Support the Fair Market Value Bill

Last week, State Senator Sheila Kuehl introduced a bill in the California Senate that protects all entertainment union workers.  Below, WGAw Secretary-Treasurer Elias Davis explains the bill and asks the members of all entertainment-industry unions to support it by sending an email to its sponsors in the California State Assembly. 

Over the past few years a number of TV show creators have brought suit against major studios in cases where the studios have sold TV series to companies owned by the studios themselves. The reason for the suits is simple - because of self-dealing, these shows have been sold for far less money than they could have brought in had they been offered for sale on the open market.

WGA members who wrote for the series M*A*S*H (let's call it MASH) are all too familiar with this practice. Many years ago the program, one of the most successful in the history of television, was sold by Fox TV to FX, a cable channel owned by Fox. Since writers receive cable residuals based on the re-use sales price, the MASH writers clearly paid a steep price for Fox's self dealing when the studio sold the show to FX.

Now something might actually be done to prevent such sales in the future. California Senate Bill 1765, introduced by SAG member Senator Sheila Kuehl, would prohibit these self-dealing sales.

Please support Senate Bill 1765, the Fair Market Value Bill. And here's one way you can do that - fill out the form below to automatically send emails to the sponsors of the bill (State Senators Kuehl, Midgeen and Steinberg, State Assembly Members Ma and Swanson) thanking them for their support and for standing up for writers and other workers in the entertainment industry.

Name:
Street Address
City
State
Zip Code
Email Address:

Thanks.

Elias Davis

WGAw Secretary-Treasurer

The End of Hollywood Accounting?

Will 1+1 someday = 2?

The WGA, the Teamsters and California State Senator Sheila Kuehl have just announced the introduction of the "Fair Market Value Bill." The bill seeks to prevent studios from selling programming to sister companies for below market value. This particular strain of Hollywood accounting is designed to shift profits away from the studios (where they must be shared with talent and producers and serve as a basis for pension and health contributions) to networks, where they may be enjoyed without the pesky need to pay one's "partners."

Press release below the break.  We'll have more soon on the bill in particular and Hollywood skulduggery in general.

And if you're a studio accountant or lawyer looking to go all Michael Clayton on the Big Six, send us a tip or a post.