CAA is close to inking what is believed to be its first major talent deal with PepsiCo, parent to Pepsi-Cola, since wresting creative control over the rival Coca-Cola account.
The move illustrates how CAA, by creating an in-house 'ad agency' to service Coca-Cola, appears to be dodging the rules imposed on traditional Madision Avenue shops, when it comes to issues like confidentiality and client conflicts. That end-run is now going to be tested as CAA prepares to close a deal with PepsiCo unit Frito-Lay to sign Chevy Chase to appear in its ads later this year, according to one Hollywood source. The deal also involves Chase's upcoming fall TV show on Fox.
A spokesperson for CAA declined Friday to respond to a question on how CAA would protect Pepsi's interests from Coke and vice versa.
It is not known which of Frito-Lay's two main agencies, DDB Needham/Chicago or BBDO/New York, would be involved with Chase. Needham handles Fritos, but BBDO is the likeliest bet since it handles several brands including Doritos and Lays and frequently uses celebrities in PepsiCo ads.
One industry observer noted that the situation is stickier if Chase is to appear in ads produced by BBDO, since its Pepsi-Cola's main shop.
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