When David Ellison hired Jeff Shell to run Paramount shortly after he acquired the company last year, it was seen around the sports industry as a strong sign that CBS Sports would be an aggressive buyer under new ownership.
Shell was known to be a big sports fan, and, as CEO of NBC from 2019-23, oversaw a significant sports portfolio. Sure enough, the company made a big splash within a few months, committing nearly $8 billion toward UFC broadcast rights over the next seven years.
Now, the UFC deal is implicated in a lawsuit filed this week by a public relations advisor against Shell.
The plaintiff, R.J. Cipriani, alleges that Shell agreed to pick up a reality television series in exchange for crisis communication services. Cipriani, who The Hollywood Reporter also referred to as a “high-stakes gambler” in its write-up of the lawsuit, allegedly helped manage PR for Shell and Paramount during several important moments early in Ellison’s rule over CBS, including negotiations with the South Park creators.
As part of their business relationship, the lawsuit states that Shell leaked the details of the UFC deal to Cipriani.
Shell allegedly wrote a message to Cipriani a month before the deal was announced, with behind-the-scenes details of the talks:
“We are buying ALL of the UFC rights for the next 7 years for Paramount. Netflix thought they had it. $7 billion +. Everything… numbered events currently PPV and all of their fight nights Exclusive. We will put it on P+ and CBS. Embargo until after Netflix earnings.”
Cipriani co-created and executive-produced the reality television series and claims Shell did not follow through on his pledge to pick it up at CBS. In addition, Cipriani alleges that a lawyer brought in by Shell to broker the dispute had a conflict of interest. The mediator is quoted in THR’s story, revealing that a lawsuit had previously been threatened against her as well, but that it was “riddled with clear errors of fact and law.”
The new lawsuit implicating Shell also alleges that he was leaking sensitive details of Paramount’s pursuit of Warner Bros. Discovery until recently.
Cipriani is claiming breach of oral contract and fraud and says he wants at least $150 million.
Previous reports named Cipriani as a “whistleblower” and indicated Shell was under investigation by Paramount. Last week, CNBC’s Alex Sherman reported that Shell’s future at Paramount was “very much up in the air.”
The lawsuit is just the latest — and most public — issue facing Shell as the head of the new, growing company.
In his previous role as CEO at NBCUniversal, he was fired after the company corroborated a female employee’s allegations of inappropriate conduct, including sexual harassment.
About Brendon Kleen
Brendon is a Media Commentary staff writer at Awful Announcing. He has also covered basketball and sports business at Front Office Sports, SB Nation, Uproxx and more.