In the film industry, a deferral agreement is a legal contract between a producer and a crew member that allows the crew member to defer a portion of their payment until after the film is completed and potentially profitable. Essentially, the crew member agrees to work for a reduced rate or receive a portion of their payment at a later date, in exchange for a share of the film’s profits.

Deferral agreements are a popular option for crew members who are passionate about a project or believe in its potential success, but may not have the opportunity to receive their full rate upfront. For example, a cinematographer might agree to a deferral agreement if they feel strongly about a particular film’s message or if they want to work with a particular director.

Deferral agreements are often used in independent or low-budget films, where funding may be limited and producers may not be able to pay their crew members their full rates. By deferring a portion of their payment, crew members can help the production stay within budget while also potentially benefiting from the success of the film.

However, deferral agreements can also be risky for crew members. If the film does not perform well at the box office or fails to find distribution, the crew member may not receive any additional payment beyond their original deferral. Additionally, if the film is not properly marketed or released, the crew member may never see any profits from their deferral agreement.

It is important for crew members to carefully consider the terms of any deferral agreement before agreeing to it. This may include consulting with a lawyer or agent to ensure that the agreement is fair and protects their rights. Crew members should also be sure to have a clear understanding of when and how they can expect to receive their deferred payment.

In conclusion, a deferral agreement in film is a legal contract between a producer and a crew member that allows the crew member to defer a portion of their payment until after the film is completed and potentially profitable. While deferral agreements can be a useful tool for independent or low-budget productions, they also come with some risk and should be carefully considered before agreeing to them.