Washington Redskins owner Dan Snyder has tapped the team’s chief marketing officer, Terry Bateman, to head Dick Clark Prods.
Move came Tuesday as Snyder officially announced the $175 million acquisition of the shingle by his RedZone Capital investment group (Daily Variety, Tuesday).
Bateman takes over for Allen Shapiro, who is stepping down as part of the deal.
Shapiro and his partners at Mosaic Media and Mandalay stand to reap a huge financial windfall in the sale of Dick Clark Prods.
Mosaic and Canadian investment firm CDP Capital originally acquired Dick Clark Prods. in 2002 for $140 million. Mandalay later bought out CDP Capital’s share.
But that tells only part of the story: At the time, Dick Clark Prods. was flush with $75 million in cash, which means Mosaic and CDP actually paid $65 only million for it.
And, insiders note, half of that was borrowed — which means Mosaic and CDP actually acquired the production company for around $33 million. As a result, Mosaic and Mandalay this week profited handsomely from the deal with RedZone, insiders close to the deal said.
Much of Dick Clark Prods.’ strong cash flow comes from the Golden Globes, one of its crown jewels and a huge moneymaker for the company — estimated to add at least $4 million in profit each year. That’s why it’s a bit of a surprise that Hollywood Foreign Press Assn. officials said they had no idea a deal was in progress.
Incoming HFPA prexy Jorge Camara learned of the sale in a conference call from Dick Clark Prods.’ Bateman and Barry Edelman Tuesday morning after a story had run in Daily Variety.
“I’m still very surprised, this just happened this morning,” said Camara, who was on his way to London for the “Harry Potter and the Order of the Phoenix” preem and will meet with the new Dick Clark execs on his return. “I still don’t know everything that’s going on with the sale of DCP.”
“I wish we were notified,” added Camara. “I wish we had known that negotiations were going on for the sale of DCP and that we were informed. And that’s all I’m going to say.”
Beyond the Globes, Dick Clark Prods. has also seen its fortunes increase in recent years thanks to the Fox summer hit “So You Think You Can Dance,” now in its third season.
Mandalay and Mosaic also managed to delicately keep “Dick Clark’s New Year’s Rockin’ Eve” going by tapping Ryan Seacrest as permanent host following Clark’s 2004 stroke. Clark still appears on the special.
Snyder called the chance to acquire Dick Clark Prods. “a rare opportunity to acquire a powerhouse portfolio and grow it in new directions.
“Continuing and expanding the legacy and tradition of this proud company is an exciting prospect,” Snyder said. “We believe we can extend the already successful programming and broadcast platforms with new approaches, new media and diverse technologies — cellular, Internet and wireless.”
Snyder will be chairman of the board of Dick Clark Prods. He carries a similar title at Six Flags, which his investment team acquired two years ago — and which now takes a 40% equity interest in the transaction.
Other members of the new eight-person board include NVR chairman Dwight Schar, who’s managing member of RedZone (and a minority owner of the Redskins); Six Flags CEO Mark Shapiro; Redskins senior VP Dennis Greene; and Bateman.
While at the Redskins, Bateman handled the team’s sponsorship deals — including some of the largest in its history. He also negotiated TV contracts and expanded the Redskins Broadcast Network. Before that, he was CEO of the Barton Cotton direct marketing corporation. He was also a divisional president at Snyder Communications, the marketing firm founded and later sold by Snyder.
Also as part of the deal, RedZone and Dick Clark Prods. have signed on with CAA to develop opportunities for the label, which was founded by Clark in 1957 — the same year “American Bandstand” launched on ABC.
Clark said he gave “full support” to the new owners.
“Dan Snyder and his group will bring energy and new direction to a company that has meant so much to me,” he said. “As we’ve talked I’ve come to learn just how passionate these people are about this business and extending our success.”
The Dick Clark stable also includes the Academy of Country Music Awards, the American Music Awards, the “Bloopers” series of specials, and a library of shows including the “American Bandstand” catalog.
(Bill Higgins contributed to this report.)