Fight between Dick Clark Productions and Hollywood Foreign Press Assn. gets nastier
The fight between the Hollywood Foreign Press Assn. and Dick Clark Productions over the Golden Globe Awards television deal with NBC is getting uglier.
At issue is a the TV deal Dick Clark Productions signed last year to keep the Golden Globes on NBC through 2018. The HFPA, which created and owns the Golden Globes, filed suit in November in federal court in Los Angeles alleging that the TV producer was trying to "steal" the rights to the awards show and secretly negotiate a low-ball contract renewal with NBC that it was not authorized to do. Dick Clark Productions has said the HFPA suit has no merit.
The new deal, which goes into effect in 2012 and runs through 2018, values the show at $17 million next year, rising to $26 million at the end of the contract. The HFPA is arguing that the agreement undervalues the franchise.
Earlier this week, both sides asked the U.S. District Court for a summary judgment in the case.
As the fight winds its way through the legal system, Dick Clark Productions found itself on the defensive Tuesday when rumors spread that its parent -- Red Zone Capital, a private equity firm headed by Washington Redskins owner Daniel Snyder -- was looking for a buyer of the production company.
"With respect to rumors stating that Dick Clark Productions is actively for sale, we are not," a spokeswoman said, adding "in line with our obligations to shareholders, we will and have always evaluated any non-solicited offers."
The company also said that the Golden Globes, while important to its bottom line, is not its only asset and that it is "not singularly dependent on any one brand, rather its diverse slate of successful programs including award shows, reality and scripted programming." Other shows Dick Clark Productions is involved in include Fox's "So You Think You Can Dance," The American Music Awards," "The Academy of Country Music Awards" and "Dick Clark's New Years Rockin' Eve with Ryan Seacrest."
-- Joe Flint
Photo: The Golden Globes red carpet. Credit: Matt Sayles/Associated Press.