The members of the Hollywood Foreign Press Association, an organization that has been controversial for a year and a half for its lack of diversity and ethics, have voted in favor of a proposal from Eldridge Industries LLC — an investment company founded and run by Todd L. Boehly, who is the. .. HFPA‘s interim CEO — to create a new private entity to be his Golden Globes assets and maintain its charitable and philanthropic programs in a separate non-profit entity.
The new venture will result in staff development and an executive team, according to a statement from the HFPA on Thursday. Additional Golden Globes voters will also be added to increase the size and diversity of voters available for the annual awards. (The statement does not specify whether the new voters will receive full membership status and privileges.)
The HFPA states that Boehly was not part of the review, recommendation or approval process.
“This is a historic moment for the HFPA and the Golden Globes,” HFPA Chair Helen Hoehne said in a statement. “We have taken a decisive step forward to transform ourselves and adapt to this increasingly competitive economic landscape for both awards and journalism markets. Our special committee and team of legal and financial advisors have done an incredible job of reviewing, analyzing and comparing the options presented to us. We are excited to move forward with a mandate to ensure we continue our support for increasing diversity in all areas and maintaining our life-changing charitable and philanthropic efforts.”
A source familiar with the deal said it includes a salary of $75,000 for each HFPA member over five years. HFPA declined to answer questions from: THRbut made several other claims in his statement, which are quoted directly below:
The plan includes the creation of a new private company, which would acquire all rights to the Golden Globes intellectual property and be empowered to oversee the professionalization and modernization of the Golden Globe Awards.
The HFPA’s financial adviser, Houlihan Lokey, has come forward with several proposals in recent months from a number of companies and investment groups. Each proposal was reviewed and analyzed by the HFPA’s special committee, along with its legal counsel, Morgan, Lewis & Bockius LLP.
The HFPA embarked on this assessment of potential strategic alternatives in response to significantly changed journalism market conditions and recent inquiries about potential partnership opportunities to leverage its attractive assets in a post-pandemic environment. It also sought viable avenues for future growth to generate financial stability for its major charitable and philanthropic programs.
The Special Committee consisted solely of the three external independent members of the HFPA Board of Directors: Sharlette Hambrick, Jeff Harris and Dr. Joanna Massey.
“This review process was comprehensive, considered and thought through to ensure fairness and accuracy,” Hoehne added. “According to our statutes, the decision ultimately rested with our members, who voted on the proposal. As we look forward to celebrating our 80th anniversary event in January 2023, we are incredibly excited about this new era for our association.”
The HFPA remains committed to continuing its change and transformation process to address diversity, governance and behavior issues. The HFPA does not intend to comment further until it determines that additional disclosure is appropriate or necessary.
The Hollywood Reporteronce owned by Eldridge, is now owned by Penske Media Corporation, which operates a joint venture with MRC.