Backend Deal Quandary: Adjusted Gross vs. 'Larger' Net Profit %

Hey DPs, I'm genuinely scratching my head over a backend offer and hoping for some real-world insight. I'm lined up for a pretty ambitious indie feature, shot primarily on an ALEXA 35 with a full set of Signature Primes, and they're bringing in an M18 for key lighting, which is exciting. The project has some solid distribution interest, but the deal terms are tricky.

They're offering the usual 'net profit' points, which, as we all know, can often be zero. I've been pushing for adjusted gross. They countered with a much larger percentage of net profit than I'd ever typically consider, trying to sway me away from my smaller adjusted gross ask.

I've seen the warnings about 'Hollywood accounting,' but is there ever a scenario where that bigger, ill-defined net might actually be the better bet? When, if ever, does the sheer size of the net profit percentage outweigh the clarity and relative certainty of a smaller adjusted gross? What factors would make you lean one way versus the other in a negotiation like this?