Dealing for Dave : Television Moguls Offer NBC’s Letterman Millions of Reasons to Defect

Call it the Dave sweepstakes. Now that NBC “Late Night” host David Letterman is free to consider other job offers, the pitches are coming faster than one-liners.

News Corp. Chairman Rupert Murdoch recently wooed the talk show host with a flip-card presentation extolling Fox’s youth-oriented audience. CBS News anchor Connie Chung touted her network to Letterman in a spoof video.

Syndicator Michael King offered to write a $25-million check on the spot. ABC’s Sam Donaldson, true to his bulldoggish reputation, went the furthest. He appeared on Letterman’s show and presented his top five reasons why the comedian should defect.

Whether Letterman leaves NBC depends on his ability to wring out a world-class deal at a time of declining network profit. Hollywood insiders said the acerbic talk show host could set a high-water mark for TV gabbers, since he’s a proven draw.

Letterman’s negotiations are being handled by a team led by Creative Artists Agency Chairman Michael Ovitz. Two weeks ago, the agency advised CBS, ABC, Fox and Disney that NBC had allowed the talk show host to begin official discussions with potential suitors in exchange for Letterman extending his NBC contract through June 30.

What it will take to pry Letterman loose from his 10-year relationship with the network is uncertain. NBC is said to be paying him $3 million to $5 million a year, considerably less than Phil Donahue, Oprah Winfrey and Arsenio Hall earn for hosting their syndicated shows.

Most observers believe that Letterman is seeking $15 million to $30 million annually, an amount that would still leave room for a network or syndicator to make a profit.

Sources said Letterman--who is angry at NBC for being passed over as host of the “Tonight Show”--is insisting upon an 11:30 p.m. time period, because viewing levels are higher than for his 12:30 a.m. slot. As part of a long-term deal, he is also seeking assurances of creative autonomy.

The two leading contenders are believed to be CBS and Fox. Fox apparently has its eye on establishing what executives there call a “late prime” block of programming from 10:30 p.m. to 12:20 p.m. or from 11 p.m. to 1 a.m. The thinking is that Letterman would be paired with Fox’s upcoming Chevy Chase late-night talk show. Murdoch told associates last week that he had presented to CAA what he considered a “very generous offer.”

The CBS plan would put Letterman on at 11:30, opposite Leno and Arsenio Hall in many markets. CBS Broadcast Group President Howard Stringer has promised affiliates that the network will make an aggressive bid for Letterman.

Network programmers in Hollywood are also whispering the unthinkable: that ABC, which has carved out a respected franchise with “Nightline,” may decide to drop the news show because longtime anchor Ted Koppel is said to be seeking a new challenge. Under that scenario, Koppel would be given a 10 p.m. news hour twice a week for his own program. Letterman would then take the “Nightline” slot.

The economics of late-night television are potentially very profitable. One network executive estimated that, based on the current rate of about $20,000 for a 30-second commercial for “Late Night,” a Letterman-hosted show could gross $66 million a year.

Syndicators have also joined the fray. Michael King, president of King World Productions, which distributes “Wheel of Fortune” and “Jeopardy,” reportedly offered Letterman $25 million for just one year. Viacom International, which owns the MTV and Showtime cable TV networks, is said to have promised Letterman the opportunity to create and produce other series.

Syndication could be most lucrative for Letterman, but observers predict that he will opt for a network because of the stability and cachet.

There is always the possibility that Letterman will stay at NBC. The network has last right-of-refusal, meaning it can match or exceed any competitor’s offer. But observers said the talk show host already appears to have checked out. “He’s already working on (CBS Inc. Chairman) Larry Tisch and Rupert Murdoch jokes,” one network executive confided.

How David Letterman Might List the Top 10 Reasons Other Networks Are After Him

1. Stunning realization that Letterman attracts a better demographic group than “The Juiceman” and other infomercial celebrities.

2. Trying to suck up to Letterman’s powerful agent, Creative Artists Agency Chairman Michael Ovitz.

3. Envious that General Electric, the parent company of NBC and Letterman’s current employer, is the target of all the best putdowns.

4. They really want Paul Shaffer but know that he’ll never leave Letterman.

5. Makeup department wants to use up cases of environmentally incorrect aerosol hair spray.

6. Secret plan to use Letterman as an inspirational speaker at company retreats.

7. Always wanted to attract ads from dentists who cap teeth.

8. ABC hoping to use up monogrammed towels left over from “Twin Peaks” director David Lynch.9. Only way to guarantee that the company mascot gets on stupid pet tricks.

10. Larry (Bud) Melman is unavailable.