Initial Success, Initial Bargain

"ER" wasn't an easy sell for NBC in 1994. Conceived by author Michael Crichton, who lacked a television track record, and featuring a then-unknown ensemble cast, the medical drama from Warner Bros. Television was initially a bargain for the network. However, its unique style and compelling storytelling quickly turned it into an instant hit, dominating ratings and solidifying its place in pop culture.

The High Price of Healthcare

By 1998, "ER" was a juggernaut. With its cast, including George Clooney, becoming bonafide stars, Warner Bros. Television sought to renegotiate its license fee with NBC. The network, which had initially secured the show for a modest $3 million per episode, was now making an estimated $500 million in profits from the drama annually. Yet, early attempts by Warner Bros. to secure a better deal after season one were met with resistance, as NBC prioritized renegotiating comedies like "Friends," believing dramas had a shorter shelf life.

This reluctance opened the door for rivals. Leslie Moonves, who had developed "ER" at Warner Bros. before moving to CBS, saw an opportunity. "When I heard that Don Ohlmeyer [President of NBC West Coast] didn’t want to step up at that point, I went to Bob Daly [Warner Bros. Chairman and Co-CEO] and made him a ridiculous offer to bring the show to CBS," Moonves recounts in the book. "I believe it was $12 million [an episode]."

Bob Daly, who oversaw the negotiations for Warner Bros., reflects on NBC's initial shortsightedness: "They didn’t really realize what they had. At least, I don’t think Don Ohlmeyer did. Unlike when they reimbursed us for Friends, they didn’t want to really reimburse us for what we had to give the talent for ER." Daly gambled, allowing the studio to absorb early talent costs with the expectation that NBC would eventually pay dearly. Former NBC Entertainment President Warren Littlefield admits, "We’d already made a billion dollars before the renegotiation began."

The Seinfeld Effect

The pressure on NBC intensified not only from rival networks like CBS and ABC but also from an unexpected source: Jerry Seinfeld. In late 1997, Seinfeld informed Ohlmeyer of his decision to end his iconic sitcom the following spring. This news, as Ohlmeyer later stated, "shifted the dynamics somewhat. You’re never going to want to lose ER, but I think not having Seinfeld turned the Bunsen burner up even more."

Ultimately, NBC conceded, agreeing to an unprecedented $13 million per episode for "ER" – a staggering $286 million per year for a 22-episode season. This move consumed more than half of the show's estimated profits for the network.

Unusual Conditions and a Shared Windfall

Bob Daly didn't just secure a record fee; he also imposed unique conditions. "I said, one, we have Thursday night at 10:00 and you can’t move the show. It’s going to stay there. Two, was that after we closed this deal, NBC had no rights on the talent. They had no more creative control over the show as far as talent was concerned," Daly explains. This ensured the show's prime slot and protected the studio from further talent-related renegotiations.

The massive influx of cash wasn't just for the studio and network. The cast and crew also benefited significantly. The five main cast members – George Clooney, Julianna Margulies, Noah Wyle, Eriq La Salle, and Anthony Edwards – each received $1 million checks. Other key actors like Laura Innes, Gloria Reuben, and Alex Kingston were given $500,000. Executive producers John Wells, Michael Crichton, and Steven Spielberg pooled $6 million from their profit participation and distributed it among the crew.

"It was one of the most amazing things that I’ve ever seen in Hollywood, because most people would not have done that," recalls executive producer Jack Orman. He vividly remembers an editor crying, saying, "I can buy a house now."

The "ER" deal remains a landmark in television history, a testament to the immense power of a hit show and the high stakes of network programming. As Warren Littlefield succinctly put it, "We didn’t own ER. We just rented it. After the first four years, we rented it for a lot more."