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Mar 3, 2026

What I'm Hearing+
Sentimental Value
Matthew Belloni Matthew Belloni

Welcome back to What I’m Hearing+, Tuesday’s smarter, more conflict-obsessed cousin of What I’m Hearing. Today, Eriq Gardner is back with news and analysis of two big legal cases involving Creative Artists Agency, the largest and most powerful talent shop in Hollywood. Not to be outdone, there’s some Endeavor/Ari Emanuel thrown in as well.

All yours, Eriq. And if you’ve got a tip for him, email Eriq@puck.news.

Not a Puck member yet? Never too late. Just click here.

Mentioned in this issue: Aaron Sorkin, Bryan Lourd, Brendan Carr, Patrick Whitesell, Jimmy Kimmel, Jack Whigham, Marc Graboff, Carl Icahn, Mark Shapiro, John Musero, Sascha Penn, Richard Lovett, Alena Smith, Jerry Bruckheimer, Jeff Shell, Andrew Miller, Jonathan Barnett, Peter Micelli, Kevin Huvane, Sacha Baron Cohen, Ari Emanuel, Harris Danow, Marc Guggenheim, and more…

A MESSAGE FROM OUR SPONSOR

Sentimental Value
Sentimental Value

"Stellan Skarsgård's Crowning Achievement"

 

Nominated for 9 Academy Awards® including Best Supporting Actor and Best International Feature Film, SENTIMENTAL VALUE marks Stellan Skarsgård's "career triumph."

 

Winner of the Supporting Actor Golden Globe®, Skarsgård delivers his most profound performance, grounded in peak craft and soaring emotion. Full of heart and life, SENTIMENTAL VALUE is the must-feel film of the season.

 

Go Behind the Scenes - A Love Letter to Cinema

Let’s begin…

Eriq Gardner Eriq Gardner
 

Tuesday Thoughts…

  • CAA leaders ordered to pay Range defectors: Creative Artists Agency has suffered a new significant legal defeat after its attempt to claw back the vested equity shares of four top agents who defected to Range Media in the summer of 2020. I’m told a three-arbitrator JAMS panel has just concluded that Bryan Lourd and co-chairs Kevin Huvane and Richard Lovett breached their fiduciary duties, and that it would be “unreasonable” to deny the departing agents—Jack Whigham, Dave Bugliari, Michael Cooper, and Mick Sullivan—a payout. Once statutory penalties and fees are layered in, CAA’s tab is expected to be north of $40 million, including roughly $35 million for the value of the canceled shares.

    CAA has already appealed within JAMS and continues to wage war against Range in Los Angeles Superior Court, where it maintains that Range is essentially an unlicensed talent agency masquerading as a management firm. But not only does this ruling open the door to the notion that equity cancellations carry real risk when agents jump ship, it also wipes out CAA’s counterclaims that the defectors breached their duty of loyalty. In other words, no offsets.

    There’s more. I’m told Range has already issued a subpoena seeking the final arbitration award itself. And for good reason: The decision criticizes CAA leadership in particularly personal and harsh terms for rashly canceling equity and branding Range as an unlicensed agency without conducting a meaningful investigation—no clients were interviewed, for example. The panel also took aim at CAA’s top brass for failing to appreciate that fiduciary duties run to equity holders, not just to the company. Put simply, once you grant someone equity, they’re no longer just talent or employees—they’re co-owners. And co-owners are owed duties of loyalty and fair dealing. The panel essentially concluded that CAA’s leadership lost sight of that distinction, acting to protect the firm at all costs. That determination could reverberate well beyond this dispute.

    A CAA spokesperson responds: “We expected that this would be a years-long process. In fact, the weighing of all the evidence begins anew with the appeal. The court case continues as well. CAA and its lawyers will see this through to the very end, and we are confident the truth will prevail.” (For more CAA legal drama, see below.)
  • Carr’s long game: Some will see F.C.C. chair Brendan Carr’s statement last week inviting public comment on sports broadcasting trends as little more than an attempt to channel populist frustration over games migrating behind streaming paywalls. (Not that cable bundles and regional sports network subscriptions were any less expensive, but whatever…) Others question whether Carr has any jurisdiction here. As Semafor’s Ben Smith told Carr at an event last week, “It doesn’t strike me that the NFL making a deal with Netflix is any of your business.”

    Fair point. I suspect Carr’s interest in the sports TV ecosystem springs from the same impulse behind his support for Nexstar’s Tegna bid, his saber-rattling toward ABC over Jimmy Kimmel, and his musings about tightening Equal Time enforcement—a broad effort to rebalance power away from what he and his allies view as a liberal coastal media establishment.

    Remember, sports rights remain the greatest source of leverage that national networks hold over local affiliates. Stations are rarely eager to antagonize their network partners—say, by preempting a late-night host taking shots at Trump—when NFL access hangs in the balance. And when Comcast juices Peacock with exclusive games, for example, that comes at the expense of station owners like Nexstar and Sinclair, which have enjoyed friendlier regulatory winds of late.

    Maybe Carr truly wants a policy seminar on the migration of sports content. But I’d wager this latest gesture could be yet another move in emphasizing broadcasters’ public-interest obligations, possibly leading to pressure on distribution relationships. It doesn’t take many creative steps—labeling tentpole sports as a “critical local service,” reframing ownership limits as de facto distribution rules, scrutinizing license renewals where networks favor affiliated streamers—to put real heat on Comcast and Disney, in particular.
  • Carl Icahn subpoenas Paramount: The legal plot around Endeavor’s privatization keeps thickening. You’ve got the largest appraisal fight in Delaware Chancery history, the recent Susman Godfrey securities case alleging investors were nudged into selling at depressed prices, and, more quietly, a Carl Icahn lawsuit that has been generating some under-the-radar intrigue.

    Icahn’s accusation is straightforward: Endeavor violated its charter by letting insiders roll over equity while public Class A holders were left on the sidelines. In a recent motion to dismiss, Endeavor fired back with precision, stressing that leaders Ari Emanuel, Patrick Whitesell, and Mark Shapiro did not roll their Class A shares. Instead, the company asserted that the rollover activity involved UFC executives—a distinction that defendants insist fits comfortably within the charter’s equal-treatment language.

    The timing of the UFC implication is interesting. Of course, the value of Endeavor’s stake in TKO, the UFC–WWE parent, climbed meaningfully after the March 2025 take-private, a fact that highlights just how quickly the crown jewel was appreciating. But lately there’s been a lot of chatter around UFC’s seven-year, $7.7 billion U.S. media rights pact with Paramount, announced last August. Reportedly, there’s an internal investigation open—the S.E.C. is also inquiring—after a whistleblower alleged that Paramount president Jeff Shell disclosed deal details prematurely. There’s been no finding of wrongdoing, and the alleged conduct postdated the Silver Lake buyout. Still, the episode has sharpened the obvious question: When did the market first get a clear look at UFC’s next rights cycle?

    That’s where Icahn’s team seems to be digging. In recent weeks, the investor’s lawyers served Paramount with a subpoena seeking documents pegged to the earliest internal contemplation of the UFC media deal, along with related valuation work and banker analyses. Translation: While Endeavor pushes to narrow the case, Icahn’s camp is constructing a forward-value narrative aimed at testing whether public stockholders were pricing the company with the full deck of information on the table.

Now back to Hollywood’s other big agency and an imminent trial…

The CAA Blacklist Comes to Light

The CAA Blacklist Comes to Light

An Aaron Sorkin protégé’s claim that CAA stole his pilot idea has evolved into a trial over whether the agency steered his career into the Hollywood equivalent of witness protection.

Eriq Gardner Eriq Gardner

There are Hollywood twists that you can spot a mile away. Then there are the true shockers, like John Musero’s long-running dust-up with Creative Artists Agency. Back in 2019, when Musero filed a lawsuit accusing his former CAA reps of passing his script for Main Justice, a West Wing–style drama he’d written about a U.S. attorney general, to the agency’s more bankable clients, the case seemed headed for the crowded graveyard of stolen ideas. Seven years on, however, Musero’s case is finally coming to trial on Monday with a witness list headlined by Aaron Sorkin, and poised to address whether the uber-talent agency effectively slow-walked one of its clients into career purgatory.

Musero’s origin story has a certain industry poetry. A former Columbia Pictures in-house lawyer with screenwriting ambitions, he clawed his way onto the staff of Sorkin’s HBO drama The Newsroom. The gig earned him representation at CAA and the outlines of a career. But while fellow Newsroom alumni such as Alena Smith (Dickinson) and Harris Danow (Dying for Sex, Little Fires Everywhere) rode the post-Sorkin lift, Musero’s trajectory flattened. In his telling, CAA handed his pilot idea to Top Gun producer Jerry Bruckheimer and writer Sascha Penn, a friend of Musero’s own agent, Andrew Miller. And then they made their own Main Justice pilot—which, unlike his, reached CBS (though it never went to series).

A MESSAGE FROM OUR SPONSOR

Sentimental Value
Sentimental Value

"Stellan Skarsgård's Crowning Achievement"

 

Nominated for 9 Academy Awards® including Best Supporting Actor and Best International Feature Film, SENTIMENTAL VALUE marks Stellan Skarsgård's "career triumph."

 

Winner of the Supporting Actor Golden Globe®, Skarsgård delivers his most profound performance, grounded in peak craft and soaring emotion. Full of heart and life, SENTIMENTAL VALUE is the must-feel film of the season.

 

Go Behind the Scenes - A Love Letter to Cinema

Last year, a judge trimmed away Musero’s contract claims—ruling that Penn independently created Main Justice after working with former A.G. Eric Holder—but kept alive his provocative breach-of-fiduciary-duty claim. The upcoming trial will wrestle with how far an agency’s discretion extends once a client has slipped from the priority list.

The inflection point came during discovery when Musero learned he’d quietly landed on CAA’s internal roster of “underperforming” clients and a separate watch list of potential client cuts. Musero argues that CAA should have pushed him for staff writing gigs on Suits and The Good Fight, among other complaints, and is seeking millions, alleging the agency cost him a critical window when momentum (and money) were within reach. From the witness stand, Sorkin will presumably back his former protégé by telling jurors that Musero had the right stuff—before, as the theory goes, someone inside CAA decided he didn’t.

CAA, unsurprisingly, sees none of its own behavior as nefarious. The firm has insisted that the “underperforming” and “cutting” lists were garden-variety internal tools in a commission business built on constant triage, not evidence of abandonment. CAA’s ace card? No buyer, studio, or showrunner ever knew Musero was on those lists. Whatever stalled his career, the agency will argue, it wasn’t some secret spreadsheet at the “Death Star” in Century City.

Meanwhile, as the plaintiff tries to turn this into a referendum on how Hollywood’s gatekeepers decide who gets their calls returned, expect CAA to keep steering the spotlight back to Musero’s reputation and track record. (Matt Belloni once wrote about Musero suing Sacha Baron Cohen for allegedly stealing an idea for Brüno.) As for Sorkin’s testimony, it’s an open question how the agency will handle a former client who quit it a few years ago after his rep posted pro-Palestinian support following the events of October 7.

The Revenge Plot Twist

No matter how the Musero trial turns out, CAA isn’t exactly on the ropes here. Scrolling down the agency’s legal docket—the knife fight over defectors to upstart Range Media, in which an arbitrator recently handed it a significant defeat; Julia Ormond’s litigation over sending her into a meeting with Harvey Weinstein; the anonymous plaintiff suing CAA and Jonathan Barnett, claiming the sports superagent lured her into becoming a “sex slave,” and so on—a disgruntled former client claiming his representation fell short doesn’t register as an existential risk.

But the trial likely will not lack drama—or the occasional amusing exchange. In pretrial skirmishing, both sides have been jockeying for latitude to school jurors on Hollywood custom and practice. Among the nearly three dozen witnesses (from prolific TV creator Marc Guggenheim to veteran executive Marc Graboff and a bench of current and former CAA brass), the most anticipated may be Peter Micelli—who, of course, ran CAA’s television department before decamping in 2020 to co-found Range, the source of the aforementioned arbitration headache. His overlap with this dispute is notably layered. Around the time Musero was trying to get his Main Justice project off the ground, he had a development deal with The Mark Gordon Company, one of Micelli’s former clients. Later, Micelli himself was said to have ordered and overseen the now-infamous “underperforming” list. And today, as C.E.O. of Range, he is entangled in the separate, high-stakes feud with CAA over its attempts to cancel the defectors’ equity.

Will Micelli use his time on the witness stand to land some blows against his former pals at CAA, which has referred to Range as an “unlicensed talent agency built on deceit”? Hard to say—Micelli didn’t respond to questions, and participants in the case are tight-lipped about his role here. But one small tell stands out: Unlike several CAA witnesses whom Musero plans to call, Micelli is not designated as “adverse.” Draw your own conclusions.

Even so, don’t expect this case to reorder the agency business. Instead, it’s likely to peel back the mechanics of how clients are prioritized inside the industry’s most powerful firms. CAA will be fine. The more interesting question is whether the legal footprints it leaves behind will make the next disgruntled client just a little more dangerous. I’ll let you know how this one plays out in court.

 

Thanks, Eriq. See everyone on Thursday…

Matt

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