HFPA Penske lawsuit challenges Golden Globes sale
The HFPA says Penske used fraud and market power to take over the Golden Globes; PMC and the awards deny the claims.
By Georgia Hale · Staff Writer
3 min read
The HFPA Penske lawsuit puts the Golden Globes back in court, with the Hollywood Foreign Press Association accusing Penske Media Corporation of using fraud, market power and an industry boycott to gain control of the awards show.
The complaint was filed Tuesday in federal court in Los Angeles against PMC, the parent company of Variety, over the 2023 Golden Globes acquisition. According to the lawsuit, PMC allegedly pushed the awards into a weakened position before taking them over through a process the HFPA says was tainted by fraud.
A spokesperson for PMC and the Golden Globes denied the allegations, calling the lawsuit “absurdity and irrationality” from what the statement described as the former HFPA.
Why is the HFPA suing Penske?
The HFPA says its members approved the Golden Globes deal after being told they would keep lifetime voting rights and lifetime access to tickets for the ceremony, according to the complaint. The suit alleges Penske later limited voting rights to members who accepted direct employment with the Penske Trust.
The lawsuit claims that change left the voting body under Penske’s control rather than operating as an independent group of journalists. The HFPA is seeking at least $150 million in damages.
The complaint also alleges PMC used its position in entertainment media to shut HFPA members out of related business areas. The HFPA claims PMC has monopoly power in trade publications, the market for awards outside the Oscars and the market for “For Your Consideration” advertising.
How did the Golden Globes sale happen?
The HFPA, a nonprofit association of foreign journalists, ran the Golden Globes for nearly eight decades before a crisis over its membership and practices. A February 2021 Los Angeles Times report found the organization had no Black members.
That report was followed by a publicists’ boycott and NBC’s decision to drop the Golden Globes broadcast in 2022. The HFPA later adopted reforms and agreed to sell the awards to Dick Clark Productions, which is owned by PMC, and Eldridge.
The HFPA had been expected to dissolve after the sale. According to the complaint, its board voted last year to pause that process so it could investigate alleged misconduct and conflicts of interest tied to the transaction.
What does Penske say?
PMC and the Golden Globes said the transaction closed more than three years ago and had all required approvals. Their statement said any claim that the deal failed to close or can still be reversed is “unequivocally false.”
The statement also accused former HFPA members of using the Golden Globe Foundation, described by PMC and the Globes as an independent nonprofit, to pursue access to Golden Globes tickets. PMC further said it remains troubled by the HFPA’s history of criticism over ethics, inclusivity, racism and alleged misconduct involving talent.
The lawsuit now puts a high-profile Hollywood awards brand, its former governing body and one of entertainment media’s biggest companies in a federal court fight over how the Golden Globes changed hands.
This story draws on original reporting from Variety.