Pacific Coast Entertainment, a group led by former Motion Picture Academy president Cheryl Boone Isaacs, made a multimillion-dollar offer this week to purchase the Golden Globes.
The offer includes payment from Hollywood Foreign Press Assn. members get a guaranteed $ 120,000 annual salary for five years, along with a one-time $ 100,000 pandemic relief grant and an endowment of $ 5 million annually, according to a term sheet reviewed by the Times.
Pacific Coast Entertainment “would obtain all rights and privileges associated with ownership of the Golden Globe Awards Show” as well as “intellectual property privileges”. The group “also seeks to influence the strategic direction of HFPA and guide its transformation and governance,” according to the offering.
“While we are awaiting formal indication that the HFPA has established a fair and transparent process whereby we can present our partnership proposal to you in person, we recognize that time is of the essence,” wrote Isaacs and his coast partner. Pacific’s Yusef D. Jackson in an email sent Monday to association members, the board of directors, and President Helen Hoehne.
Representatives of the HFPA and Boone Isaacs were not immediately available for comment.
The offer is the latest proposal to buy HFPA as the organization attempts to move beyond a period of turmoil.
For months, HFPA interim CEO Todd Boehly has signaled his intention to buy the association under his private equity firm Eldridge Industries and turn it into a for-profit venture.
Isaacs was the first black president of the Academy of Motion Pictures Arts and Sciences, the group that hosts the Oscars. Under his mandate, the academy made great strides to diversify both its members, candidates and winners.
Last year, NBC stopped airing the Globes 2022 show, a contingent of powerful publicists boycotted the organization, and studios including Netflix and Warner Media broke off after that. Times investigation He raised questions about the group’s ethical and financial errors and revealed that none of the then 87 members were black. Since then, the HFPA has added 21 new members, six of them black, and hired a chief diversity officer.
Under the terms set out in Pacific Coast Entertainment’s term sheet, the company would contribute 20% of its HFPA-related revenue to support the association’s ongoing operations, including “developing its web and social presence. media, research support for members, professional development, marketing / communication support, management of its foundation and other activities of the Association. “
The budget – up to $ 5 million annually – will be used to “support the efforts and careers of members.”
In addition, the offer describes the structuring of members’ annual remuneration “at a level high enough to provide an economic foundation upon which each member, at any stage of their career, can independently build, maintain and sustain their career with dignity. and integrity “.
However, the compensation plan is likely to raise additional questions about HFPA, which is already under scrutiny for a number of conflicts of interest. The remuneration of the members as outlined in the agreement will essentially make them employees of the HFPA and, therefore, paid voters of the Golden Globes.
HFPA was targeted last year The Times reports it the nonprofit has paid its members nearly $ 2 million to serve on committees and perform other duties.
Pacific Coast Entertainment’s proposal comes a week after the Hollywood Foreign Press Assn. announced it had initiated a formal review “to determine the potential external strategic interest in its organization and resources”. A special committee comprised of an independent HFPA board of directors together with financial and legal advisors will evaluate the proposals.
At Boehly’s suggestion, Eldridge would form a new company and acquire the Golden Globes business on the basis of an “independent third-party appraisal firm,” according to plan bulletins reviewed by the Times. The proceeds would be used to fund the HFPA’s charity wing.
The association’s tax-exempt status would be dissolved and the new association would allow members “the opportunity to share its profits, thus giving them a share in the success of the Globes.”
In addition to member approval, the plan would also require final approval from the California Attorney General.
Boehly, named interim CEO of HFPA last October, is co-owner of the Los Angeles Dodgers, Lakers and Sparks. He recently bought English Premier League football club Chelsea FC, along with a consortium of buyers. His Eldridge company also owns stakes in the Beverly Hilton, the longtime venue of the Globes awards ceremony, as well as commercial publications, including the Hollywood Reporter.
Last month, several HFPA members openly questioned Boehly’s proposal. One member called it a “corporate takeover” and a game for the group’s “intellectual property”, saying the plan would turn the nonprofit HFPA into a “subsidiary of its corporate portfolio,” according to e -mail obtained from the Times. “This project makes a lot of sense to Eldridge, but none to HFPA.”