SCOOP: Attorney General Reassessing Golden Globes Deal
I obtained HFPA members' full allegations of 'fraudulent behavior' as Todd Boehly moved to purchase the awards franchise
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Now, in today’s long-running installment of As the Globes Turn . . .
“We write as former members of the Hollywood Foreign Press Association (HFPA) to express our sincere concerns about the HFPA’s impending dissolution.” So begins the letter filed with the California Attorney General’s office in September by an anonymous group of members of the Hollywood Foreign Press Association, as reported here on Nov. 8, and whose details I can now share.
The letter, obtained by The Ankler, asks Attorney General Rob Bonta’s office to reconsider its approval of the group’s acquisition by the private equity firm Eldridge Industries, led by billionaire CEO Todd Boehly. The letter states: “New information has come to our attention that raises questions about the validity of the purchase.”
I’ve since confirmed that Bonta’s office is actively reviewing the allegations from the HFPA members. (The office did not respond to requests for official comment.) The Attorney General’s office has jurisdiction in this matter as it had to approve the deal initially due to Eldridge’s intention to eliminate the HFPA’s status as a nonprofit tax-exempt organization, allowing for the Globes (owned by the HFPA) to be converted into a for-profit entity, albeit one that would have a related non-profit arm to continue the HFPA’s philanthropic efforts.
The process of acquiring the awards and the accompanying requisite dissolution of the HPFA as its governing body began when the deal was announced in June 2023 — the Penske-owned trades, L.A. Times and the New York Times all incorrectly stated that the HFPA “is no more.” I have learned that the process still requires several more rounds of votes from the HFPA to be finalized, and that at this point, no money has yet changed hands for the acquisition.
If the AG’s office concludes that the conditions of the agreement were not met, it could withdraw its approval, leading to an unwinding of the deal, the latest in a long and troubled road for the awards show and its governing body.
Boehly declined comment for this story through a spokesperson.
Los Angeles litigator Neville Johnson filed the letter on behalf of the group of anonymous members. The 12-page missive asks that the Attorney General’s office “stay the pending dissolution of the HFPA to give us time to evaluate and pursue any and all legal rights that are implicated by this unfortunate series of events” and that “we believe numerous issues exist that invalidate the purchase agreement.”
Ten of the 12 pages are a “factual memorandum” outlining alleged deceit around the deal, including Boehly and HFPA President Helen Hoehne’s response to outreach from billionaire Ron Burkle and former Academy president Cheryl Boone Isaacs as competitive bidders. The document describes an atmosphere of distress amidst the 2021 publicist-led boycott of the group following a Los Angeles Times investigation that led to NBC pulling the show off the air in 2022.
The letter alleges that Boehly — who had been the HFPA’s partner as a full owner of Dick Clark Productions (DCP), the longtime producer of the Globes — stepped into the breach in the guise of the organization’s savior, taking on the rule of interim CEO, only to pressure members into a fire sale to his own company. The HFPA board reportedly approved Boehly’s acquisition offer in July 2022.
During the time that the Attorney General’s office evaluated the deal, Boehly and Jay Penske formed a joint venture named Penske Media Eldridge, a subsidiary of Penske Media, which acquired DCP from Boehly in Jan. 2023. Penske is now CEO of Dick Clark Productions. He is also the owner of trade publications Deadline, Variety and The Hollywood Reporter through Penske Media Corporation, in which Boehly is an investor. Penske Media did not respond to a request for comment.
Among the allegations of “fraudulent behavior” contained in the letter . . .
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