Will Ferrell explains why he refused to make an 'Elf' sequel

Will Ferrell isn't afraid to turn down a big paycheck in favor of his own moral compass.

In a new interview, Ferrell, 54, told The Hollywood Reporter that he turned down a $29 million payday for "Elf 2."

The actor said the premise for the sequel was "rehashed" and he could not have promoted the film in earnest.

“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 said. "And I thought, ‘Can I actually say those words? I don’t think I can, so I guess I can’t do the movie.'”

The original feel-good Christmas comedy grossed more than $223 million at the box office and follows the story of Buddy the Elf traveling to New York City in search of his real father after growing up at the North Pole.

Ferrell recalled thinking “Boy, this could be the end," during filming while donning his now-famous elf costume, which features bright yellow tights, around NYC.

It's not the first time Ferrell has talked about a sequel to his famous flick. In December 2013, he joined Andy Cohen on Bravo's "Watch What Happens Live" to set the record straight on the chances of seeing Buddy the Elf on the big screen again.

“Absolutely not," Ferrell told Cohen at the time. “It would look slightly pathetic if I tried to squeeze back into the 'Elf' tights.”

When pressed further about sequels for both "Elf" and "Night At The Roxbury" on Cohen's show in 2017, Ferrell shot down any lingering hope.

"I've got great news for you," he said leaning toward the camera. "No."

In September 2020, James Caan, who plays Ferrell's fictional father in the film, told an Ohio radio show that a sequel was not filmed because Ferrell had a disagreement with the movie's director, Jon Favreau.

"We were gonna do it, and I thought, 'Oh my God, I finally got a franchise movie. I can make some money, let my kids do what the hell they want to do,'" Favreau said of a possible sequel.

But it never got off the ground.

"The director and Will didn't get along very well," Caan said. "Will wanted to do it, and he didn't want the director, and (Favreau) had it in his contract...it was one of those things."