Funny money: Black comedians have always been among the funniest. Now, by tapping into the business side of the industry, today's comics are laughing all the way to the bank

Black Enterprise, Dec, 2004 by Alan Hughes

It's not just another punch line. Always the irreverent funnyman, Chappelle may joke about inking a $50 million deal with Comedy Central to continue his highly successful Chappelle's Show for another two seasons, but it's no laughing matter.

Is Chappelle worth that much money? You bet. The second season of his show produced record ratings for Comedy Central, averaging 3.1 million viewers per episode. The show, which earned three Emmy nominations, scored high with both the network's predominantly white viewers and gave the network a black audience for the first time. It has turned out to be a huge crossover hit, according to Lou Wallach, Comedy Central's vice president of original programming and development. "[Chappelle] was really able to bring to the channel a much larger black audience than we had in the past without alienating--actually growing-the kind of traditional, core white audience that we had," he says. "To me, that's a huge testament."

Have you heard the one about the DVD sales? The strength of side-splitting skits such as the "Playa Hater's Ball" and an over-the-top portrayal of funk icon Rick James fueled DVD sales of Chappelle's Show. Approximately 2 million units sold grossed more than $40 million. As DVD sales become an increasingly lucrative revenue stream for networks and studios, it's taking a spot next to syndication as a crucial deal-making point for profit participants.

Ask Jeff Clanagan, president of Urban Works Entertainment, a black-owned DVD distribution and film production company based in Thousand Oaks, California. He maintains that back-end deals, like Chappelle's, can produce more dough than a cookie factory. Here's how it works: A DVD that retails for $19.99 costs roughly $10 to manufacture and distribute. Standard distribution fees are about 25%, or $2.50. Manufacturing and marketing costs average around $1. Total costs can add up to as much as $5. If a comedian has a back-end deal in place, he or she stands to make up to $5 from every DVD sold.

Among the hottest sellers for Urban Works. which grossed some $25 million last year, is the Def Comedy Jam series and, you guessed it, the Dave Chappelle Platinum Series, a video of the comedian's funniest performances. Says Clanagan: "Comedy is the No. 1 selling genre for us."

Chappelle is tapping into the business side of entertainment, and he's not the only comedian doing so. African American entertainers are the driving force behind comedy.

Chappelle and Chris Rock have produced some of the highest-grossing comedy concerts. Damon Wayans' My Wife and Kids is the one of the highest-rated shows on ABC, while The Bernie Mac Show, which airs on FOX, is slated for syndication. Chris Tucker of Rush Hour fame is among the highest-paid comedians in Hollywood, earning $20 million per film.

There's little doubt that comedy is big business. Twenty-two of the top 100 highest-grossing movies in U.S. history are comedies--totaling nearly $5 billion. Many of today's entertainers have learned from the mistakes of their predecessors and take a hands-on approach to directing their careers. They understand there's big money in making people laugh. Just like corporate executives, they're forming joint ventures, hammering out lucrative deals, and identifying multiple revenue streams. By becoming crossover success stories, they're able to leverage their name recognition into profitable branding tools and use them to land lucrative endorsement deals. Many have established careers in television and film and, in some cases, launched their own companies. Part of their success is their ability to reach audiences, black and white, through a variety of platforms, including cable and network television, DVDs, feature films, comedy albums, and stand-up acts.

Black comedians have come a long way since the days of vaudeville and the old "chitlin circuit," which gave birth to legendary comics such as Redd Foxx and Jackie "Moms" Mabley. For the most part, they were relegated to performing at black nightclubs and theaters. Over the past few decades, however, there have been some notable exceptions. Among them are Bill Cosby and Flip Wilson (1960s), Richard Pryor (1970s), and Eddie Murphy (1980s). Wilson, for example, starred in The Flip Wilson Show, a variety show that lasted four seasons on NBC and brought his outrageous brand of burlesque humor to the mainstream. He was the first African American to gain major popularity as host of his own variety hour. He even appeared on the cover of Time magazine in 1972. In the 1980s, Murphy broke through to mainstream television, reviving a tired Saturday Night Live with memorable skits such as James Brown in the hot tub, Buckwheat, and the pimp Velvet Jones. He'd soon go on to become one of the highest-grossing stars in Hollywood history.

But for every Wilson and Murphy, there were dozens of others who would end up strapped for cash. Redd Foxx filed for bankruptcy in 1989, and the IRS wasted no time seizing all of his possessions. At one point in his career, he owned several homes, a TV production company, a theatrical management firm, a Los Angeles nightclub, and a Hollywood beauty parlor. His financial woes continued until his death in 1991. When Redd Foxx suffered a fatal heart attack, Murphy, who'd always been inspired by the comedic legend, paid for his funeral.