Independent Film Production: Newsletter Archives

Before addressing what SAG contract to shoot under, first consider if you should shoot under a SAG contract at all. There are two really good reasons to shoot under a SAG contract:

NOT the SAG Experimental contract. This contract, which is for films under $75,000 in budget and allows you to defer all actor salaries, makes your film INELIGIBLE for distribution (outside of film festivals) without the written consent of all the actors in the film. In other words, if ANY actor in your film isn't happy with their performance, or the look of their hair, or anything else, they can absolutely stop you from ever distributing your film. And, if you're thinking you'll get around the rule by having actors sign away distribution rights BEFORE filming, forget it: the contract specifically excludes you from doing so - you must get the actors to give you written permission to distribute the film AFTER the film is shot. Bottom line: making a film under the SAG Experimental contract is too risky if you believe your film has any chance of ever getting distribution.

So if not the Experimental contract, what about the Limited Exhibition contract? This contract, for films under $200,000 in budget, allows you to pay actors a modest $100 a day, plus overtime, gives you the right to show the film at film festivals, and allows you to sell the film to a distributor without getting the actors' permission. But here's the problem: if you shoot under the Limited Exhibition contract, and eventually get distribution, you have to "upgrade" the contract. But not from a Limited Exhibition contract to the next least expensive contract, the SAG Modified Low Budget Contract (for films under $500,000); but from a Limited Exhibition Contract to a Low Budget contract, (which is for films under $2,000,000). That means you have to retroactively pay all your actors the difference between what you paid them under the Limited Exhibition contract -- $100 a day - and the amount owed them under the Low Budget contract - which is $466 a day -- before your film gets distribution. In other words, you will retroactively owe all your actors $366 more for every day they worked. If, say, you have 10 actors who all worked 20 days, you will have to write retroactive checks in the amount of $73,200, plus another roughly 20% of that in benefits. Nearly $90,000, all in.

You could have avoided much of these retroactive fees by just shooting under the SAG Modified Low Budget contract in the first place, instead of under the Limited Exhibition contract. By shooting under the Modified Low Budget contract, which is for films under $500,000, you have to pay more than twice the rate as under the Limited Exhibition contract -- $248 instead of $100 per day - but you don't have to "upgrade" the film if you get distribution. In other words, in the same example as above, with 10 actors all working 20 days, you would have paid, in total, $43,600 less under the Modified Low Budget contract than if you had shot under the Limit Exhibition contract, and then been forced to upgrade to the Low Budget contract.

Now, obviously, if you are making a $200,000 film, you may simply lack the funds, up front, when you make the movie, to even have the option of paying actors under the Modified contract as opposed to the Limited Exhibition contract. And if that's the case, make the film under the Limited Exhibition contract and then upgrade. But if you can afford to make your film under the Modified contract, it's an enormous savings in the long run. THE END

SAG Issues: What SAG Contract Should You Shoot Under?