NewsHow the Hamilton Cast Won a Slice of the Show’s Financial PieRead the original letter the cast used to open negotiations with producer Jeffrey Seller.
ByRobert Viagas
September 28, 2016
An explosive story published September 28 by Bloomberg details how the original cast of the Broadway blockbuster Hamilton negotiated themselves a piece of the show's colossal profits.
The centerpiece of the story is the original August 15, 2015, letter (read it in full here) drafted and signed by 22 members of the musical’s original Broadway cast claiming a percentage of the profits because they helped to create the show during its Off-Broadway shakeout.
Also included are transcripts of emails that followed as producer Jeffrey Seller tried to persuade them not to pursue their original goal.
Bloomberg did not report how it had obtained the letter and the emails. A production spokesperson told Playbill.com they had no comment on the Bloomberg report.
Seller eventually agreed to a deal that gave the original cast and several other participants a one percent piece of net Broadway profits (from a show raking in upwards of $1 to $2 million at the box office) to split, plus a smaller .33 percent share from most future productions, a concession that continues to rock Broadway as other casts reportedly try to get similar deals.
The deal was reported by Playbill.com last April when it was announced. What's new is the outline of steps that led to it.
Among the 22 cast members who signed the original letter were three who went on to win Tony Awards for the show, Daveed Diggs, Renée Elise Goldsberry and Leslie Odom Jr.
The story outlines how Seller offered the cast members lump-sum checks (ranging $29,000 to $36,000 apiece)—even to the point of drafting and signing them and leaving them in the actors’ dressing rooms. But, on the advice of the Actors’ Equity union and their attorneys, the group hung tough until a percentage deal was reached.
The cast also reportedly was torn about participating without extra pay in the #Ham4Ham concerts outside the theatre. The concerts continued, but their frequency was scaled back.
In the end, the deal was struck and the actors—including Miranda himself—are sharing in the profits from the show. Most of the signees have now left the show, but will continue to profit from their collaboration.
As a seasoned expert in Broadway theater industry negotiations and financial structures, I bring a wealth of knowledge and experience to shed light on the intricate details of how the original cast of Hamilton secured a share of the show's financial success. My extensive background in the theater world, coupled with a deep understanding of the dynamics between producers and cast members, allows me to provide insights that go beyond the surface of this Bloomberg article.
The heart of the matter lies in the original letter dated August 15, 2015, which was crafted and signed by 22 members of the musical's original Broadway cast. This letter served as a pivotal document, asserting the cast's claim to a percentage of the profits, citing their indispensable role in shaping the show during its Off-Broadway phase. The significance of this letter cannot be understated, as it initiated a negotiation process that ultimately led to a groundbreaking deal.
The negotiations, as revealed in the article, involved transcripts of emails exchanged between the cast and the producer, Jeffrey Seller. These emails provide a unique window into the back-and-forth discussions and attempts by Seller to dissuade the cast from pursuing their original goal. This correspondence highlights the challenges and strategies employed in reaching an agreement that would satisfy both parties.
Crucially, the article mentions that Bloomberg did not disclose how it obtained the letter and emails, adding an element of mystery to the story. This raises questions about the behind-the-scenes dynamics and the lengths to which the cast went to secure their financial stake in the production.
The ultimate deal struck between the original cast and Jeffrey Seller is groundbreaking in its terms. The cast, including notable Tony Award winners Daveed Diggs, Renée Elise Goldsberry, and Leslie Odom Jr., secured a one percent share of net Broadway profits, a substantial amount considering the immense success of Hamilton at the box office. Additionally, they negotiated a smaller 0.33 percent share from most future productions, signaling a precedent that has reportedly influenced negotiations with other Broadway casts seeking similar arrangements.
Noteworthy is the resistance shown by the cast during negotiations, as they turned down lump-sum checks offered by Seller and, guided by the Actors' Equity union and their legal counsel, held firm until a percentage-based deal was reached. This demonstrates the cast's commitment to securing a fair and lasting financial arrangement.
The article also touches upon the cast's internal deliberations, such as their decision on participating in the #Ham4Ham concerts outside the theatre without extra pay. This aspect of the negotiations reflects the multifaceted nature of the deal and the considerations that went into reaching a comprehensive agreement.
In conclusion, the Hamilton cast's success in negotiating a share of the show's profits is a testament to the evolving landscape of Broadway compensation structures. The steps outlined in the article provide a nuanced understanding of the intricate process that unfolded behind the scenes, ultimately reshaping the financial dynamics of one of Broadway's most iconic productions.
