The year is 1975, and Sylvester Stallone is a struggling young actor who is barely making ends meet financially, and he's sure he has an amazing script that he's written about a heavyweight southpaw from Philadelphia who goes by the name Robert "Rocky" Balboa. The actor had appeared in a number of uncredited roles in M*A*S*H and Klute, plus a smaller role in The Lords of Flatbush in 1975, but he didn't have any money, and he knew he had a hit in the rags-to-riches story of Balboa. When he started shopping Rocky around, he was desperate to get the movie made because he needed the paycheck. He ended up striking a deal to get the film made but to say he regrets the terms he agreed to and the way things have gone down over its legacy would be a massive understatement. Not owning the rights to his own creation has been a heavy cross to bear for Stallone over the almost 50 years since he made a fateful decision to enter into a deal with a certain producer who he still believes fleeced him on the transaction. The two are still at odds over the deal six decades later.
Who Did Stallone Make a Deal With?
The lucky man who came across the script for Rocky was none other than the man who would become its producer, Irwin Winkler. From 1967 to 1975, Winkler had been a prolific producer of films having already amassed a filmography of 18 movies. Most were of the Western variety and none were exceptionally notable. Some of the titles he produced included The Gang That Couldn't Shoot Straight (1971), The Mechanic (1972), and The Gambler in 1974. So when a meeting was set up by a mutual associate between Stallone, Winkler, and the now-deceased Bob Chartoff in 1975, the actor eagerly pitched the story of Philadelphia's adopted son who comes from the wrong side of the tracks only to become a serious heavyweight boxing contender. Winkler and Chartoff were so enamored with its potential that they were ready to do whatever they had to do to get Rocky made. And they pretty much did, when Winkler claimed he was prepared to mortgage his own home to get the film made if they came in over budget.
What Were the Terms of the Deal?
Desperate for a role and a paycheck to keep his young acting career headed in the right direction, Stallone was ostensibly forced to sign the deal that he made with Winkler and United Artists. Winkler and Chartoff were tied to United Artists for their next project, and they desperately wanted that project to be Rocky. The two producers and the studio had a deal in place whereby they could choose whatever project struck their fancy as long as it came in at a budget of less than $1.5 million and an agreement that they had not made a film in nine months. Well, it was a no-brainer for Winkler, he made an offer to Stallone to make Rocky the project they would take on with the backing from United Artists. And Stallone, who was still a complete unknown in the industry, was not coming from a position of much leverage, if any. He was ecstatic to have the backing of a well-known established studio and was all ears when it came time to start talking about a financial arrangement with Winkler. And Winkler was taking a gamble himself when he offered to let Stallone star in the film that would make the struggling actor a household name and silver screen icon. United Artists bought the script for Rocky for $250,000. Winkler commented on how they struck the "put" contract with UA, “If we could make a film with a budget of under a million and a half, we could do it without script approval. So Rocky was going to be a put picture. We could make it for under a million five, and we showed the script to UA.” Winkler offered Stallone $35,000 to star in the film.
A Back-Ended Deal for Stallone
On top of the $35 grand that he was paid upfront, Stallone also signed a deal whereby he would receive points on the back end of the film upon its release and total gross revenue. He was given 10 points on whatever the film ended up making, which boosted Stallone's net gain from Rocky to close to $2.5 million. He made a nice profit on the project, but it is mere peanuts compared to what he would have made had he retained the ownership and licensing rights from the entire franchise.
Rocky alone would go on to make $250 million worldwide. Stallone still claims that he doesn't know how Winkler squirreled his way into retaining the rights to his baby saying in an interview with Sirius , “How [Winkler] got the rights, I don’t know." He added that everyone "was supposed to come out about the same." Stallone also made it clear that he would make Creed IV with Michael B. Jordan in a heartbeat as long as Winkler wasn't involved. It is also worth noting that Stallone had absolutely no beef with Bob Chartoff, and went so far as to say he loved the man. Chartoff would remain involved in the franchise up until his death in 2015.
Not About the Money For the Actor
Stallone has obviously gone on to have an incredibly long and lucrative career as one of the most bankable action stars in the history of film. No one is going hungry at the Stallone house (or houses) as he is estimated to have a net worth of around $400 million as of today, and Winkler has also gone on to be a very successful producer with films like The Wolf of Wall Street, Goodfellas, and The Right Stuff to his name. But the Rocky franchise's heart and soul is adamant that the feud between the two has never been about the money. He cares about his legacy and wants to be able to hand the franchise off to his loved ones when he passes away. It seems like Stallone and the now 91-year-old Winkler should be able to work something out, but Winkler has sons who are also producers in Hollywood, and Stallone would likely have to work something out with them at this point if he ever wants to have something to pass along to his kids and grandkids. The way the rhetoric surrounding the two has festered to the point where they aren't even on speaking terms, that possibility seems unlikely. Though Winkler has not commented on the deal in recent years, Stallone has called out Winkler in interviews for being both "nefarious" and called him "the remarkably untalented and parasitical producer of Rocky and Creed.” He's also called the last 47 years "a rough ride" emotionally, so at this point, neither appears willing to extend any kind of olive branch and make peace over the boxing franchise's legacy.