Production Company May Have Fox by the Tail

The Fox network and Brillstein-Grey Communications are embroiled in a dispute over a proposed TV series that could cost the network several million dollars for not proceeding with the project.

Sources say Fox has decided not to produce a half-hour comedy pilot titled “MV24,” despite initially pledging to do 13 episodes or pay an equivalent penalty to the production company.

While such deals are nothing new, what’s different here is that Brillstein-Grey is said to be taking a hard line by insisting Fox pay the full price, which sources estimate would exceed $7 million.

A senior production executive suggested the situation could be an interesting test of whether a network can be compelled to fully compensate the studio in such a deal.

“Unless you can [get them to] do that, these commitments don’t mean anything,” the executive said.

The flap underscores the increased financial risks networks have taken to attract top stars and writers to new series--a trend that has ballooned over the last two seasons.

Caught up in frenzied bidding wars for talent, networks have increasingly offered seven-figure sums as “penalty payments” if projects don’t go forward, in order to get into business with certain stars and writers--in this case, former “Grace Under Fire” producer Kevin Abbott, who created “MV24.”

In most instances, production studios--not wanting to alienate program buyers--are willing to roll over such commitments to other projects, which is why the dispute between Brillstein-Grey and Fox has drawn attention within the industry.

A Fox source acknowledged that the two companies “just didn’t see eye to eye” on the pilot and were seeking a “fair and reasonable resolution to the matter.”

Brillstein-Grey declined to comment.

Brillstein-Grey is a partnership between the management and production outfit run by Brad Grey and ABC Inc. The company has been supplying programs to all the networks, producing “NewsRadio” and “The Naked Truth,” which air on NBC, and “The Steve Harvey Show” for WB.