Edition: U.S. / Global

Can the television networks afford supporting actors making $20 million a year?

By Bill Carter
Published: January 20, 1997

IF the $20-million-a-movie star salary has blown apart the economics of Hollywood film making, what is the $20-million-a-season supporting-actor salary going to do to the economics of television?

In the words of one senior network entertainment executive, ''It's going to be a huge problem.''

Of course, that's only going to happen if each of the three supporting stars of the NBC hit comedy ''Seinfeld'' -- Jason Alexander, Julia Louis-Dreyfus and Michael Richards -- get the $1 million an episode they have reportedly been asking to come back for a ninth season.

At that price -- and it is still possible the figures being leaked are only one side's idea of aggressive positioning -- the three ''Seinfeld'' co-stars would each make $22 million next year. Add that to what Jerry Seinfeld himself would make (that $1 million plus presumably something more) along with what NBC would have to pay to Castle Rock, which owns the show, for writing, production and other fees, and maybe NBC might have to make do with only about $100 million in profits from another year of ''Seinfeld.''

But NBC, and by extension all three other networks, may actually have more than that profit at risk in the delicate negotiations to bring television's most successful comedy back for one more season.

For the networks, it could be a replay of the ''Jim Carrey got it, now John Travolta's worth it'' dance that has made the movie studios dizzy with cost concerns over the last year or so. Typically, a network pays for the star salaries on a hit show.

''If the 'Seinfeld' thing gets settled at a figure anywhere near that level, you have to worry: does it spread?'' said Jamie Tarses, the president of ABC Entertainment. ''What will ABC have to pay a Tim Allen?''

Indeed, ABC's deal for Mr. Allen's ''Home Improvement,'' that network's most successful show, also expires at the end of this season. Though his series has declined in ratings the last two years, it is still a solid hit. Couldn't Mr. Allen say: Am I not worth as much as a co-star on ''Seinfeld?''

From there the bread line extends down through other network stars:

Isn't Kelsey Grammer of ''Frasier'' worth two-thirds or half what a ''Seinfeld'' co-star gets?

What about John Lithgow on ''Third Rock from the Sun?'' He won the Emmy as comedy star last season. Or Paul Reiser on ''Mad About You?'' NBC has moved his show five times and it is still producing. Not to mention the starring cast of ''E.R.''

Once a standard is set, doesn't it start the salary dominoes falling?

Not necessarily, said Leslie Moonves, the president of CBS Entertainment. He argued that the ''Seinfeld'' cast was unique. ''Has there ever been a show where the supporting cast was so essential?'' he said. ''And in this case you have a show that is still No. 1, with no signs of slipping. That's extremely unusual. This show is like Michael Jordan. There are other great players; there's only one Michael Jordan.''

Still, he agreed that NBC is cornered by its need for ''Seinfeld'' and all it represents on NBC's monstrously successful Thursday night.

''Without Jerry, their Thursday is drastically weakened,'' Mr. Moonves said. ''They're desperate to have the show back.''

Desperation is a familiar condition in network television these days. As the networks have continued to lose audiences to cable channels, the need for hits has never been greater.

NBC's dominance of the hit market has made network competition, if anything, more ferocious than ever. Each of the other three networks has a relatively new executive in charge of its programming, and all of them have tried to make a mark quickly by turning their networks around.

The fever is fueling a willingness by every network to spend big money for anything perceived as having a shot at turning into a hit.

Last spring that translated into expensive deals for stars of former hits: CBS signed Bill Cosby and Ted Danson; ABC signed Michael J. Fox. The prevailing wisdom on those deals is that they have not paid off because none of the shows with those stars can be called an outright hit.

But neither are they outright failures. All three are still on the air. That means the networks are getting something for their money.

So the spending splurge has continued. ABC signed Arsenio Hall (his new series will start in March). NBC signed Kirstie Alley. CBS signed Tom Selleck.

At the same time, networks have signed writer/producers with hit credits to new deals. Fox, which has not had a new hit comedy since the Bush Administration, signed a passel of comedy writers to lucrative deals. NBC signed John Wells, the executive producer of ''E.R.'' CBS surprised much of the industry by signing Brad Hall to a deal to create new comedies. Mr. Hall created the highly rated (because it has played just before ''Seinfeld'') but not highly regarded NBC show ''The Single Guy.''

''There are a lot of desperate networks and only so many big actors or producers to go around,'' Ms. Tarses said.

The difference with NBC and its desperation over ''Seinfeld'' is that the network knows it is spending on a sure thing.

In no case will the network get the kind of payoff that Castle Rock has received from ''Seinfeld.'' NBC does not own the show. All it gets is the chance to sell a year's worth of commercials on ''Seinfeld.'' That's no small benefit -- the show should generate more than $250 million in commercial revenue this season.

But the profits from network hits are always expected to offset the losses generated by network flops.

And some of the deals being signed for huge sums are sure to blow up in the networks' faces over the next year or so.

''Everyone will be watching to see what the next season yields,'' Ms. Tarses said. ''Depending on whether the deals pay off, or if they start bleeding money, everyone will either keep on making them or start going off in totally different directions.''

Photos: Supplying the Demands: If JERRY SEINFELD is worth $1 million-plus an episode...is TIM ALLEN worth $1 million...is KELSEY GRAMMER worth $750,000...is PAUL REISER worth $500,000?