Oct 31, 2026 5:38pm IST
Shah Rukh Khan’s ‘King’ Scores ₹175 Crore Overseas Deal: What Is A Minimum Guarantee And How Does It Work?
Shah Rukh Khan’s “King” recently created history by cracking a deal with Phars Films for its overseas distribution at a massive minimum guarantee (MG) of ₹175 crore. Notably, Yash Raj Films was originally slated to release the film in the international markets (which previously distributed SRK’s “Dunki” and “Jawan,” along with their production venture “Pathaan”). But Phars Films acquired “King” through their massive offer, as no Indian movie has fetched even an MG of ₹100 crore.
What is Minimum Guarantee?
Unlike the common practice these days, where distribution deals work on a commission basis and a distributor charges his fees or commission without providing assurance and paying a guarantee, minimum guarantee (MG) is a fixed amount of money that a distributor agrees to pay the film's producers or rights owners in advance (or as contractually agreed), in exchange for the rights to distribute or release the film in a particular territory.
In simple terms, regardless of how much “King” eventually earns at the box office, Phars Films will pay ₹175 crore for the international theatrical rights.
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While Phars Films has shown great confidence in “King,” it is a big risk as the Shah Rukh Khan-starrer will need to earn a minimum of ₹250 crore overseas to become a profitable deal for the distributor.
While Phars Films will distribute the film directly through its own operations in the Middle East, a different distributor is expected to handle the release in North America and the UK. Phars is expected to sell individual territory rights to local sub-distributors, and it already has a strong offer from Germany.
Nevertheless, it will be a tough battle for “King,” as it will face strong international competition from tentpole Hollywood biggies like “Avengers: Doomsday,” “Dune Part 3,” and “Jumanji 3” during the Christmas-New Year window.
Directed by Siddharth Anand of “Pathaan” and “War” fame, the film also stars Suhana Khan, Abhishek Bachchan, Deepika Padukone, Anil Kapoor, Jackie Shroff, Rani Mukerji, Jaideep Ahlawat, Arshad Warsi and Raghav Juyal in pivotal roles. It is produced by Red Chillies Entertainment and Marflix Films.
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