Above-the-Line

Definition

Above-the-Line (ATL) refers to the creative and management positions in a film budget whose costs are traditionally listed "above the line" in budget documents. These positions typically have:

• Fixed contracts (not hourly/daily)
• Creative control or management authority
• Higher individual costs
• Pre-defined salary structure

Main Categories of Above-the-Line

1. Producers

2. Director

The Director is typically the highest individual decision-making authority and leader.

3. Writer

4. Lead Cast

Lead cast costs are typically the largest ATL component.

Notes:

• Lead cast often negotiates for:
• Backend points (% of profits)
• Approval over director/co-stars
• Creative control on hair/makeup/wardrobe
• First-look deals on future projects

5. Key Creative Department Heads (ATL-classified)

Depending on film scale/budget:

ATL vs. BTL Differences

ATL Budgeting Process

Step 1: Key Creative Hires (Weeks 1-4)

Producer/Director Hiring:

• Producer/Financier Decisions
• Evaluate Director Candidates
• Deal-Making with Agents
• Sign Contracts

This Decision Determines: Rest of Budget Size

Step 2: Cast Contingent on Director (Weeks 5-8)

Casting Process:

• Casting Director works with new Director
• Script Adjustments Based on Available Cast
• Contact Agents of Top Candidates
• Offer Letters

Casting Strategy Decisions:

• "Name" Lead vs. Unknown Talented Actors
• This Choice Has Massive ATL Budget Implications

Step 3: Department Heads (Weeks 8-12)

Director Assembles Their Team:

• DP (Director of Photography)
• Production Designer
• Composer (if early hire)
• Casting Director
• Editor (Preliminary Contract)

Step 4: ATL Budget Finalization (Weeks 12-16)

• Line Producer Totals All ATL Deals
• Total ATL Cost Determined
• Rest of Budget (BTL + Post) is Calculated
• Producer Confirms or Negotiates ATL Costs Down

Typical ATL Budget Allocations

Scenario A: Mid-Budget Studio Film ($5M)

Producer: $300K
Director: $350K
Writer: $100K
Lead Male: $400K
Lead Female: $300K
Supporting Cast (3-4): $400K
DP: $100K
Production Designer: $100K
Composer: $75K
Casting Director: $50K
Other ATL: $50K

TOTAL ATL: $2,225K (44% of $5M budget)

Scenario B: Low-Budget Indie ($500K)

Producer(s): $30K (deferred, 50%)
Director: $20K (deferred, 75%)
Writer: $10K (deferred, 80%)
Lead Cast (2): $80K
Supporting/Extras: $50K
DP: $15K
Other: $15K

TOTAL ATL: $220K (44% of $500K budget)
NOTE: Heavy Deferrals, only $110K real cash

Scenario C: High-Budget Blockbuster ($100M)

Producers (2-3): $2M
Director: $5M
Writer(s): $1M
Lead Cast (2): $15M
Supporting Cast (5): $3M
DP: $500K
Production Designer: $500K
Composer: $1M
Other ATL: $500K

TOTAL ATL: $28.5M (28.5% of $100M budget)

ATL Negotiation Tactics

Deferral Agreements

Low-Budget Production Strategy:

• Director works for $20K instead of $200K
• Additional $180K "back-end" compensation if film is profitable
• Practically: 80-90% of indie ATL works on deferral

Advantages:

• Saves upfront cash
• Shows commitment from talent

Risks:

• Film doesn't become profitable = Talent earns nothing

Payment Schedules

Typical Structure:

• 25% upon deal signing
• 25% upon production start
• 25% upon principal photography completion
• 25% upon final delivery

Backend Points

A-List actors negotiate for "points":

• Typically 2-5% of net profit
• "Net Profit" is contentious (studios deduct heavily)
• A-List uses "Gross Points" (% of Gross Revenue) – better

ATL Costs and Financing Implications

Banker Perspective

Financiers evaluate ATL quality:

• "Big Director" makes film bankable
• "Bankable Star" makes film financeable
• For indie films: "No-Name Talent" makes financing difficult
• "Foreign" or "Presale" sales usually require A-List

Example Financing Impact

SCENARIO 1: Unknown Director + Unknown Cast
- Financeable? Difficult
- Typical: Self-financing or Grants
- Budget Maximum: $500K-2M

SCENARIO 2: Known Director + A-List Cast ($2M ATL)
- Financeable? Yes, Presale Potential
- International distributors interested
- Financing: Easy to find
- Budget Possible: $10M-30M+

SCENARIO 3: Mega-Star + Mega-Director ($8M ATL)
- Financeable? Very Easy
- Studio backing likely
- International financing guaranteed
- Budget Possible: $50M-200M+

ATL Specifics in Different Genres

Action/Blockbuster

• Massive Star Power Needed (Star Power = Box Office)
• ATL Typical: 30-40% of budget
• Director also important (Expertise in Stunts/Action)

Drama/Character-Driven

• Director Critical (Performance Direction)
• Star Power Important but Not Absolutely Necessary
• Good Casting Often Possible with Unknown Names
• ATL Typical: 30-50% (variable)

Horror

• Director Expertise Important (Known Horror Masters)
• Star Power Less Critical
• Talent Earns Less (Typically Lower Budgets)
• ATL Typical: 15-25%

Documentary

• Producer/Director Usually Same Person
• No Cast Costs
• ATL Minimal
• ATL Typical: 5-10%

ATL Contracts – What's Important

Typical Contract Points

1. Compensation:

• Salary + Deferral terms
• Backend points
• Bonus milestones

1. Approval Rights:

• Director typically approves cast, final cut
• Producer approves major creative decisions
• Star typically approves co-stars, director changes

1. Availability:

• Exclusive Period (cannot work other projects)
• Start/End Dates
• Contingency if production delays

1. Credits:

• Above-title vs. below-title
• Size of credit
• Sole star or shared billing

1. Perks:

• Trailer/Dressing room
• Car/Driver
• Hotel accommodations
• +1 Guest allowance

ATL and Creative Power

Typical Creative Authority Hierarchy

Director
├── Total control over: Creative direction, actor performances, final edit (ideally)
├── Shared with Producer: Script changes, casting
└── Limited on: Budget, schedule (Line Producer controls)

Producer
├── Total control over: Financial decisions, hiring (Crew), Budget allocation
├── Shared with Director: Creative direction
└── No control over: Individual performances (Director's domain)

Star/Lead Actor
├── Approval rights over: Co-stars, director (in some cases)
├── Approval rights over: Hair/makeup/wardrobe
├── No control over: Technical/creative decisions not affecting performance

Writer
├── Creative input in: Rewrites
├── No control over: Final script version (Director decides)

Cost-Saving Strategies for ATL

The Above-the-Line budget is the strategic core of film production – these decisions determine everything else.