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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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121.

Melissa S    

Interesting, FORBES estimates that Charlie made 50 million in the last 12 months. This does not account for the 10 million he borrowed against his salary, but that places him at number 28 on their "Forbes Celebrity 100." Lorre pulled in 35 million and was on the list for the first time.

This really puts into perspective his whimpy charity donations of late. I was ALMOST starting to feel a little sorry for him. But I guess just because you make a lot of money doesn't mean manage it well and you can't have money troubles. They are usually just much BIGGER money troubles.

http://blogs.forbes.com/clareoconnor/2011/05/18/how-charlie-sheen-made-more-money-this-year-than-ever-before/

1164 days ago
122.

ksis    

pegnew 6 hours ago

@ksis,

perhaps you misinterpreted my comment above @6 hours ago. I was
just saying it was good to hear from you...and that you add spice
and passion to the discussion. I went on to thank the other posters for sharing their various opinions in that as a stroke
survivor reading these views is entertaining to me. I was thanking everyone. Sorry if you took it the wrong way!

*****************

No, I didn't misinterpret it.:) I know when someone is honest. I don't think I sounded defensive or anything. That's just my style. LOL I just told you what was my purpose of posting here.

And Chapstick...Don't speak for me and don't come between me and RESPECTFUL posters because you have no clue about anything.

1164 days ago
123.

Jake    

Chaps 4 hours ago he he

Word was, both girls were given 30000 a month credit cards - and he said he spent millions with Heidi Fleiss' stable of hookers.
And his marriages are even bigger drains on him. I think he is going to be running in the red fast, if he isnt already.

$$$

I think Charlie also said, at the Seattle show, that he paid Bree $90k to cancel her trip to Japan in February. She had several lucrative shoots booked there. That is when he told the world that Bree had retired which seemed to come as a surprise to her since she basically told an interview in her hometown paper, The Fort Wayne Journal-Gazette, that she was only "retired" "as long as she was with Charlie".

But $90k is a dropped in the bucket compared to the basic child support he is paying, $110k per month, the huge lawyer bills he is racking up and his entourage of hangers-on he has surrounding him. His residuals and share of syndication are still going to bring him big dollars but he will have to make drastic cuts in his lifestyle without any new TAAHM money coming in.

1164 days ago
124.

ksis    

@pegnew
And I'm glad you recovered from your stroke. Sorry I missed that in your posts. Just got back after 10 hours at work and I am not seeing or hearing straight. LOL!

1164 days ago
125.

kerejava    

@pegnew

I hope you are doing well in your recovery.

I have a paraplegic son that I care for, I have seen how

trying rehabilitative therapy can be, I hope you are hanging in there.

I too follow the dialog on Charlie Sheen. I feel that he has (still) so much to be grateful for,he claims to be in good health,he has beautiful healthy children and was blessed with talent.

Everything that has gone wrong for Charlie Sheen, he has caused himself.

May God be with you.

I Peter: 'And the God of all grace, who called you to his eternal glory in Christ, after you have suffered a little while, will himself restore you and make you strong, firm and steadfast.'

1164 days ago
126.

Autumn_in_Michigan    

@pegnew,

I get what you mean (I think) about your frustration. Of all the precious things that Charlie has had and has thrown away or burned right through is his good health - and along with his good looks.

Given his long and extreme history (7 gram rocks) of drug use, he is so lucky that he is not in your shoes right now, recovering from a stroke. And, yet he seems to have no more gratitude for that fact than he does for anything else that he might be grateful for. James Lipton is probably right, those cigarettes will probably be his eventual undoing if he doesn't give them up.

Anyway, glad that you find our banter entertaining during your recovery :-). Just remember that sitting for prolonged periods in front of a computer is not good for anyone's health. (Note to self on that reminder.)

1164 days ago
127.

Autumn_in_Michigan    

@angeleyes,

"Hostage" is IMO the most apt term. "Hostage taking" is psych jargon for a style of relationship or behavior within a relationship. Emotional blackmail, leveraging, etc are part and parcel of a hostage taking sort of relationship. I have NO doubt whatsoever that WB's was overjoyed to finally be free of him.

@Chaps,

I love your tall building metaphor. That's just about right. Nowhere to go now but down - and good luck with that descent.

1164 days ago
128.

Autumn_in_Michigan    

@angeleyes,

Good point about 'cash flow'. What some people seem to confuse is net worth and solvency aka liquid assets. A person can have a very high net worth in the multimillions and still have cash flow problems. Its easy to see why that dynamic might be true for Charlie if you look at his prenup with Brooke. It lays out his basic approach to financial management:

http://gawker.com/5529355/exclusive-inside-charlie-sheens-cheap-prenup
How Much Is Charlie Worth?

At the time of the prenup, Charlie Sheen's net worth was $16.1 million, only $1.4 million of which was liquid—a surprisingly low figure for a man who has been A-list actor for three and a half decades and is capable of earning upwards of $1 million to film a single episode of his CBS sitcom. At the time the prenup was signed, Sheen's Aubrey Road home was estimated to be worth $8.5 million. He also lists a watch collection worth $5.6 million, and art work and home furnishings worth another $3.4 million. His retirement account holds a mere $3,908. A list of Sheen's assets appears in the prenup:

Sheen's real money—his Two and a Half Men money—is sealed away in 9th Step Productions, Inc., a corporation that "loans out the acting services of Mr. Sheen" to Warner Bros. as part of his Two and a Half Men contract. Sheen profits from the TV show in two ways. In addition to a fee Sheen is paid per episode, he is also entitled to 12 percent of the show's "adjusted gross income," which the prenup estimates "could exceed $75 million" over the life of the contract. At the time the prenup was executed, Warner Bros. had already advanced Sheen $12 million. And that figure was calculated before Sheen entered into contract renegotiations, which are currently ongoing.

1164 days ago
129.

Autumn_in_Michigan    

@Jake,

Yes, he is burning through his cash at a fast clip. But he does NOT have income at this time from 2.5 Men syndication money.

Many of his monetary obligations he made before he found out that one of the "rights and remedies" that WB retained on termination of his contract was to withhold all his syndication money (which includes residuals) until the arbitration is finished. (see Nancy's post for a link to the termination doc).

His lawyer Singer attempted to force WB's to turn loose of Charlie's syndication money when they discovered that is was being withheld. That attempt failed. Search TMZ for that story.

His assets are largely tied up in his production company (see my post on the Brooke prenup).

So, does the statement that WB's could litigate Charlie into the poor house begin to make sense?

Does the statement that Denise and Brooke should start looking for jobs (they already have jobs, btw) begin to make sense?

Charlie has the right to petition the court to adjust his child support based on his financial status. If the court looks at his cash flow only, then all four of his minor children will have seriously reduced financial support from their father.

Does the fact that his good friend Lenny Dykstra is NOT the best financial advisor/middle man begin to make sense? Lenny lost everything to foreclosure and the IRS and yet Charlie follows his lead and buys a new house with a HUGE mortgages with Lenny as the middleman? Search TMZ for THAT story.

TMZ is in essence do***enting the downfall of The Bad Boy of Hollywood. They are making it very easy for us. All we have to do is to follow the bread crumbs and to start connecting the dots.

~~~~~~~~~

Jake 35 minutes ago

But $90k is a dropped in the bucket compared to the basic child support he is paying, $110k per month, the huge lawyer bills he is racking up and his entourage of hangers-on he has surrounding him. His residuals and share of syndication are still going to bring him big dollars but he will have to make drastic cuts in his lifestyle without any new TAAHM money coming in.

1164 days ago
130.

angeleyes    

@SIM - yes cash flow can be a major problem. Since he purchased a new house and had to get a mortgage on it, he likely still has the old one and a mortgage on it as well. I don't know what the market is like in Malibu but he may loose value from the purchase price when selling. I don't worry about him as he has assets to liquidate but that may take time and he does have ongoing child support payments that require a major infusion every month.
His buddy "Nails" Dykstra was very wealthy also and now bankrupt. It can be difficult if everything you have is leveraged and your income stream has dried up.

1164 days ago
131.

Minxster    

Excellent post, Spring - it's hilarious how accurately we predicted the chain of events (unlike the dreaded Sheenie Weenies, who have been wrong on just about everything!)

1164 days ago
132.

angeleyes    

@Minxster - I agree with your post and have another prediction of my own - I'm thinking his next problem will be with the IRS.

1164 days ago
133.

Autumn_in_Michigan    

@Angeleyes,

The primary problem - IMO - with his liquidating his assets is not the time that it takes. It can be painfully slow and devastating to a portfolio in an economy like the one we are in now.

The primary problem as I see it is that he really needs to retain his production company assets if he hope to go into production on his own TV show (one of his plans) or a movie.

1164 days ago
134.

Autumn_in_Michigan    

@Minxster,

Thanks :-). High praise coming from an actual. professional financial manager. I count on you to keep me on the straight and narrow with my financial facts.

I don't know what its been like for you, but what its been like for me is watching a pre-recorded train wreck being played back in slow motion.

1164 days ago
135.

orange valentine    

It seems Charlie Sheen has painted himself into a corner.

He will have to prevail in his lawsuit against WB in order to

gain his two and a half men income. Sheen will have to pay attorneys to fight what will be a lengthy litigation,(that he is likely to lose anyway, if he worked for me,I too would have fired him)

He will eventually be out spent by WB and Sheen's lawyers will end up taking all he has left.

I don't see how Sheen can come out of this "winning"

WB is not going to roll over for Sheen-they will break him.

Chuck Lorre was spot on in his Vanity Card fable,

The bottom feeders are going to eat Charlie up.

He did this to himself.

1164 days ago
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