Messy Michael Kassan breaks up with UTA, questions Media Link's future

But less than three years later, the partnership is headed for a messy divorce.

A UTA spokesperson announced Tuesday that Kassan was “terminated” on March 7 “following a thorough and thorough third-party investigation into the misappropriation of company funds.” The talent agency filed suit against him in Los Angeles Superior Court on Tuesday, alleging constructive fraud, breach of partner services agreement, fiduciary duty, and fiduciary duty.

Mr. Kassan's lawyers announced Tuesday that Mr. Kassan had filed his own complaint with the Los Angeles Bureau of Judicial Arbitration and Conciliation, naming UTA and its CEO Jeremy Zimmer among the defendants, and saying that they had filed a complaint against him. and breached the contract by reducing UTA's expense account and minimizing Media Link's role in overseeing UTA's marketing. Split. The complaint, a copy of which was sent to Business Insider, alleges that Kassan was not fired, but rather left MediaLink on March 6. Mr. Kassan alleges breach of contract, fraud in solicitation, and breach of oath of good faith and fairness. We are handling it.

MediaLink is deeply embedded in every aspect of the advertising industry

MediaLink works with nearly every element of the media and marketing business, including conducting agency reviews, providing consulting to technology companies looking for customers and buyers, headhunting executives, and connecting publishers and advertisers. doing. To some critics, Medialink's tactics have been described as “mafia”-like, because it is so deeply entrenched that it draws paychecks from nearly every part of the business. But Kassan took the nickname as a compliment, at least in public. “No conflict, no interests” is Kassan's motto.

Right now, Madison Avenue is buzzing about whether the Media Link Mafia can survive without the Godfather.

“Half of the value is out of the box,” said John Miller, a veteran media executive and CEO of Integrated Media, which specializes in digital media investments.

“Medialink is dead,” a competitor executive told Medialink. Media Link is hoping for a recovery in business results as a result of the UTA scandal. “If there's ever a business that's completely tied to its CEO, it's this one.” The executive, like many people contacted for this article, is not willing to discuss sensitive situations or publicly discuss them. He requested anonymity to speak freely because he was not authorized to do so.

A UTA spokesperson said Media Link has a strong management team that continues to drive the business forward. “There will be no disruption to our customers,” a UTA spokesperson said. A MediaLink spokesperson referred UTA for comment.

Kassan's attorney, Sanford Michelman of Michelman & Robinson, said in a statement that his client's top priority is MediaLink's success and continued growth.

“He looks forward to ensuring his continued success in the industry,” the statement said.

Entertainment agencies are cutting back on staff.

UTA's acquisition of MediaLink was an example of a long-standing trend of talent agencies moving into advertising services.

In 2013, Endeavor's WME bought a 49% stake in Droga5 (later sold to consulting giant Accenture).

Before acquiring MediaLink, UTA already had a marketing department led by Julian Jacobs and David Anderson that connected brands to Hollywood. For example, the company recently brokered a deal to bring General Motors cars to Netflix shows. UTA also recently acquired his JUV Consulting, an agency that helps marketers reach his Gen Z audience.

“The idea was always that if you had a cultural connection, you could extract a lot of money from Madison Avenue,” said the former CEO of a creative agency. “Easier said than done.”

But recently, the agency has shown signs of cutting staff. WME is expected to sell non-core parts of its business after parent company Endeavor said last fall it was considering “strategic alternatives” for its assets. And the talent agency exited the content business to resolve a dispute with the Writers Guild of America.

Following the fallout with Kassan, UTA may think again about acquiring another agency.

Who runs MediaLink now?

The media and advertising industry will be watching to see what kind of leadership changes UTA ​​makes with MediaLink.

Mr Kassan, 73, had faced questions about his succession plans before the latest explosion. Mr. Kassan's longtime right-hand man, Wenda Harris Millard, who had been the obvious natural successor until now, left the company in 2022. People familiar with the company had a hard time coming up with the name of an executive whose stature in the industry rivaled Mr. Kassan's. Additionally, the rift with UTA could complicate the company's ability to bring in outside personnel to manage its operations.

One client noted that Kassan had a strong talent pool at MediaLink, and a former MediaLink executive said that although Kassan was the company's driving force behind winning new business, he was not responsible for most of the projects the company worked on. said he was not involved.

There has been a lot of speculation about Kassan's future, with people imagining whether he will go independent, settle with UTA, or buy back the company. There's also speculation about the nature of his breakup with UTA chief Zimmer and whether more interesting details will emerge about Kassan's alleged spending and the deal to buy MediaLink than have already been reported.

Kassan has a loyal following and it's easy to imagine people giving him another chance like they have in the past. He was fired in 1999 after Western Initiative Media Worldwide, part of the advertising holding company Interpublic Group, sued the media buying company for $63.5 million for alleged breach of contract and defamation. It was done. The lawsuit was settled. Then, in 1995, he was convicted of grand theft by embezzlement and his law practice was suspended in California. His charges were later reduced to misdemeanors and expunged from his record.

“It would be easier for him to start with MediaLink 2.0,” said Lou Pascalis, a former Bank of America marketer and founder and CEO of AJL Advisory. Ta. “You're buying Michael Kassan, so we're all going to move from Media Link to Michael's new company.”

Is the advertising industry's schmoozefest over?

MediaLink grew out of an era of growing distrust between agencies and marketers, and the media landscape becoming more complex with the entry of tech giants. Over the years, the business of building communities in advertising has attracted new players like Mark Sternberg's Brand Innovators and Putto, but it hasn't replaced MediaLink.

Technology companies are growing more powerful, and now AI threatens to further disrupt the business of media buyers and sellers. There may still be room for a connector like Kassan. But agencies are also dissatisfied with their reliance on Media Link, especially since participating in media agency reviews overseen by Media Link is expensive. One industry veteran said he sees Mr. Kassan's exit as an opportunity to change the way advertising industry consultants operate and charge for their services.

Mr. Kassan's resignation may be the beginning of the end of the advertising industry's schmoozefest. At the center of the dispute between UTA and Kassan is the MediaLink founder's $950,000 annual expense account. MediaLink is everywhere at Cannes Lions, the ultimate industry-leading event where yacht deals are signed in the luxurious surroundings of the French Riviera. MediaLink's parties attracted big-name and expensive performers, from Lady Gaga to Elton John to Mariah Carey. (Kassan was notably absent from South by Southwest in Austin this month, where Media Link hosted a client dinner with former NFL quarterback Tom Brady.)

“Is there anyone else in the industry who has more convening power than Michael Kassan?” said Rob Norman, an advertising industry veteran and former global chief digital officer at WPP GroupM. “If you pull that bolt out, will the rest of it fall over? So does that still matter to UTA?”