‘Star Wars’ Legacy II: The Untold Story of How George Lucas Secured Sequel Rights

The Epic Tale Behind the Greatest Deal in Hollywood History

In the world of classic Hollywood film franchises, there are winners and losers.

And then there's Star Wars.

Four decades ago, negotiations for the original Star Wars films resulted in what is widely considered to be the greatest – or worst – deal in Hollywood history.

George Lucas, the mastermind behind the franchise, ended up with both the sequel and merchandising rights.

This monumental deal ultimately paved the way for Disney's acquisition of Lucasfilm for a staggering $4 billion, making it possible for the JJ Abrams-led relaunch of the franchise with Star Wars: The Force Awakens.

It also turned Lucas into one of the wealthiest directors in history.

Deadline recently had the opportunity to speak with Tom Pollock, former Universal Pictures chairman and Lucas' attorney during this historic period.

Pollock, who now partners with Ivan Reitman in Montecito, takes us on a journey through the intricacies of how Lucas, Pollock, and agent Jeff Berg orchestrated the deal that granted Lucas full control over the Star Wars empire.

DEADLINE: How did George Lucas manage to gain control of his space franchise when he needed studio funding for the first film?

POLLOCK: In 1971, I became George's attorney.

At the time, he was working on THX 1138 with Francis Coppola at Warner Bros. Our first deal was a two-picture agreement with United Artists Corporation.

George was set to write a script called American Graffiti and an untitled science fiction movie in nine parts.

This information is stored in a time capsule buried at Skywalker Ranch.

Although I'm not sure when it will be unearthed.

DEADLINE: What happened after American Graffiti became a hit?

POLLOCK: After the success of American Graffiti, we had the opportunity to negotiate a new deal with Fox for what would become Star Wars.

George had always envisioned the film as part of a multi-part series.

Instead of focusing on money, he wanted to secure the ability to make the movies he wanted.

So, we reached an agreement with Fox that allowed George to retain the sequel rights.

This decision had far-reaching consequences, including the eventual sale of Lucasfilm to Disney for $4 billion.

DEADLINE: Did Fox also grant you the merchandising rights?

POLLOCK: No, they didn't.

The merchandising rights were not part of the original deal.

However, during negotiations for The Empire Strikes Back, George made the decision to self-finance the film.

In return, he requested that Fox return the merchandising rights to Lucasfilm.

They agreed because they wanted to ensure the movie's production.

DEADLINE: How did this deal impact the rest of the Star Wars franchise?

POLLOCK: The subsequent films and the three prequels were made under similar terms.

George provided the financing, while Fox had distribution rights for a set period of time.

This arrangement allowed Lucas to retain ownership and control over the franchise.

DEADLINE: Looking back, did you anticipate the success of the Star Wars franchise?

POLLOCK: At the time, nobody could have predicted its immense popularity.

But what mattered most to George was the ability to bring his vision to life.

He wanted to make the movies he desired without being hindered by studio interference.

DEADLINE: Is this the greatest movie deal of all time?

POLLOCK: While it may not be universally agreed upon, it's hard to deny that Star Wars is one of the greatest franchises in cinematic history.

The deal allowed George to create a world that captivated audiences worldwide.

The story behind George Lucas' acquisition of the Star Wars sequel and merchandising rights is a testament to his determination and foresight.

It is a tale of how one man's vision and the support of his legal team shaped the course of Hollywood history.

Without this groundbreaking deal, the Star Wars phenomenon as we know it might never have come to fruition.