Apparently Agents Are Millionaires

Celador International is suing Walt Disney Co. over deals done regarding the former hit game show “Who Wants To Be Be A Millionaire” – and now William Morris Agency has been dragged into the mix.

Celador is the U.K. creator of the show, which was an American phenomenon when it first aired on ABC in 1999. The company claims in its $270 million case that Disney’s Buena Vista Television unit broke an implied promise it would renegotiate a better license fee with ABC (also a Disney property) if the show proved a hit.

“They agreed that BVT would only be paid enough money to cover the cost of making the show and BVT would never make a profit,” Celador attorney Roman Silbefeld said in opening statements in federal court June 2, according to BusinessWeek. “When they got through making their secret deal, the ad revenue was shielded. No one could ever get to it.”

Enter two former WMA execs – Ben Silverman and current ICM VP Greg Lipstone, who were both called to the stand.

“Judging by the testimony so far, you’d think William Morris Agency was on the hot seat,” The Wrap said.

Lipstone was questioned about his negotiations, on behalf of Celador, with ABC. Lipstone, “in the firing line of lawyers from both sides,” and acknowledging that WMA bosses felt the agency’s commission from the package deal wasn’t high enough, made sure the negotiations would benefit the company.

Lipstone agreed that WMA made more than $5.8 million in commissions from “Millionaire,” according to The Wrap, and that a meeting with ABC pushed license fees from $187,500 for half-hour episodes to $200,000, and $210,000 for hour episodes to $400,000.

The theme of Celador’s lawsuit, first filed in 2004, is that Hollywood is full of backdoor dealings and sweetheart deals that led to it losing $270 million in commissions.

William Morris is now one-half of the William Morris Endeavor Entertainment merger.