The film's most consequential behind-the-scenes disaster was not an on-set accident but a studio financial decision. According to director Jack Smight's memoir, 20th Century Fox chief Alan Ladd Jr. redirected roughly a quarter of Damnation Alley's total production budget to help complete George Lucas's lower-budgeted Star Wars, which was itself experiencing production and budget troubles. Smight said he was not informed of the reduction until Damnation Alley was nearing completion. The missing money crippled the post-production effects schedule: planned scenes such as the Minuteman III launches, the missile-base explosion, and the climactic storm and tsunami were never completed, forcing Fox to substitute stock footage and public-domain imagery. The irony was devastating: Fox had intended Damnation Alley to be its major science-fiction blockbuster for 1977, but Star Wars—whose completion it helped finance—became the phenomenon that overshadowed and effectively buried it.
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