Absorbing and well-researched story by Anthony Breznican for AP on Simon Fuller and the economics of the American Idol and Pop Idol franchises:
- As creator of the "American Idol" franchise, Fuller manages every aspect of the careers of Clay Aiken, Ruben Studdard, Kelly Clarkson and all other instant "Idol" celebrities.
But Fuller earns far more than the typical 15 to 20 percent that most managers keep from their clients' gross earnings. As the "American Idol" phenomenon begins its third season Monday on Fox, Fuller's franchise is raising questions about exploitation and the price of fame.
Fuller says that as the primary imaginative force behind these artists, and the one with the connections to transform Clarkson from struggling Texas waitress to pop diva, he deserves a larger percentage of their earnings.
"If you think of Andrew Lloyd Webber, if he creates 'Phantom of the Opera' he owns it. He hires Michael Crawford to take the lead. Crawford doesn't get a cut of `Phantom of the Opera,' and no one questions that," Fuller said. "My deals are the best in the world. I create 'Phantom of the Opera' and then say to Michael Crawford, 'Let's be 50-50 partners, or 60-40 - whatever the deal is.'"
....In an interview last summer, he described many of his "Idol" relationships as "partnerships" in which he receives from 25 to 50 percent of all earnings. The Sunday Times of London estimated that Fuller earned about $44 million in 2002 and $60 million in 2003.
It's unclear how much the "American Idol" stars have taken home for their work. But in 2002, the first "Pop Idol" winner Will Young collected an estimated $750,000, according to the Sunday Times.
Fuller's company, 19 Entertainment, oversees not just the recording deal for "American Idol" stars, but also controls merchandising, touring, sponsorship and movie deals.
...."Most artists working on the old-fashioned model, how do you keep track of your publisher, your record company, your merchandise, your sponsorship agent, your touring agent? There could be 10 different people dealing with different areas of your life," Fuller said. "This is one-stop shopping."
But Gary Fine, a Los Angeles-based entertainment attorney, advised one client not to participate in the first "Idol" series after examining the contestant's contract. Fine does not condemn Fuller's deals, but said he would not recommend them for everyone.
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