EXCLUSIVE: Ryan Seacrest may be rapidly becoming one of the richest guys in show business in front of and behind the cameras, but he doesn’t like paying commissions. I learned yesterday that Seacrest, who’d been a longtime client of the William Morris Agency pre-merger, informed WME Entertainment post-merger that he didn’t want to pay the agency’s fee on the differential between his new pact and old pact on American Idol. (Some sources say there was also a dispute over commissions on his radio contract.) I’m told that commissions had been a sore point between Seacrest and the Morris office for years. WME refused to cut him a special deal. “When he pushed back, WME said, ‘We can’t represent you then. Either stay and pay full commission and together we’ll keep growing and expanding and servicing your reality business. Or leave.’” That’s when Seacrest took a meeting at CAA. By the end of day yesterday, Seacrest hadn’t yet made a decision to leave WME. (Some say he was pleased with the reality TV department there, other tell he wasn’t.) Today he left.
What surprised just now is that even rival agencies to WME are describing Seacrest to me as a “grinder” and “scumbag” for trying to negotiate lower commissions. A year ago August, I asked the question whether Seacrest was in play after his longtime William Morris agent Adam Sher left the rep business to run Ryan Seacrest Productions. Though Seacrest still had representation at Morris by John Ferriter, who’d been in 2nd position, I fully expected every major agency to make a run at Ryan and his very hot business. It was assumed that Sher would protect William Morris where he’d been an agent for 15 years. But, after the Morris merger with Endeavor, all bets were off. Now Sher helped guide Seacrest to CAA.
For those who aren’t in the know, Seacrest is much more than just a fey TV personality with no discernible talent. But as famed TV critic Tom Shales wrote in a great piece called “Ryan Seacrest Inc”, Ryan is trying to mimic Rupert Murdoch. (Others think he’s aping Dick Clark or Merv Griffin.) The Viscount of Vapidness is paid an estimated $12.5 million annually for hosting American Idol, not counting all the ancillary gigs he’s lined up. And he’d just signed a rich new contract that will pay him $15 million annually (for a total of $45 million) to keep him on American Idol through 2012 in a deal that also makes Ryan exclusive in primetime to 19 Ent owner CKX. UPDATE: Seacrest’s side maintains the new contract was negotiated by Ryan’s attorney Craig Jacobson, not WME.
The Seacrest empire already includes a multi-year megadeal with Comcast, where he has first-look rights through August 2011. He has a 3-year, $21 million contract with E! Entertainment Network to host its special event programming and Red Carpet coverage as well as an overall production deal there in which he shares the ownership of the shows he creates. He has investments in eight Southern California restaurants, runs a half-dozen media companies and recently launched “The ‘R’ Line” fashion label. And this year he took 3 hours of his daily 5-hour L.A. radio show national, via syndication — and his own advertising company retains 10 minutes of the commercial time to sell on its own, so that the profit goes right back to Seacrest. He does those insipid toothpaste commercials because of a relationship with Procter & Gamble. Seacrest now has lotsa little companies: Ryan Seacrest Productions, “On Air With Ryan Seacrest,” which employs about 20 people; “Top 40″ radio has a staff of about 15; Sea Calm, which is the radio division; and Seacrest Sales, which is the sales division. Seacrest told Shales: ”The challenge for me is taking all these parts and figuring out how they can come together to make a big media company.” That now becomes CAA’s challenge, too.






Impressive scoop! But I thought WME was all about cutting down commissions to keep big names…
Kind of an assy move on his part.
SEACREST OUT!!!!!
…and somewhere, Brian Dunkleman is weeping.
Good for him. It’s time agents started earning their commission instead of just fielding offers they had nothing to do with eliciting. Most people don’t know Bill Cosby and many other top shelf clients of WMA negotiated a lower than 10% commission. The agents should get paid what they earn. And by earn, that means getting off your tuchas and generating business for a client instead of playing defense all day long!
how could you miss this angle: John Ferriter (who was the only WMA agent smart enough to vote against the merger) has now lost to CAA both Chelsea Handler and Ryan Seacrest (both of who have huge deals with Comcast)
Ryan is an overachever. He has a right to be very smart with who get’s what commission. The old WMA did a great job for him and basically launched him into superstardom. I know. If it wasn’t for WMA Ryan would not have had all of these businesses. You can argue that any agency could have done what the Morris office did for Seacrest, but the reality is the old WMA spearheaded by Itkin and Ferriter are the best in reality. Period… I can’t believe Seacrest wants to cut out commission. What a shame that all of this star power has gone to his head. As much as I hate the current WME because of their lack of leadership with Fogelman (what a looser!) and the old WMA with the idiot Wiatt and fat man Irv Weintraub, I think Seacrest is in the wrong here.
I guess that WME wasn’t serious about wanting to represent only the top 2% of talent in the business. Apparently they’re working on repping only the top 1%. Great plan Ari, keep it up!
what a douche. if your agents get you more money, they deserve their cut.
Seacrest’s talent lies in his ability to stay calm and cool in front of the camera. His weakness is that he’s not very funny, yet is constantly making jokes. Almost every conversation he has with anybody ends up being extremely uncomfortable.
Ryan wants to be like Dick Clark? The good news is that he’s even cheaper than Dick ever was!
Good for Seacrest for doing to agents what they do to everyone else. Smart guy.
Who is advising Ryan on these decisions?! If he’s not paying for his hosting it has to be about his company. Does CAA even have an alternative TV department? I can’t name one of those agents and I even know the name of the valet guy. So much for producing. I bet this guy lives in a bubble far removed from reality.
Didn’t his agent just get out of the hospital? Classy, Ryan. Anything for a dollar.
I used to work at WMA. I was out really late once on a school night, so I stayed up all night and went in to work at 5:30 AM. No joke, John Ferriter and his team were already there…feverishly working on a deal for Ryan. I hope he has people like that at CAA. Not likely.
Hey Ryan,
If you go to Ralph’s right now, Pringles are on sale! Better hurry if you want to save $!!!!!!
I’ve heard this line of argument before about commissions: If i, as the client, am guaranteed $45.0M, then you, as the agent, are getting $4.5M in commissions and your services can’t possibly be worth that. it’s not fair!
Ok, Ryan, do you really think that you’re “worth” $45.0M?! I don’t disagree that agents’ services aren’t worth that…but neither are the services of Seacrest.
So it follows that, in fact, the agency services are worth that much for getting their client overpaid by such a large multiple.
And you all are still listening and watchin his shows..no wonder he is racking in millions coz of our stupidity!!
And Seacrest’s services are “worth” $45.0M?! Seriously.
WOW. Can you believe they let him go? I would have easily settled for 5-7% comission to keep a player like Seacrest on my client list. That is just absurd. Look at all he’s got going on? He’s easily the hardest working man in Hollywood and quickly proving to be one of the smartest as well.
…And exactly how is RS similar to Rupert?
I would say RS is more like Dick Clark.
Well I certainly don’t begrudge his success and his ability to make a buck (or several million).
That said, I also don’t get it either.
Nevertheless, good for him and CAA.
As a former WMA’er of the TV department. I have to say this is SHOCKING!! I really don’t understand how Seacrest can leave John Ferriter. Ferriter is the guy who got him bumped up from 300k a year to over 30 Million a year. Ferriter had to beg Darnell to hire him years ago by literally sitting in Mike’s office for over four hours. Everyone at WMA also knows that Ferriter took over a year to set up Ryan’s lucrative radio business and engineered Ryan taking over for both Rick Dees and Casey Kasem. He was being groomed to be the next Dick Clark.
Seacrest can’t live with an agency 10% fee like every single other client? How cheap can you really get? Seacrest is cheaper than Dick Clark. It’s OK Ryan, we can all call you ‘The Cheap DICK Clark’ now.
You’ve earned it…you’re a classy guy. I guess success has no conscience.
While I don’t know Seacrest at all, I do happen to know Sher for a VERY long time… He has worked his ass of for many years at WMA and is a very loyal guy… If CAA has Seacrest now, I’m certain it’s not Sher’s fault… He, most likely, did everything he could to keep Ryan in the WMA/WME fold, but business is business… The reason Ryan is at CAA is because WME could close the deal – or didn’t think he was worth it… People like Ryan make their own decisions… There is a reason they call this “show business”… WME made business decisions that were best for them – Seacrest made his…
“What surprised [me] just now is that even rival agencies to WME are describing Seacrest to me as a “grinder” and “scumbag” for trying to negotiate lower commissions.”
Nikki surely that *doesn’t* surprise you, the last thing agencies want is to encourage lower commissions.