Académique Documents
Professionnel Documents
Culture Documents
time, both IMG and CEP told Bloom that they were working on
obtaining an agreement from Sears to sponsor the circus.2 As negotiations between IMG, CEP, and Sears were proceeding, Bloom worked
out separate oral agreements with IMG and CEP for each company
to split the commission should Sears sign a sponsorship agreement
with Feld. Specifically, IMG agreed to take a 12% commission, and
CEP agreed to a 7.5% commission. The agreement between Feld and
IMG was subsequently memorialized in a letter, which Bloom initialed; the agreement between Feld and CEP was never reduced to
writing.
Bloom recalls that, at the time of the negotiations, he told both
IMG and CEP that, if Sears signed with Feld and subsequently
renewed the sponsorship agreement, "we [Feld] would take care of
them [IMG and CEP] on a renewal basis and we would negotiate a
renewal fee with them." J.A. at 49 (deposition of Allen Bloom). Eric
Weisman, executive vice president of CEP and the individual at CEP
with whom Bloom negotiated, similarly recalls the conversation
between him and Bloom, saying that Bloom said, "if we [Feld] have
a renewal, you [CEP] will get something and I'll determine it at that
time." Id. at 108-09 (deposition of Eric Weisman). According to
Bloom, it was understood that any renewal commissions would be
lower than the original commissions. See id. at 50 (deposition of
Bloom). Weisman further recollects that Bloom told him that CEP
would be compensated in the same proportion to IMG as it was being
compensated for the original sponsorship agreement. See id. at 109-10
(deposition of Weisman).
In November 1994, Sears signed a sponsorship agreement with
Feld for $5.2 million. The agreement -- unlike Feld's previous sponsorship agreements with Ocean Spray and Proctor & Gamble -- contained no explicit provision for renewal. In September 1996, Feld,
without any assistance either from IMG or from CEP, which had
since disbanded, negotiated a renewal of the sponsorship arrangement
with Sears for another two years. IMG and Premier, which had suc_________________________________________________________________
2 Both IMG and CEP had preexisting relationships with Sears. IMG
had performed consulting work for Sears, and Young & Rubicam, one
of the two partners behind the CEP joint venture, was Sears' advertising
agency.
3
CONCLUSION
The judgment of the district court is affirmed.
AFFIRMED
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