Turnaround

What does the term "Turnaround" mean?

Turnaround is the term to describe a studio abandoned screenplay that can legally be picked up by another financier or movie studio, granted that the studio pays back the costs incurred by the first studio, plus interest. As only 1/12 of purchased scripts end up getting produced, it is important to get a turnaround clause if you take your screenplay to a studio. Many successful films have been picked up in turnaround after the first producing studio abandoned the project, some examples include Forrest Gump and ET.

What does it mean if a project goes into turnaround with 500,000 dollars against it?

If a project at a major studio goes into turnaround with $500,000 against it, the new purchasing entity must first repay the original studio for the funds spent developing the project, as well as interest. ET was bought by Universal in turnaround from Columbia. The film made so much money that Columbia made more money that year on interest on ET from the turnaround clause than on any of their own films.

Types of Deals To Know

Explain the following types of deals between a studio and a writer, a producer, and other producing entity and how they differ from the others.

1. Development Deal – this is a non-exclusive agreement between two parties to develop a screenplay from an original idea, or a novel, play, magazine, article, etc. into a screenplay. This arrangement usually exists between a writer and a producer or producing entity, but it may include other elements like a director, or producer.
2. First Look Deal – A term agreement lasting three or more years between a movie studio and a producing entity on a first look basis. Writer, producers, directors, and stars can act as producers in this arrangement. Basically, any idea, whether original or based on other material, gets pitched to this particular movie studio first. If the studio chooses not to develop the idea, the producer is free to take it to another studio or financier.
3. Exclusive Deal – A term agreement generally lasting three or more years between a movie studio and a producing entity on an exclusive basis. Writers, producers, directors, and stars can act as producers in this arrangement as well. Any idea whether original or based on other material gets pitched to the movie studio. In this arrangement, if the studio does not wish to develop the idea further, the producer CANNOT take it to another studio or financier.