Tom Cruise Signs New Production Deal

Tom Cruise’s production company, which broke all ties with Paramount Pictures last week in an unusually public dispute, has signed a two-year financing deal with an investment partnership headed by Washington Redskins owner Daniel Snyder. The deal between Cruise/Wagner Productions and First & Goal LLC covers overhead and development, which will allow Cruise and producing partner Paula Wagner to run their company and make deals to produce films, some conceivably starring Cruise. Financial terms were not disclosed for the pact, which has an option to renew for a longer term. Cruise/Wagner still must find someone to finance production of those films and a company to distribute them. Previously, Paramount had the first right to finance and distribute Cruise/Wagner films. In exchange, Paramount paid the producers as much as $10 million per year for salaries, expenses and discretionary spending. Paramount had offered a much lower amount to renew the deal, closer to $2 million annually, before talks broke off.

First & Goal was set up specifically to invest in Cruise/Wagner. Snyder also heads an investment partnership that controls amusement park operator Six Flags Inc., among other companies. Former ESPN executive Mark Shapiro, who heads Six Flags, will oversee the investment in Cruise/Wagner, the companies said Monday.

"This gives us the opportunity to work with all the studios and broadens our base," Wagner said Monday.