GATT: Wasserman Wins, Valenti Loses

In two big GATT moves this week that spoke to his political savvy, President Clinton managed to uplift one Hollywood legend while undercutting another.

The loser was Motion Picture Assn. of America President Jack Valenti, who was left at the altar when Clinton moved ahead on GATT without an audiovisual accord. The winner, at least symbolically, was MCA Chairman Lew R. Wasserman, whose enduring stature was demonstrated by reports that he had received first word of the decision from the President’s staff.

Hollywood executives on Thursday gave Clinton big brownie points for reaching out to Wasserman, a major political fund-raiser who still prides himself at age 80 on making things happen behind the scenes.

Those same executives differed over the financial impact of the GATT defeat--some seeing Armageddon, others only a setback for an expanding industry. But there was wide agreement that it was one of Valenti’s darkest hours. The silver-maned movie lobbyist treated the trade negotiations as a personal crusade, only to be undone by the uncharmable French on the issues of quotas and subsidies.

On Thursday, deep rumblings of discontent with Valenti could be felt throughout Hollywood, especially over the way he characterized the doomed GATT discussions as a life-or-death issue.

It may have marked the first time in nearly 30 years that Valenti was betrayed by his legendary love of oratory--having spoken out so forcefully on GATT. It was also his second significant defeat in as many months, following a November judgment allowing the major TV networks back into the production business, which has been the province of the major studios.

But while Valenti may be fallible, he’s apparently not fireable, thanks to his stature on Capitol Hill and his past history of usually coming out on top. Valenti’s bosses at the major studios say they remain solidly behind the MPAA chief, who recently signed a lucrative new contract.

“Jack is our spokesman, so I understand how people would think (it’s his fault), but clearly this was not Jack’s negotiation,” said Warner Bros. Chairman Robert Daly. “It was a U.S. government negotiation. To blame this on Jack is ridiculous.”

Said another studio boss: “Sure, he overplayed his hand. But he’s our guy.”

A tired Valenti also defended his handling of GATT on Thursday, largely by washing his hands of the decision. The 72-year-old lobbyist noted that negotiations were handled solely by U.S. trade representatives, with Valenti and other entertainment figures consigned to the waiting room.

Valenti also struck out at the French, whom he accused of cloaking greed behind phony concerns for protecting their culture. He explained that no one on the U.S. entertainment side of the table counted on France putting forward such an “unreasonable” set of demands.

“I know people are taking pot shots at me,” Valenti said. “If people want to blame me, I have no problem with that. . . . All I know is that we did the best we could.”

While Wasserman demonstrated his usual reserve by declining to comment on Valenti on Thursday, sources say the MCA chairman remains in Valenti’s corner. It was Wasserman who put Valenti in the job 27 years ago, when the MPAA chief was fresh out of the Johnson White House. This week’s GATT developments again proved Wasserman’s continuing influence.

Though he rarely makes headlines since selling MCA to Matsushita Electric Industrial Co. for $6.6 billion, Wasserman remains Hollywood’s defining symbol of back room power. He’s a fixture at industry summits, as well as the one who can open the most doors in Washington.

David Geffen, who made a fortune selling his record company to MCA several years ago, says Wasserman “still has the best relationships with members of Congress and the President, and he is still one of the smartest and most respected people on the business scene in general.

Wasserman and his wife, Edie, threw a $10,000-per-couple fund-raiser at their home for then-candidate Clinton last year. The MCA chairman is also a leading benefactor of the Democratic Party.

Fellow studio chieftains regard him as a first among equals. “He’s our father figure,” says Daly. Another who is known for his casual clothes makes a habit of donning a dark suit and tie for meetings with Wasserman as a sign of respect.

Some say his power comes from longevity. Others say it’s because there’s no clear successor to Wasserman--which is the same thing they say about Valenti.

While friends say the MCA chairman has mellowed with the years, he still puts in a full day at MCA and pops up at industry social events--most recently a Hollywood-studded Bette Midler concert.

Jeff Berg, chairman of International Creative Management, says Wasserman is “very involved on macro issues, from both an internal and external point of view, as well as being critical to guild negotiations.”

Adds Steve Unger, managing director for the worldwide entertainment and communications practice at SpencerStuart, a leading executive recruiting firm: “He has always thought in terms of the entire industry. That’s why a Bill Clinton would say, ‘Let’s communicate this decision to Lew Wasserman first.’ It’s an incredible sign of his significance.”