New Simon Fuller company reveals name
XIX Entertainment Limited is registered in EnglandAnd the name of Simon Fuller's new entertainment company is ... almost the same as the name of his old company.
According to a regulatory filing late Friday, "American Idol" creator Fuller, who this week left his 19 Entertainment to launch a new company, has named the outfit XIX Entertainment. (The Roman numerals XIX stand for the number 19.)
On Thursday, Fuller, who sold 19 to CKX several years ago, said he has signed a long-term deal with CKX that keeps him involved in the firm's key shows, while freeing him up to launch the new company.
In the regulatory filing, CKX said Fuller had formed XIX, which is registered in England, "to pursue entertainment-related ventures."
The filing also revealed details about CKX's option to invest in the new Fuller entity and Fuller's pay under his continued role as executive producer on "Idol," "So You Think You Can Dance" and other 19 shows.
Until March 15, CKX has the right to acquire 10%-33% of XIX at a price equal to or higher than a potential third-party investor or at an appraised amount. The maximum valuation Fuller could get: £100 million.
The deal spells more financial windfall for Fuller.
Not only is CKX paying him £500,000 as consideration for the investment option and a £250,000 signing fee for his consulting agreement with CKX and 19, but also a fee of £1.5 million for consulting services he agreed to provide for CKX and 19 for at least six months. Those payments amount to more than $3.65 million.
Fuller will also start getting a piece of the profits of the 19 shows.
He will receive 10% of the net profits of the series for their life span as long as he continues to provide consulting services.
For 2010, he will get $5 million as an advance against the 10% fee.
For each year after that, he will continue to receive as an annual advance against the 10% fee: $3 million if "Idol" remains on the air and another $2 million if "So You Think You Can Dance" remains on the air.
For the first nine months of 2009, CKX reported a profit of $30.7 million, down from $35 million in the year-ago period. 19 had reported an operating profit of $75 million for all of 2008.