Price tag packs a punch

NEWS Corporation spent about $200,000 on the Packer-Gyngell fight photographs for just one week’s usage.

NEWS Corporation spent about $200,000 on the Packer-Gyngell fight photographs for just one week’s usage. From today, News Corp Australia no longer has permission to publish the images in its news­papers or online.

Pacific Magazines’ New Idea now has the rights to the photographs for the next seven days, at a bargain rate of about $5000.

The agency that owns the pics, Media Mode, says if News Corp wants to publish the pictures online after the seven days, the company will need to ask and renegotiate a new fee with the agency.

“Any intended online uses by News Corp in the future, starting tomorrow, will also have to be authorised by Media Mode and will incur fees (to be negotiated),’’ an agency spokesman said.

It seems a significant amount of money for one week’s usage, but, by all accounts, traffic increased substantially to News Corp websites and readers couldn’t get enough of the images that are now famous worldwide.

Friends in high places

NINE Network chief executive David Gyngell’s close relationship with The Australian Financial Review’s James Chessell was laid bare for all to see last week when he paid for Chessell’s farewell drinks at Sydney’s Bambini Trust Wine Bar.

But it appears Gyngell’s rel­ationship with Chessell, who is now in London where he is running the newly created AFR ­bureau, is far closer than anyone realised.

Chessell was on a salary of about $150,000 as a business writer at The Australian newspaper 2½ years ago. He was offered a job as the AFR’s business editor.

Most journalists are capable of handling contract negotiations themselves, but Chessell took ­advice from Gyngell during the process and he started on a new salary of about $250,000 — which has since increased to around $300,000.

Also included in the contract was a “break fee” should the AFR have reneged on the relocation to London, a key part of the deal.

While Gyngell did not literally pick up the phone to Fairfax management on Chessell’s behalf, Diary has been told he did everything but — a claim the reporter denies.

With the CEO of Nine in your corner on negotiations towards a hefty salary, it has created a bad look when Chessell turned to writing about television industry, even if he avoided stories about Nine itself.

Chessell denies receiving help from Gyngell during his contract negotiations and says the salary figures quoted at the AFR are “too high.”

“The negotiations were done with Brett Clegg, with Greg Hywood in the background. Gyngell was not involved,’’ he said.

But there was no denying just how close he and Gyngell had ­become.

Spheres of influence

IT seems Chessell is not the only one with a perceived conflict of interest. The Australian Financial Review’s controversial columnist Joe Aston is as close to James Packer as Chessell is to Gyngell, having had more than a few boozy lunches with him and buddy, Today host Karl Stefanovic.

It would seem Aston is given preferential treatment at Packer’s Crown in Melbourne, where he was provided with a villa, rather than a regular hotel room, while covering Derby Day in November. Aston filmed his television segment in the villa in a deal organ­ised by Nine and Crown.

We wonder if this friendship is affecting Aston’s own contract negotiations with Gyngell. Is his Rear Window segment on The Fin­ancial Review Sunday worth the $100,000 he is being paid?

And without the money, would Aston stay loyal to the AFR?

Meanwhile, senior executives at Nine have been scathing of Stef­anovic’s decision to visit Packer’s pad on Monday, in full view of the media.

Friends in tight places

WHILE the Nine boss had no problems throwing a lavish cocktail party at Bambini Trust for Chessell, his relationship with Daily Telegraph editor Paul Whittaker is not as strong. Whittaker, though, is close to Packer.

One man caught in the middle is News Corp Australia’s NSW state director Brett Clegg.

He was close to Gyngell, starting the Financial Review Sunday TV show with him, but is now working with Whittaker.

Another of Clegg’s longtime associates, UBS chief executive officer Matthew Grounds, is also meat in the sandwich on the Packer and Gyngell battle. Grounds is the chief adviser to Packer, the executor of the billionaire’s will and an adviser to Gyngell and Nine Entertainment. Plus he is best mates with both of them.

A complex web of friendships, indeed.

Car crash of a PR stunt

AMID the skinny model debate at Mercedes Benz Fashion Week this year, another drama unfolded behind the scenes.

Sweaty Betty PR agency owner Roxy Jacenko upset several high-profile fashion designers after using their branding, without their consent, on Alfa Romeo cars during Fashion Week. Jacenko had organised the Alfa Romeo cars, with which she has a relationship, to appear at some Fashion Week events “wrapped” with branding from Vittoria Coffee and feature the designs of five leading fashion ­labels.

The ambush marketing was a major problem for IMG because Mercedes Benz is the official sponsor of fashion week.

IMG wrote to leading fashion designers Camilla & Marc, Dion Lee, Ellery, We are Handsome and Romance was Born to warn them of the potential breach in their agreement.

“We don’t know if you are aware, but Vittoria has partnered with Alfa Romeo to brand cars with a fashion theme that includes your designer label’s endorsement,’’ IMG’s Louise Iselin wrote. “We wish to point out that the execution you may have ­endorsed is also jeopardising event relationships which may have a flow-on effect to how we can support you at future events.”

Some of the fashion designers were very upset.

In an email trail, obtained by Diary, one of the designers told Jacenko she felt “mistreated.”

“I wanted to say how mistreated we feel as independent designers with the wrapped Alfa Romeo cars. We had no idea about the car wraps as it was not once mentioned, not in our contract,’’ she wrote.

“I can’t believe you didn’t even apologise for this situation also, nor call us personally.”

Even after the email, Jacenko refused to apologise and was adamant she had done nothing wrong.

Digging her heels in, the former Celebrity Apprentice star said she was simply doing what her ­client asked of her.

“IMG surely cannot determine what brand of motor vehicle can drive on public roads — irrespective, I’ll await Garth and ­Rolando’s reply as to whether the car should be taken off the road — (which was planned to occur tomorrow irrespective) and unwrapped.

“If this is the case, we shall arrange an alternative mode of transport of Oyster magazine who have been chauffeured by Vittoria for the week to ensure the good faith is maintained.”

Vittoria Coffee’s managing director, Rolando Schirato, wrote a private email to one fashion designer apologising for Jacenko’s behaviour.

“I’m really sorry about the response you just received,’’ he said.

But then came the killer blow from Vittoria Coffee’s marketing manager, Garth Douglas: “Please note that Sweaty Betty will no longer be involved with the Vit­toria Coffee brand or our company, as of 30 April, 2014.”

Schirato said while the execution was an issue, he was ­already in talks with Jacenko about ending their relationship after several years.

SMH ads redundant

FAIRFAX asked some of its most senior journalists to take part in a new consumer brand campaign earlier this year.

Senior journalists Kate McClymont, Richard Baker, Nick McKenzie, Terry Durack, Anthony Dennis and Ardyn Bernoth were interviewed on camera about the values of Fairfax, the strength of its journalism and why they were so passionate about their jobs.

The campaign was classy and beautifully shot, involving about two dozen editors, writers and photographers.

But, sadly, at least two of this group, including travel editor Dennis, were last week told they needed to reapply for their positions, as Fairfax announced 70 redundancies.

Insiders are wondering whether the entire campaign will now be scrapped.

“It’s all redundant, pardon the pun,’’ one said. “Even if it is resurrected next year, Fairfax would be laughed at.”