Although the official budget for this 2001 production was $94 million and reported even higher in the press, the studios outlay was only $8.7 million. How?
First, Paramount got $65 million from Intermedia Films in Germany in exchange for distribution rights to Lara Croft: Tomb Raider for six countries: Britain, France, Germany, Italy, Spain, and Japan. These pre-sales left Paramount with the rights to market its film to the rest of the world.
Second, it arranged to have part of the film shot in Britain so that it would qualify for Section 48 tax relief. This allowed it to make a sale-lease-back transaction with the British Lombard Bank through which (on paper only) Lara Croft: Tomb Raider was sold to British investors, who collected a multimillion subsidy from the British government, and then sold it back to Paramount via a lease and option for less than Paramount paid (in effect, giving it a share of the tax-relief subsidy). Through this financial alchemy in Britain, Paramount netted, up front, a cool $12 million. Third, Paramount sold the copyright through Herbert Kloibers Tele Munchen Gruppe, to a German tax shelter. Because German law did not require the movie to be shot in Germany, and the copyright transfer was only a temporary artifice, the money paid to Paramount in this complex transaction was truly, as the executive put it, money-for-nothing. Through this maneuver, Paramount made another $10.2 million in Germany, which paid the salaries of star Angelina Jolie ($7.5 million) and the rest of the principal cast.
Before the cameras even started rolling, then, Paramount had earned, risk-free, $87 million. For arranging this financial legerdemain Paramount paid about $1.7 million in commissions and fees to middlemen, but that left it with over $85.3 million in the bank. So, its total out-of-pocket cost for the $94-million movie was only $8.7 million.
Since Paramount could be assured of selling the pay-TV rights to its sister company, Showtime, with which it had an output deal, for $8.5 million, it had little, if any, risk. As it turned out, the movie brought into Paramounts coffers over $100 million from theaters, DVDs, television, and other rights.