After the director's contract and the team members' contracts were signed, funds from Disney, Warner, and small investors were transferred to an account held by a third-party insurance company.
After receiving the box office share for Speed, Gilbert, through Melon Studio, invested another ten million dollars, taking up an eighth of the investment share.
The third-party insurance system is quite cumbersome, requiring every financial expenditure of the crew to be reviewed by the insurance company.
This system protects the interests of both investors and the producers, preventing issues like delays, incomplete projects, or other unforeseen losses.
Gilbert actually doesn't enjoy working under this system, as the process is tedious.
But no matter who it is, even Steven Spielberg and James Cameron combined, they all have to work within this framework.
It's impossible to fight against the entire industry's rules, and Gilbert is well aware of this.
Hollywood isn't like a martial arts world of grudges or the decisive, ruthless male lead in a Chinese web novel.
It's a place filled with interests, compromises, transactions, and politics.
Without a certain level of capital, those who talk big, insist on controlling the rights, or dream of changing the world, will certainly be crushed.
For example, in the case of Final Destination, Gilbert traded his salary for an investment stake.
He holds a tenth of the share, which should entitle him to a tenth of the profits.
But in reality, aside from the box office share, Gilbert only benefits from video and TV rights. He also has some influence on sequels.
However, he has no stake in any other merchandise revenue, which belongs solely to Disney.
If it weren't for Disney's struggles with live-action films and their promise regarding the sequels, they wouldn't have bought the sequel rights from Gilbert.
One of Hollywood's unwritten rules is that minor investors don't get long-term rights to films.
Gilbert could argue, but that would certainly touch the core interests of the film companies.
It's not just the giants—even smaller production and distribution companies wouldn't agree to let outside investors control long-term film rights.
Hollywood's giants are giants not just because of their distribution power and wide channels but because they control thousands of film rights.
When Panasonic bought Universal Pictures, they paid a significant sum for Universal's massive library of film rights. This is why.
These assets are the real money-makers...
Some films may seem like losses just from their box office, but as long as the rights are held, they can generate long-term income.
After George Lucas's Star Wars, Hollywood underwent a significant change:
Box office revenue decreased in importance, while income from peripheral rights increased, a trend that has only grown in recent years.
With Melon Studio holding an eighth of the investment share, gaining revenue from box office, video, TV, and other rights, Gilbert is satisfied.
Of course, he doesn't overestimate the credibility of unscrupulous film companies.
Kevin, an accountant with whom he's had pleasant collaborations on several projects, will bring his team to fully participate in the film's preparation, filming, post-production, distribution, and revenue-sharing audits.
Kevin is shrewd, opting for a five-percent commission rather than a fixed salary.
It's a necessity; that trope of characters pledging loyalty without pay, like in novels, would never happen in Hollywood.
If someone offers to work without pay, or for very little, you need to be cautious—there's definitely something fishy.
Shortly after the project launch conference, preparations for"Real Steel" were underway in an office provided by Warner.
The insurance company's financial officer reported a dizzying array of expenditures. The film hadn't even cast its actors yet, and already, ten million dollars had been spent.
For Real Steel, the focus is on special effects and robot design.
In Hollywood, no company does this better than Industrial Light & Magic. That initial ten million went straight to them.
But that's far from enough—Gilbert estimates that they'll need another forty to fifty million to achieve the desired effect.
In Gilbert's view, current special effects technology lags behind what it will be in a few decades.
But with Spielberg's Jurassic Park astonishing audiences with its dinosaurs, Gilbert feels confident in Real Steel.
After the budget discussions, Gilbert and the team discussed casting.
The first production manager is Kain Wexman, a longtime collaborator, and the second is Charles Roven.
Along with Gilbert, they make up the top tier of the crew's hierarchy.
Everyone else, including group leaders and managers, only joins the meetings as needed.
Unlike the reserved Kain, Charles Roven actively involves himself in managing the crew's affairs.
For the lead role, Charles suggested, "I think Tom Cruise would be great for the main role. However, his agent wants the lead's son to be changed to a daughter…"
Before Charles could finish, Gilbert's gaze cut him off, making him stop mid-sentence.
Clearly, he hasn't forgotten his Tom Cruise.
Gilbert glanced at Charles and then suggested, "How about Sylvester Stallone? He's played a boxer before, and our lead, Charlie, is also a boxer."
Cain raised a concern: "Will Stallone agree? We had a bit of a tussle with him over Speed and Cliffhanger."
Gilbert reassured him, "That's just normal business competition. Stallone understands that competition and cooperation are both normal parts of this industry."
They agreed to send an invitation to Stallone while keeping Arnold Schwarzenegger and Bruce Willis as backups.
If possible, Gilbert would have preferred Hugh Jackman.
But at this time, he's still quite young and not yet suitable for the role.
The film doesn't have a significant female lead; it mainly focuses on robot boxing and father-son relationships.
Still, there are several female roles with considerable screen time.
"For the female lead, Bailey, I suggest Naomi Watts. What do you think, Charles?" Gilbert asked.
"Naomi?" Charles initially considered a more popular actress.
But since Naomi Watts is Gilbert's significant other, he felt it best not to object and said, "Let's have her audition."
An audition means she's practically chosen.
The petite actress has improved a lot recently, landing important roles in several films after Speed, and is now a familiar face in Hollywood. She should be able to handle the role.
Another key female character is the antagonist, the rich heiress.
Gilbert would have liked Gwyneth Paltrow to play the part, as her personality suits it well.
However, her popularity has been rising quickly, so she wouldn't accept such a minor role.
She's currently filming Mrs. Parker and the Vicious Circle and has partnered with Nicole Kidman on Flesh and Bone, along with having a new boyfriend.
According to Winona Ryder, though, Gwyneth isn't too pleased with her new boyfriend, finding him lacking compared to Gilbert.
Winona Ryder, after a falling out with Johnny Depp, has also sought out Gilbert a few times.
Being a ladies' man, Gilbert naturally comforted and consoled the heartbroken Winona, and they spent a few passionate nights together.
This rebellious girl even shared with him her experience of shoplifting, inviting him to join her for the thrill.
Gilbert declined—getting caught would ruin his reputation.
He advised Winona to settle down, as she could easily make it big with her current popularity.
He only offered this advice because they had shared something special.
But whether she heeded his words or not remains unknown.
The rich heiress role, along with a few other significant supporting roles, would ultimately be decided through auditions.
And, of course, the film's second most important role was the son, Max.