Todd Phillips has a $35 million "Hangover"

Phillips has bet at many a blackjack table, but never wagered as smartly as he did on “The Hangover.” Because he insisted on his cast, Warner Bros. Pictures Group prexy Jeff Robinov gave him a budget ceiling of $34 million. The only way Phillips could make that number was to take a deal similar to the Jim Carrey “Yes Man,” pact, which meant working for scale and using salary and gross to buy his way into being an equity investor. 

Had the comedy not covered the studio’s investment in budget and P&A, Phillips would have lost. But Phillips liked his script, had seen Galifianakis 15 times doing standup and felt Helms and Cooper were poised for breakout performances. The gamble gave him slightly more than 15% of the film's revenue, which makes possible a payday that will be far higher than if he had taken his usual fee.  

Neither Phillips nor Warners would comment on his payday, but the director said it was less about money than making a movie the way he did “Old School,” when he was forced to fight for Will Ferrell, Vince Vaughn and Luke Wilson because none of them were proven comedy stars at that point.   

“To me, the casting was as crystal clear as it was on `Old School,’ ” Phillips said. “I remember some executives just didn’t understand the casting on `The Hangover.’ I felt we’d been seeing the same faces in a lot of comedies and that it was time to mix it up. It’s an aggressively funny film and the cast was part of informing that tone. There is a level of reality that those new faces brought.

"Warners was a bit apprehensive, but Jeff said very politely, `Look, I’ll make the version you want... if you can do it for this number. That number basically required me to take no money and cut back in other areas as well. But I’ll gamble on myself anytime. It wasn’t like I knew the film would do $200 million, but I thought if it did `Old School’ business, I’d break even and that would have been fine with me."

Though Robinov wouldn't divulge Phillips's payday, he made clear that he and WB chief Alan Horn will be happy to pay off in success.

“We liked that script, we believed in Todd and we were trying to break into the comedy business, something Warner Bros. wasn’t known for,” Robinov said. “Greenlighting `The Hangover’ with three actors who, though talented, weren’t well known put a lot of pressure on the budget. We couldn’t be happier for Todd. He believed in the picture and took a risk alongside the studio and he deserves this.”

Phillips has several projects percolating including “Man-Witch,” the comedy that he originally expected to direct with Jack Black. Galifianakis is being courted as the possible star, but Phillips has stepped out as director. His Green Hat Films banner will produce with Neal Moritz and they will look for a new helmer.

Phillips won’t gamble on either of the next two films. Instead he'll earn his new deal, which is an escalated upfront fee against first-dollar gross, in a deal made by CAA.

In a climate where Hollywood studios continue to tighten budgets as their P&L statements reflect the dropoff in DVD sales, Phillips said it is not a calamity for a filmmaker to be incentivized to keep costs down and bet on a film he believes in.

"There is a sea change in the film business right now," Phillips said. "The studios are making fewer movies, things are getting more conglomerated and it's just tougher. As a filmmaker, you do what you have to to get your film made. Was there a version here where I could have made zero dollars? Of course, if it didn't work. But betting on yourself is very different than betting on a hand of blackjack. I knew what I had. I just had to deliver. It was exciting, there was a feeling of adrenaline when I showed up to work each day. I would bet on myself any day of the week, on any project."