If you wish to make a ton of cash in Hollywood, your purpose needs to be to create a TV present that airs lots of of episodes in syndication all around the world for years and years to return. That is how individuals like Jerry Seinfeld, Larry David, Chuck Lorre (creator of “Two and a Half Males” and “Huge Bang Principle“) and Seth MacFarlane have develop into so unimaginably wealthy.
The one main draw back of this purpose, apart from the truth that it has a particularly excessive failure charge, is that as a way to attain this huge pot of gold on the finish of the rainbow, you might be signing up for a really high-stress job that requires practically 24 hours a day of labor for the higher a part of a decade. Except you are Paul Haggis.
As we’d describe it later, “It was probably the most profitable factor I ever did. Two weeks of labor. They by no means even used my script!”
A Life-Altering Telephone Name
Means earlier than he received two Academy Awards for the 2004 movie “Crash,” Paul Haggis acquired a cellphone name that modified his life (and checking account) ceaselessly. The decision got here from a serious tv studio that was determined to have him re-write the pilot for a brand new present they had been growing known as “Walker, Texas Ranger.” It was primarily a contract job that Paul labored on for lower than two weeks. And for his efforts on this freelance job, Paul was given a co-creator credit score on the present. A present that finally aired 200+ episodes and was massively profitable in syndication in over 100 nations. For these two little weeks of labor, you’ll not consider how a lot cash Paul Haggis ended up making…
Origins Of Walker, Texas Ranger
Sooner or later in 1992, CBS bought the rights to provide a TV pilot centered across the adventures of Sergeant Cordell Walker, a member of the Texas Rangers legislation enforcement company. The present was initially conceived by the tv arm of a low-budget movie studio known as Cannon Movies. Cannon Movies is most well-known for producing 1985’s “Invasion U.S.A.” and 1986’s “The Delta Pressure,” each of which starred a little-known American martial artist named Chuck Norris. After singing Chuck to star as Walker, all the opposite casting choices fell into place easily. There was only one drawback. A month earlier than CBS was scheduled to movie the pilot for “Walker, Texas Ranger” (WTR), studio executives received chilly toes concerning the script. This really occurs on a regular basis, particularly on a undertaking studios suppose has the potential to be an enormous hit.
Paul Joins The Challenge… Briefly
To treatment their worries, the CBS executives reached out to an up-and-coming TV author named Paul Haggis to “punch up” their pilot script. Previous to engaged on WTR, Haggis had loved a reasonably profitable profession in tv courting again greater than 15 years. He had written and produced for “Who’s the Boss,” “The Information of Life,” and “Diff’lease Strokes.” His greatest hits had been 1987’s “thirtysomething,” for which he served as each a author, producer, and director, and 1989’s “Metropolis,” which he wrote and created. Paul did not suppose a lot of the Walker, Texas Ranger’s prospects as a tv present, and he spent lower than two weeks writing his model of the pilot, which was then submitted to CBS. As a reward for his two-week freelance job, Paul was given a “Co-Creator” credit score on the present.
Paul Haggis – Walker Texas Ranger Fortune / Astrid Stawiarz/Getty Pictures
Sudden Huge Success
At present, “Walker, Texas Ranger” is usually well-known for being a punchline instance of cornball tv that all of us like to mock. On the finish of his run on NBC’s Tonight Present, Conan O’Brien performed clips from WTR each night time to make enjoyable of the present‘s lame plotlines and tacky performing. So it would shock you to know that in its run, “Walker, Texas Ranger” was an enormous success. After premiering on CBS on April 21, 1993, WTR was an instantaneous hit with audiences round America. Every episode throughout that first season averaged slightly below 12 million viewers. For comparability, the primary season of CBS’ “The Huge Bang Principle” averaged 8 million viewers. The second season was equally profitable, and by the point the third season rolled round in 1995, WTR was a high 20 present. Between 1993 and the present‘s finale on Could 19, 2001, “Walker, Texas Ranger” aired 202 episodes over 8 seasons. The present additionally spawned a TV film, a short-lived spinoff, and, consider it or not, three novels. And due to that little co-creator credit score earned for 2 weeks of labor, WTR’s success put a ton of cash in Paul Haggis’ checking account.
Syndication: The Actual Hollywood Gold Mine
As co-creator, Paul Haggis was entitled to a bunch of very profitable revenue streams. For instance, he possible earned roughly $3000 per episode “character charge” for serving to create the present‘s collection common characters. Whereas $3000 per episode may not sound like so much, this charge amounted to roughly $75,000 a yr for eight years ($600,000 whole) with out Paul needing to carry a finger. However as you might have guessed by now, $75,000 a yr pales compared to Paul’s actual windfall: worldwide syndication rights.
Factors
The one actual technique to get insanely wealthy in TV is by proudly owning a few of a present‘s “factors.” A degree is just a share of possession out of 100 potential factors. You probably have one level, when the present is offered on DVD or into syndication, you might be entitled to 1% of all the cash that’s generated. A mean first-time present creator would in all probability earn 3 or 4 factors on his or her present. A creator with just a little little bit of expertise and success on their resume is perhaps given 10 factors. A robust super-producer with a tremendous monitor file, like Chuck Lorre, can simply demand 30 factors to create a present for a community. When Lorre’s present “The Huge Bang Principle” offered its first 100 episodes into syndication, TBS and Fox paid a mixed $2 million per episode for the rights. This deal alone generated $200 million in income. Chuck reportedly has 30 factors on Huge Bang and, subsequently, earned $60 million off this deal alone. It has been reported that over the lifetime of Huge Bang Principle, every level will generate $15-20 million. Meaning Chuck Lorre’s 30 factors will finally earn $450 – 600 MILLION off The Huge Bang Principle alone.
But it surely will get higher. Rights are offered nation by nation with related transactions and syndication offers normally solely final 5 years. After 5 years, the reveals are offered once more. Since WTR first entered syndication in 1997, the present has had 4 gross sales rounds up to now. Additionally, it needs to be famous that when syndication comes up for renewal after 5 years, the quantity paid per episode goes down. For our functions, we’re going to conservatively assume that the second spherical sells for 75% of the primary spherical, the third spherical drops to 50%, and the fourth drops to 25%. This occurs as a result of individuals do not wish to preserve paying excessive premiums for episodes that everybody on this planet has already seen 10 instances.
For somebody like Paul Haggis, an up-and-coming star with a sizzling resume, it is not unreasonable to imagine that he was in a position to negotiate 10 factors to work on Walker’s pilot for the determined studio execs. However simply to be conservative, as an example his two weeks of freelance work resulted in 5 factors (two factors greater than somebody with no expertise in any respect). “Walker, Texas Ranger” went up for public sale within the American syndication market instantly after the fourth season led to Could 1997. The winner of the public sale was the USA Community, which agreed to pay a hefty $750,000 per episode to accumulate the rights.
(Photograph by Sebastian Reuter/Getty Pictures)
Worldwide syndication works just a little in another way. Worldwide rights are offered earlier than the present even airs its first episode as a method for the studio to hedge its guess and scale back prices. Studios mainly offload the worldwide rights at a reduction upfront to rapidly earn again some assured cash upfront. Worldwide networks don’t pay as a lot cash for a present as a result of worldwide markets should not as invaluable for advertisers. For our functions, we’re going to conservatively assume that worldwide syndication gross sales generate 50% as a lot cash as American gross sales. Certain, some markets like Canada and Europe pay greater than that, however plenty of nations like Brazil or Estonia pay method much less. Utilizing these numbers, here is how a lot “Walker, Texas Ranger” has possible generated over its syndication lifetime to this point:
First run sale: 1997 – 2002
US market: $750k*200 episodes = $150 million Worldwide: $375k*200 episodes = $75 million First run whole: $225 million
Second run sale: 2002 – 2007 (75% of first run)
US market: $562k*200 episodes = $112.5 million Worldwide: $281k*200 episodes = $56.25 million Second run whole: $168.75 million
Third run sale: 2007 – 2013 (50% of first run)
US market: $375k*200 = $75 million Worldwide: $187.5k*200 = $37.5 million Third run whole: $112.5 million
Fourth run sale: 2014 – 2019 (25% of first run)
US market: $187.5k*200 = $37.5 million Worldwide $93.75*200 = $18.75 million Fourth run whole: $56.25
Complete all 4 rounds: $562.5 million
Paul Haggis’ Syndication Payday
Utilizing our conservative estimate of 5 factors, that will imply Paul Haggis has earned AT LEAST $28.125 million over time from “Walker, Texas Ranger” syndication offers. If he had 10 factors, which might not be unreasonable, Paul’s take over time could be just a little greater than $56 million. Even when we’re someplace within the center, it is secure to imagine Paul Haggis has earned someplace between $30 and $50 million off a present that he labored on for lower than two weeks greater than 20 years in the past. And also you wish to know the funniest half? CBS by no means even used his script! They threw his model proper within the trash however had been contractually obligated to honor his deal. In an interview years later, Paul remarked on his unimaginable luck:
“It was probably the most profitable factor I ever did. Two weeks of labor. They by no means even used my script!”
Though the cash was incredible, Paul wasn’t at all times so pleased with his tacky contribution to tv historical past. In actual fact, the embarrassment of being related to Walker instantly contributed to Paul’s motivation for writing and directing the 2004 film “Crash,” for which he received two Academy Awards (Finest Authentic Screenplay and Finest Image). In his personal phrases:
“I agreed to put in writing the Walker, Texas Ranger pilot as a result of I believed it could simply go away, nevertheless it grew to become this enormous hit and I keep in mind waking up at 3 or 4 within the morning in a chilly sweat, dripping moist. I imply, I used to be drenched. I simply pictured my tombstone and it stated: ‘Paul Haggis: Creator of Walker Texas Ranger.’ So the impetus for making these motion pictures is basically simply to wipe that picture from my thoughts.
Even when he had by no means written and directed Crash, with $30-$50 million within the financial institution, may life have actually been that dangerous? Both method, this instance will in all probability go down in Hollywood historical past as probably the most amount of cash ever earned for the least quantity of labor within the shortest period of time! So add that to your wall of accolades, Paul!