Windfall Equity is aiming to calm the waters inside the Wasserman agency after Friday night’s surprise news that the firm will probably be put up on the market and founder Casey Wasserman will leave amid the furor over his appearances within the Epstein files.
Casey Wasserman’s position as a frontrunner in media and sports has been rocked by revelations as a part of the Justice Department’s Epstein files disclosures that Wasserman had an intimate relationship with Ghislaine Maxwell in 2003, years before she was convicted of sex trafficking through her long association with convicted sex offender Jeffrey Epstein.
Wasserman’s appearance within the Epstein files document dump, despite the consensual nature of his exchanges with Maxwell, has set off a firestorm amongst a few of the clients represented by Wasserman’s sports, marketing and entertainment units. Because the leader of Los Angeles’ Olympics organizing body, LA28, Casey Wasserman has also come under pressure from Southern California political and civic leaders to step down from his Olympics post. This controversy comes about 18 months after he weathered a tabloid-driven scandal revolving around accusations that he engaged in inappropriate office relationships.
Rhode Island-based Windfall Equity became an investor within the Wasserman agency in late 2022 and now owns a majority of the firm, which encompasses management heavyweight Brillstein Entertainment Partners. Now, as Casey Wasserman leaves, Windfall is known to be committed to keeping the corporate intact while it considers options for the long haul. That features M&A possibilities to boost and expand its operations.
On Friday night, Casey Wasserman named Wasserman president Mike Watts as the corporate’s interim leader throughout the transition. On Saturday, Windfall pledged its support for Watts and its faith within the agency’s future.
“We imagine deeply within the strength of the corporate and have full confidence in Mike and the leadership team, in addition to within the exceptional employees across the organization,” a Windfall Equity spokesman said. “We remain fully committed to investing in its growth, expanding its capabilities across sports, music, and entertainment, and supporting the extraordinary talent, brands and properties the corporate is proud to represent.”
The Friday night surprise sent loads of talent reps at rival firms pouring over Wasserman’s imprints to search for opportunities. There was much speculation about whether the industry’s largest firms — CAA, WME, UTA — will contend for any parts of Wasserman, or whether one other monied player will jump in with Windfall.
Multiple high-ranking agents were still reeling Saturday over Wasserman’s decision to divest in his company. Others were incredulous that Wasserman used his parting memo to his staff as an try to solidify his Olympics gig.
“It’s like a baby deciding which toy he’ll hand over as punishment,” said one veteran movie talent agent. Yet Wasserman’s favor to remain atop LA28 was sealed earlier this week when the board issued a press release of support. His biggest advocate on the LA28 board, multiple sources said, is former DreamWorks chief Jeffrey Katzenberg — a mogul with loads of local political connections who seems “hellbent” on breaking the autumn for Wasserman, one source observed.
“He hasn’t violated any law that we all know of,” said a top Hollywood dealmaker, speaking on the condition of anonymity. “But if you couple this with the scandal from a yr ago, you see a pattern of behavior. The sleaze factor is simply too high, and no client desires to be near that.”
Leadership in Wasserman’s sports, music and talent management businesses were previously reported to be negotiating directly with Casey Wasserman’s capital partner Windfall, in an effort to rescue the assets as one bundle. While Wasserman’s music artists were largely liable for pressuring him to step away, the actor-heavy Brillstein Entertainment Partners would inevitably have come under scrutiny. It’s only been a yr since Emma Stone moved to Brillstein with manager Doug Wald. Much less for Sydney Sweeney, whose longtime talent agent, Jennifer Millar, made the pivot to management and relocated to Brillstein in December. There’s little doubt that female stars the stature of Stone and Sweeney would have felt the warmth had Casey Wasserman not bowed out.