For Now, It’s Business as Usual for SAG Members and Agents

Hollywood actors and agents settled into an uneasy standoff Sunday that may continue for months after this weekend’s unraveling of a proposed new agreement governing relations between the two.

It was clear that neither side for now plans any dramatic moves, despite mounting tensions over the rejection by SAG members Friday of an agreement that would have allowed Hollywood talent agencies to seek investments from advertising companies and producers. In voting down the deal, SAG members overruled their board of directors.

On Sunday, SAG advised its members to continue working with their agents even as it acknowledged that talent agencies are no longer bound, as they have been since 1939, by SAG rules governing commissions and other matters, which now have expired.

For their part, agents said they would continue to represent clients as they always have, adding that they have no plans now to take advantage of the situation by raising commissions or selling pieces of their businesses.

In theory, agents could argue they now are free to do what they want, such as selling parts of their businesses to advertising companies or charging commissions on video or DVD deals, things that were previously prohibited. But they privately acknowledged those scenarios are unlikely because major stars they represent might frown on such moves.

One top talent agency official also said that potential suitors or investors would be wary of discussing specific deals until issues between SAG and agents are resolved.

Since 1939, SAG has required agents who want to represent actors to sign a franchise agreement aimed at protecting actors from unscrupulous agents. Agents for years have said the rules are too restrictive, preventing them from attracting capital to expand their businesses.

Opponents of the proposed deal successfully shot it down by arguing that loosening the rules would create conflicts of interest. They said a talent agency, for example, could represent a client in negotiations to film a soft drink commercial made by an advertising agency that is one of its owners.

SAG said Sunday that it will seek to persuade agents to re-sign the expired agreement, although agents privately said they aren’t interested.

If agents hold firm, it could set the stage for a showdown should SAG insist its members use only agents who have re-signed its agreement.

That could force stars to choose between the union and the major talent agencies that represent them, such as Creative Artists Agency, International Creative Management, William Morris Agency, United Talent Agency and Endeavor.

Whether SAG would go that far remains unclear, especially because the union itself has been bitterly divided over the issue. Making things murkier was a recent decision by SAG’s sister union, the American Federation of Television and Radio Artists, to strongly endorse the same deal SAG members rejected.

The fight between SAG agents comes at a delicate time for the fractious union. As part of the rejected agreement with agents, major talent agencies had agreed to help SAG fight runaway film and TV production to foreign countries, which would give the union powerful allies.

Although agents said they have no plans to undercut SAG’s efforts, some said they believe that enthusiasm has waned for supporting the union’s efforts.