DEAL
10:26 PM PDT 07/14/2020
by
Jonathan Handel
If the agency breaks ranks, it could be the beginning of the end of the battle between the guild and the top talent agencies.
UTA, the third largest talent agency in the entertainment industry, is in talks about a deal with the Writers Guild of America, according to various sources. The Hollywood reporter. However, it is not clear if a deal is imminent.
UTA did not respond to a request for comment, nor did the Writers Guild or the Association of Talent Agents.
If an agreement is reached, it could mark a victory for the WGA that could herald the end of the ongoing battle between the guild and major agencies. WME, CAA and UTA remain locked in federal litigation against the union, and both sides assert antitrust claims against the other.
The four largest agencies, WME, CAA, UTA, and ICM Partners, had held firm in their refusal to sign with the WGA, as the 2019 guild agency agreement largely prohibits packaging fees and the production of Affiliates, which are key business practices for big business. agency model.
The agencies also contend that the new agreement, which replaced a 1976 pact, requires the agencies to violate client confidentiality by providing excessive data to the union.
In April 2019, more than 7,000 writers fired their agents under the direction of the WGA, and the union filed a lawsuit against the four largest agencies. In the time since then, Endeavor, WME’s parent company, had planned and then leaked an IPO.
In the midst of the fight, the WGA has struck deals with midsize stores as well as key boutiques, including Paradigm, APA, Gersh, Verve, Kaplan Stahler, Culture Creative Entertainment, Buchwald, Abrams, and Rothman Brecher, and may now be in the point of agreement with UTA as well.
The representation business has suffered a financial blow amid the closure of the Hollywood production. CAA experienced company-wide pay cuts, UTA temporarily laid off 171 employees, Paradigm temporarily laid off 130 employees, and Endeavor laid off 83 employees in Beverly Hills, according to disclosures with the California Department of Employment Development.
Kim Masters, Lesley Goldberg and Borys Kit contributed reports.
