Sandy Grushow exits Fox TV
Al Forno
The Hollywood Reporter
Grushow exits Fox post
By Cynthia Littleton
More than four years of executive stability at the top of Fox Broadcasting Co.
came to an end Monday with the unexpected news that Sandy Grushow has resigned
his post as Fox Television Entertainment Group chairman.
Grushow, a Fox veteran who oversaw the entertainment operations of the
broadcast network and the 20th Century Fox TV studio, will segue into a
lucrative three-year production deal based at 20th for his newly formed Phase
Two banner. Grushow's move comes a few months before the expiration of his
employment contract with Fox.
Sources said Grushow has had lengthy negotiations during the past few months
with Peter Chernin, chairman of Fox Entertainment Group and president and chief
operating officer of Fox parent News Corp., on renewing his executive contract.
During the break for the Christmas and New Year's holidays, however, Grushow
said he decided to exercise his pre-existing option to shift into an
eight-figure production deal that was included in his last contract when he
took over the network in late 1999. That option had to be triggered between
Jan. 1 and May 31 of this year, a source said.
"It's been a great ride," Grushow said. "I have every expectation that this
network is going to be nipping at the heels of NBC (for the season in the
adults 18-49 demographic) as we go down the stretch this year. I was tempted to
stay until the end of May in order to bask in the glory of what will
undoubtedly be a highly successful final two-thirds of the season for Fox. But
I felt I had a moral obligation to Peter and to the company to let them know
what my plans were."
A source said the production pact allows Grushow the freedom to pitch projects
to any broadcast or cable network, and it also allows him to depart at any time
if he should decide to return to the executive fold at Fox or anywhere else.
Grushow was quick to thank Chernin and News Corp. chairman Rupert Murdoch for
their "support through the years. ... I look forward to continuing the
association in new and hopefully profitable ways."
In announcing Grushow's exit, Chernin said in a statement: "Sandy's
determination and savvy leadership over these past years have helped make the
network and studio what they are today. I think he probably has had as long a
tenure at the top of a fast-changing television industry as anyone in the
business, and as much as I would have liked to continue to work
shoulder-to-shoulder with Sandy as an executive, I certainly respect his
decision and am looking forward to continuing our successful association."
Grushow's departure comes amid a rocky start to the season for Fox, which has
the challenge of rolling out its fall slate amid primetime pre-epmptions in
late September-October for Fox Sports' coverage of postseason baseball playoff
games.
The network has generated strong critical buzz this season with new series like
the comedy "Arrested Development" and an instant hit in the limited-run reality
series "The Simple Life," but it has taken a hit with declines for such
tentpole series as "24" and "Malcolm in the Middle." Fox is expected to rebound
later this month when a new installment of "American Idol" returns to the
schedule for twice-weekly airings through the end of the season.
The surprise news of Grushow's exit spurred speculation on and off the Fox lot
Monday that it might have been prompted in part by Murdoch's dissatisfaction
with the network's performance, which he expressed as part of a lengthy
interview published by the New York Times last month.
But sources familiar with the situation stressed that the decision to trigger
the production-deal option was Grushow's and that he had been offered a new
contract to remain with the company.
In fact, a knowledgeable source said, one factor that played into Grushow's
decision was the lack of advancement opportunities for high-level executives
within the News Corp. universe. Murdoch has made it clear that he hopes one of
his children will eventually take the reins as CEO.
Indeed, sources say the Fox lot has become "highly politicized" in recent
months with uncertainty about long-term succession plans and uncertainty as to
whether Chernin will renew his own contract, which also is believed to expire
later this year. A source said Grushow ultimately didn't see much benefit in
spending another four years in the same position with few long-term prospects
for advancement.
With Grushow stepping down, the divisions that reported to him will now report
to Chernin, including Fox entertainment president Gail Berman, who oversees all
programming, marketing and scheduling for the entertainment division, and the
co-heads of 20th Century Fox TV, Gary Newman and Dana Walden. Fox reps said
Grushow's post would not be immediately filled.
Grushow first came to Fox as an intern in its feature marketing department in
1983. He rose to the vp level before shifting to the then-fledgling Fox
Broadcasting Co. in 1988 as senior vp advertising and promotion. At Fox, he
quickly rose through the ranks in programming and was promoted to entertainment
president in 1992. During that period, he shepherded such signature Fox shows
as "The X-Files," "Melrose Place" and "Party of Five," but his tenure ended in
1994 when the network hit a ratings slump.
Grushow served as a top executive in the ill-fated Tele-TV subscription TV
venture in the mid-1990s but returned to the Fox fold in early 1997 as
president of 20th Century Fox TV, where Grushow spearheaded a major expansion
of its production activities and pushed 20th to the top of the primetime series
production rankings for the first time in the studio's history.
When the Fox network was floundering in late 1999, Chernin turned to Grushow,
expanding his domain to include the studio and the network entertainment
operations.
Grushow, in turn, recruited the well-regarded Berman to her post in mid-2000.
Berman was out of town attending to a personal matter and was unavailable for
comment Monday. Walden said she had no doubt that Grushow will have an easy
transition into the work of a producer.
"Sandy has so many strengths as an executive and as a creative individual; he's
incredibly driven," Walden said. "When he sets his sights on something, it's
impossible to imagine him not achieving any goal he has." She added that
Grushow's background in marketing had always made him very savvy in evaluating
the prospects of pilots and series pitches.
Said Newman: "Sandy has a lot of friends at this studio. We're looking forward
to doing all we can to make him successful in his new capacity."
###
Daily Variety
Jan. 6, 2004
Sandy signs off at Fox
TV topper Grushow ankles to hang production shingle
By JOSEF ADALIAN, MICHAEL SCHNEIDER
Sandy Grushow is ankling his post as Fox Television Entertainment Group
chairman, ending the longest era of exec stability in the network's 17-year
history.
Under an exit clause contained in his most recent contract, Grushow will set up
his own 20th Century Fox TV-based pod, Phase Two Prods.
His position overseeing both the network and the studio will not be immediately
filled, giving a boost to Fox Entertainment prexy Gail Berman and 20th toppers
Gary Newman and Dana Walden.
Grushow cited his unwillingness to reup for another four years in the same job.
Indeed, the exec apparently realized there was no way to grab any more
substantial power within family-run News Corp. and decided to leave now rather
than remain stagnant for another half-decade.
Nonetheless, the decision -- announced Monday morning as Hollywood was
stumbling back into town after a two-week holiday hiatus -- caught most of the
biz off-guard.
Despite a troubled fall season, the net has launched two hits in the last six
months ("The OC," "The Simple Life") and is still considered to be in the thick
of the Nielsen battle. On the studio side, 20th -- once an also-ran -- has
generated more than $1.5 billion in profit since Grushow took over in 1996.
What's more, Fox seemed to have broken its pattern of frequently changing
entertainment division toppers.
Until Monday, Fox hadn't seen a top-shelf shuffle in almost four years. Berman
joined the network in May 2000; together, she and Grushow repped the
longest-running entertainment administration since Fox's founding.
Grushow, whose contract is worth $5 million annually and was due to expire this
summer, has been mulling his future at the network for months. In mid-December,
there were strong rumblings that Grushow might be exiting -- speculation
dismissed at the time as the usual Fox exec shuffle rumors.
Exec acknowledged his contract has been on his mind for a while but he said he
didn't finalize his departure plans until recently. He said he told Fox Group
chairman-CEO Peter Chernin of his decision on Friday; a few top Fox execs were
told Sunday night.
Freedom of choice
Grushow told Daily Variety he found himself having "the freedom to choose the
path you want your professional career to take. I thought long and hard about
spending another four years as an executive at Fox, but in the end, I chose to
go down a different path."
In a written statement, Chernin was effusive in his praise of Grushow, calling
the exec "a close and valued colleague for almost 20 years (who) will be
missed."
"His contributions to the evolution of Fox are too numerous to list," Chernin
added. "I think he probably has had as long a tenure at the top of the
fast-changing television industry as anyone in the business, and as much as I
would have liked to continue to work shoulder to shoulder with Sandy as an
executive, I certainly respect his decision and am looking forward to
continuing our successful association."
Chernin, however, was traveling Monday and did not make himself available to
answer questions surrounding the announcement of Grushow's departure.
Exec's exit comes as News Corp. chairman Rupert Murdoch has been vocal in his
displeasure with Fox's performance this fall, a position shared by News Corp.
prexy-chief operating officer Chernin.
In an interview with the New York Times last month, Murdoch said the net had
"too high a failure on our new shows" and "the broadcast division stumbled
badly" with "Joe Millionaire 2."
Fully supported
Grushow, however, said he "couldn't emphasize how much I appreciate all the
support Rupert and Peter have shown me over the years."
"Peter would have liked me to have stayed, and I elected to avail myself of
this other opportunity," Grushow said. "I felt no pressure whatsoever to make
this decision. This was my choice, which I had the good fortune and freedom to
make."
Production deal, said to be worth eight figures over three years, will allow
Grushow the chance to hire five or six staffers and develop shows for other
nets.
Perhaps more importantly, deal allows Grushow the freedom to jump into another
exec post should one that interests him become available.
Reducing costs
While saying "it would be silly of me to ever close the door on any future
opportunities," Grushow said his focus will now shift full-time to producing.
One goal: finding a way to reduce program costs.
"I experienced some real frustration in this position because no matter how
hard I tried, I never felt I was able to create the sense of urgency necessary
in the creative community (about low-cost shows)," he said. "I'm excited about
the prospect of trying to push the process forward from this new position."
Walden said Grushow will "fit in nicely (as a pod player) because he's someone
who believes in the Fox brand of doing things that are unconventional," while
Newman predicted his former boss has "a huge amount of pent-up enthusiasm to
get closer to the product and will come out of the box running."
Grushow first joined Fox Broadcasting in 1988 as senior VP of advertising and
promotion. He was upped to exec veep of Fox Entertainment in 1991 and named
president in 1992. But after acquiring NFL rights, News Corp. brass decided to
change Fox's programming strategy in 1994 -- and Grushow was history.
After a stint at the short-lived telco venture Tele-TV, Grushow returned to the
fold in 1997 as head of 20th Century Fox TV. After transforming that studio
into the leading network TV producer, Grushow was given added oversight of
Fox's entertainment side in 1999.
Image maker
Overseeing marketing and advertising early in the net's existence, Grushow was
an architect of Fox's edgy, "bad boy" brand. He helped launch signature Fox
series such as "The Simpsons," "In Living Color" and "Beverly Hills, 90210." As
entertainment president, he scheduled hit series such as "The X-Files,"
"Melrose Place" and "Mad TV."
When News Corp. toppers realized the error of trying to broaden Fox's image in
the mid-'90s, Grushow was the company's logical choice to return the network to
its roots and help bring it back from the brink.
Returning to the network fold, Grushow maintained oversight of one of the top
network production companies, which entered the TV season with 14 returning
shows and nine new entries. At Fox, meanwhile, he oversaw the launch of skeins
like "24," "Bernie Mac," "Boston Public" and "The OC."
"I was shocked to hear the announcement today," said "24" exec producer Joel
Surnow. "I have only high praise for Sandy. He supported our show from the
beginning and all the way through the first three seasons in every way -- not
just creatively, but financially."
Sweeps successes
Under Grushow, the network also pulled off its first-ever sweeps win among
adults 18-49, pulling off back-to-back victories in February and May 2003. Fox
also finished the 2002-03 TV season ranked No. 2 among adults 18-49 by the
closest measure in its history -- just 0.2 of a ratings point behind NBC.
Endeavor partner Rick Rosen echoed the surprise heard around the industry
regarding Grushow's departure.
"Sandy is synonymous with the Fox network and Fox television, both from the
production and network side," Rosen said.
While Grushow is known to have a blunt management style, UTA TV co-topper Jay
Sures said that's one of the keys to his success.
"Love him or hate him, Sandy got the best out of so many execs, and that's why
the company has had so much success over the last five years," he said.
No room to grow
In the end, several observers agreed that there wasn't any more room for
Grushow to grow at the company. He took the Fox Television Entertainment Group
chairman job at the right time -- in 1999, when companies were opening their
pocketbooks wide to prevent top talent from being lured by the then-booming
Internet economy.
"Corporations were making big deals with people I don't think they would make
today," said one insider.
But in 2004, it's clear the top gigs at News Corp. are increasingly reserved
for execs with "Murdoch" in their last name. And for an executive of Grushow's
stature, it may have been time to try something different.
Further complicating matters is the fact that Chernin, whose contract expires
this year, has not yet negotiated a new deal and is facing some of the same
News Corp. succession questions.