The $2.8 million total is likely box office release numbers. It doesn't include rentals, DVD sales and cable. So, yeah, while it's considered a financial flop, it's likely the actual $12 was made back.
People were paid. Investors/the studio put up the $12 million upfront. They're the ones who lose money when the film doesn't make money. There are likely films that are made where people aren't paid, but not with this caliber of actors.
"Professionals built the Titanic. Amateurs built the Ark." Helen Hannah
I don't even remember this film being released, and I try to keep up on these things – particularly with a strong cast like this. Was this even promoted? Fortunately, I found the DVD for $3 at Big Lots, and I decided to give this a chance. It's excellent.
Good choice! It's definitely one of the best recent purchases I've made from Big Lots. It's always hard to resist the price, but honestly, many of their films aren't that great. This was certainly an exception.