The Hollywood Reporter has published an analysis of how profits from The Hobbit will be shared, with details of how Peter Jackson is one of the small group who will receive a share of the profits.
The Los Angeles publication says Jackson’s share is calculated by what sources call an “enormously complicated” deal with escalators — i.e., the more the movie earns, the larger a share he takes of the profits.
Other profit participants include the Tolkien estate, which sources say will receive 7.5 percent of “adjusted gross,” and Saul Zaentz, the megaproducer of such films as Amadeus and One Flew Over the Cuckoo’s Nest, who spent years trying to get Lord of the Rings off the ground and is a first-dollar player.
The deals were renegotiated when Guillermo del Toro dropped out as director of The Hobbit in 2010 and Jackson stepped in to replace him.
The main profit share is divided equally between the film’s two studios, Warner Bros. (parent of New Line Cinema) and MGM.
Also involved are Bob and Harvey Weinstein, who negotiated a piece of the property long ago but were not actively involved in the current film or its predecessors, though they were involved in the early development of The Lord of the Rings.
Read the report in full here