Acclaimed filmmaker Ryan Coogler, best known for writing and directing such smash hits as “Black Panther,” “Creed” and “Fruitvale Station,” has been making waves recently with his new movie “Sinners.” For those who don’t know, “Sinners” has already garnered over $70 million at the box office, despite having just released on Apr. 18. The film also had a very modest marketing push and very little studio support, making its success even more impressive. While “Sinners” has been drawing plenty of eyes from the general public, the behind-the-scenes story of Coogler’s Warner Bros deal has also enraptured creators, filmmakers and Hollywood film buffs alike. In fact, financial analysts have predicted that the “Sinners” deal could be worth millions for generations to come, while some studio insiders have expressed concern that the deal will destabilize the future of the industry if other filmmakers attempt to replicate it.
In order to understand exactly what terms are established by Ryan Coogler’s Warner Bros deal, and how they differ from the norm, let’s take a moment to analyze the agreement, the projected success of the movie and how its narrative reflects Coogler’s business acumen on this project. Those who have not yet seen “Sinners” can feel free to read ahead, as we won’t be sharing any significant spoilers for the movie. We will, however, analyze the nature of the film’s plot, in regard to Coogler’s writing style and personal attachment to the story. With no further preamble let’s dive right in, and see what we can learn about Ryan Coogler’s shocking agreement with Warner Bros.
How Are Directors Traditionally Paid?
If you’re not invested in the economics of moviemaking, you may be laboring under the delusion that all directors, actors and Hollywood screenwriters are raking in millions with each successive project, and sweeping up on the back-end with streaming and syndication deals. It may shock you to learn that many of the creators behind some of your favorite films- even major blockbusters, are struggling with debt, and earning wages not dissimilar to a nine-to-five job. In the case of Ryan Coogler, the filmmaker recently explained on an episode of “WTF with Marc Maron” that he was six figures underwater as recently as 2015. During that time, he had completed a degree program at California State University Sacramento, and had entered into a highly competitive master’s program at the USC School of Cinematic Arts.
As his films continued to get larger and larger, Coogler slowly found himself escaping poverty, paying off his debt and prospering within the Hollywood studio structure – though much of his work made millions for faceless execs operating behind the scenes. Traditional Hollywood outlets often see directors paid in one of two ways. Either they receive a salary, or a percentage of the film’s profits after it has recouped all investment costs. Extremely successful directors with a lot of industry sway may be able to argue for larger percentages, but even artists on the level of Quintin Tarantino or Martin Scorsese make most of their real money by attaching themselves as producers. Due to some funky Hollywood accounting, studios often claim that their films haven’t made any profit at all, effectively cutting directors off from their best chance at a major payday.
How Is Ryan Coogler’s Warner Bros Deal Different?
In the case of “Sinners,” Ryan Coogler managed to secure an unheard of deal, which offers him significantly more ownership and financial freedom than most filmmakers ever see. According to a breakdown in Vulture, Coogler negotiated a contract which included provisions which give him full exclusive rights to the film, starting 25 years after release. He also managed to secure final cut rights, meaning the studio couldn’t overrule certain editing and directing choices for the film. Perhaps most crucially, this contract also ensures that Coogler will make a percentage off of “Sinners'” box office return immediately upon release, rather than having to wait for the project to breach a certain profit threshold.
While we don’t have the exact figures of Coogler’s deal on hand, this means that the director is currently receiving a cut of the film’s $71 million+ in theater ticket sales. It also means that he will earn full royalty payments in 25 years’ time, offering him a chance to earn generational wealth by shopping the film to different streamers and cable vendors. He can also make additional money with brand deals, merchandising offers and more. Generally, these financial specs are available only to the major film studios. Many years from now, Ryan Coogler will have the chance to pass the movie down to his children like a family heirloom. Those children will then have the opportunity to sell the film, or continue handing it off to a revolving door of streaming platforms as a long-term investment.
How Did Everything Come Together?
It’s worth noting that Coogler entered into his Warner Bros deal with a massive amount of negotiating power. After breaking onto the scene with 2013’s “Fruitvale Station,” he quickly found critical and commercial success in the “Creed” franchise. In 2018, the Oakland, California native partnered with Disney to write and direct “Black Panther,” which grossed over $1.3 billion in box office revenue. This venture catapulted Coogler into the limelight as one of the most prolific Black filmmakers of his generation, and cemented his legacy as the youngest director to ever head up a billion dollar film. In 2022, he returned to write and direct the sequel “Black Panther: Wakanda Forever.”
Ryan Coogler’s request for ownership was more than just a show of force. Apparently he felt emboldened to demand these ultra-rare provisions due to the subject matter of “Sinners,” which is near and dear to the filmmaker’s heart. For those who have not yet seen the film, it centers on a pair of twin brothers in the Jim Crow South, who fight against racism and the forces of an untold evil to launch their own business. Coogler says that the story is directly inspired by his family’s real life history, making the ownership narrative one that is central to his identity as a Black American.
It’s also worth noting that Warner Bros execs likely had no idea that “Sinners” would be such a smash hit with general audiences. While the studio certainly believed in the project, as evidenced by their willingness to fight for the distribution rights in a bidding war with several other major studios, they likely had no idea that they’d stand to lose so much money by acquiescing to Coogler’s demands. Since “Sinners” is not a franchise film, a sequel or a project attached to any existing IP, Warner Bros heads likely believed that the film would fail to make massive waves. One unnamed studio executive even suggested in a discussion with Vulture that Coogler’s deal could spark “the end of the studio system.”
Will “Sinners” Really Destroy The Studio System?
While Ryan Coogler’s incredible partnership with Warner Bros certainly has a few executives in a panic, the deal likely won’t have any world-shattering impact. Coogler himself claims that he doesn’t intend to request these kinds of provisions again for his future work, since he doesn’t anticipate writing another film so deeply ingrained within his family history. If this historic deal is truly a one-and-done situation for the filmmaker, his hard work certainly paid off, as “Sinners” has wowed critics and audiences alike, and currently touts near-perfect Rotten Tomatoes scores by both metrics.
The film will undoubtedly be remembered and talked about in 25-years’ time, meaning it will surely bring in fresh eyes after Coogler’s full ownership clause kicks into gear. If nothing else, this deal should serve as an inspiration to young artists. It is likely that most filmmakers would never have even conceived of these demands until now, so we may see a ripple effect of creators demanding more agency, respect and ownership in their own work for the foreseeable future.
Will We See More Deals Like This In The Future?
It’s unclear if Warner Bros or any other studio will honor a deal like this again, but it certainly provides a framework for underrepresented voices in the filmmaking world. The fact that Ryan Coogler managed to secure this deal with Warner Bros of all companies is also inspirational, as the studio has garnered a reputation for disrespecting artists in recent years. Warner execs famously trashed completed films including “Batgirl” and “Coyote Vs. Acme” in order to write them off as tax losses, despite fans around the globe clamoring to see them. The studio was also a major holdout during the 2023 WGA and SAG-AFTRA strikes, which were waged over ownership of artist works, among other things. No matter what happens next, Ryan Coogler’s legacy will now forever be synonymous with ownership.
