‘Jeopardy!’ & ‘Wheel of Fortune’ Embroiled in Messy Legal Feud Between Sony & CBS
Jeopardy! and Wheel of Fortune are two of the most popular (and profitable) TV programs. But now, a legal dispute has unfolded between the companies behind them.
As Variety reported, Sony Pictures Television, which produces both shows, is suing CBS. The lawsuit was filed at the Los Angeles Superior Court on Thursday, October 31.
Because the game shows are syndicated, they can air on any major network. Sony claims CBS has failed to uphold the end of its contract, not distributing Jeopardy! and Wheel of Fortune in local markets as promised and doing so in an unauthorized fashion overseas.
“As stated in our complaint, CBS has been egregiously undercutting the value and profitability of these shows in favor of its own self-interest,” Sony said in a statement to The Hollywood Reporter. “CBS has pocketed millions in distribution fees from unauthorized deals, licensed the shows domestically well below market value, and favored its wholly-owned shows in advertising sales and distribution, among other things. Further, CBS has gutted the teams responsible for fulfilling its contractual obligations, requiring us to step in at our own expense. After repeated attempts to resolve this matter amicably, we must take legal action today.”
Wheel of Fortune and Jeopardy! have aired in syndication and not on one specific network for over 40 years. Sony’s distribution agreements with CBS and the network’s previous distributor go back to the early 1980s. Under their deal, CBS licenses the shows to local stations and sells ad spots in exchange for around one-third of profits.
However, Sony claims that CBS has not met its contractual duty to make its “best efforts” to make those profits as large as possible. The complaint states that CBS also allegedly pulled some shady dealings, including entering into distribution agreements in Australia, New Zealand and other international spaces that were not authorized. Sony demanded the $3.6 million that CBS had allegedly made from these agreements, with CBS pushing back, claiming part of the fees was already received, according to the suit.
The suit also claims: “When CBS negotiates licensing deals for the distribution of Jeopardy! and Wheel of Fortune with local affiliates and station groups, CBS will offer the Shows as part of a larger bundle with other far-less-popular and much-less-marketable shows that CBS wholly owns, like The Hot Bench and The Drew Barrymore Show, diluting and diverting the pool of gross receipts attributable to the Shows from licensing.”
Sony also says that CBS’s mass layoffs, given the recent shakeup with its parent company, Paramount Global, have negatively affected distribution, marketing, and ad sales for the iconic game shows.
Wheel of Fortune, Jeopardy! Weeknights, Check local listings
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