ICM signs deal with Writers Guild in agency’s next major breakthrough

BUSINESS

09:49 am PDT 08/05/2020

by

Erik Hayden
,
Kim masters

The move marks another step forward in the scribes’ deadlock with major agencies on a new franchise agreement.

As the Writers Guild of America aims to make gains with new franchise deals amid its year-long standoff with major agencies, ICM Partners has signed a deal, sources say. The Hollywood Reporter.

“We look forward to getting back to work for our writing clients,” said ICM Co-Chair Kevin Crotty. “The pandemic has caused enormous hardship and every facet of our industry is greatly challenged because of it. It was time to bridge that gap and start again helping our clients tell stories that entertain, enlighten, connect and comfort audiences everywhere.

Century City-based ICM, led by CEO Chris Silbermann, employs more than 500 people, having recently laid off 40 support staff, and has additional offices in New York, London and Washington, DC In December, the agency launched its first private equity. investor in recent years, selling a minority stake to New York-based Crestview Partners.

ICM is the last major agency to come to an agreement with the guild. On July 15, UTA sent a letter to its clients confirming that it had reached an agreement with the WGA, including on packaging costs, which has been at the heart of the dispute between the agencies and the guild.

In an email to members on Wednesday, the Writers Guild said the ICM can once again represent its writers and noted that the packaging fee sunset period ends on June 30, 2022 (Wrapping is a practice of long-standing in which agents are paid directly by a studio, typically to tie actors and / or a director to a writer’s pitch.)

The UTA’s decision marked a breakthrough in a clash that sparked in April last year when 7,000 writers fired their agents under WGA leadership after the guild failed to strike a deal. new agreement with agencies. At the time, major agencies WME, CAA, UTA, and ICM were sued by the WGA, with the guild arguing that the packaging charge was a breach of fiduciary duty.

WME, CAA, and UTA then launched the attack and counterattacked the guild. The legal case is ongoing, although the ICM is out of the current litigation and the UTA and WGA agreed in July to dismiss their claims against each other.

Meanwhile, the Writers Guild has steadily made deals with talented small and medium-sized businesses, although the majors have resisted. Over the past year, Paradigm, APA, Gersh, Verve, A3 Artists Agency and other talent agencies have made deals to represent writers. (While film and television production ceased in mid-March due to the novel coronavirus pandemic, agency representation activity took a financial hit, which appears to have affected leverage in negotiations with writers.)

In addition to the cost of packaging, the stalemate centers on the ownership of the content production agencies, which the guild sees as a conflict of interest. UTA, in its agreement with the guild, says it will maintain its involvement in its production entities, but will not exceed a negotiated cap of 20% ownership. (MRC, the parent company of THR, has a partnership with UTA via its Civic Center Media).

ICM has grown in recent years, buying stores to strengthen its representation activity. Over the past three years he has created Headline Media Management to build up his broadcast division, acquired the Royce Carlton speaker agency, grabbed the literary firm The Sagalyn Agency, formed a joint venture with the company of esports Evolved and bought the Primary Talent music agency, among others. offers. It also entered the live events market, leading a group to acquire the Just for Laughs Festival in 2018.

Jonathan Handel contributed reporting.

August 5, 12 p.m. PT Updated to indicate that ICM has signed an agreement with the Writers Guild.