Why Steven Spielberg Made Millions From Star Wars

It’s strange to think about now, but there was a time when people doubted that the original Star Wars movie could be successful. George Lucas had trouble finding distribution for his space opera, as many Hollywood studios believed the concept was too strange and risky to resonate with audiences. Lucas found an ally in Alan Ladd Jr., who was the president of 20th Century Fox, but even then, there were doubts that Star Wars would be a hit. The production was plagued by various issues, new visual effects company Industrial Light & Magic was attempting to pull off shots that had never been done before, and studio executives were increasingly worried about the budget. It was a very stressful experience for Lucas, who was among those who felt Star Wars wouldn’t work. But one of his closest friends believed in the project.

It should perhaps come as no surprise that Steven Spielberg, a master of delivering awe-inspiring, cinematic wonder, saw the potential of Star Wars before anybody else. At a screening of an early cut Lucas hosted for his filmmaking friends, Spielberg was one of the few who actually liked the film. He was so confident in Star Wars that he was willing to put his money where his mouth is, giving his bank account a nice boost in the process.

Steven Spielberg & George Lucas Made a Bet Over Star Wars

Coincidentally, Spielberg and Lucas had dueling sci-fi films releasing in 1977. While the latter was toiling away on Star Wars, the former was working on Close Encounters of the Third Kind, his directorial follow-up to his record-breaking blockbuster Jaws. Lucas was convinced that Close Encounters was going to be an even bigger hit, so he decided to make a friendly wager with Spielberg. In an interview with Turner Classic Movies (via Business Insider), Spielberg recalled the time Lucas visited the Close Encounters set and was very impressed by what he saw. Lucas felt Star Wars had no chance against Close Encounters at the box office.

“He said, ‘All right, I’ll tell you what. I’ll trade some points with you. You want to trade some points?’” Spielberg said. “‘I’ll give you 2.5% of Star Wars if you give me 2.5% of Close Encounters.’ So I said, ‘Sure, I’ll gamble with that. Great.’” Close Encounters proved to be a massive hit in its own right, bringing in $306.8 million worldwide (unadjusted for inflation), but it was no match for Star Wars, which ended up breaking Jaws‘ all-time record and became the highest-grossing film in history. In its original theatrical run, Star Wars made $307.2 million just at the domestic box office.

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Of course, Star Wars has received multiple re-releases over the decades (with another one planned in 2027 to celebrate the film’s 50th anniversary), adding to what was already an impressive box office haul. Unadjusted for inflation, Star Wars has a lifetime domestic gross of $460.9 million and a worldwide total of $775.3 million. That global figure grows to a whopping $1.6 billion when inflation is factored in (according to Box Office Mojo based on 2022 ticket prices). Going by that number, Spielberg has earned an even $40 million off Star Wars grosses even though he wasn’t involved with the making of the film.

Unadjusted for inflation, Spielberg has made roughly $19.3 million from his bet with Lucas, which isn’t anything to sneeze at. In contrast, Lucas took home about $7.6 million off of Close Encounters. When adjusted for inflation (based on Box Office Mojo‘s calculations from 2022 ticket sales), Lucas’ earnings go up to around $13 million. Surely, Lucas wouldn’t turn down an extra $13 million from his friend, but Spielberg was the clear winner of this bet. And he stands to make even more when Star Wars heads back to theaters in a couple years.

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