Broadway’s Regards to Michael Ovitz

Monday’s announcement that Michael Ovitz is taking over Livent Inc., the Toronto-based entertainment company behind “Ragtime” and “Show Boat,” gave the theater world a lot to chew on.

Most of the talk centered on how the Livent shake-up will affect one of commercial theater’s most flamboyant and maverick producers, Canadian Garth Drabinsky, who built up Livent from one venue and one show in Toronto to a string of theaters and a handful of mostly acclaimed shows. His productions included the U.S. premiere of “Ragtime,” which closed Saturday in Century City after becoming the first show to continue running in a U.S. city while a sister company opened on Broadway.

Drabinsky will remain at Livent as a vice chairman and chief creative director, but he gave up his CEO title. He also might not be able to spend as much as he has in the past developing new shows and new companies of existing shows. Livent reported $31 million in losses in 1997; one of the factors reported was the losses incurred by having three simultaneous companies of “Show Boat”--a problem that was evident when one of those companies filled only half of the capacity at Orange County Performing Arts Center last year.

Livent’s future commitments include the first two shows announced for next season at the Ahmanson Theatre: Christopher Plummer in “Barrymore” and the new “Fosse: A Celebration in Song and Dance,” which is to open this summer in Toronto.

“I’ve been assured the commitments will be honored,” Ahmanson artistic director/producer Gordon Davidson said Tuesday. As an already developed solo show, “Barrymore” needs little further investment, and after speaking with some of the creators of “Fosse,” Davidson said, “there is no reason to believe that anything other than business as usual exists.”

“In fact,” Davidson added, “the good news is that someone is taking steps to ensure the financial stability of the organization.”

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Drabinsky has been “the only major producer doing a lot of development work with musicals,” Davidson noted. Among Drabinsky’s planned projects are the new musicals “Parade,” to be directed by Harold Prince; “Sweet Smell of Success,” which John Guare has adapted; a revised “Pal Joey”; and a Dr. Seuss musical.

The word from Drabinsky himself was that the entrance of Ovitz would not have taken place if the new directors did not support his creative vision; Drabinsky and company co-founder Myron Gottlieb have agreed to let Ovitz vote their shares. Drabinsky said he welcomes the input from the “new rejuvenated team.”

“Michael Ovitz didn’t need this particular job and Roy [Furman, an investment banker and Wall Street analyst who has taken the CEO and chairman titles under the Ovitz regime] didn’t need to leave Wall Street; he has a passion for theater,” Drabinsky said. “I would not have done this deal if in any way it would compromise my goals for this company.”

Yet some observers were skeptical. “Garth has such a pattern for largess, for living high on the hog for such a long time, I don’t know how well he’s going to sit with the bridle in his teeth,” said veteran Broadway producer Liz McCann. “And I don’t see the new people over at Livent backing the risky stuff. It’s in the nature of their business to buy and play it safe.”

In fact, some theater figures were even speculating how long Drabinsky might last at Livent.

“And without him, what would there be? Theater is very dependent on individuals and artists, not deal-making,” said a producer who wished to remain anonymous.

Producer Jim Freydberg (“Big,” and a former producer of the Coronet Theatre in Los Angeles) said the move gives Livent “a new lease”--indeed, Livent stock rose $2.50 Monday, then fell $1 Tuesday. “But the question is whether it will fence Garth in. The idea of Hollywood people running a creative company is a bit worrying. It’s a much different business, not one that lends itself to creation by committee. Up till now Garth’s been nervy and gutsy, but I can’t imagine that he’s going to be as free as he has been in the past. There’s bound to be a lot of pressure coming from the new team.”

Alfred Uhry, the Pulitzer- and Oscar-winning writer (“Driving Miss Daisy”) who was hired by Drabinsky to write “Parade,” was optimistic. “Garth will have more time to devote to his creative side,” Uhry said. “From my experience, Garth asks smart questions about the work, and he makes you think. I imagine he’ll have more time to do that.”

The talent Drabinsky hires to create his shows has been paid considerably more upfront than many Broadway producers can afford. Producer Margo Lion (“Jelly’s Last Jam”), who has publicly noted her inability to match Drabinsky’s fees, observed that Ovitz may reduce such expenditures, “though God knows, from Ovitz’s world, this is small change.” Another producer suggested that a primary target of cutbacks might be Livent’s advertising.

Many were wondering why Ovitz, who as an agent was described as the “most powerful man in Hollywood,” had resurfaced on Broadway, after his lackluster stint as Disney CEO Michael Eisner’s second-in-command. Could he be trying to compete on Broadway with his old boss, Eisner, whose hugely successful “The Lion King” is playing in a theater directly opposite Livent’s “Ragtime”?

“We all knew that once Disney made a success of it, others would follow,” Lion said.

In the words of one producer, who wished to remain anonymous: “Theater has once again become the hot, sexy, creative place to be, as it was in the ‘30s and ‘40s. This season has been shooting on all cylinders, feeding the idea, perhaps wrongly, that Broadway is the place where the money can be made.”