Creative Artists Agency

Last updated

Creative Artists Agency, LLC
Company type Limited liability company
Founded1975;49 years ago (1975) in Beverly Hills, California, U.S.
Founder Michael Ovitz   OOjs UI icon edit-ltr-progressive.svg
Headquarters Century City, Los Angeles,
California
,
U.S.
Key people
 Bryan Lourd (Co-Chairman & CEO)
Kevin Huvane (Co-Chairman)
Richard Lovett (Co-Chairman)
James Burtson (President)
Website caa.com

Creative Artists Agency, LLC (CAA) is an American talent and sports agency based in Los Angeles, California. With 1,800 employees in March 2016, [1] it is regarded as an influential company in the talent agency business and manages numerous clients. [2] [3]

Contents

In September 2023, French billionaire François-Henri Pinault completed the acquisition of a majority stake in CAA, in an agreement valued at 7 billion dollars. [4] [5] The purchase was made through his investment company, Groupe Artémis.

History

Creative Artists Agency (CAA) was formed by five agents at the William Morris Agency in 1975. [6] At a dinner, Michael Ovitz, Michael S. Rosenfeld, Ronald Meyer, Rowland Perkins, and William Haber decided to create their own agency. The agents were fired by William Morris before they could obtain financing. [7] [8]

CAA was incorporated in Delaware and had a $35,000 line of credit and a $21,000 bank loan and rented a small Century City office. Within a week, they sold a game show called Rhyme and Reason , the Rich Little Show, and The Jackson 5ive. An early plan was to form a medium-sized full-service agency, share proceeds equally, and do without nameplates on doors or formal titles or individual client lists, with guidelines like "be a team player" and "return phone calls promptly."

CAA used its writer clients to attract actors to the agency. Ovitz and CAA were the first to package films like TV shows. Representing numerous A-list actors and having about $90 million in annual bookings in the late 1970s, Ovitz led the agency to expand into the film business. [7] [8] By the mid-1990s, CAA had 550 employees, about 1,400 of Hollywood's top talent, and $150 million in revenue. [9] In the 1990s, CAA was owned mostly by several key agents, including Ovitz, Meyer, and Haber. [2]

Ovitz was good at "packaging talent for movies and TV projects" and negotiating large deals between Japanese conglomerates, such as Sony and Matsushita, with Hollywood studios, such as Columbia/TriStar and MCA. [10] Ovitz expanded the agency into advertising and telecommunications. [10] In 1992, the Coca-Cola Company placed CAA in charge of much of its marketing campaign, to work alongside advertising agency McCann Erickson. [11] In 1995, CAA was described as the industry's most powerful agency. [2]

In 1995, Ron Meyer was appointed as the head of MCA, [2] and Ovitz left for Disney. After Ovitz and Meyer left, talent agent Jay Moloney took over the company but struggled with a drug addiction and left the agency soon afterward. [12] [13] [14] After Ovitz, the agency was taken over by Richard Lovett, who was made the president, along with Kevin Huvane, Rob Light, Bryan Lourd, Rick Nicita, and David O'Connor as managing partners. [15]

In 1996, several CAA agents defected to rival agency Endeavor, taking with them prominent directors and actors. [16] The partners founded the CAA Foundation in 1996 to create positive social change by encouraging volunteerism, partnerships, and donations. In 2012, it worked with Insight Labs for education reform, and contributed to its School Is Not School reform effort. [17]

CAA established CAA Marketing in 1998 to work with brands and clients for promotion purposes. [18] [19] CAA Marketing developed Chipotle's Back to the Start video [20] and created a marketing campaign for the Coca-Cola Company. [6]

In 2003, it opened a New York City office to manage theater clients. [21] [22] CAA began expanding into sports in 2006. [1] [15] From 2005 to 2015, CAA developed greater fiscal discipline, with more emphasis on profits, possibly as the result of the influence of private equity firms. [23] During these years, CAA doubled in size, from 750 to 1,500 employees. [6] In 2010, new technological developments such as the digital distribution of movies put strains on the industry. [24] There was pressure to diversify into television, publishing, concerts, and find other ways to grow. [24] In that year, private equity firm TPG Capital invested $165 million with an additional $200 million in debt financing. [24]

To expand, CAA borrowed capital from private equity firm TPG Capital. TPG owns 35% of CAA, according to one estimate in 2014. Private Equity Fund Diagram.png
To expand, CAA borrowed capital from private equity firm TPG Capital. TPG owns 35% of CAA, according to one estimate in 2014.

CAA began an expansion into sports in 2006, under the leadership of CEO Richard Lovett. [1] [15] A report in USA Today suggested that CAA's development of its sports-related clientele was significant in 2007. [25] A report in Nexus magazine in 2015 suggested that CAA was well-positioned to develop the E-Sports market. [26] CAA puts together deals for sports stars such as writing their clients into fitness apps. [27]

CAA's agents scrambled to deal with a strike by the Screen Actors Guild in 2008. [28] In 2010, TPG Capital gained a 35% interest in the agency and pledged $500 million for investments. [29] The transaction enabled acquisitions in areas such as sports and overseas operations. [30]

It later sold a controlling stake to TPG Capital in October 2014. [31] In 2015, TPG Capital was reported to own 53% of CAA. [26] CAA is co-owner with an investment bank. [1]

CAA has diversified into different businesses such as sports marketers and leagues and digital commerce. [6] In 2014, CAA has been undergoing a transformation from relying solely on booking talent, into engineering multimedia deals worldwide. [6] To this end, CAA established CAA Ventures, a venture capital fund that has supported products such as the Whisper app. [32]

The WGA, which in 2019 held a dispute between the top four Hollywood talent agencies (William Morris Endeavor, Creative Artists Agency, United Talent Agency and ICM Partners), [33] on September 30, 2020, asked CAA to sell a majority stake in their Content company wiip for reaching a deal, [34] with CAA accepting their divestment on December 16, 2020 [35] and selling the majority of it to a South Korean studio, JTBC. [36]

In June 2022, nine months after it was announced that CAA would acquire ICM Partners, [37] a deal valued at $750 million was reached between the agencies. [38] - following the acquisition, about 425 ICM staffers and agents were slated to join CAA. [39] In September 2023, French billionaire François-Henri Pinault agreed to buy a majority stake. [40]

Agents

The departure of comedy star Will Ferrell led to major legal battling. Will Ferrell 2013.jpg
The departure of comedy star Will Ferrell led to major legal battling.
Courtney Love contends that she was blacklisted since 2005 by CAA for making a comment about now-disgraced producer Harvey Weinstein. Life Ball 2014 Courtney Love Crop.png
Courtney Love contends that she was blacklisted since 2005 by CAA for making a comment about now-disgraced producer Harvey Weinstein.

CAA has employed top sports agents such as Tom Condon, Jeff Berry, and Tory Dandy. [43] [44]

CAA president Richard Lovett is regarded as shunning media attention and keeping a low profile. [1] Lovett took the job position at CAA in 1995, and he was described as a "skillful agent" with a "trademark ever-ready smile" adept at schmoozing and hobnobbing with colleagues and studio heads. [45] Lovett was described in The Wall Street Journal as being "elegantly aggressive." [1]

Top agencies frequently raid each other's staff, and when key people defect to rivals, it makes news headlines and often leads to legal battles over breach-of-contract claims. [46] When agents defect, the rivalry can quickly devolve into vicious battles played out in courtrooms and in the media. When key CAA clients Will Ferrell and Chris Pratt defected to rival United Talent Agency (UTA) in 2015, and were later followed by ten agents, it erupted into a full-frontal legal battle between the warring agencies. [47] In the lawsuit, CAA accused UTA of conducting a "lawless, midnight raid" as part of an "illegal and unethical conspiracy" with agents deliberately delaying meetings with clients to divert business to UTA. [47] In a bitter lawsuit and countersuit between CAA and UTA in 2015, which began after a slew of CAA's agents departed for UTA, there were accusations of fraud, malicious untruths, lying, and a range of charges including a "breach of duty of loyalty" as well as "conspiracy to breach fiduciary duty." [48]

Rivalry is not limited to rank-and-file agents, but can take the form of public barbs by company CEOs. [49] Grudges can last for years; for example, movie producer Jay Weston sued CAA in 1979 about the rights to a film, and years later, it was revealed that Weston was "totally ostracized" by the agency. In effect, CAA would do the minimally required legal tasks of passing along required offers but otherwise staying uninvolved. [50]

Some agents have had a reputation in the public's mind of living in a world of "fast cars, rooftop bars and foul-mouthed, phone-throwing power brokers," according to an account in the Los Angeles Times . [23]

CAA agent Jay Moloney led a colorful yet self-destructive life. Moloney interned at CAA while studying at USC, became the right-hand man of Michael Ovitz, worked with clients such as Leonardo DiCaprio and made millions, dated actresses such as Jennifer Grey and Gina Gershon, and "battled personal demons" and became a "slave to cocaine"; Moloney committed suicide at age 35. [51]

In 2004, the HBO production entitled Entourage was made about a fictional Hollywood agent named Ari Gold. [52] According to one report, the fictional Ari Gold character may have been based on a hybrid between an "even-keeled" Creative Artists Agency agent named Jeff Jacobs and an "abrasive 'go-for-the-jugular'" William Morris Endeavor agent named Ari Emanuel. [52] The report suggested that images like these may contribute to the public perception of agents as foul-mouthed and aggressive bullies. [52]

Perhaps because of its dominance in the industry, CAA agents have a reputation for being "coldhearted Hollywood power brokers," according to one report in The Wall Street Journal. [6]

The agency has been accused of blacklisting people who did or said things that the agency did not want publicized; for example, Courtney Love said that she was "eternally banned" beginning 2005 by CAA after making a negative comment about Miramax producer Harvey Weinstein. [41] Uma Thurman left CAA on November 22, 2017, the day before making an Instagram post addressing accusations against Harvey Weinstein. [53]

Industry information

With many clients, agents charge a percentage fee based on monies that their clients make; one estimate was that CAA charges 10% of what its movie and television clients are paid. [6]

CAA chiefs including Michael Ovitz, Ron Meyer and Bill Haber built the agency by packaging actors and directors with literary clients, [16] but the scope of deal-making has widened in recent decades. For example, CAA crafted a deal between toy-maker Hasbro, DreamWorks and Paramount Pictures, along with numerous CAA writers and directors, to make the movie franchise Transformers . [15] [54] Sometimes deal-making entails creating new technology firms. [1] CAA even manages deals with the estates of long-dead clients such as reggae musician Bob Marley, who died in 1981. [55] CAA helped one former politician create an online career institute. [56] CAA sold sponsorship rights for a baseball stadium in San Francisco. [6]

While talent agencies can grow by making acquisitions, CAA has generally grown organically by bringing in new clients. [6] The company divided its agents into two camps: traditional agents who manage the career tracks of 1,000 stars, and specialists in investment banking, consulting, advertising and digital media. The agency can use its more glamorous clients in film and TV to craft deals with steadier income streams; for example, using clients such as Julia Roberts, they can assemble marketing programs for less glamorous clients, [6] such as Nationwide Insurance. [57]

When Hollywood agents change firms, and take stars and talent with them, it can have major financial repercussions for the departing agency, [16] and can lead to much confusion as lawyers pour over the fine print of numerous contracts.

To market themselves, talent agencies often cater exclusive parties following awards ceremonies such as the Golden Globes. [58] In 2013, CAA threw a party at the Sundance Film Festival which caused embarrassment and a public relations backlash, where "guests mingled with lingerie-clad women pretending to snort prop cocaine, erotic dancers outfitted with sex toys and an Alice in Wonderland look-alike performing a simulated sex act on a man in a rabbit costume." [59]

Buildings

In the late 1980s, CAA commissioned architect I. M. Pei to design a new headquarters building at the corner of Santa Monica and Wilshire Boulevards in Beverly Hills. The 75,000-square-foot (7,000 m2) building consists of two curved wings set around a central atrium with a skylight that rises into a conical glass tower. [60] The 57-foot (17 m) high atrium was designed as an art-filled formal reception hall with a 100-seat screening room and gourmet kitchen and displays a 27-foot (8.2 m) by 18-foot (5.5 m) mural by Roy Lichtenstein. The design used feng shui principles. [61]

In 2007, CAA relocated to a new building in Century City, a district of Los Angeles. [61] The new headquarters are sometimes referred to as "The Death Star" by entertainment professionals. [6] CAA has offices in Los Angeles, New York, Nashville, London, Beijing, Atlanta, Miami, Chicago, Memphis, Stockholm, Munich and Switzerland.

In January 2022, CAA announced it would move its headquarters across the street from its existing office in 2026. [62]

Competition

CAA was formed in 1975 from defections from the William Morris Agency, and there continue to be about four or five major talent agencies.

In 2009, William Morris Agency and Endeavor merged to form William Morris Endeavor (WME). As of 2015, CAA and WME are the largest agencies in the business. [24] [26] In 2014, WME bought IMG Worldwide, a fashion and sports agency, for $2.4 billion. [6] In 2014, WME had 4500 employees while CAA had 1500 employees. [6] WME had a larger share of sports-related clients. [6] The rivalry can get cantankerous: in one instance, the William Morris Endeavor agency placed dozens of ads around the city using Creative Artists Agency's red-and-white color signature with the headline being CAAN'T, a "playful nod to the CAA acronym." [6] [63] The agencies compete by "regularly poaching agents and clients from one another." [6]

In Jay McInerney's short story "The Business" from How It Ended, the main character is a screenwriter represented by CAA.[ citation needed ] CAA's building is featured in the video game Midnight Club: Los Angeles .[ citation needed ]

Controversies

In December 2017, there were reports that the agency was actively involved in coverups relating to abuse and harassment by disgraced Miramax executive Harvey Weinstein. [64] Variety, citing a report in The New York Times , reported that at least eight agents knew about the ongoing harassment yet continued to do business with Weinstein, and even sent actresses to meet with him in situations where they might have been vulnerable to his predations. [64] [65] Actress Uma Thurman accused the agency of being connected to Weinstein's predatory behavior. [66] In 2005, Courtney Love advised young actresses in an interview, "If Harvey Weinstein invites you to a private party in the Four Seasons, don't go." [67] Love later said that she was "banned" by CAA for speaking out about Weinstein. [68]

In October 2023, Maha Dakhil resigned from the agency’s internal board after making comments on social media critical of Israel during Israel-Hamas war. The post read, “You’re currently learning who supports genocide,” and she added her own caption: “That’s the line for me.” [69] This was in reference to the CAA making a statement in support of Israel in an Instagram post. [70]

Related Research Articles

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<span class="mw-page-title-main">Jay Moloney</span> American Hollywood talent agent

James David "Jay" Moloney was an American Hollywood talent agent. Moloney was a top Creative Artists Agency (CAA) agent and a protégé of CAA founder Michael Ovitz. He died by suicide at age 35.

Rick Nicita is an American entertainment executive, talent agent, and motion picture/TV producer. Nicita is a former co-chairman and managing partner of Creative Artists Agency.

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References

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  40. ↑ Andreeva, Nellie (September 7, 2023). "TPG's Majority Stake In CAA Acquired By Francois-Henri Pinault's Artémis; Bryan Lourd To Be Named CEO". Deadline Hollywood .
  41. 1 2 Toronto Sun, WENN.com, October 15, 2017, Courtney Love was 'eternally banned' by talent agency after Harvey Weinstein comment, Retrieved October 15, 2017, "...Love responded ... writing, "Although I wasn't one of his (Harvey Weinstein's) victims, I was eternally banned by (talent agency) CAA for speaking out against #HarveyWeinstein #rape"...."
  42. ↑ Austin Gebbia, October 14, 2017, The Daily Beast, Watch Courtney Love Warn Actresses Off Meeting Harvey Weinstein in Hotels in 2005, Retrieved October 15, 2017, "...Love ... alleging that she was "banned" by the Hollywood power agency CAA for speaking out against Weinstein..."
  43. ↑ Jarrett Bell (January 27, 2012). "Agent Tom Condon: Big clients, a lot of clout". SA Today. Retrieved May 1, 2016. ... Tom Condon ... arguably the NFL's most powerful agent, evidenced by his A-list of clients...
  44. ↑ "Labor and Agents: Dandy leads CAA to strong year with strategic NFL deals". www.sportsbusinessjournal.com. August 15, 2022. Retrieved July 30, 2024.
  45. ↑ CLAUDIA ELLER (April 22, 1997). "Earning CAAchet". Los Angeles Times. Retrieved May 1, 2016. ... When Richard Lovett took over the top job at Creative Artists Agency in 1995, ... skillful agent....
  46. ↑ Yvonne Villarreal (April 1, 2015). "CAA agents stage exodus to rival United Talent Agency: At least 10 agents have defected from Creative Artists Agency to rival United Talent Agency". Los Angeles Times. Retrieved May 1, 2016. ...Creative Artists Agency suffered a major blow this week with the defection of at least 10 agents ... start of a long-term legal battle... sue on breach-of-contract claims ....
  47. 1 2 BROOKS BARNES; MICHAEL CIEPLY (April 2, 2015). "In Hollywood, A-List Talent Agencies Battle Over Departure of Agents". The New York Times. Retrieved May 1, 2016. ...United Talent Agency ... stealing movie star clients like Will Ferrell and Chris Pratt from the powerful Creative Artists Agency... full-scale fight... filed suit ... for recruiting 10 of its agents in what it called a "lawless, midnight raid." ... accuses United Talent and two defectors of organizing an "illegal and unethical conspiracy"....
  48. ↑ Matt Donnelly (October 12, 2015). "UTA Asks Court to Tone Down 'Irrelevant, Downright Lies' in CAA Lawsuit: "CAA has attempted to turn this matter into a slander campaign," according to documents filed Monday". San Francisco Chronicle. Retrieved May 3, 2016. ...United Talent Agency is seeking a dramatic rewrite ... with UTA declaring CAA's accusations of fraud and malice untruths ...
  49. ↑ Sharon Waxman (July 13, 2015). "Ari Emanuel Slams CAA at Fortune Conference: 'They're Still Stuck in the '90s': The co-CEO of WME says by the end of the year "we will exceed every number that was in the plan" to merge with IMG". San Francisco Chronicle. Retrieved May 3, 2016. ...Ari Emanuel, co-CEO of William Morris Endeavor, said his rival CAA is "still stuck in the '90s" ...
  50. ↑ Michael Cieply (July 2, 1989). "Inside the Agency : How Hollywood works: Creative Artists Agency and the men who run it". Los Angeles Times. Retrieved May 1, 2016. ...a CAA grudge ... can last for years. ... Jay Weston ... made the mistake of suing the agency in 1979 over a film rights dispute ... totally ostracized ...
  51. ↑ Kyle Smith; Michael Fleeman; Alexandra Hardy (December 6, 1999). "Death in the Fast Lane: Superagent at 25, Suicide at 35, Jay Moloney Found Cocaine and Lost His Way". People Magazine. Retrieved May 1, 2016. Vol. 52 No. 22 ... Jay Moloney ... crowned the boy wonder of Hollywood agents ... dated actresses Jennifer Grey and Gina Gershon ... slave to cocaine...
  52. 1 2 3 Kim Masters (July 14, 2004). "Boy, that ego sure looks familiar: The fictional Ari Gold on HBO's 'Entourage' takes his abrasive cues from real-life agent Ari Emanuel". Los Angeles Times. Retrieved May 1, 2016. ...the real attention-getter, at least in the power precincts of Hollywood, may be the caustic portrayal of the young star's agent, Ari Gold...
  53. ↑ "Uma Thurman Exits CAA". deadline.com. November 22, 2017.
  54. ↑ Note: Hasbro changed talent agencies a month before the film was released, and defected to the William Morris agency.
  55. ↑ Dawn C. Chmielewski (March 6, 2013). "Bob Marley family strikes deals with CAA, merchandiser Bravado". Los Angeles Times. Retrieved May 1, 2016. ...Bob Marley died ... has attracted new deals with Creative Artists Agency and giant music merchandising company Bravado. ...
  56. ↑ Steve Poizner (August 18, 2011). "Encore Career Institute's real world job solutions". San Francisco Chronicle. Retrieved May 3, 2016. ...Steve Poizner ... online university at UCLA, in partnership with Hollywood talent agency Creative Artists agency....
  57. ↑ E. J. Schulz (July 19, 2012). "See the Spot: Julia Roberts Partners With Nationwide Insurance: Campaign Takes More Serious Tone Than Previous Effort, 'World's Greatest Spokesperson in the World'". Ad Age. Retrieved May 11, 2016. ...A-list actress Julia Roberts does not appear in the insurer's new ads, but she serves as the voice-over for the campaign, called "Join the Nation."...
  58. ↑ LINDSAY KIMBLE (January 12, 2016). "Leonardo DiCaprio Enjoyed Golden Globes Afterparty Together Following Awards Show Run-In". People Magazine. Retrieved May 1, 2016. ...The pair were spotted ... at the Creative Artists Agency's Golden Globes afterparty...
  59. ↑ Chris Lee; John Horn (January 24, 2013). "A bawdy CAA party at Sundance shocks guests, including clients: Creative Artists Agency's party at the Sundance Film Festival, featuring scantily clad performers and sex toys, provokes a public relations backlash". Los Angeles Times. Retrieved May 1, 2016. ... Sundance Film Festival ... bash thrown by Hollywood's powerful Creative Artists Agency on Sunday night took festival revelry in an unexpectedly bawdy direction....
  60. ↑ Goldberger, Paul (December 17, 1989), "Architecture View; Refined Modernism Makes A Splash In The Land Of Glitz", The New York Times, archived from the original on December 10, 2008
  61. 1 2 Hoffman, Claire (May 30, 2006), "Temple of Talent Casts for a Tenant" (PDF), Los Angeles Times , archived from the original (PDF) on June 27, 2008
  62. ↑ Chuba, Kirsten (January 19, 2022). "CAA to Relocate to New Century City Headquarters in 2026". The Hollywood Reporter. Retrieved January 19, 2022.
  63. ↑ Daniel Miller (June 11, 2013). "Talent agency CAA mocked in ads by rival WME". Los Angeles Times. Archived from the original on August 16, 2013. Retrieved May 1, 2016. ... the subject of a derisive advertising blitz by rival William Morris Endeavor ... Dozens of ads ... featured the word 'CAAN'T' in Creative Artists Agency's signature red-and-white color scheme ...
  64. 1 2 Gene Maddaus, December 5, 2017, Variety, Harvey Weinstein's Web of Complicity Included National Enquirer and CAA, Per N.Y. Times Report, Retrieved December 23, 2017, "...at least eight agents at Creative Artists Agency were aware that Weinstein had sexually harassed or threatened female clients ... the agency continued to do business with him and send actresses to meet with him...."
  65. ↑ December 5, 2017, CBS News, Harvey Weinstein had complicit network helping him: report, Retrieved December 23, 2017, "... Weinstein stormed into the office of Bryan Lourd, a partner at CAA, and tried to kill Ronan Farrow's New Yorker piece ... Lourd tried to set up a meeting with Farrow...."
  66. ↑ Edward Helmore, February 4, 2018, The Guardian, Uma Thurman breaks silence over Harvey Weinstein -- The Kill Bill actress told The New York Times of encounter in London: 'He tried to shove himself on me. He tried to expose himself', Retrieved February 4, 2018, "...The actress also accused ... Creative Artists Agency, of being "connected" to Weinstein's predatory behavior ..."
  67. ↑ "Courtney Love warned actresses about Harvey Weinstein in 2005". The Telegraph . October 15, 2017. Archived from the original on October 15, 2017. Retrieved October 15, 2017.
  68. ↑ @Courtney (October 14, 2017). "Although I wasn't one of his victims, I was eternally banned by CAA for speaking out against #HarveyWeinstein #rape" (Tweet) – via Twitter.
  69. ↑ Zee, Michaela (October 22, 2023). "CAA Agent Maha Dakhil Resigns From Board After Controversial Social Media Posts on Israel". Variety. Retrieved June 19, 2024.
  70. ↑ "Maha Dakhil, a top agent at CAA, steps aside from leadership roles after Israel-Hamas post". Los Angeles Times. October 22, 2023. Retrieved June 19, 2024.

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