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Just yesterday FOG reported that the production start date on Legendary Pictures’ Paradise Lost (which is set up at Warner’s) has been postponed until director Alex Proyas (Dark City, The Crow, Knowing) can get the budget under control.

Now, Deadline is reporting that Arthur & Lancelot is not going to get made by the studio unless the budget gets a dramatic cut… Warner Bros. paid $2 million for the David Dobkin penned script.

Although Warner Bros. has already set a March 15, 2013 release date and has already cast Kit Harington (HBO’s Games of Thrones) to play Arthur and Joel Kinnaman (AMC’s The Killing) to play Lancelot, the discrepancies over the budget has pushed the studio to invite Dobkin (The Change-Up, Wedding Crashers, Clay Pigeons) to set up the project at another studio if he can.

Deadline reports that the budget for the project, which is a re-imaging of the Sword And The Stone started out at $90 million, but the studio thinks it could reach upwards of $130 million and they don’t think the budget is worth the risk for a film that stars two unproven leads.

Warner Bros. seems to really want to make a film about Arthur, Lancelot, and the Knights of the Roundtable, because the Dobkin script beat out two other scripts based on the same subject that the studio had in development.

It also seems that Warner Bros. is intent on getting the Dobkin version of the film made, but if the project can’t figure out it’s budget problems, rumors are circling that Guy Ritchie (Sherlock Holmes, Rock n’ Rolla) might be brought in as director.

Warner Bros. recently handed Richie The Man From U.N.C.L.E. after stopping the version Steven Soderbergh (Haywire, Contagion, Traffic) was working on because the studio didn’t like his budget or the cast, after George Clooney dropped out of the lead role.

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