If the producers of the beloved festive classic Elf had planned to release a sequel, it seems like it would have happened by now. After all, the Will Ferrell hit debuted 21 years ago, leaving plenty of time to develop a follow-up.
Surprisingly, there’s a specific—and rather sad—reason why a sequel never materialised.
For those who haven’t rewatched Elf this festive season (or need a refresher), the film follows Buddy the Elf, played by Ferrell. Despite being human, Buddy is raised at the North Pole as one of Santa’s elves after a mix-up at birth.
When he learns the truth about his origins, he travels to New York City to reunite with his birth father, a gruff businessman played by James Caan.
The story unfolds as Buddy adjusts to human life, bonds with his new family, falls for toy store worker Jovie (Zooey Deschanel), and even saves Christmas by helping Santa deliver presents. Though it wasn’t a critical darling, Elf has since earned its place as one of the most cherished holiday films of all time.
Given its enduring success, it’s surprising a sequel has never been made. But why hasn’t it happened? Before his passing in 2022, James Caan claimed the surprising reason: tension between lead actor Will Ferrell and the film’s director.
Caan shared that he, Deschanel, and Mary Steenburgen, who played Buddy’s stepmother, were enthusiastic about a sequel.
“We were gonna do it,” Caan admitted, adding “And I thought, ‘Oh my god, I finally got a franchise movie, I could make some money, let my kids do what the hell they want to do’.
“But the director and Will didn't get along very well.”
The late actor revealed that while Ferrell was open to the idea of a sequel, he refused to work with director Jon Favreau again. “He had it in his contract, it was one of those things,” Caan claimed during the 2020 radio interview.
While neither director or star have acknowledged Caan’s claim, Ferrell was reportedly offered a staggering $29 million for a sequel but turned it down, explaining that the script just wasn’t up to par.
"I would have had to promote the movie from an honest place, which would’ve been, like, ‘Oh no, it’s not good. I just couldn’t turn down that much money,’" he told The Hollywood Reporter in 2021. "And I thought, ‘Can I actually say those words? I don’t think I can, so I guess I can’t do the movie.’"
Meanwhile, director Jon Favreau decided that the beloved holiday classic stands on its own and doesn’t need a sequel.
"I think there's always room for new Christmas movies," Favreau told Variety last year. "That particular film, I don't know what story would be told after that. It's very complete."
