A phrase I've heard to explain this is "Every time a building burns down in Tunisia, it gets charged against Star Wars"
The guy who played Darth Vader in the original trilogy has never received any royalties, because those films never made a profit.
Assume value is 0 and eval the deal. If the deal is otherwise good go for it. If you need an expected value to make the deal good, don't do it.
They channeled ebook sales through a foreign subsidiary and claimed it wasn't really a publisher but a distributor. This gave them an excuse to pay authors 30c for ebook sales, when they should have been getting $2.
Obviously Niche Publisher pocketed the difference.
There was a class action suit and eventually the publisher settled out of court for $4m. A quarter of that went to the lawyers.
BigCo content companies are staffed by thieves and parasites. Being creative isn't the worst job in the world, but it's unusually good at attracting thieves, fraudsters, and other vampires.
I'm not a fan of studios or current copyright laws, they are horrendous. But, being the devil's advocate: I think the model often is that studios provide exposure for young artists and get profits from first success. If a movie is a hit, artists get real money on the second and later ones.
If that is the case, the contract is somewhat morally defensible (60k in 1984 was more than it is today).