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Charlie Sheen

Borrows $10 Mil

from Warner Bros.

5/17/2011 5:30 AM PDT BY TMZ STAFF

Charlie Sheen -- who scored the biggest paycheck in TV before getting the boot -- had to borrow a huge amount of money from Warner Bros. during his last season on "Two and a Half Men."

0215-charlie-twomen-logo-ex
TMZ has obtained Charlie's contract for Season 7 (2010 - 2011).  The document -- dated May 17, 2010 -- requires Warner Bros. to pay Charlie $10 million within 10 days of the date Charlie signed.  Charlie was then obligated to pay the money back during the first 13 episodes.

To repay the loan, Sheen -- who was getting a base pay of $1.25 million a show -- had $769,230.77 deducted from each paycheck for the first 13 episodes.   But then there's this pesky issue of interest.  Under the deal, the interest -- calculated at the prime commercial rate -- would be deducted from the 14th paycheck.

Charlie was fired after the 16th episode, so Warner Bros. got its $$$ back.

As for why Charlie needed the money ... unclear.  With his profit participation, Charlie was raking in more than $2 million an episode, but it seems he was still burning a hole in his pocket.

On the bright side for Charlie, he was doing really well.  We got a copy of his original contract, and in Season 1, he made $160,000 an episode, and under the original deal he only got a 4% raise for additional seasons.  That contract was renegotiated after the show became successful.

177 COMMENTS

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136.

Minxster    

Totally agree - since Chuckles is the type of guy who would hire hyper-aggressive tax consultants (just look as his choice of legal counsel!)

1066 days ago
137.

Autumn_in_Michigan    

@angeleyes,

You may be right about the IRS. He really has gone out on a limb with his charity website claiming to be tax exempt. If he doesn't have all that lengthy, time consuming government (both state and federal) red tape paperwork in place BEFORE making that public statement he is in hot water.

That allows both the state of CA auditors and the federal IRS auditors access to ALL his finances. That access may be just the opening needed to give him the total raked over the coals audit from Hades. I have seen bigger ships than his sunk over small issues with state income taxes. Last straw phenomena.

1066 days ago
138.

Autumn_in_Michigan    

@Orange Valentine,

Kudos on an excellent executive summary of the Charlie Sheen Saga.

1066 days ago
139.

Autumn_in_Michigan    

@angeleyes,

He has at least 2 mortgages that I know of. The original Sober Valley Lodge and the new house in the same gated community. He bought out Brooke's interest in SOV in the divorce settlement. Oddly, one of the reasons he gave for buying the new house was that it had lower overhead in terms of fees and taxes in that community even though it is a larger sq footage. Location I assume. So, I also assume that he will be selling SOV now that that the assets have been divided with Brooke.

1066 days ago
140.

Autumn_in_Michigan    

Correction, not SOV but SVL geez I gotta slow down on the multitasking during allergy season.

1066 days ago
141.

Maggie    

The money went up his nose and to hookers. Not to mention the 5 kids he has fathered and not sure about alimony to the ex-wives. But, Charlie has certainly misspent his life.

1066 days ago
142.

smackbaby    

Rita Hernandez (a former porn actress known as Felony) supplied Charlie Sheen hundreds of girls over four years. She told how he had blown £620,000 on adult movie stars in the past 12 months alone. She said: “I’ve known Charlie for years and I arranged girls for him as a favour. He’d call me from Vegas, New York, Chicago, LA, wherever and whenever he wanted them. Rita said Sheen was mostly a gentleman to the girls, despite his violent outbursts: “He always made sure they were comfortable and was always asking if they needed anything.

Rita claimed Sheen’s life began to spiral out of control when he broke up with wife Brooke Mueller. He slumped into depression and launched himself into a drug crazed, sex fuelled binge to help forget his ****tered marriage.

Sheen "spent tens of thousands of dollars showering hookers with lavish gifts, including buying some vehicles, and even paying to fly them around the United States on private jets to spend time with him. Charlie’s nightly habit would be tens of thousands of dollars of drugs and two girls. He would typically pay them $5,000 to $10,000 for the night and would give them cash, check or money transfer", a close pal told Radaronline.com


SHEEN: I decided to turn up the volume. Let's stop sleeping, let's stop eating and just ****ing party. I was smoking about a pound and a half of cocaine a month toward the end. That's a lot. It was hard-core—cleaner than crack because you cook it yourself—but so what?

PLAYBOY: That sounds suicidal to us.
SHEEN: Maybe subconsciously.

PLAYBOY: So now drugs are out, drink is out. How about sex?
SHEEN: [Laughs] Of course not. I got sober, I didn't get stupid.

PLAYBOY: Just curious: How well were you able to function sexually on cocaine?

SHEEN: I was never shut down by the drugs; that was my problem. Cocaine was an aphrodisiac, it wasn't a cancellation element. I think that was a bit of a curse. Anybody else would say, "What do you mean? You did an eight-ball and had sex all night?" I'd be like, Yeah, didn't you?

1066 days ago
143.

Autumn_in_Michigan    

@Maggie,

He paid alimony to Denise for a few years after the divorce but that has ended now. He never paid alimony to Brooke.

1066 days ago
144.

Autumn_in_Michigan    

@smackbaby

I tend to believe this claim of Rita's. That's how the situation looked to me. He looked like he was masking depression. That's why I speculated here recently that he was (to me) clearly depressed - but either he really wasn't aware of the fact that he was depressed or he was in denial. Either way he was masking depression.

If you read the articles on his prenup with Brooke, the ones that include statements he made about his marriage to Brooke being the "real deal", its no wonder that the ending of that marriage sent him into depression. Then there are the articles discussing his narcissistic defenses whenever he discusses his failure at marriage. Another mask for depression.

Read his own statement below and its obvious why he lost so much weight and looks so bad. Its no wonder that his performance was so impaired at work as well as his denial of the true nature of his condition.

And, if he was depressed before he is likely pushed even deeper into depression now with the hiring of Ashton Kutcher to replace him on 2.5 Men. More on that in my next comment.

~~~~~~~~~~~~~~~

Rita claimed Sheen’s life began to spiral out of control when he broke up with wife Brooke Mueller. He slumped into depression and launched himself into a drug crazed, sex fuelled binge to help forget his ****tered marriage.


SHEEN: I decided to turn up the volume. Let's stop sleeping, let's stop eating and just ****ing party.

1066 days ago
145.

Autumn_in_Michigan    

The story below strikes me as sounding true. The consequences part is widely evident by now. Denying depression seems to be historical for him, based in part on the claims of Rita Hernandez.

Once again I am tempted to feel sorry for him. But then the video of him (here at TMZ) saying (about Brooke) - "don't pick a fight with a warlock" and "she knew there were consequences and that the consequences would be radical" comes to mind. Evidently, consequences are for everyone else - but not for him - in his own mind. More narcissism.

He would have been better off if he had had to face more consequences before now. Chap's metaphor of the tall building with the locked stairway door comes to mind again.

~~~~~~~~~~~

Ashton Kutcher’s ‘Men’ news stuns Charlie Sheen

“He is destroyed that Ashton is replacing him. Destroyed,” a source told Popeater, adding that “we are all worried that he hasn’t hit bottom yet and that this could make him spiral out of control again. Especially after all the other productions that he assumed would happen have fell apart.”

“He really thought that he would be invited back,” the insider said. “After years of suffering no consequences for his behavior, why would he think anything else? Finally it has sunk in that he doesn’t live by different rules to everyone else. Actions do have consequences.”

Read more at the San Francisco Examiner: http://www.sfexaminer.com/entertainment/scoop/2011/05/ashton-kutcher-s-men-news-stuns-charlie-sheen#ixzz1MoMIPuqX

1066 days ago
146.

Autumn_in_Michigan    

@angeleyes,

You have made a good point here. WB's & CBS has to answer to others, too. Charlie may very well have put them in the position where they had no better option than to fire him.

~~~~~~~~~~~

angeleyes 24 hours ago
Chaps - I was thinking about the insurance Warners would have had to have on the loan the premiums must have been high - when borrowing big money the banks usually say - "So what happens if you get hit by a bus?" With the way Charlie was acting out and all the publicity the insurance company could have been the first one to say we won't insure the production.

1066 days ago
147.

Autumn_in_Michigan    

@MelissaS

Thanks for sharing the Forbes info. If we look at the income that Charlie has other than from 2.5 Men, he made $7 million for the tour and about $2 million in endorsements. That's before taxes.

The tour was a one time thing, at least as produced by Live Nation. If he can't get someone to produce his continuing tours, he will have to use his own money in production. In other words, get his own Ninth Step production company to bank roll the tours. His chances of getting someone to produce the tour seem slim based on the actual ratings of the tour and the profit for Live Nation. He is not getting syndication money until the arbitration is over and he may even lose it altogether.

So, right now the only reasonably sure income he has is $2 million before taxes. He has no other prospects at the moment. His annual child support alone is over $1 million. Then there are all his other expenses, like ongoing legal fees and huge mortgage payments, etc. Maybe $325 is all he can actually afford to give to charity right now.

1066 days ago
148.

smackbaby    

He is not getting syndication money until the arbitration is over and he may even lose it altogether.

So, right now the only reasonably sure income he has is $2 million before taxes. He has no other prospects at the moment. His annual child support alone is over $1 million. Then there are all his other expenses, like ongoing legal fees and huge mortgage payments, etc.

---------------------------------------------------------------

We cannot be sure Charlie won't receive his money for syndication but as you said it won't be easy because since he started this fight against his employers, everyone of his steps seems to have backfired against him. I think Lorre felt so resented in cause of Charlie's blunt attacks towards his persona he somehow has predisposed CBS and WB in a vengeaful mode and hence the syndication stays blocked.

I hope Charlie finds out a creative outlet for his brand of humor that allows him to keep his modus vivendi financially stable, Dykstra won't be very helpful for him I'm afraid.

1066 days ago
149.

Jake    

Interesting discussion of his finances. It seems to me that his biggest problem right now would be his cash flow. He has assets but if much of it is real estate he would also have liquidity problems. There are ways around it such as taking out second mortgages on his real estate assets or borrowing against the anticipated syndication earnings. No matter what the results of the arbritation he will be entitled to significant syndication income at some point. A comparison is how MJ kept is financial house of cards from collapsing by being able to borrow against the earnings his catlaog (especially The Beatles)generated.

I checked over at Pulsemusic and that charity single never seems to have gotten into the top 500 at iTunes so I doubt it is making anyone much money.

1066 days ago
150.

Nancy    

Jake 3 hours ago

"No matter what the results of the arbritation he will be entitled to significant syndication income at some point."

*****

Given the termination letter made public on this site, and the terms of the contract that we're aware of so far, it seems that his syndication earnings, if any, will be a major part of the arbitration. If he was, indeed, fired "for cause," he will not be entitled to syndication earnings is my understanding thus far. If you have any other relevant sources, care to share?

1065 days ago
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