With regards to Sondheim's power of approval... As Jordan said, he's not just any lyricist, but I think his power over GYPSY has risen as all the other members of the creative team are deceased. For all we know, Styne and Laurents estates assigned their approval/veto power over to Sondheim.
No, I'm sorry- my respect for Mr. Sondheim knows no bounds but someone explain how this works. The lyricist NEVER gets director approval- hell, the AUTHOR never gets directorial approval.
To answer SondheimFan5's question: Helena Bonham Carter in husband Tim Burton's film of SWEENEY TODD. Normally I like her in most films, but I thought she was awful in SWEENEY.
I would assume that would be Helena Bonham Carter. Even though she and Tim Burton are not actually married she is still pretty much referred to as his wife and not just a girlfriend or partner.
I agree that this is most likely him trying to kill the whole project. Streisand has been trying to make this happen for years and if she is out than then it won't happen.
But it seems he's fine with Rob Marshall doing INTO THE WOODS, so there you go.
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Some of you probably recall this situation more clearly than I but I remember when Streisand was preparing THE BROADWAY ALBUM she asked Sondheim if he would agree to a few, minor lyric changes. As far as I know, they worked things out smoothly and the changes occurred, but perhaps now he fears as director she would be constantly asking for changes in lyrics and libretto and he just doesn't want to invite that sort of aggravation.
Also, as some of you have stated, this is probably Sondheim's way of shutting down the whole enterprise. Apparently, Laurents caved in to her to star in the film just before he died, so she has that agreement to hang on to, but I'm sure he did not approve her as director as well.
Despite how gifted she is, she's simply far too old for the role, and would likely request all sorts of compensation in the material to justify.
She was never going to Direct. IMO- The 3 rumored director are Spielberg, Todd Haynes or Mike Nicols. Spielberg would be great and can handle her, I think w/ Haynes she would take over, She would kill Mike Nicols at his age. But any are good. Also, Alex Baldwin as Herbie. Gaga as Louise. Then, she directs Skinny & Cat in Jan. w/ Colin Firth and Cate Blanchett.
I'm not sure why anyone would think a lyricist would not have any veto rights on the licensing of a property. He is part of the creative team that owns the rights, and he would have as much right as anyone on the team to give or withhold rights. Depending on the underlying agreement on how to handle things if there is a dispute among the team.