Creative Artists Agency LLC
Company typeLimited liability company
Founded1975; 49 years ago (1975) in Beverly Hills, California, U.S.
FoundersMichael Ovitz, Michael S. Rosenfeld, Ronald Meyer, Rowland Perkins, William Haber
HeadquartersCentury City, Los Angeles,
California
,
U.S.
Key people
OwnerGroupe Artémis (as of Oct 2023)
Websitecaa.com

Creative Artists Agency LLC (CAA) is an American talent and sports agency based in Los Angeles, California. With more than 3,000 employees in 25 countries worldwide in June 2022,[1] CAA is regarded as an influential company in the talent agency business, and manages numerous clients.[2][3]

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. 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." The agents were fired by William Morris before they could obtain financing.[7][8]

Undaunted, the agents moved ahead: CAA was incorporated in Delaware with a $21,000 bank loan, a $35,000 line of credit, and the rental of 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.

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 William Morris 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.[23][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.[24] 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.[25] There was pressure to diversify into television, publishing, concerts, and find other ways to grow.[25] In that year, private equity firm TPG Capital invested $165 million with an additional $200 million in debt financing.[25]

To expand, CAA borrowed capital from private equity firm TPG Capital. TPG owns 35% of CAA, according to one estimate in 2014.[6]

CAA began an expansion into sports in 2006, under the leadership of CEO Richard Lovett.[23][15] A report in USA Today suggested that CAA's development of its sports-related clientele was significant in 2007.[26] A report in Nexus magazine in 2015 suggested that CAA was well-positioned to develop the E-Sports market.[27] CAA puts together deals for sports stars such as writing their clients into fitness apps.[28]

CAA's agents scrambled to deal with a strike by the Screen Actors Guild in 2008.[29] In 2010, TPG Capital gained a 35% interest in the agency and pledged $500 million for investments.[30] The transaction enabled acquisitions in areas such as sports and overseas operations.[31]

It later sold a controlling stake to TPG Capital in October 2014.[32] In 2015, TPG Capital was reported to own 53% of CAA.[27] CAA is co-owner with an investment bank.[23]

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.[33]

In 2019, the Writers Guild of America, East, entered a dispute between the top four Hollywood talent agencies (William Morris Endeavor, Creative Artists Agency, United Talent Agency and ICM Partners);[34] on September 30, 2020, the WGA asked CAA to sell a majority stake in their content company wiip,[35] with CAA accepting their divestment on December 16, 2020,[36] and selling the majority of wiip to South-Korean studio JTBC.[37]

Nine months after it was announced that CAA would acquire ICM Partners,[38] a deal valued at $750 million was reached between the agencies in June 2022.[39] Following the acquisition, about 425 ICM staffers and agents were to join CAA.[1]

In September 2023, Groupe Artémis, an investment firm founded by French billionaire François-Henri Pinault agreed to buy a majority stake in CAA.[40] The deal closed in October 2023.[41]

Agents

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.[42][43]

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

CAA president Richard Lovett is regarded as shunning media attention and keeping a low profile.[23] 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."[23]

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 degenerate quickly 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.[24]

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.[42] Uma Thurman left CAA on November 22, 2017, the day before making an Instagram post addressing accusations against Harvey Weinstein.[53]

During the 2023 Israel-Hamas War, Maha Dakhil reposted an Instagram story which said "You’re currently learning who supports genocide" and posted a photo with the caption, "What’s more heartbreaking than witnessing genocide? Witnessing the denial that genocide is happening". She afterwards deleted the posts and apologised for the language used in the posts. She then resigned from CAA’s internal board and took temporary leave from her position as co-head of the motion picture department.[54] [55]

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 and DreamWorks and Paramount Pictures, along with numerous CAA writers and directors, to make the movie franchise Transformers.[15][56] Sometimes deal-making entails creating new technology firms.[23] CAA even manages deals with the estates of long-dead clients such as reggae musician Bob Marley, who died in 1981.[57] CAA helped one former politician create an online career institute.[58] 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.[59]

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.[60] 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."[61]

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.[62] 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.[63]

In 2007, CAA relocated to a new building in Century City, a district of Los Angeles.[63] 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.[64]

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.[25][27] 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][65] The agencies compete by "regularly poaching agents and clients from one another."[6]

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.[66] 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.[66][67] Actress Uma Thurman accused the agency of being connected to Weinstein's predatory behavior.[68] 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."[69] Love later said that she was "banned" by CAA for speaking out about Weinstein.[70] In 2023, Julia Ormond filed a lawsuit against CAA, accusing them of negligence after numerous women were sexually assaulted by Weinstein. [71]

References

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  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 ...
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  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 ...
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  56. ^ Note: Hasbro changed talent agencies a month before the film was released, and defected to the William Morris agency.
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  68. ^ 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 ..."
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  70. ^ @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.
  71. ^ Patten, Dominic; Hipes, Patrick (October 4, 2023). "Julia Ormond Sues Disney And CAA Over Harvey Weinstein Sexual Assault". Deadline Hollywood.

Further reading

External links

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