Simon Fuller’s Separation Contract with 19: Rich, Rich, Rich
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Simon Fuller’s a rich guy, that we all know. And even as he separates from 19 Entertainment, a company he founded, and starts his own gig, he maintains the streak. In an SEC filing Friday (surprised no one else on their primary beat picked this up by now) by 19’s parent company CKX Inc—Fuller sold 19 to CKX five years ago for reported $200 million—the details of Fuller’s new consulting contract have come out, and boy, are they rich…
The details:
—Fuller has a new consulting gig with 19 for its “American Idol,” “So You Think You Can Dance” and “If I Can Dream” programs.
—As part of separation, 19 Entertainment is required pay Fuller a one time compensation payment of £480K (about $784K) and a one time payment of £500K (about $817K) as consideration for his ongoing confidentiality and certain other obligations.
—Accelerated vesting of 290K options to purchase shares CKX common stock held by Fuller; worth about $1.5 million at current CKX share price. In addition, Fuller holds 200K shares of restricted stock and 60K options that had already vested prior to this.
—His new company is called XIX Entertainment Limited, and 19 has an option to buy stake in it.
—For consulting to 19, Fuller will receive a £250K (about $480K) signing fee; 19 Entertainment will pay Fuller 10 percent of the net profits of all the above programs for the life of the programs as long as Fuller continues to provide consulting services.
—Fuller will receive $5 million as an advance against the 10 percent fee for 2010. For each year after 2010, Fuller will continue to receive, as an annual advance against the 10 percent fee, $3 million if “American Idol” remains on the air and $2 million if “So You Think You Can Dance” remains on the air.
—In addition, Fuller will provide general consulting services to CKX, 19 Entertainment and their subsidiaries for a period of six months for a fee of £1.5 million (about $2.5 million).
—If CKX does not exercise its option to acquire at least 10 percent of Fuller’s new company, he shall have a one time right to terminate the consulting agreement with effect from the end of 2010, in which case CKX would have no further payment obligations.
Agreement on his new company:
—CKX has the right to acquire between 10 percent and 33 percent of XIX’s shares at a price equal to either another third party’s investment in XIX or at an appraised amount no higher than £100million (about $163 million). CKX paid Mr. Fuller £500K (about $817K) as consideration for the option to buy. The option terminates on March 15, 2010. CKX is not required to exercise any portion of the option at any time, which seems like a nice way out for CKX if it really doesn’t want to.
— Fuller has agreed to work exclusively through XIX for all entertainment and media related projects for a period of five years. However, Fuller shall be entitled to own and operate a personal motion picture development business outside of XIX.
Other sundry details:
—19/CKX has a deal with Fuller where he is “permitted to produce a movie (and any subsequent prequels or sequels) based on the life and times of Elvis Presley”, which is subject to a separate agreement. CKX owns Elvis Presley Enterprises.
—Fuller was employed by 19E from 26 February 1985 until January 2010.
—Fuller shall be entitled to first class flights, first class hotel suite accommodation when traveling to a destination where he does not have a residence, private car service, private air travel within North America and within Europe. Private air travel between North America and Europe shall be approved by the company on a case by case basis.
The full contract, embedded below:
Simon Fuller’s new contract with 19 -
Posted In: Industry Moves, 19 entertainment, ckx inc, simon fuller
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