Film Accounting Glossary
Buyout
What is a buyout?
A buyout is a single payment that covers a defined set of rights or overtime obligations in advance, instead of paying each use or hour separately.
A commercial talent buyout covers future usage across markets and media for a term; an overtime buyout builds a flat number of extra hours into a crew member's weekly rate. Buyouts simplify accounting but only hold if the underlying union agreement actually permits them.
Example
A $45,000 commercial talent buyout covers North American broadcast and digital for 18 months, replacing per-use payments. On the crew side, a weekly rate with an overtime buyout builds a fixed number of premium hours into the rate.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Deal memos and talent agreements. Only holds where the applicable union agreement actually permits it.
Common mistake
Assuming a buyout is available. Most union agreements restrict or prohibit buying out overtime, and an unenforceable buyout means paying the hours anyway, late.
Related questions
- What is an overtime buyout?
- A flat weekly or daily rate that builds a fixed number of premium hours into the deal, instead of calculating overtime hour by hour.
- Are buyouts allowed under union agreements?
- Sometimes, and often not. Where hours must be paid at scale, a buyout does not survive scrutiny, so the applicable agreement decides before the deal memo does.