It's Over! NBC to Pay Conan $30M
At least Coco’s hitting NBC where it hurts (no, not the balls — they lost those long ago):
The network has agreed to pay O’Brien $30 million to vacate the 11:35 p.m. “Tonight Show,” individuals involved in the negotiations have told TheWrap.
The deal, which may still be in the process of finalization, could be announced as early as Friday.
The deal came following a battle between the two camps over whether O’Brien’s contract specifically guaranteed that “The Tonight Show” must air at 11:35 p.m.
As TheWrap previously reported, Team Conan was insisting that NBC has breached O’Brien’s contract because, it argued, the deal had a timeslot guarantee.
NBC’s response: No, there is no such guarantee of a specific timeslot for “Tonight.” So as long as we keep something called “The Tonight Show” on the air, there is no breach.
If NBC had been in breach, it would have owed Conan around $40 million (and as much as $50 million, according to some reports), as a penalty.
People close to NBC insisted the network would not yield on this point— it wouldn’t admit it had breached O’Brien’s deal.
I understand the importance of the legalese in this situation, and it was a screwup by Conan’s people not to get the timeslot protection. But NBC has played this so terribly, creating such an awful public relations and professional backlash, that clearly they were in the weaker position. So they strike a deal that let’s them keep whatever foolish pride they may have, but still lose 60-75% of what they’re fighting for. Seems like vintage Jeff Zucker.
Another issue is how long Conan has to stay off of the air. Obviously, we all know he’ll be going to FOX at some point — it’s just a question of when. There were rumors that Zucker wanted to freeze him off for 3 1/2 years, which obviously would never happen. The Wrap article has sources speculating on a range between June and next January. Notably, the sooner he comes back, the less money Conan might get.
In this case, money in the buyout is in some ways a proxy battle for who was right and wrong in this situation (though neither Conan nor the basement-ranked network will scoff at $30 million). So while the money is nice and certainly significant, I think that, for Conan, this is more about his dream and hosting the show he wants to host. And, of course, at this point, humiliating the shit out of NBC.
In the last week, his ratings have skyrocketed, as the young, hip members of his audience began to actually watch on TV, instead of Hulu and DVR. They came out of the woodwork to show that they not only exist, but exist in mass, advertiser-friendly numbers. He’s beaten Leno and Letterman and the rest of the competition both in total viewers and in the coveted 18-49 demographic, and has more momentum, notoriety and support now than he ever has, even more than last June when he began his short, admittedly awkward run as the host of a Tonight Show that required him to water down his briliance.
So, for Conan, I would think the choice is pretty clear — maybe take a bit less of a payout to start a new show, on FOX, as soon as possible. He’ll need maybe five months to go to the new network and set up a new show, so that breather is inevitable, but I’m guessing he wants to get back on the horse as soon as possible, now that he has a rededicated army of lucrative supporters behind him.
Because the sooner he gets back on the air, the sooner he can stick it to NBC, with a looser, funnier show and the dedicated young, hip audience that will absolutely destroy a damaged, unfunny Leno in both ratings and value to advertisers. And if you’ve watched Conan the last two weeks, and read his heartfelt statement, you know how passionate he was about this job, and how deeply this situation has hurt him.
The man has his pride, and after selling The Tonight Show on craigslist, he’ll want to top it, artistically and artistically, as quickly as possible. The sooner he gets on air, the more likely he is to do just that. And hey, FOX will probably make sure he’s well compensated for the money he may lose out on for coming back sooner than later.
I just wish I got fired for $30 million.
