The sequel was financed through an unusually dangerous arrangement for a major studio-era blockbuster. Rather than surrender creative control to Twentieth Century-Fox, Lucas planned to fund the film independently with the roughly $12 million profit he had made from Star Wars, using the remainder of his resources and the expansion of Industrial Light & Magic as collateral for a Bank of America loan. Fox had initially assumed that Star Wars and its merchandising rights were of little value, allowing Lucas to negotiate extraordinary control: the studio would distribute the sequel but have no creative input, while receiving 50 percent of the gross profits on the first $20 million and a rising share if the film exceeded $100 million. The arrangement gave Lucas the possibility of enormous wealth, but it also exposed him personally to financial catastrophe if the darker, more expensive sequel failed. As production expanded, the planned $8 million budget ballooned to approximately $30.5 million, creating serious financing problems before the film ultimately became a major commercial success.
Preparing the daily feature…
AI concept artworkArchive Record · 1970s
George Lucas Risked Financial Ruin to Make The Empire Strikes Back Outside Studio Control
George Lucas / The Empire Strikes Back / 1970s
The sequel was financed through an unusually dangerous arrangement for a major studio-era blockbuster. Rather than surrender creative control to Twentieth Century-Fox, Lucas planned to fund the film independently with the roughly $12 million profit he had made from Star Wars, using the remainder of his resources and the expansion of Industrial Light & Magic as collateral for a Bank of America loan. Fox had initially assumed that Star Wars and its merchandising rights were of little value, allowing Lucas to negotiate extraordinary control: the studio would distribute the sequel but have no creative input, while receiving 50 percent of the gross profits on the first $20 million and a rising share if the film exceeded $100 million. The arrangement gave Lucas the possibility of enormous wealth, but it also exposed him personally to financial catastrophe if the darker, more expensive sequel failed. As production expanded, the planned $8 million budget ballooned to approximately $30.5 million, creating serious financing problems before the film ultimately became a major commercial success.
The daily feature is taking an intermission. There’s still an entire archive to explore.