'American Idol' Owner Files for Chapter 11 Bankruptcy - Hollywood Reporter
Idol creator Simon Fuller is the company’s No. 1 unsecured creditor and is owed $3.37 million. A payment demand on April 11 from Fuller is one of the factors cited in the bankruptcy papers as contributing to the decision to file for Chapter 11. A declaration filed in court says that after Fuller left in 2010, he was given a profit share of his shows and money as a consultant. A statutory demand for payment served by Fuller in the U.K. brought the prospect that he could commence winding-up proceedings on Core affiliate 19 Entertainment.
As the second biggest unsecured creditor, former Core chief Marc Graboff, who is now overseeing studio operations at Discovery, is owed $1.32 million in severance. Sony Pictures has about a $900,000 secured claim after the sale of film rights to Seeing Double, reported in the filing to be in production by a Core entity. Some of the other companies that have profit shares in Core shows include Creative Artists Agency, Dick Clark Productions and Fox Broadcasting.
Over the years, Core's mission has changed. It was originally set up to manage the intellectual property of Elvis Presley and Muhammad Ali, but by 2013, those assets were sold to Authentic Brand Groups. The purchase of Fuller's 19 Entertainment in 2005 is the company's crown jewel and it continues to own the recording rights of such stars as Kelly Clarkson and Carrie Underwood, who have appeared on Idol. Core also owns Sharp Entertainment, which produces unscripted programming like Man v. Food, Extreme Couponing and My Crazy Obsession.
According to a declaration made in court in conjunction with the Chapter 11, "Despite its long-running success, however, the Company has recently experienced deterioration in its financial performance, primarily attributable to the decline in ratings for American Idol and the corresponding decline in revenues from IDOLS-related broadcast fees, international tape sales for rebroadcasts, touring fees, sponsorships and IDOLS-related merchandise sales."
Very surprise of the news ! I know the rating was bad, but I do not expect this (Filing Bankruptcy)