Yahoo News Sage Steele Sues CAA Over Alleged Conflict of Interest in Free Speech Standoff With ESPN
After suing ESPN for allegedly suspending her in retaliation for comments she made on a podcast regarding the COVID-19 vaccine mandate, former ESPN host Sage Steele has filed a lawsuit against CAA and her agents over their handling of the standoff.
Steele, in a lawsuit filed Tuesday in Los Angeles Superior Court, accuses the agency of breach of fiduciary duty for failing to properly advocate for her. She points to statements from her agent Matthew Kramer, CAA’s co-head of sports media, in which he neglected to demand that Steele not be required to apologize for criticizing Disney’s vaccination policy and lied to the ex-ESPN anchor about having the “head of CAA legal” review her contract regarding the mandate, instead sending the document to a junior attorney.
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In a podcast with NFL quarterback Jay Cutler, Steele in 2021 expressed skepticism about private companies requiring employees to get vaccinated. She said the mandate was “sick” and “scary to me in many ways,” indicating that she only complied to keep her job. ESPN and Disney told her to publicly apologize and suspended her.
After settling the lawsuit last year, Steele left ESPN.
According to Tuesday’s complaint, CAA had a conflict of interest stemming from its representation of Adam Schefter and Adrian Wojnarowski, both of whom received lucrative extensions that were announced in 2022. Steele also points to a number of other EPSN employees, including on-air talent and executives, represented by the agency.
“Too often and at any opportunity to benefit itself, it is not CAA’s clients and their best interests that are prioritized, it’s CAA’s bottom line and its lucrative relationships that are the driving force behind its agents’ motivations — even when it’s at the expense of its own clients,” the complaint states. “This case exemplifies the morally corrupt ways CAA routinely engages in self-dealing, overt conflicts of interests and willful misconduct.”
The lawsuit alleges that Kramer made “no attempt whatsoever” to advocate for Steele’s “repeatedly and clearly expressed wish not to apologize for her comments.”
When asked whether he called anybody at Disney to make the demand, Kramer responded that he “didn’t tell anybody that she directly shouldn’t have to apologize,” the lawsuit says.
Steele also takes issue with CAA neglecting to provide legal advice that the comments that got her suspended were “well within her rights.” She says the agency insisted that she comply with ESPN’s demands.
Other controversial comments Steele was reprimanded for include her saying that it was “fascinating” that former President Barack Obama had chosen to identify as Black despite having been raised by his white mother and grandmother, and implying that women who wear provocative clothing bear some responsibility for sexism and sexual harassment.
Later on Tuesday, CAA pushed back on Steele’s suit. CAA’s outside counsel Patrick J. Somers from Kendall, Brill & Kelly shared in a statement with The Hollywood Reporter, “Ms. Steele’s allegations are a meritless attempt to avoid paying the significant commissions she owes CAA, which is the subject of a claim CAA previously filed with, and presented to, the California Labor Commission that is in the final stage of being decided. As her agency, CAA worked diligently for Ms. Steele beginning in 2013, during which time her career as a sports broadcaster flourished. CAA’s agents unequivocally acted only in her best interest to help her navigate the controversy she created; yet, now, she denies the agency’s valuable support, skill, and judgment despite having repeatedly expressed her gratitude in numerous written communications throughout that time period.”
The filing of the complaint follows Terrence Howard suing CAA last year for an alleged conflict of interest in the agency’s dealing over his compensation on Empire. He alleged his agents who packaged the deal with Fox prioritized the interests of themselves and the show’s producers, which it also represented, by inducing him to take below-market salaries over his six-season run starring in the series. CAA declined to comment.
Updated June 11 at 6:45 p.m. PT with a statement from CAA’s outside counsel Patrick J. Somers.
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