A Tale of Two Movie Chiefs : Universal’s Pollock Focuses on Finances, Relationships

In 1986, the Frank Price regime crumbled at Universal after, among other things, an Ivan Reitman-directed comedy full of expensive, big-name stars, hit the box office with a thud.

The movie was “Legal Eagles” and it cost more than $30 million.

Thomas Pollock, Price’s successor as chairman of MCA Inc.’s movie group, now appears to have a sizable chunk of his future riding on another Reitman comedy, also full of big-name stars.

This time around, the movie is “Twins.” Thanks to some deal-making razzle-dazzle, however, it has cost MCA’s Universal Pictures less than $16 million--and, if the buzz is correct, “Twins” could be the hit Pollock needs to boost a regime that much of Hollywood perceives to be languishing.

Pollock, a 44-year-old attorney who practiced entertainment law with Pollock, Bloom & Dekom before landing his MCA job Sept. 18, 1986, declines to comment on his administration.

Less reserved, MCA Inc. President Sidney Sheinberg, Pollock’s boss, says he is happy with his studio chief, but chagrined by the weak performance of Universal films.

“Do I wish more pictures had done better? Of course, I do,” says Sheinberg. “Is Tom Pollock doing a good job? The answer is an unequivocal yes.”

Critics say Pollock has been slow to put a distinctive creative stamp on the studio. “What do they like? I’m never really sure what they’re buying,” complains one producer, whose claim is echoed by other producers and agents.

Yet partisans describe Pollock as a consummate deal-maker, who has adroitly hedged the studio’s financial bets, while building a substructure of relationships--many of them with ex-clients--that could lift Universal out of the boom-and-bust cycle that has plagued it for years.

“The best is yet to come,” says Peter Dekom, Pollock’s former law partner. “The relationship route is a slower climb, but it holds on longer.”

During Pollock’s first summer, Universal did well with “Dragnet” and “The Secret of My Success,” a pair of comedies that together grossed $122 million. But the studio slipped into the doldrums last Christmas with “Batteries Not Included” and “Cry Freedom,” and couldn’t regain its momentum during a summer that found Universal mired in controversy over a small film--”The Last Temptation of Christ”--while three fairly large ones--”The Great Outdoors,” “Midnight Run,” and “Moon Over Parador”--delivered less than hoped-for grosses.

For the first six months of 1988, the company’s filmed entertainment group, which includes TV income, posted $75.6 million operating income, down from $81.8 million the year before. According to Daily Variety estimates, Universal’s summer films cost $65 million, yet brought the studio only $50 million in box-office revenue.

“Gorillas in the Mist,” a widely acclaimed biographical film, has so far done well in limited release. But “Twins” remains the best hope for a smash hit this year.

Another potential hit on Universal’s horizon is a planned sequel to “Back to the Future,” which will probably be released next year. It will be produced by Steven Spielberg, who has customarily worked directly with Sheinberg at Universal. But Pollock has worked to expand the studio’s relationship with Spielberg, who is also likely to direct “Always,” a romantic comedy, for release by Universal in 1989.

As for “Twins,” the movie’s idea is simple, if weird: Danny DeVito and Arnold Schwarzenegger star as supposed look-alike twins.

The deal behind it, however, is a complex exercise in Pollock-style film making. The director and two stars have agreed to work without any fee up-front. But they will split a percentage of the studio’s receipts from the first dollar--reportedly two-sevenths each to DeVito and Reitman, the rest to Schwarzenegger--thus protecting Universal against the kind of losses incurred on “Howard the Duck,” while making it harder to reap big profits unless the movie is a blockbuster. “You hope for a smaller piece of a bigger pie,” says Sheinberg.

Apparently Sheinberg, who had been through three studio chiefs in short order, was scouting for financial acumen when he hired Pollock shortly after the MCA president’s stormy parting with Price.

According to one account, Pollock, who was already known as one of Hollywood’s most sophisticated deal makers, landed the job while negotiating a new contract for his client, Universal production president Sean Daniel. At one point, Pollock suggested that Daniel be given Price’s former job.

Sheinberg replied: “I need someone who understands the numbers. Like you, Tom.”

When he first took over, the lawyer talked of cutting costs at Universal, which was spending $31 million to make and market its average film, compared to an industry average of about $25 million. Sheinberg now says he doesn’t know if that average has come down. “My suspicion is that it has not,” he says.

Last summer, Pollock was caught with at least one notoriously expensive film, “Midnight Run.” According to studio insiders, the action comedy, which starred Robert De Niro and Charles Grodin and was directed by Martin Brest, ran $6 million over budget and cost more than $30 million by the time Brest finished shooting across the country. The movie has grossed $37 million to date, only about half of which goes to the studio.

Pollock has also spent money to beef up Universal’s development pool, which, according to one executive, had shrunk to a bare 45 projects during the standoff between Price and Sheinberg. Agents and producers say the studio at present has at least twice that many scripts in development.

Despite the complaints about lack of focus, Dekom says Pollock is working assiduously “to capture comedic producers.”

Among his long-term deals are those with comedy-oriented producers John Hughes (“The Great Outdoors”) and John Badham and Rob Cohen (“The Hard Way,” upcoming)--all of whom were former law clients of the Universal chief. In a bolder stroke, Pollock invested $10 million of the studio’s money for rights to a 20% stake in Imagine Films Entertainment, a company managed by Brian Grazer (“Splash”) and Ron Howard (“Willow,” “Cocoon).

Typically, the Imagine deal grew from a relationship. Pollock helped found the company in 1986 and served on its board of directors until he signed on with Universal. In another characteristic twist, the deal operates as a creative hedge for Pollock, who is still feeling his way as a picture picker. According to executives familiar with the agreement, Imagine--subject to some limitations--is free to green-light four to six films a year for distribution by Universal, which will pay two-thirds of the movies’ production costs on delivery. The first of the Imagine movies, set for release next spring, are “The ‘Burbs,” starring Tom Hanks, and “The Dream Team,” starring Michael Keaton.

Pollock is still waiting for the payoff from his touchiest relationship deal--the agreement to make director Martin Scorsese’s “The Last Temptation of Christ,” despite sure knowledge that the film would trigger a severe backlash among fundamentalist Christians. The quid pro quo: Scorsese agreed to give Universal at least one more film of a more commercial tenor if it financed “Temptation,” which had been turned down by Paramount and Disney.

Pollock kept his end of the bargain--at a stiff price. The film cost just under $7 million, and appears to have returned about $4 million to Universal from the box office. It should ultimately turn a modest profit from foreign and home video sales. But the movie may also have cost Pollock points at MCA that will be difficult to recover.

MCA executives say Sheinberg opposed the film, arguing that it would bring excessive heat down on the studio without promising commensurate prestige or hard-dollar returns. Indeed, Scorsese, who directed films ranging from “Mean Streets” to “The Color of Money,” is better known for his art than his commercial appeal.

When the company and its chairman, Lew Wasserman, were besieged by angry protesters, the corporate staff became embroiled in a fierce debate over the wisdom of having made the movie. “From secretaries on up, people were saying, ‘It was a bad decision,’ ” says one longtime MCA executive.

Sheinberg declines to discuss his position.

Perhaps worse, the fuss over Scorsese’s film became an ugly distraction precisely as Universal was trying to market “Midnight Run.” “I can tell you, ‘Temptation’ took an incredible amount of time. There were nights, weekdays, nonstop phone calls,” says New York publicist Marian Billings, who was involved with both movies.

Following the brouhaha, Pollock dismissed longtime Universal distribution president William Soady. Soady declines to comment. But studio insiders say his dispute with Pollock turned on clashing management styles, rather than specific problems on any one film. Pollock promoted insider Fred Mound to head distribution, and promoted Si Kornblitt to head marketing after the death of marketing president Ed Roginski last summer. Sean Daniel remains Pollock’s production president.

In return for his trouble, Pollock won Universal some badly needed credibility in the film-making community. “They stood up to my best expectations. I can’t remember having such support from a studio before,” says Scorsese.

Yet it remains unclear when the movie chief will get his promised Scorsese blockbuster. The director says he has to finish a Disney film first, and might proceed with yet another film for another studio before getting around to his obligations at Universal.

Some of Pollock’s staunchest friends say the executive--who serves as a trustee of the American Film Institute--is a movie lover whose choices will bring a new cachet to Universal if only he gets time enough to master the process.

“I think he absolutely would love to be there forever,” says Dekom.

Says another friend, who declines to be identified: “He’s going to be fine. But he’s got let go of his deal-maker side, that wants to trade, trade, trade. He’s got to get away from the favor bank.”

1988 SUMMER FILMS

Cost/Revenue

FOX

Revenue: $115 million

Costs: $67 million

UNIVERSAL

Revenue: $50 million

Costs: $65 million

SOURCE: Daily Variety