Burnett
Katzenberg
Stallone
After a fierce bidding war involving multiple webs, NBC has won the rights to "The Contender." It didn't come cheap.
Peacock will pay just north of $2 million per episode for the project, an unscripted drama from exec producers Mark Burnett, Jeffrey Katzenberg's DreamWorks TV and Sylvester Stallone that will focus on a nationwide search for a real-life Rocky (
Daily Variety, Feb. 19).
At that pricetag, "The Contender" is easily the most expensive first-year unscripted drama -- and ranks as one of the costlier frosh series of any type.
Deal also includes provisions that will yield producers bonuses if "The Contender" hits certain ratings targets during its first season of 16 episodes. What's more, NBC is giving up six 30-second spots to producers, who will then be able to sell the airtime to advertisers -- at a profit, theoretically -- as part of larger sponsorship deals connected to the show.
Revenue sharing
Peacock and producers will share the revenue from those spots since NBC will actually sell the half-dozen ad slots to the producers, albeit at a rate less than what the net's ad sales department would likely fetch.
As part of their alliance, Burnett, Stallone and Katzenberg (via DreamWorks) also plan to launch their own boxing federation independent of current pugilistic organizations. Any boxing matches that stem from that federation could end up on the soon-to-be Peacock-owned USA Network.
ABC, CBS and Fox all actively bid on "The Contender" following a round of meetings with producers last week. All four webs were faxed a deal memo with terms of the agreement.
Alphabet dropped out of the bidding first, insiders said.
CBS and Fox were in the game until late Thursday night. Both nets seemed prepared to pay close to $2 million per seg for the show, and at least one seemed OK with the ad revenue-sharing provision.
Katzenberg -- working with Burnett's manager, Conrad Riggs -- took the lead in the negotiations, insiders familiar with the deal said. Burnett, who has series or pilots in the works at CBS, Fox and the WB, as well as NBC, actually removed himself from the talks late in the game as conversations became more heated among various parties.
Deal finally closed early Friday morning.
Observers stunned
Some rival nets and many industry insiders seemed stunned that any first-year skein -- and an unscripted series, without even a pilot at that -- could sell for a pricetag approaching $40 million. Some feared NBC's decision to give up control of six ad spots would cause producers of hit scripted skeins to demand similar deals sharing in ad revenue.
"You're letting the fox into the henhouse," one industry insider lamented.
Given Burnett's recent track record -- and NBC's need to replace tentpoles such as "Friends" and "Frasier" -- others suggested the Peacock wasn't really taking such a huge gamble.
Burnett, with his Donald Trump-hosted "The Apprentice," has done in one month what NBC execs over the last five years couldn't: create a new Thursday night smash hit.
And unscripted skeins now have the ability to fetch just as much ad coin as scripted series. Ads on "Survivor" go for north of $400,000 per 30-second spot.
'Gold standard'
"Mark Burnett is as good a brand as Dick Wolf or David E. Kelley or John Wells," one Peacock insider said. "He's the gold standard."
What's more, first-year unscripted shows are far more likely to succeed than scripted frosh skeins. Assuming "The Contender" is a hit, it will still cost less than many established dramas.
For the producers of "The Contender," a high upfront license fee was also a must since the odds are that there won't be much of backend windfall in the show.
Burnett promised "The Contender" will be an "unscripted drama of the highest order."
Net has already ordered two more cycles of "The Apprentice," with NBC officials all but saying the show will remain Thursdays at 9. With "The Contender" expected to bow in January, it seems logical for NBC to split up the two cycles of "Apprentice" by scheduling "Contender" on Thursdays.
D'Works connection
NBC will also be heavily reliant on DreamWorks TV next season. In addition to "The Contender," studio is readying the CGI-animated laffer "Father of the Pride" for a possible Thursday berth. And the Peacock's lone drama hit of the year has been "Las Vegas," a co-prod between DreamWorks TV and NBC Studios.
DreamWorks TV has a pod deal with NBC that expires this summer. It now seems a given that the relationship will be extended.
Burnett is also now a major Peacock player. In addition to "The Apprentice" and "The Contender," he and Ben Silverman also exec produce "The Restaurant," which begins a second season this spring.
NBC is also developing a scripted limited series with Burnett dubbed "Eden."
Reps for NBC, Burnett, DreamWorks and Stallone all declined comment. An official announcement of the project is expected this week.
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