Film Accounting Glossary
Above-the-line
What is above-the-line?
Also called ATL.
Above-the-line (ATL) is the section of a film budget covering the creative talent whose deals are negotiated before production starts: story and rights, writers, producers, the director, and principal cast.
ATL costs are largely fixed by contract before the first day of photography, which makes them hard to trim once the budget is locked. On the budget top sheet they are totaled separately from below-the-line so financiers can see how much of the spend is committed talent versus controllable production cost.
Example
On a $6M independent film, above-the-line might run $1.9M: $300k director, $900k cast, $250k writer, $450k producers. Below-the-line and post take the remaining $3.7M. Because the ATL deals are already signed, a $400k overage in week four has to come out of that $3.7M, not out of the cast.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
The top block of the budget top sheet, and the first section of every cost report. Negotiated by producers and business affairs rather than by department heads.
Common mistake
Budgeting above-the-line as if it can be trimmed later. Those deals are signed before the first day of photography, so a mid-shoot saving almost always has to come out of below-the-line instead.
Related questions
- What is included above the line?
- Story and rights, the writer, producers, the director, and principal cast, plus their fringes. Anything negotiated before production starts as creative rather than technical.
- Why is above-the-line so hard to cut once shooting starts?
- Because it is contractually committed. Cast and director deals carry guaranteed fees and pay-or-play terms, so the money is owed whether or not the schedule changes.