Shah Rukh Khan's upcoming film King has seen a major shift in its overseas distribution. The international rights, originally set to be handled by Yash Raj Films, have now been acquired by Phars Films in what trade sources are describing as a record-breaking arrangement.

According to people close to the deal, Phars committed a minimum guarantee of around Rs. 175 crore for the overseas rights — which trade reports are calling the largest overseas minimum guarantee ever committed for an Indian film. Because most big Bollywood titles are sold abroad on a commission basis rather than against a guarantee, an upfront minimum guarantee of this scale is being described as unprecedented.

Most Bollywood overseas deals run on a commission model, where the distributor takes a fee without putting up a guarantee; Yash Raj Films had handled Jawan and Dunki that way and was initially lined up for King on similar terms. Phars, however, is said to have made an offer too strong to turn down. With King described as the biggest Bollywood production ever mounted apart from Ramayana, the upfront guarantee helps shift some of the financial risk away from the makers.

Phars is expected to run its usual playbook — selling individual territories to sub-distributors while directly managing the Middle East, where the company is based, with a sizeable offer reportedly already on the table in Germany. Many territory distributors are likely to carry over from the Yash Raj setup, with the biggest changes coming in North America, the United Kingdom and the Middle East, markets that Yash Raj Films typically services through its own offices.

To justify the investment, King is estimated to need an overseas gross in the range of Jawan and Pathaan — roughly USD 48 million, with an effective recovery target closer to USD 50 million once premium-priced territories are accounted for. It will also have to compete for screens during the crowded Christmas–New Year window against Hollywood tentpoles including Avengers: Doomsday, Dune Part 3 and Jumanji 3. For now, the report notes, Phars has placed considerable confidence in the film.