Streisand Deal Bigger Than Jackson’s, Madonna’s? : Contracts: The entertainer’s $40-million agreement with Sony may be tops because of her proven track record in film.

Barbra Streisand may have been snubbed in this year’s Oscars, but she’s about to be awarded the next big multimedia entertainment contract.

As outlined by several sources, the Sony agreement, which has provisions for films and records, will guarantee the veteran singer, actress and director an estimated $40 million.

That’s not as high as the recent, much publicized $60-million deals involving Michael Jackson and Madonna--and her figure may soon be topped again by a film-recording pact between Prince and Time Warner. In fact, the Prince contract, expected to be announced late next month, may eclipse the $60-million mark.

However, insiders say Streisand’s contract may well prove the most lucrative because there is more potential money in films than in records--and Streisand has the only proven track record of the four in movies.

Reaction in entertainment circles to the Streisand-Sony agreement--which is expected to close by mid-June--was positive.

“Barbra is a serious artist who delivers on every level,” said entertainment impresario David Geffen. “Her quest for excellence spans more than 25 years and she just keeps getting better. Any company fortunate enough to be associated with an artist as multitalented as her ought to consider itself lucky.”

Representatives for Streisand and Sony declined to discuss the contents of the pact, but sources said Sony-owned Columbia Pictures is likely to commit about 2 million a year for development funds and operating expenses to Streisand’s new entertainment company.

The money will be used to hire writers and executives to develop film properties that Streisand will either direct, act in and/or produce. She is not required to deliver any specific number of films.

“Everyone has always known that Barbra Streisand has one of the best singing voices in the world and that she is a great actress,” said entertainment attorney Peter Dekom, whose client list includes Lucas Films and Imagine Entertainment. “But I think where she really shines is as a director. This is not a vanity sacrifice here. She is a ‘quality’ filmmaker who has a huge future ahead of her.”

Over the past 30 years, Streisand has been honored with Oscars, Tonys, Emmys and Golden Globes, and starred in 15 films, two of which she directed: 1983’s “Yentyl” and last year’s “The Prince of Tides.” Many industry observers had predicted that she would garner an Oscar nomination for directing “Tides,” but she didn’t. The film has reportedly grossed more than three times its estimated $27-million cost.

If Columbia agrees to develop a script, Streisand could be paid as much as a $2.5-million advance against a net profit percentage (at 10% of the studio gross) for each movie that she directs. That’s about the same amount a director such as Alan Parker would receive, but only about half as much as superstar directors Ron Howard or Steven Spielberg.

Streisand will also reportedly receive at least a $4-million advance against 10% of gross revenues for every movie in which she acts--on par with, say, Bette Midler, but only about a third as much as superstars such as Arnold Schwarzenegger and Jack Nicholson. Columbia will also reportedly pay Streisand an additional $500,000 for each picture she produces.

“She is one very valuable woman,” said entertainment attorney Bertram Fields, who represents Dustin Hoffman and Warren Beatty. “If I were running a studio, I’d be prepared to stretch to keep her there.”

Insiders characterized Streisand’s film contract with Sony as a “very healthy” conventional studio deal.

Under the recording components, sources speculate that the Grammy-winning singer will be guaranteed an estimated $3-million advance per album plus a blue-chip 25% royalty rate.

The contract reportedly covers five albums, including two owed the company under the singer’s old agreement with the label.

Columbia may also reportedly pay the singer an estimated $10-million advance for continued distribution rights to her lucrative album catalogue, which has accounted for more than 60 million album sales since 1964.

“From a musical standpoint, I think Barbra Streisand still has the potential to be one of the biggest-selling superstars in the business,” Giant Records owner Irving Azoff said. “She has an incredible catalogue, which Sony already owns. If you ask me, I think Sony would be very smart to give her anything she wants.”

While few in the industry expect Streisand’s album sales to compete with current chart-toppers such as Metallica or Guns N’ Roses, most observers believe her ability to sell records in today’s pop market remains strong.

“Barbra Streisand has never had to chase after the rock market to sell records,” said Don Passman, the attorney who negotiated Janet Jackson’s lucrative deal with Virgin Records. “Her music has always appealed to a much broader demographic. Based on her impressive track record, I would venture to say that she’ll be successful long into the future.”