‘Frasier’ Has a Deal to Cheer

“Frasier’s” latest marital cliffhanger was played out behind the scenes, as NBC and the show’s production company, Paramount Television Group, finalized a three-year deal late Monday to continue their relationship--extending the Emmy-winning comedy through an 11th season and matching the historic run of its antecedent “Cheers.”

While terms were not disclosed, published reports have indicated Paramount receives about $5 million per “Frasier” episode, and NBC executives stated the renewal price would rise by no more than 10%. Based on 24 episodes a year, that translates into roughly $400 million over the life of the deal.

Moreover, Paramount indicated it has secured additional production commitments from NBC for the producers of “Frasier” and star Kelsey Grammer’s company, Grammnet Productions, beyond the fee paid the studio.

The suitor clouding the talks was CBS, which Paramount owner Viacom acquired last year. Because of that connection, the network was seen as a prime candidate to steal away the series should NBC balk at Paramount’s demands.

Paramount Television Group Chairman Kerry McCluggage said two networks actually expressed interest in acquiring the series, though formal talks were never opened as the company extended an exclusive negotiating period with NBC--set to lapse last week--until the deal was made.

Among the sticking points to be resolved was Paramount’s insistence on a three-year renewal, fostering concerns at NBC that the network will endure a sizable loss on the property if viewership of the show slides significantly.

“Any deal of this magnitude, there’s a certain level of difficulty,” McCluggage said.

Grammer, meanwhile, has consistently stated his desire for the show to equal the duration of “Cheers” and reiterated that point Tuesday. Eleven years, Grammer said, “has always been the number in my head.”

The studio would not address negotiations with the cast, but in an interview with The Times in November the principals all stated their desire to continue on the program.

Paramount’s negotiating posture was strengthened considerably this fall, as “Frasier” moved from Thursdays--where it had held down the coveted 9 p.m. slot once occupied by “Seinfeld” and “Cheers”--to Tuesdays and immediately established its ratings dominance that night. The show is averaging 17 million viewers a week this season, 4.5 million more than its nearest time-period competitor, ABC’s “Dharma & Greg.”

The agreement also ensures a degree of stability for NBC, which last year inked deals to renew dramatic stalwarts “ER” and “Law & Order” into 2004 and 2005, respectively. The network last renegotiated “Frasier” at the time of its move to replace “Seinfeld” in 1998.

“Frasier” is just one of the high-stakes negotiations in progress, including the WB network’s efforts to retain one of its most popular dramas, “Buffy the Vampire Slayer.” As with “Frasier,” those negotiations are complicated by the fact “Buffy” is produced by 20th Century Fox Television, which could shift the show to its sister Fox network. (The WB is part-owned by Tribune Co., which owns The Los Angeles Times.)

To forestall the risk of losing hit shows to rivals, networks have sought to construct deals precluding studios that own a network--such as Fox, Paramount-CBS or Disney-ABC--from pirating away programs to bolster their own networks when contracts expire.

“Frasier” is the lone series ever to win the Emmy as outstanding comedy or drama five times, doing so consecutively beginning with the 1993-94 season. The extension means Grammer will spend at least 20 years in the role of Dr. Frasier Crane, including nine seasons on “Cheers” before “Frasier” premiered.