KATE GOSSELIN: HOW SHE FOOLED THE WORLD - THE RISE AND FALL OF A REALITY TV QUEEN (30 page)

In reading all of the contracts between the Gosselin family and Discovery Communications, as well as the Gosselin tax documents, the reports were way off base on how much money was changing hands.

According to a 1099-MISC that I obtained, Discovery paid Jon and Kate a total of $109,186.90 in 2007. Here is the breakdown of their earnings from their 2007 1099-MISC:

1/4/07 - $6,000 – 20 days of shooting

3/7/07 - $6,000 – 20 days of shooting

4/25/07 – $250 - Appearance Fee $125 x 2

5/9/07 - $5,000 – Service Recognition Add’l Payment

7/25/07 - $6,000 – 20 days of shooting

8/8/07 - $6,000 – 20 days of shooting

8/29/07 - $14,285 – Jon & Kate season 2

9/26/07 - $6,000 – Seasons 1 & 2 20 days of shooting

9/26/07 - $1,500 – Missed work pay for publicity appearances

10/3/07 - $2,246 – Shed site season 1 & 2 remove from 1099

11/7/07 - $25,952.50 – Season 3

11/7/07 - $2,000 – Seasons 1 & 2 on camera services all programs

11/14/07 - $2,000 – Season 1 & 2 contract amend for last 12 episodes

11/20/07 - $25,952 – Season 3

Adjusted 1099 - $109,186.90

The following is a breakdown of how much money the Gosselins were paid per episode for each season. According to the Gosselin/Discovery contracts, these figures do not include such things as bonuses, travel expenses, or per diems.

Season 1:

$2,000 per episode x 9 episodes = $18,000

Season 2:

$5,000 per ½-hour episode x 9 episodes = $45,000 

(3) 1 hour episodes=$15,000 extra

Season 2 Total=$60,000

Season 3:

$5,000 per ½-hour episode x 32 episodes = $160,000 

(4) 1 hour episodes=$20,000 extra

Season 3 Total=$180,000

Season 4:

$9,000 per ½-hour episode x 41 episodes = $369,000 

(8) 1 hour episodes=$72,000 extra

Season 4 Total=$441,000

Season 4 was renegotiated to $22,500 per ½-hour episode x 41 episodes = $922,500

(8) 1 hour episodes=$180,000 extra

Season 4 Total=$1,102,500

Season 5: $$22,500 per ½-hour episode x 24 episodes = $540,000

(7) 1 hour episodes = $157,500 extra

Season 5 Total=$697,500

These numbers confirm that Jon was telling the truth when he said they were being paid $22,500 per episode. Now $22,500 is a lot of money, but it is a far cry from $75,000 per episode. Maybe that’s the real reason Kate felt she had to be out there working so hard. She wasn’t really shaking up the world financially with just filming alone, although it looked like she enjoyed having people think she was.

It’s decent money, but not when you consider what the family had to give up for it.

JULIE CARSON MAY

On April 14, 2008, just in time for contract negotiations for Season 4 of the show, Kate hired her new manager, Julie Carson May. This was Kate’s best move to date. That day, Kate and Jon, both individually and on behalf of their minor children Cara Nicole Gosselin, Madelyn Kate Gosselin, Aaden Jonathan Gosselin, Collin Thomas Gosselin, Hannah Joy Gosselin, Leah Hope Gosselin, Alexis Faith Gosselin and Joel Kevin Gosselin, entered into an agreement with Media Motion International, LLC, (MMI) to represent and advise them in the “entertainment/parenting” industry. Some of the terms of the agreement with MMI are summarized below.

• The Gosselins engaged
  MMI (the Manager) to be the sole and exclusive personal manager, representative and advisor for the Gosselins in all facets of their career in the entertainment/parenting industry, with the exception of the items listed in Exhibit A.
  
• The Manager agreed
  to advise and counsel the Gosselins regarding their career in the entertainment/parenting industry and to use its good faith efforts to promote, develop and advance their career, including negotiating applicable contracts.
  
• The Manager
  agreed to assign Julie Carson May as the primary individual responsible for providing and/or coordinating the services to be rendered by MMI.
  
• The initial term o
  f the agreement was for a period of one (1) year from the date it was first written.
  
• The M
  anager would not have the option of renewing and extending the term of the agreement for the first option period unless gross compensation of $350,000 (not including any revenues related to Exhibit A) had been paid to the Gosselins during the initial term. 
  
• For each
  additional option period, the Manager would not have the option to renew and extend the term unless gross compensation of $300,000 (not including any revenues related to Exhibit A) had been paid to the Gosselins in the previous 1-year term.
  
• Gross compensation
  included, without limitation, all forms of income, consideration and compensation relating to the Gosselin’s endeavors in the entertainment/parenting industry (excluding compensation from Exhibit A). This included salaries, advances, earnings, fees, royalties, sponsorship fees, commercial fees, product licensing fees, partnership interests, shares of stock, bonuses, shares of profits, shares of receipts, and any other considerations earned or received directly or indirectly by the Gosselins.
  
• Commission
  on all gross compensation related to any book projects or pre-existing projects that the Gosselins chose to have the manager work to expand would be fifteen percent (15%).
  
• Commission
  for licensing, endorsements, sponsorships, DVD, CD, training programs/licensing, new product lines/extensions, television, radio, speaking, voiceover and internet/online and wireless would be fifteen percent (15%) (excluding Exhibit A).
  

EXHIBIT A
listed the following things that were or would be excluded from the MMI/Jon and Kate Gosselin Management Agreement dated April 14, 2008:

1. Book projects/literary projects
   
2. All current aspects/revenues from the existing Discovery deal for
   Jon & Kate Plus 8
   were excluded entirely. Only improvements to the deal would be subject to commission.
   
3. The c
   ontract with Procter & Gamble Distributing LLC in conjunction with the P & G brands Save/PUR Charity Program.
   
4. The Gosselin’s
   website advertising that had been procured or developed on behalf of the Gosselins, unless originated by the manager with the consent and agreement of the Gosselins.
   

To illustrate the impact Julie May had on the Gosselin financial picture, a paragraph from the original Season 4 and Season 5 contract negotiation, before she was hired shows that the Gosselins asked for $9,000 per half-hour episode for Season 4, and $13,000 per episode for Season 5.

Julie May earned her money immediately and took the family from $180,000 to $441,000 in her first contract negotiation for Season 4. The Season 5 contract and amendment makes no mention of a pay raise per episode, so $22,500 appears to be the maximum earned per episode. They would have earned more for Season 5 if it had not been cut short by 16 episodes, due to Jon’s shutting down the filming because he stated that he didn’t want the kids to film anymore.

The figures
that were originally being thrown around for how much Kate was making per episode for her newest show,
Kate Plus Ei8ht
were staggering.
TV Guide
reported that she made $250,000 per episode. At the height of her fame on
Jon & Kate Plus Ei8ht
, the entire family was only making $22,500 per episode, so the $250,000 figure per episode is very hard to believe.

But all the compensation that was being discussed was for the television show alone. Julie May was just getting warmed up. She jumped head-first into everything Gosselin and, before long, the offers were pouring in. Speaking engagements. Product endorsements. You name it, they asked for it, and usually got it. The sky was the limit.

When a tweeter asked Kate if the “5 million” figure was true, she quickly shot down the figure, tweeting the following reply:

I can absolutely say EVERY figure is way way way high. Only published 3 books too... All crap, but wish was true ;(

Given Kate’s track record for lying, it is possible that the actual figure was higher.

OUTER BANKS FILMING

On June 4, 2008, an
email exchange shows Kate talking about “reality” when trying to justify having Discovery pay for her vacation to the Outer Banks, when Discovery wanted to film in Chapel Hill, NC, instead. Deanie from Figure 8 Films informed Kate and “Everyone” that they couldn’t book the house at the Outer Banks without first considering what would be shot and how many episodes they could cover.

Deanie
said she had previously mentioned that the Outer Banks is many hours away from the Chapel Hill area and from the Myrtle Beach area, where Ripley’s Aquarium is located. She also reminded everyone that their original intention months ago when they were offered the OB location was that they would be able to shoot a minimum of four episodes over the course of two weeks. Deanie said that since that had dwindled to one episode on looking for property in North Carolina, they could not justify the expense. She then wrote that if they couldn’t figure out a way to cover more episodes, she didn’t think the beach outing would be a possibility.

Kate replied
to “All” telling them that there were “TONS” of things to shoot near the house. She made it clear that visiting the aquarium was not mandatory because there were plenty of other aquariums for other times. She suggested wild horse tours they had always wanted to do and a lighthouse they could tour; she also mentioned the Wright Brothers Visitors Center. Kate said these were “All things we would normally do in REALITY!!!!!”

Kate also
asked, “what happened to swim lessons”. She said she had not enrolled the kids in their usual swim lesson program because she was told they would do the swimming that week. It also sounded like there may have been an issue with filming the house because Kate argued that “(we don’t need to show the house and as for permission to shoot there, we could LAST MINUTE get a conf form signed).” She ended by saying, “Its time to think outside the box” and consider “what is reality for us!!!!”