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3 weeks ago
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You don’t need to guess too many vowels and look for a Daily Double to know that today Sony and CBS are both getting a strong lesson in why it’s called show business and not show friends, and how the rules are no game.
“Rather than live up to its obligations under the terms of the parties’ agreements, CBS recently admitted that it entered unauthorized licensing deals, in plain violation of a negotiated, two-year limit for such licenses under the agreements, and then paid itself a commission on those deals,” the still Tony Vinciquera run Sony says in a filing today in LA Superior Court of the still Shari Redstone owned company over the distribution of Wheel of Fortune and Jeopardy! amidst claims of self-dealing in the participants’ over 40 year old deal. “These unauthorized deals are just the tip of the iceberg.”
READ SONY’S LAWSUIT AGAINST CBS OVER JEOPARDY! & WHEEL OF FORTUNE PROFITS HERE
“In fact, CBS has licensed the Shows at below-market rates; has failed to maximize advertising revenue; has undercut Jeopardy! and Wheel of Fortune through self-preferencing; and has rendered itself incapable of administering its obligations under the agreements, including by its far-reaching layoffs that have decimated teams responsible for the Shows’ distribution, marketing, and advertising sales and its decision to abandon its partnership with ratings provider Nielsen, whose ratings are critical for CBS to maximize advertising sales and syndication licenses,” the breach of contract complaint prepared and put in the docket at LA Superior Court by the fine attorneys at Susman Godfrey LLP states, tossing everything and the economic kitchen sink in there over the Merv Griffin created game shows.
“CBS’s failures and pattern of financially self-interested behavior—which at bottom come down to putting its own business interests over its contractual obligations to Sony Pictures—are straightforward breaches of the agreements’ express best-efforts clauses and the implied covenant of good faith and fair dealing,” the 19-page single claim complaint adds.
To that end, the jury seeking action from Sony, Jeopardy! Productions and Califon Productions wants an “Order awarding Sony Pictures damages in an amount to be proven at trial and any such other monetary relief as the Court deems proper.”
A.k.a.: So much money we don’t want to write it down here
“After repeated attempts to resolve this matter amicably, we are left with no choice but to take legal action today,” Sony told Deadline in a statement Thursday after the suit was filed in DTLA. “We will continue to take steps to ensure the distribution of our shows to the 200+ stations that license and count on this programming, and the 25+ million fans who tune in to America’s greatest game shows every week,” the company continued, accusing the soon-to-be Skydance owned and David Ellison run Eye of egregiously undercutting the value and profitability of these shows and having “pocketed millions in distribution fees from unauthorized deals.
With the Sony complaint just happening today. CBS hasn’t filed anything of its own in the case. Yet, the Paramount Global subsidiary did give a hint Thursday of what their response will eventually be, and just how blunt it might get.
“For more than 40 years, CBS and its predecessor company King World have been accomplished distribution partners and thoughtful stewards for Wheel and Jeopardy! in the syndication market,” a CBS spokesperson said to Deadline this afternoon. “This work has helped build shows into franchises, transform popular series into cultural icons and deliver Sony billions of dollars of revenue.”
Note those last five words — billions of dollars of revenue – – and expect to see them all over CBS’ attempt to kill this lawsuit down the line by painting Sony as simply greedy.
CBS goes on to say: “Our contract is clear that we hold the distribution rights to these series in perpetuity. We strongly refute any claims by Sony that we did not use our best efforts in distributing the programs or otherwise failed to abide by our obligations under the agreements. Sony’s claims are rooted in the fact they simply don’t like the deal the parties agreed to decades ago.”
Note those last 12 words – – “they simply don’t like the deal the parties agreed to decades ago.” Also expect to see those words and variations on them all over CBS’ attempt to end this action from what they will repeatedly characterise as a sour grapes company getting pressure from their owners to generate more cash.
“We look forward to vigorously defending this lawsuit in court.”
Can I have corporate dumpster fire for $600?
