The Horizon New Line co-financing lawsuit is an arbitration fight over who owes what on Kevin Costner’s Horizon: An American Saga. City National Bank, a bondholder on the project, started arbitration against both New Line Cinema and Costner’s loan-out company, Horizon Series LLC, over unpaid financing obligations. New Line then filed a crossclaim against Horizon Series, alleging Costner’s company failed to repay its contractual share of the production financing and that New Line was forced to cover the gap.1The Hollywood Reporter. Horizon Lawsuit: Kevin Costner, New Line, Territory
How Horizon Was Financed
Horizon was not a conventional studio film. Warner Bros., through its New Line Cinema label, took a distribution fee but did not bankroll the picture the way a major studio typically would. The money came from a patchwork: Costner’s own funds, private investors, and a co-financing agreement between New Line and Horizon Series LLC that split repayment obligations between the two companies.1The Hollywood Reporter. Horizon Lawsuit: Kevin Costner, New Line, Territory
The first chapter alone carried a production budget in the range of $100 million.2Variety. Kevin Costner Horizon Box Office Flop Costner personally put in an estimated $38 million to $50 million, deferred his fees, and mortgaged a Santa Barbara waterfront property he had bought in 2006 for $28.5 million.3CNBC. Kevin Costner Mortgage Property Fund Horizon Movie Private investors included Danny Peykoff, a bottled-water heir who contributed a low-eight-figure investment and use of his private jet, and Tanner Beard of Silver Sail Entertainment, who provided a $3 million bridge loan. The state of Utah added several million in grant money.4The Hollywood Reporter. Kevin Costner Horizon Yellowstone
Under the co-financing agreement itself, both New Line and Horizon Series were contractually required to repay specific portions of the production financing. That split is the piece of the deal now in dispute.
What Triggered the Dispute
Chapter 1 opened in late June 2024 and collapsed at the box office. It took in about $11 million on its opening weekend2Variety. Kevin Costner Horizon Box Office Flop and finished with a worldwide gross of roughly $38.8 million against that $100 million production budget, with marketing costs handled by Costner on top.5Box Office Mojo. Horizon: An American Saga — Chapter 1 Chapter 2, which had been booked for an August 16, 2024 theatrical release, was pulled from the calendar on July 10, 2024.6Forbes. Kevin Costner’s Horizon Lands Prime Video Date as Chapter 2 Remains in Limbo
With returns nowhere near the film’s budget, the repayment obligations built into the co-financing structure could not be met from box office proceeds. That is what set the arbitration in motion.
The Arbitration and Crossclaim
City National Bank, which had served as a bondholder on the project, filed for arbitration against Horizon Series LLC and New Line Cinema, saying it is owed additional funds tied to the film’s financing that have not been repaid.7New York Post. Kevin Costner’s Horizon Ignites Legal Battle After Box Office Bomb
New Line’s crossclaim against Horizon Series takes a narrower position. Under the co-financing agreement, Horizon Series was obligated to repay a defined portion of the production financing. New Line contends that Costner’s company did not pay, that New Line covered the shortfall, and that Horizon Series now owes it reimbursement for those funds.1The Hollywood Reporter. Horizon Lawsuit: Kevin Costner, New Line, Territory The specific dollar amounts sought have not been publicly disclosed.
An arbitration hearing was scheduled for March 2026.8The Hollywood Reporter. Kevin Costner Sued Unpaid Costume Fees Horizon The proceedings are private, and no public resolution has been reported. Because the case is in arbitration rather than open court, filings, exhibits, and any award will not become part of the public record unless one of the parties later moves to confirm or vacate the outcome in court.
Where the Franchise Stands
Chapter 2 has been completed. It screened at the Venice Film Festival in September 2024 and at the Santa Barbara International Film Festival in February 2025, but it still has no theatrical release date. A Warner Bros. source described the film as “frozen,” pointing to legal issues as one reason.9World of Reel. Kevin Costner’s Horizon Chapter 2 Not Coming Out This Year
Costner has kept pushing on the rest of the saga. Actor Danny Huston has said a substantial amount of Chapter 3 has already been filmed.10Forbes. Kevin Costner’s Horizon: An American Saga Star Gives Filming Update Financing for the remaining chapters is not locked in. Costner told reporters in late 2024 that he had been “meeting all the billionaires that we all hear about,” and earlier pitches, including approaches to Saudi officials, did not close.8The Hollywood Reporter. Kevin Costner Sued Unpaid Costume Fees Horizon He is also backing construction of a $100 million film studio in Utah while the arbitration and other claims tied to the production continue to work their way through the system.