The story behind why a sequel to Elf never materialized reportedly hinges on a behind-the-scenes feud between star Will Ferrell and director Jon Favreau. 

It’s been over two decades since Buddy the Elf (Ferrell) made his unforgettable journey from the North Pole to New York City, seeking out his estranged father (James Caan) in what would go on to become a modern holiday classic. 

Yet, despite its lasting success and even inspiring Elf: The Musical on Broadway, one lingering question remains: why was there never a sequel?

Back in 2006, Ferrell sH๏τ down a $29 million offer to reprise his role, telling The Guardian, ‘I killed the idea of a sequel. I never liked it.’ 

He later revealed in 2021, the script just didn’t sit right with him: ‘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.”‘ 

But it wasn’t just Ferrell’s discomfort with the sequel that killed the project — in 2020, Caan spilled the beans that the real reason Elf 2 never happened was the major beef between Ferrell and Favreau.

The story behind why a sequel to Elf never materialized reportedly hinges on a behind-the-scenes feud between star Will Ferrell and director Jon Favreau; (seen in 2003)

It’s been over two decades since Buddy the Elf (Ferrell) made his unforgettable journey from the North Pole to New York City , seeking out his estranged father (James Caan) in what would go on to become a modern holiday classic.

‘We were gonna do it 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,”‘ the late actor explained to Cleveland’s 92.3 The Fan’s Bull & Fox.

He continued: ‘The director and Will didn’t get along very well. So, Will wanted to do it, he didn’t want the director, and he had it in his contract. It was one of those things.’

Read More All the insane drama behind beloved Christmas movie Elf – and how a Will Ferrell feud killed sequel

This tension between star and director was reportedly so severe that the contracts for a sequel were structured in such a way that both Ferrell and Favreau needed to be on board for it to move forward. 

Needless to say, that never happened.

While Ferrell hasn’t publicly delved into the specifics of the contracts, he’s been clear about his reasons for stepping away. 

In his Guardian interview, he remarked, ‘$29 million does seem a lot of money for a guy to wear тιԍнтs, but it’s what the marketplace will bear. 

‘It’s insane, but it’s not my call. The studios perpetuate it, and they make it hard to say no.’

Back in 2006, Ferrell sH๏τ down a $29 million offer to reprise his role, telling The Guardian , ‘I killed the idea of a sequel. I never liked it’

He continued: ‘The director and Will didn’t get along very well. So, Will wanted to do it, he didn’t want the director, and he had it in his contract. It was one of those things; (seen in January 2020)

Ferrell later revealed in 2021 , the script just didn’t sit right with him: ‘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”‘

But, Ferrell insists, turning down the hefty payday wasn’t difficult. 

‘I remember asking myself: could I withstand the criticism when it’s bad and they say, ‘He did the sequel for the money’? I decided I wouldn’t be able to. 

‘I didn’t want to wander into an area that could erase all the good work I’ve done. But you watch, I’ll do some sequel in the future that’s crap.’

The actor remained firm in his stance even years later. 

In a 2013 appearance on Watch What Happens Live with Andy Cohen, when asked about the possibility of a sequel, Ferrell replied with characteristic humor and conviction.

”Absolutely not. I just think it would look slightly pathetic if I tried to squeeze back in the elf тιԍнтs: Buddy the middle-aged elf.”

Meanwhile, Favreau has always been measured in his comments about a sequel.

In 2023, he explained why he thought Elf didn’t need to be revisited. 

But it wasn’t just Ferrell’s discomfort with the sequel that killed the project — in 2020, Caan spilled the beans that the real reason Elf 2 never happened was the major beef between Ferrell and Favreau; from left, Amy Sedaris, Caan and Ferrell

‘We were gonna do it 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,”‘ the late actor explained to Cleveland’s 92.3 The Fan’s Bull & Fox; (seen in 2003)

‘I think there’s always room for new Christmas movies,’ Favreau told Variety. ‘That particular film, I don’t know what story would be told after that. It’s very complete.’

And even in 2016, when the topic of a sequel came up, Favreau expressed skepticism. 

‘There is part of me that wonders if there’s anything to be done to follow up Elf, but I think a straight sequel is probably not the right move,’ he told Yahoo.

At the end of the day, it seems that Elf was always meant to be a one-time holiday miracle.