The following interview was conducted in the German language prior to the Los Angeles wildfires. This is an English translation by CALL Magazine’s editorial team. To the original German version.
What motivated you to become a lawyer?
The Knapp and Schwarzenegger families had always been working-class families. For example, my Knapp grandparents stopped going to school after the fourth grade. I was the first family member to be able to complete a higher education. Lawyers and academics had always only existed in other families, and I thought to myself, why not in ours? Lawyers become presidents, judges and CEOs, and I admired people like Gandhi, Nelson Mandela and Abraham Lincoln, who all came from poor backgrounds and managed to use their legal training to succeed and change the world. For me, the doctorate was the golden ticket, I am the best example of social advancement through education.
We know US lawyers from series like “Suits” and „Suits LA“ or “The Good Fight”, where the gloves are off. Your clients are not only your uncle Arnold, but also Nicolas Cage or Jason Statham. What are the qualities a good Hollywood lawyer needs to have?
As in other top industries, you have to be smart, have good analytical and communication skills, be patient, fair and flexible. You also need the right work ethic and integrity to succeed in these industries in the long term.
As a successful entertainment lawyer, you also travel to Europe frequently.
Just a few weeks ago, I was in Prague with Arnold for the filming of the second season of “Fubar” and also in London, where Jason Statham is currently shooting the movie “Mutiny”. Our firm also has many clients based in Europe, which leads to points of contact, and we also do deals with European companies, such as Arnold’s deal with BMW and Jason’s deal with VW. I also have regular contact with Europe in my private life, and through family and friends I naturally have a special connection to Austria and Germany.
How would you describe the current state of Hollywood?
Hollywood generally likes to complain and is still licking its wounds from the Screen Actors Guild and Directors Guild strikes. Many people who depended on the entertainment industry for their livelihood had to go without income for most of the year and some lost everything. The year of the coronavirus, when all productions were shut down and cinemas were closed, was hard for the business, and the strikes then added insult to injury. The industry has since recovered somewhat.
Have movements like #MeToo also had an impact on contracts?
Not necessarily in terms of contracts, but certainly in terms of how people interact with each other on a day-to-day basis. Certain things that may have been common practice 20 or 30 years ago are no longer acceptable in the entertainment business today.
In Europe, bankruptcies are commonplace and the economy is struggling. What is the mood like in show business?
Show business reflects the state of the global labor market and the global economy. The market for luxury products and the top segment in entertainment and business—which includes A-plus superstars as well as blue-chip CEOs—is doing well and remains extremely strong. The market for discount products and cheap labor also exists, even if prices are extremely low. But everything in the middle, i.e. neither top nor super cheap, has a problem.
Is this trend also visible in Los Angeles, the center of the show business universe?
California is not immune. On the contrary, the situation in California is particularly precarious. We are simply no longer competitive at this point, because we have extremely high production costs in California compared to other states or countries. On top of that, we have strong labor unions, business-unfriendly policies and little or no tax incentives compared to other manufacturing sites. That’s why production is fleeing California en masse. Other states, such as Georgia, New Mexico and Louisiana, or other countries, such as Canada, Bulgaria, Malta, Spain, South Africa and Australia, are booming. However, I am optimistic that California will get back on track in the long term.
As a top lawyer in one of Hollywood’s best law firms, you certainly have a keen sense for identifying signs of future trends and developments early on. What is emerging in the film industry?
New technologies are a good example: in the past, deals always included bonuses and profit sharing based on theatrical distribution and video or DVD. With the arrival of streaming services, we as lawyers had to work with the film agents to create new structures to define success so that our actors, directors, producers and screenwriters could participate. The collapse of the Chinese and Russian film markets, Covid, #metoo and artificial intelligence are further examples of the need for adjustments.
Will AI change the film industry? Will we need actors at all in the future?
This is, of course, a major fear, but as with everything, there are always two sides to it. There is a worrying side where we have to be careful that there is no abuse, for example, if images or the like are suddenly misappropriated or used in an impermissible way. But at the same time, I always like to see the positive side of these new technologies. I see new skills, new possibilities that we have that we perhaps didn’t have 20 or 30 years ago.
Besides contract design, what else does an entertainment lawyer do?
I don’t just provide legal support, my job is to be present in the most diverse facets of our clients‘ lives. We negotiate deals and manage a brand together with the rest of the team, which means that we are also involved in branding, marketing, press and other topics. My working day consists of phone calls, e-mails, reviewing documents and meetings. Unlike a normal job, working hours are not clearly defined, because when a closing is pending, we often work day and night and on weekends. A lot of money is at stake and our clients expect their lawyers to be available at all times. Lawyers are service providers and you always have to be aware that anyone, no matter how smart they are, is replaceable.
Your uncle Arnold Schwarzenegger is also a client. Is he a difficult one?
He’s the best. It’s a real pleasure for me to work with him. He’s one of the smartest people I’ve ever met. He has fantastic instincts and is incredibly business-minded. And he gives us the opportunity to have fun while we work together. But of course, sometimes you just have to know when to separate work from family life. For example, there are certain times when we meet with the family, hang out together or go to the gym. I don’t talk about business then. Unless he wants to talk about business. But there is a limit to how we keep these two relationships separate to a certain extent.
TV series about lawyers are booming: “Lincoln Lawyer”, “Suits LA”, “Better Call Saul” and “Goliath” are successful formats that captivate millions of people worldwide. Are these series just well invented or are they close to reality?
Many of these clichés certainly apply, but of course these series also dramatize and simplify a lot for the sake of entertainment. But a lot of it is very true. The extremely aggressive and arrogant whiskey aficionado, who is also greedy, rich, always very well dressed, overworked and without a private life or human contact, is of course great cinema. Also the power-hungry, all-controlling law firm that devours human souls. The audience is fascinated by this world, even though lawyers—with the exception of the idealistic loner who fights against the unfair system—are not that popular. Personally, as a Hollywood lawyer, my experience is more like “Entourage” than “Suits.”
Do people in law firms really always drink whiskey like they do in the series?
Of course, some people like to drink. But there are also people who don’t drink at all. I occasionally meet with my partners or with clients in the office or in a bar lounge in Beverly Hills for a drink. I like tequila, especially Padre Azul Tequila, and enjoy it in good company, but rather privately. As a lawyer, you have to have a clear head.
Speaking of tequila, you have a stake in Padre Azul, which is based in Austria.
We have a fantastic tequila. And we just came out with a new single-barrel special edition. We try to come out with special editions every year that have different bottle designs and flavors. It’s a great thing.
What is your favorite TV show?
I prefer true crime series like “Dateline” or “Forensic Files” to scripted law dramas. I’m interested in stories about real people. But “Law and Order” is definitely the most popular show in our house, especially with my daughters.
In the entertainment business, lawyers collect 5% of each deal as a fee. In its “List of the Highest Paid Actors 2023”, Forbes ranked your client Jason Statham 7th with 41 million US dollars in fees, ex aequo with Leonardo DiCaprio. 5% of that is around 2 million dollars from a single client. Not a bad income.
The entertainment business, in which agencies earn 10% and law firms 5%, is built on the fact that entertainers at the beginning of their career do not have the means to spend huge sums on advice. The aim is to give beginners who are just entering the business the opportunity to afford good advice so that they are not taken advantage of by studios, broadcasters and production companies. This means that we take full risk, because in the beginning we do a lot of work for little or often no salary. The motivation is to build the career of the newcomer in order to celebrate success together later on. If the deal or the career doesn’t work out, then it’s a losing deal for us. Jason Statham is certainly an example where the investment paid off.
What was the biggest deal you have been involved in so far?
That depends on the definition. Our law firm represented George Lucas and for the negotiations of “Stars Wars”, Episodes 4 to 6, we needed a summary of the first three films, which I was tasked with as a newly qualified lawyer. It was super exciting to make a contribution, even if mine was modest. As for the biggest movie fee, Arnold’s $30 million for “Terminator 3” is certainly a milestone. And then there are also one or two movie deals where he has earned significantly more through profit sharing than on “Terminator 3”.
So it pays off to represent stars.
You know, we are always looking for the next big star. You try to discover talent early, to make a contribution and be part of the team. You start representing them when they make $100,000 per movie and later when they make $20 million per movie. Then you feel like you’ve done your job and made a contribution.
Are you looking for young talent to represent?
I am very selective. After doing this for some time, I no longer have to chase after clients. Every now and then I discover someone who has everything I expect in a client. And of course it has to be mutual. The client has to be ambitious and talented, and the chemistry has to be right.
Do your clients demand a lot from you?
Some of them are very successful people, so it’s important that I’m available. I can’t say, “I have one or two of my young people here who will do it for you.” As a lawyer, I am primarily a service provider. If someone calls like Nicolas Cage and needs something, it’s important that I’m the one who does it.
Are law firms liable for the contracts they negotiate for their clients?
Generally speaking, yes. Law firms usually have malpractice insurance (i.e. insurance against misconduct), which covers any negligence on the part of their lawyers. For us, it’s similar to doctors: everything must always be 100% correct. It doesn’t suffice that it was right 99 times if client number 100 loses all his or her possessions or patient number 100 dies because the lawyer or doctor neglected something. But lawyers are only human and unfortunately humans make mistakes from time to time. At least there is adequate compensation for legal errors in most cases. Unfortunately, this is not the case for doctors, where human lives are at stake.
How have salaries developed in Hollywood? Do actresses still get paid a lot less?
Things have certainly improved a bit. Actresses‘ salaries have gone up and more leading roles, especially heroic ones, are now being cast with actresses. But we can’t yet speak of equality or of this development having been satisfactorily concluded.
In the past, TV series were frowned upon by Hollywood stars; you would never have played a part if you were a big name. Today everyone – from Arnold to Harrison Ford – can be seen in series.
TV used to be considered secondary to movies. The arrival of streaming services has changed that. In the past, TV was shunned by top stars, but today you can see Kevin Costner in “Yellowstone,” Arnold in “Fubar” and Stallone in “Tulsa King.” Nicolas Cage will soon be appearing in “Spiderman Noir” on Amazon, and Jason Statham will soon be making his debut with “AKA” for Netflix.
What is your relationship with L.A.?
I was 19 when I came to L.A. from Lisbon in 1987 after graduating from high school to start my studies in economics and political science. I knew immediately that I would stay here forever. Of course, at first you miss your home, family, friends, and I also had to get used to the language and the new environment. But my dream had come true, I had made it from little Austria and Portugal to the center of the universe. Everything was so new, bigger, better, where you can run into movie stars and rock stars just walking down the street. Besides my studies, I also spent a lot of time with my uncle every day, which was always great fun.
How has L.A. changed since then?
L.A. has certainly lost some of its luster over the last 30 years. The infrastructure is aging and crime and homelessness are plaguing the city. In addition, once you’ve left your young exploratory years behind, you begin to appreciate your old home more. But there is still no place on earth I would rather live right now. Our roots all around—job, family, kids and friends—are too deep. Watching sunsets on the beach in Santa Monica with Bliss and our kids, deer regularly walking across our soccer field in Pacific Palisades on Saturday mornings, or riding our motorcycles to Malibu for breakfast after our workout at Gold’s Gym Venice.
How do you see Generation Z?
I would be lying if I didn’t admit that I sometimes wonder about them. This generation certainly has a very different attitude and expectations in some areas than we knew at their age. Times change and so do the youth. We are very proud of our children. They are all hardworking in school, our 18-year-old daughter Valentina just started her business degree at USC, they all play sports and are ambitious, and they are family people. I am sure they will go their way.
How would you react if your children said, “I want to go into show business”?
That depends on what they want to do in show business. If they said they wanted to be actors, I would say, “Oh no.” (laughs) Because I know how hard it is. I see every day how difficult and hard the road is, and at the same time how slim the chances are that you will really make it. It’s the same as saying, “I want to play soccer and play for Real Madrid.”
So it’s better not to dream of a career as an actor?
I would never want to discourage anyone. You have to dream, that’s important too, of course.
Why do some people make it and others don’t?
You have to have talent, work hard, and believe in yourself. An important quality is not to let the naysayers get you down. Hearing no 1,000 times and still believing in yourself: I have a talent and whatever the cost, I’ll see this through and I won’t let myself be beaten. You need this attitude, otherwise you have no chance.
You have some clients who don’t originally come from acting.
Dolph Lundgren is a good example. Also WWE wrestler Steve Austin or UFC fighter Conor McGregor. “Can Conor McGregor act?” I was asked. You only have to see one of his press conferences. He’s a performer. Can he act for Woody Allen or a Shakespeare play? I don’t know. But very few of these personalities play a role; they have an almost endless charisma and usually play themselves. Sylvester Stallone plays himself – people don’t want to see him play Shakespeare. They want to see Arnold. They want to see Dwayne Johnson as he is.
Donald Trump has won the presidential election for the second time. Does it take a lot of whiskey to cope with that?
Many people had a severe election hangover the day after. I have to admit that I was also surprised by how clear this result was. Hopefully he will rise above it and the second term will be more inclusive. It is important that this country—but also the world—remembers what connects us.
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