Ant-Man 3 Budget Reveals Hundreds of Millions Spent for Little Profit

Posted by Brian Myers | Published 18 seconds ago

Financial disclosures released by Disney recently revealed that the company's total cost of the latest Ant-Man film exceeded its box office release without an eye-catching budget. While we're on top, it seems that this turn of events may be frustrating for studio brass, with more to lose than meets the eye. The company was able to take advantage of the financial compensation given to the studios by the British government, resulting in a net profit of less than $90,000 USD.

It Didn't Lose Money

Ant-Man and the Wasp: Quantumania was released in February of last year and was far from the box office smash hit that others before it in the Marvel Cinematic Universe proved to be, weighed down by a huge budget, a disappointing villain, and a VFX scandal. The film managed to make more than 476 million dollars in ticket sales, of which the production studio Disney was entitled to a share. However, given the cost of making the film, these cuts meant that Mickey Mouse and company were staring down the barrel of a $92.05 million loss.

Generally, a movie studio will cover its profits and losses with the overall budget of its other films. Being able to get away with making a single film budget makes each effort seem better, even when the studio might be stuck with a box office bomb. The studio's decision to make the film in England meant two separate things for the company: full legal disclosure of its total budget as mandated by British law AND refunds.

Saved by British Tax Credit

When choosing to film the latest Ant-Man film in the country, Disney was forced to file financial statements that contained disclosures that included everything from the budget to the cost of the material to the salary paid to each member of the crew. These financial filings show that Disney received $327 million in cash and another $2.8 million in miscellaneous income. Total costs appeared to be $388 million, resulting in a pre-tax loss of more than $58 million.

But, the tax credit given to the studios by Britain gave the Ant-Man studio enough to take a small profit. The government reimbursed Disney up to 25.5 percent of what it spent on the nation, resulting in a debt of $58,281,661. By the time analysts reached the conclusion, the budget numbers showed a total profit of $88,236 for Disney.

Government Needs Transparency

To be eligible for reimbursement, a minimum of 10 percent of the total cost of production is required for use within the United Kingdom. Film studios will establish other film production companies in the country so that they can show the money. This separate company should be “overseeing pre-production, principal photography, and post-production,” and the final edited version delivered.

Since this refund can be huge, the British government forces any studio that wishes to take advantage of the tax credit to show all their cards. Even if it's a big company like Disney shooting Ant-Man sequels or small studios shooting an independent feature, budget rules apply to all of them directly. A movie that turns a profit gets a refund as a credit for taxes owed, while a flop gets a cash refund against the money spent making the movie.