Ovitz Claims Waste by TV Exec

In the continuing saga of Michael Ovitz’s crumbling entertainment company, the onetime Hollywood kingmaker alleges in court papers that Eric Tannenbaum, the former head of his now-defunct television company, wasted millions of dollars and seriously mismanaged the venture.

A declaration filed Wednesday by Ovitz in Los Angeles Superior Court states that throughout the 21/2 years Artists Television Group was in operation, “I learned of many facts that gave me grave concerns regarding Mr. Tannenbaum’s ability to manage the financial aspects of a substantial television production company.”

Ovitz noted $1 million spent on largely unused office space in Westwood as well as several instances in which Tannenbaum paid executives exorbitant salaries. One executive responsible for helping create television shows--a position Ovitz said typically earned $125,000 to $150,000--was paid $425,000 a year.

“The evidence will show that every expenditure of any significance was approved by Michael Ovitz,” said Tannenbaum attorney Andrew White.

The declaration is in response to a lawsuit Tannenbaum filed against Ovitz in April claiming fraud, deceit, defamation and breach of contract.

Tannenbaum is seeking $9.5 million in damages.

Ovitz wants to get the fraud and defamation claims thrown out and to recast Tannenbaum’s suit as a contract dispute, according to sources close to Ovitz.

ATG, along with Ovitz’s other entertainment ventures, including Artists Management Group, was launched in the spring of 1999. He shuttered ATG in the fall of 2001 and sold his stake in AMG two weeks ago. Ovitz reportedly lost close to $100 million of his own funds in the venture.