10 Famous Films That Failed To Turn A Profit Thanks To Hollywood Accounting

This instance of creative Hollywood accounting only came to light because of another shady move by a studio which only stands to prove the morally questionable depths to which Hollywood will sink to secure mega profits.

In 1982 political satirist Art Buchwald pitched a treatment to Paramount about a pampered African prince who comes to America and the hilarious results as he clashes with a different culture and suggested Eddie Murphy would be perfect for the lead role. Paramount optioned the treatment but the project languished in development hell and was eventually abandoned.

Because all is fair in love, war and Hollywood, Paramount’s rival Warner Brothers picked up the treatment but were forced to drop it like a hot potato when it emerged in 1987 that Paramount were making a movie about a pampered African prince who comes to America and the hilarious results … well, you can probably guess the rest.

Curiously, when Coming to America was released it was Eddie Murphy who was credited as the mind behind the story with nary a mention of Buchwald. Feeling rightfully shafted, Buchwald took Paramount to court for a percentage of profits only to have the studio claim that despite the movie making over $288 million it failed to turn a profit after all Paramount’s ‘expenses’ were deducted.

Luckily for Buchwald the presiding judge deemed Paramount’s claims ‘unconscionable’ and pretty much forced them into an out of court settlement that saw Buchwald just under $1 million – a cheaper and wiser option for Paramount rather than opening up their dodgy accounts to public scrutiny.