Film Accounting Glossary
First-dollar gross
What is first-dollar gross?
Also called first dollar, or FDG.
First-dollar gross is the strongest form of profit participation: the participant is paid a percentage of gross receipts from the first dollar received, with almost no deductions taken first.
It is reserved for the most leveraged talent and, in practice, is now often replaced by structures based on a picture's cash break-even or performance bonuses. Because it comes off the top, first-dollar gross materially changes the economics for everyone below it.
Example
A 10% first-dollar gross participant on $80M of gross receipts is paid $8M before fees, expenses, or negative cost are recovered. Every other participant's break-even moves out by that $8M, which is why it is granted so rarely.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
The most senior participation position, reserved for the most leveraged talent and increasingly replaced by cash break-even structures and bonuses.
Common mistake
Granting it without modelling the effect on everyone else. It is paid before cost recovery, so it moves break-even out for every junior position on the picture.
Related questions
- What is first-dollar gross participation?
- A share of gross receipts paid from the first dollar received, with almost no deductions taken first. The most senior participation position there is.
- Is first-dollar gross still common?
- It is rare, and increasingly replaced by structures tied to a picture's cash break-even or by performance bonuses, because of what it costs everyone below it.