Hollywood Guilds Meet With CAA on Bank Consulting Pact

Representatives of Hollywood’s actors, directors and writers said Monday that a meeting with Creative Artists Agency eased their concerns over a controversial consulting pact the powerful talent agency made with the French bank that owns the Metro-Goldwyn-Mayer studio.

But the joint statement, which revealed no details, suggested that the issue is not yet settled because another meeting is scheduled next week.

The statement was issued after a nearly two-hour meeting between a CAA delegation led by Chairman Michael S. Ovitz and the Screen Actors Guild, Directors Guild of America and Writers Guild of America. The talks involved a decision by CAA, whose clients include actress Whoopi Goldberg, actor Tom Cruise and director Steven Spielberg, to provide consulting services for the French-controlled Credit Lyonnais on its more than $3-billion entertainment lending portfolio. CAA says it is merely advising the bank, while staying out of MGM’s affairs.

The meeting follows the eruption of a highly public feud over the consulting deal involving CAA and chief rival International Creative Management. ICM’s chairman, Jeffrey Berg, said Monday that while he is pleased that the guilds are looking into the consulting deal, the joint statement fails to address how a talent agency can represent a studio owner without violating guild rules designed to keep arm’s-length relationships between agencies and those who hire their clients.

Berg is asking that the consulting contract be fully disclosed, including whether Credit Lyonnais has asked CAA to find a buyer for MGM, a transaction that could bring CAA millions of dollars in fees.