DUSTIN HOFFMAN SIGNS RICH DEAL WITH CANNON

In what surely ranks as both the richest deal and the most unusual alliance of the new year, Dustin Hoffman has been signed by Cannon Films to portray a retired Secret Service man caught in a blackmail scam in the film adaptation of Elmore Leonard’s novel “LaBrava.”

The project had been considered by at least three major studios, but all had decided against making the film supposedly because of Hoffman’s steep fee. According to a source close to the negotiations, Hoffman asked for $6.3 million and 22.5% of the “gross” (revenues from ticket sales) to star in the film.

The deal weds Hoffman, one of Hollywood’s most bankable actors and an Oscar winner, with a studio that in the past has been known for producing low-budget exploitation fare. But Cannon has occasionally attempted to turn that image around by producing serious, if not always commercially successful, fare like “That Championship Season” and Sam Shepard’s “Fool for Love.” “Runaway Train,” a current Cannon release, is doing well at the box office, and its star, Jon Voight, just won a Golden Globe award for best performance by an actor in a movie--drama.

Cannon’s chairman Menahem Golan confirmed that Hoffman had been signed. The Israeli-born director-producer would not discuss the precise fee paid, but said the deal structured by Cannon was different from the one the studios passed on. (It was Cannon that recently paid actor Sylvester Stallone a flat fee of $12 million to star in “Over the Top,” a “Rocky” of the arm-wrestling world.) “I’m ready to pay him (Hoffman),” Golan said excitedly. “He’s worth all the money in the world.”

Like so many other star “packages” these days, the story behind “LaBrava” contains nearly as much drama as the screenplay itself. The book was originally purchased for about $250,000 in 1983 by Universal Pictures for veteran producer Walter Mirisch, (“In the Heat of the Night,” “Same Time Next Year”) who will now co-produce with Cannon. Universal also paid author Leonard $250,000 to write a screenplay, sources said.

According to a source at the studio, that effort was not well-received and the project languished. “LaBrava” was then put into “turnaround,” meaning another studio could pick up the property if it reimbursed Universal for development costs already incurred--in this case about $500,000.

The project was given new life in 1984 when Mirisch received a call from Hoffman asking to read the script. The next day Hoffman called to say he wanted to make “LaBrava.” Because of something called the “change of elements” clause, Universal was then entitled to have the first opportunity to make the deal. (When a project goes into turnaround, a studio customarily retains first-look rights if a major star becomes attached to the project.)

But Universal, led by chairman Frank Price, was unable to strike a deal with Hoffman and it appeared the actor was no longer interested. (At one point, Universal did make a deal for Hoffman to star in a picture called “Kind Hearts and Coronets,” but that project with Hoffman is now in limbo, according to sources at the studio.)

Mirisch then put together a package that included Roy Scheider (“Jaws,” “2010”) as star of the film and Ted Kotcheff (“First Blood”) as its director. Once again, though, there was little interest in the project.

Finally, in the fall of 1985, Mirisch received the news that Hoffman was once again interested. Because Universal was no longer interested, the script was taken to 20th Century Fox, Walt Disney Productions and Geffen Films, all of whom passed as well. “The deal was too rich for our blood,” said one production executive at Fox. “When you have a $6.3-million player, all of your costs escalate.” Said one executive familiar with the deal: “No one could meet Dustin’s price.”

Cannon apparently did and Golan could hardly contain his enthusiasm. “For the first time in our career, Cannon is overexcited,” Golan said. “To have a star of this caliber in our family. . . . It’s a wonderful part for him and, with the right director, we will have a masterpiece.”

Hoffman’s attorney, Burt Fields, confirmed that the deal has been closed, subject to Hoffman’s approval of the final script and the director assigned. Initially, Martin Scorsese (“After Hours,” “Taxi Driver”) was going to direct for Mirisch, but Golan says Scorsese definitely will not direct for Cannon. “I would have loved to have him but he is not available,” Golan said.

Hoffman, nominated four times for an Oscar, finally won in 1977 for his performance in “Kramer vs. Kramer.” Last Friday he won a Golden Globe for his stage portrayal of salesman Willie Loman in “Death of a Salesman.”

In “LaBrava,” Hoffman will play a retired Secret Service man with a passion for photography. Filming for the thriller is scheduled to start this spring in Miami.