OVERLAY REPORT

The film *Jerry Maguire* (1996) was a massive financial success, grossing more than **5.5 times its production budget** during its initial theatrical run alone. Its long-term profitability was further cemented by a record-breaking performance in the home video and television licensing markets. ### **1. The Budget** * **Production Budget:** **$50 million.** * **Context:** At the time, this was a significant but mid-range budget for a major studio film. A large portion of this went toward Tom Cruise’s salary, which was reported to be $20 million upfront against a percentage of the profits. --- ### **2. Box Office Performance** The film was the 9th highest-grossing movie of 1996 and had incredible "legs" (staying power), remaining in the Top 10 for months. | Category | Gross Earnings | | :--- | :--- | | **Domestic (U.S. & Canada)** | **$153,952,592** (56.3% of total) | | **International** | **$119,600,000** (43.7% of total) | | **Worldwide Total** | **$273,552,592** | * **Opening Weekend:** It debuted at #1 with **$17.1 million**, but its real success was its endurance; it stayed in theaters for nearly six months, eventually grossing nine times its opening weekend amount domestically. --- ### **3. Post-Theatrical Breakdown ("After" Earnings)** In the 1990s, the "secondary windows" (home video and TV) were often as lucrative as the box office. *Jerry Maguire* was a standout performer in these categories: * **VHS Sales and Rentals:** Upon its release on May 29, 1997, it became a massive hit. In its **first week alone**, it generated: * **$80 million** in VHS sales (over 3 million copies sold). * **$7.6 million** in rental revenue. * **Television Licensing:** As a TriStar Pictures release, the film was part of lucrative licensing deals with **HBO** (for pay-cable) and **CBS** (for network broadcast). While specific fee breakdowns for a single title are rarely public, blockbusters of this caliber in the late '90s typically commanded **$20M–$30M** for initial network broadcast rights and multi-year cable runs. * **DVD/Blu-ray:** The film was one of the early "must-have" titles for the DVD format (released in late 1997) and saw a high-profile 10th-anniversary and 20th-anniversary re-release on Blu-ray. * **Product Placement:** TriStar secured a **$1.5 million** merchandise and marketing service deal with **Reebok**. (Interestingly, this led to a real-life legal dispute because the film's theatrical cut omitted a planned Reebok commercial and included a scene of a character disparaging the brand; the commercial was later added to television airings to settle the dispute). --- ### **4. Profit Comparison and Net Results** To determine how the film compared to its budget, industry analysts look at the **"Cash Break-Even"** point. * **The "Rule of Thumb":** Typically, a film needs to gross 2.5x its budget to cover marketing (P&A) and the theaters' cut. For *Jerry Maguire*, this would be roughly **$125 million**. * **Actual Theatrical ROI:** With a $273M global gross, the film was already deeply profitable before a single VHS was sold. * **Tom Cruise's "First Dollar" Deal:** Tom Cruise had a "15% first-dollar gross" deal. This means he took 15% of the studio's share from the very first cent earned. Between his $20M upfront salary and his backend participation, Cruise is estimated to have made **$60 million** from the film—more than the entire production budget. **Summary:** *Jerry Maguire* turned a $50 million investment into over $273 million at the box office and likely another **$150M–$200M** in lifetime ancillary revenue (home media, TV, and streaming), making it one of the most profitable romantic dramas in Hollywood history.