Chapter 287: CAA's Predicament

"Mike, we'd love to work with Barry, but his new script really lacks appeal. And there's no way we can accept a $25 million budget."

"I understand where you're coming from, Sid. Paramount must also be hoping to get one or two projects from Daenerys Entertainment's ten-film plan. But considering the underhanded way you took 'The Rocketeer' and 'Fire Birds' from Simon Westeros, do you really think he'll want to work with you?"

"Mike, it's precisely because we're aware of our situation that we're having this meeting today. I guess other studios probably don't want to discuss this project with you anymore, do they?"

...

At Paramount Pictures in Hollywood.

Paramount's President, Sidney Ganis, and Michael Ovitz were discussing Barry Levinson's new script, "Avalon," a mythical paradise in European legend. The story recounts the struggles of the Krichinsky family, Eastern European immigrants, in America since the turn of the century.

The "Rain Man" project, though it did win Dustin Hoffman his second Oscar, putting a bit of a positive spin on things, still left Barry Levinson and the rest of the creative team in a somewhat embarrassing position.

Barry Levinson had focused on writing his new script, "Avalon," in the first half of the year, hoping to redeem himself with this project. By early July, "Avalon" was completed, and several Hollywood studios showed interest, initiating talks.

However, as Daenerys Entertainment suddenly announced a ten-film external collaboration plan, things took a turn for the worse.

Disney, Columbia, and Warner Brothers, which had initially shown interest in "Avalon," firmly declined, leaving only Paramount without a definitive answer.

Over these days, Michael Ovitz has more than once regretted not stopping Barry Levinson and others from trying to shift blame previously, leading to CAA being blacklisted by Daenerys Entertainment.

After a moment of silence, Michael Ovitz said, "Sid, let's be frank, what's Paramount's offer?"

"Barry's new script is obviously aiming for the Oscars, not box office potential. So, Paramount can only offer a maximum budget of $12 million, including $2 million for Barry's salary, plus a 10% net profit share clause."

Ovitz, slightly annoyed, responded, "Sid, $2 million, do you think that's possible?"

Since his breakthrough in the '70s, Barry Levinson quickly rose to the ranks of A-list writers and directors. Even without considering "Rain Man," hits like "Good Morning, Vietnam" had already placed him among the top directors with a baseline fee of $5 million.

Moreover, Levinson's contribution to "Rain Man" cannot be entirely dismissed.

After back-to-back successes with "Good Morning, Vietnam" and "Rain Man," Paramount's willingness to price Levinson's self-written and directed new film at only $2 million was nothing short of insulting.

Sidney Ganis ignored Ovitz's sarcastic question, glanced at his watch, and said, "I have another meeting soon, Mike. You can go back and think about it, then call me once you've decided."

Leaving Paramount Pictures with a heavy heart, Michael Ovitz spent the ride back contemplating how to break the news to his client.

Paramount was clearly taking advantage of the situation, but Barry Levinson didn't have many options.

Or perhaps.

Levinson should put aside this project for now and start a more commercially appealing film instead.

This thought was quickly dismissed by Ovitz.

Matthew Broderick, who had previously clashed with Simon Westeros, was now completely out of the picture. With Daenerys Entertainment keeping a low profile, there weren't many in Hollywood willing to risk working with Barry Levinson.

Even within CAA, many stars were deliberately avoiding Levinson and others.

Back at CAA's headquarters in Century City, just as he sat down at his desk, one of the agency's agents, Richard Lovett, reported that Kurt Russell and Goldie Hawn were planning to leave CAA.

Ovitz frowned.

This was another serious issue facing CAA.

After Jonathan Friedman became president of WMA, he ambitiously aimed to reclaim clients that had left for CAA. Kurt Russell and Goldie Hawn were A-list stars CAA had poached during the death of WMA's previous president, Stan Kamen. This was clearly a counterattack by WMA.

After making a few calls, Ovitz soon contacted Kurt Russell. However, his dinner invitation was directly declined. Russell was polite but stated that their lawyers would handle future matters.

This situation was evidently beyond repair.

Moreover, the Russell couple was not the first wave of stars to leave recently. Ovitz knew all too well that not just WMA, but other talent agencies in Hollywood were targeting CAA.

Ovitz had once ambitiously aimed to drain all other talent agencies of their "essence," relying on CAA's unique package deals to secure increasingly lucrative deals for its stars. This strategy was initially very successful. However, since Simon Westeros' emergence, Ovitz found himself increasingly unlucky over the past two years, failing to secure many clients he had hoped to bring under CAA's wing, such as Robert De Niro, Kevin Costner, and Brian De Palma.

Now, as Daenerys Entertainment's influence continued to grow, CAA even began to face poaching attempts.

CAA's package deal strategy was not outdated; in fact, it became even more popular. However, Ovitz understood why this situation was happening.

At its core, it was a matter of competition for resources in Hollywood.

In previous years, thanks to successful package deals like "Tootsie" and "Out of Africa," CAA seemed unstoppable in Hollywood. Not only did it successfully attract a large number of A-list stars, but projects involving CAA could also secure favorable release dates and resources from studios.

However, the rise of Daenerys Entertainment quickly eroded these advantages.

Because many non-CAA clients, whose status had been elevated by a series of successful Daenerys Entertainment films, began to receive more attention from studios. With a solid base of popular films, stars like Robert De Niro, Kevin Costner, and Sandra Bullock could also demand better resources from studios.

In comparison, with its stars' commercial performances clearly lagging behind those of Daenerys Entertainment's films, CAA gradually found itself at a disadvantage.

Now, with Daenerys Entertainment's ten-film plan potentially excluding CAA stars, this disparity was only set to widen. After all, these ten films were bound to dominate the best release slots, marketing budgets, and screen allocations over the next two years.

Moreover, there was no doubt that a new batch of stars would rise in status.

As one fell and the other rose, some of CAA's A-list stars could likely be demoted to the second tier within a year or two.

Ovitz couldn't help but think of the recent Sony acquisition of Columbia Pictures. As the facilitator of this deal, Sony had previously hinted at appointing him as the head of Sony Pictures Entertainment. Now, as the acquisition neared completion, Sony ceased mentioning it.

Talent agencies, lacking any fixed assets, are destined to struggle to scale up.

Watching Simon Westeros, Michael Eisner, Barry Diller, and others thrive in the production industry, accumulating fame and fortune, Ovitz naturally harbored similar aspirations. Yet, Simon Westeros remained a stumbling block.

After much deliberation, Michael Ovitz picked up the phone again. Without needing to look up the number, he dialed a familiar one.

The call connected, but Westeros wasn't in the office.

Ovitz had a brief conversation with the person on the other end, who agreed to pass on the message but made no offer to connect him directly.

Putting down the receiver, Ovitz was pondering his next move when his office fax machine buzzed to life.

Pulling a sheet from the machine, he found just four names: Barry Levinson, Dustin Hoffman, Tom Cruise, Meg Ryan. A handwritten 'W' was scribbled in the bottom right corner.

'W' for Westeros.

Ovitz understood immediately. Simon Westeros' message was clear: CAA needed to sever ties with these four individuals to resolve their conflicts.

Notably absent was Matthew Broderick, whom CAA had taken in only for him to be completely sidelined by Westeros.

Severing ties meant terminating contracts with these four.

But could CAA afford to do so?

Disregarding the fact that all four were top-tier Hollywood talent, if CAA severed ties to save itself, how would the rest of its clientele react?

Yet, after a moment of anger, Ovitz realized that perhaps his other clients wouldn't mind, even possibly expecting him to take such action.

After all, with these four leaving CAA, other major agencies would likely be hesitant to take them in, and smaller ones would dare not provoke Daenerys Entertainment by doing so, leaving them to fend for themselves.

There are solo artists in Hollywood.

Jack Nicholson, for example, has remained outside the major agency circles for years, still enjoying a successful career. Before joining WMA, Robert De Niro also operated independently.

However, these four, already under pressure from Daenerys Entertainment and without the support of a major agency like CAA, would find it almost impossible to collaborate freely with studios, making their futures uncertain.

Self-interest prevails.

The fall of these four would mean opportunities for others.

And yet.

Ovitz had to admit, this was the most advantageous solution for CAA.

However, he found it difficult to bow to Simon Westeros.

As he stewed in his frustration, an assistant knocked and entered, followed by one of CAA's scriptwriting clients.

Joe Eszterhas, renowned for successes like "Flashdance" and "Jagged Edge," was one of CAA's highest-paid writers, with script deals reaching up to $1.25 million.

Remembering a scheduled meeting, Ovitz momentarily set aside his vexations, greeted Eszterhas with a smile, and welcomed him in.

Eszterhas seemed uncomfortable as he sat down. After some small talk and a sip of coffee brought by the secretary, he said, "Mike, about my former agent, Guy McElwaine, remember him?"

Ovitz nodded, "Isn't he at Columbia Pictures now? It's been a while."

"You know," continued Eszterhas, "Sony's about to buy Columbia. Guy's realized he's not cut out for production. He's thinking of returning to agency work."

Ovitz, recalling McElwaine's background, agreed readily, "Guy's quite capable in that area. Let him come back, then. We'll arrange a time to talk."

"No, it's not like that," Eszterhas shook his head, his expression growing more awkward, "Guy's decided to join ICM. I, well, you know, I've always got along well with Guy. I want to keep him as my agent."

Ovitz's demeanor cooled, "Joe, you're thinking of leaving CAA?"

Eszterhas nodded, "Yes, Mike. I hope you understand."

The string of events that day had already soured Ovitz's mood to its limits. Hearing a long-supported client express a desire to leave pushed him over the edge. Without hesitation, he refused bluntly, "Joe, I won't let you go."

Eszterhas, taken aback by Ovitz's stern refusal, protested, "Mike, I can pay the penalty."

"No," Ovitz was unyielding, "Joe, you're one of CAA's most valuable assets. I won't agree to your departure."

"I'm not an asset of CAA; I'm a person," Eszterhas countered.

"Alright, you're a person. But you can't leave, not until your contract ends, at least. You won't step out of CAA," Ovitz insisted.

"Why are you making this hard for me, Mike? I heard Kurt Russell and Goldie Hawn have left. Why can't I?"

"Why, Joe? Do you know how much CAA has invested in you over the years? How much effort I've personally put into your career? You can forget about leaving before your contract's up."

Their discussion escalated into an argument, with Ovitz's shouts echoing down the hallway.

"...You should remember, CAA gave you that $1.25 million status... Without CAA, you're nothing... Don't even think about it, I'll bury you in lawsuits, make it impossible for you to even touch a typewriter, ruin you... I'll make you eat shit if I have to... See those people outside? If you try to run, CAA's foot soldiers will hunt you down, smash your head in... I don't care what the outside world thinks, those guys just want to write scripts for Robert Redford..."

Their heated exchange only ended when several of Ovitz's assistants, sensing trouble, intervened to prevent a physical altercation.

But the issue didn't end there.

The next day, Joe Eszterhas published an open letter in The Hollywood Reporter detailing the encounter, accusing Ovitz of verbal abuse and threats.

Michael Ovitz, long regarded in Hollywood as a low-key, omnipotent figure respected by studio executives and A-list stars alike, saw his carefully crafted image crumble overnight. With Daenerys Entertainment's subtle and not-so-subtle pressures, CAA's situation worsened significantly.

PS: This event is based on reality, even the expletives from Ovitz are authentic, with "CAA foot soldiers" becoming a long-standing joke in Hollywood. Joe Eszterhas is the screenwriter behind "Basic Instinct."

___________________

(Support with power stones, comments or reviews)

If you guys enjoy this story, In support me on Patreon and get access to +200 advance Chapters

Read Ahead

Patreon.com/INNIT