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The film focuses on a fading wrestler (Mickey Rourke) who begins to romance a stripper (Marisa Tomei) after being forced into retirement following a heart attack.
Critics have lavished praise on the drama, citing Rourke's take on the lead role as the film's highlight. Variety called it "a galvanising, humourous, deeply moving portrait that instantly takes its place among the great, iconic screen performances".
Jury chair Wim Wenders said the actor delivered "a truly heartbreaking performance".
Paper Soldier director Aleksey German Jr. picked up the Silver Lion award for best director. His film focuses on the start of the Soviet space programme.
Silvio Orlando won the best actor prize for his role in Giovanna's Father, while Dominique Blanc was named best actress for The Other One.
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