Officially, director Andrei Konchalovsky was fired because the film went over budget and over schedule. However, according to his 1999 book Elevating Deception, Konchalovsky was fired because he wouldn't agree to what he refers to as the "increasingly insane" demands of producer Jon Peters. Konchalovsky says that he was hired to make a buddy cop movie with plenty of humor, but Peters basically wanted to turn it into a spoof, without any semblance of seriousness, and Konchalovsky refused. Essentially, Konchalovsky argues that they were simply trying to make two different movies, and when Peters realized he couldn't bend Konchalovsky to his will, he fired him.
According to Brion James (in a 1999 interview with Louis Paul), the film was in disarray from the very beginning, as production began without a completed script, then Sylvester Stallone fired the original director of photography (Barry Sonnenfeld), the film ran $20 million over budget, and several months over schedule, and by the half way stage of the shoot, Peters and Konchalovsky were no longer speaking. James agrees that the official reason Konchalovsky was fired was because of the budget, but he also says that going over-budget was not Konchalovsky's fault, and that Konchalovsky did not deserve to be fired. Both James and Konchalovsky also agree that Stallone was the one person who held the project together, and that he was a constant voice of reason on an increasingly chaotic set. According to Konchalovsky, by the end of principal photography, Stallone was working unofficially as producer, director and writer, as well as star, and Konchalovsky believes that had it not been for Stallone, Peters would have fired him much sooner than he did.