WGA Board Opposition Candidate Marc Guggenheim Proposes Sharing Packaging Revenue “50-50” With Agents & Ending Split-Fee Practice
West board of directors, has floated a proposed solution to the guild’s 20-week standoff with Hollywood’s talent agencies: Writers and agents would share packaging fees 50-50 after the agents are “made whole” from the 10% commissions they give up in packaged deals. He’d also do away with most split-fee packaging deals, in which agencies share the fees.
On March 31, WGA’s members voted 95.3% to 4.7% to authorize the guild to implement its own Code of Conduct banning packaging fees and agency affiliations with corporately related production entities. That Code went into effect on April 13, when the guild ordered all of its members to fire their agents who refuse to sign the Code. At last count, more than 7,000 writers had done so.
“Next, while I would take the agencies up on their offer of “choice and transparency,” I would never just take their word for either. Some policing and enforcement mechanism must be put in place. I think the simplest way of accomplishing this is ensuring that the creator/showrunner is represented by an independent attorney of their choice.
“First, we need to make the agents whole. I know, I know — but no one is suggesting that agents work for free. So, the agents should be able to recoup the money they would have made on commissions off of writers, directors and actors working on the show out of the package fee. Similarly, they should be able to recoup the fees they paid out to the aforementioned ‘oversight attorney.’
“For the record, because creators/showrunners are profit participants in their shows, the kind of conflict of interest people are concerned with is already baked into the system regardless of packaging. Moreover, I’ve never seen an instance where a showrunner has made hiring decisions based on an expectation of backend profits they’re unlikely to ever see in the first place.
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