Big Business is Big Business
Comment by CHIne — May 14, 2008 @ 8:06 pm
VDOVAULT….
I don’t know why you think the tv watching public would care about residuals, they didn’t care about the over paid writers, they just cared about their favorite tv shows and of course the young cult fan cared about their speciality shows,is that what you call the public getting ugly? Don’t lose sight of the facts, the public thinks actors and directors are overpaid already from the jump. Residuals are just more proof of that for them.
Stick to the legality of this, if they were to be paid in a certain time frame and they were not, penalities apply and sue their asses!
Comment by Leslietired — May 14, 2008 @ 9:18 pm
Hey BP!
September?
Brother, as far as TV goes, unless it was on NBC, ABC, FOX, or CBS, don’t expect anything for 12 months. All non-network, cable, foreign, etc take about a year to pay. Not shady, just how its done.
Be patient, be surprised (to a degree). Don’t wait for residuals, book another job instead.
Comment by Emerson — May 14, 2008 @ 9:21 pm
Why don’t the Directors complain to the DGA? They voted for the contract.
Comment by Terrence Beasor — May 14, 2008 @ 9:42 pm
I find all of this interesting. I support the DGA on this one. However,in the back of mind it makes me wonder still how many more production film companies are in trouble still like the Capitol Films. But this is interesting story. I wonder as the summer rolls along how many more film production companies are financially insolvent which ones are in trouble too with the Director’s Guild.
Comment by chuck — May 15, 2008 @ 7:34 am
This is now pervasive in the business community. Get the work done, then either delay or don’t pay for it. It’s happening on all levels of society, don’t think that it’s only in Hollywood.
At this time, I have a book out by Trafford and it’s listed on Amazon. They don’t cooperate when I ask about printed/downloaded copies sold.
As for the idea of ’sue the company’. Good Luck! I won in court three times against my former employer, they still refuse to pay the judgment. The companies have more time, money and lawyers than you, unless you have a group fighting for you.
Be very happy and thankful that at least you have the guilds in Hollywood, the rest of American workers don’t and are paying the price.
Comment by Tom Segerson — May 15, 2008 @ 8:36 am
This problem is pervasive which is why these conglomerates need to be shamed into doing what they are legally obligated to do. Hurray for Ms. Finke for cutting to the truth and exposing these corporate pigs.
Comment by Angryyoungman — May 15, 2008 @ 10:40 am
The internet is the game changer here. Unchartered waters. It’s like Columbus ( or rather Al Gore ) discovering a new land, one untouched by unions. A scary place to live for talent, but a boon to big business.
I’d like to point out that the reason all these union contracts are coming up in the same year, is because of Melissa Gilbert and her Restore Respect group who pushed and achieved a one year extension to the SAG contract at that time. That set the stage for the trifecta of contracts this year. Didn’t care for her then, and I don’t care for her now. One more strike could be the final nail in the coffin for many, but SAG HAS to protect it’s own. Thanks Melissa, great foresight.
Peggy Lane O’Rourke
Comment by Peggy Lane O'Rourke — May 16, 2008 @ 11:43 am