WPP battles to keep BSkyB in family

by James Hamilton, Campaign 20-Oct-06

Sir Martin Sorrell formulates a plan to create 'Team Sky' within one of the group's agencies to head off open pitch process.

WPP is mounting a rearguard action to keep the £75 million BSkyB
account within the agency network.

Sources close to the account at United London concede that its
relationship with Sky is likely to be measured in weeks, not months.

Robert Campbell, the co-managing partner, has been banned from working

on the account by the broadcaster. Nor is United's planning director,
Richard Huntington, involved on the business any longer, following a
disagreement with Sky's design agency, Venture 3.

WPP has formulated a plan to create "Team Sky" to run the account from
one of its London offices, most likely Grey, now that Grey's AOL account
looks set to move to Clemmow Hornby Inge.

The WPP chairman, Sir Martin Sorrell, enjoys close ties with the Sky
chief executive, James Murdoch, who sources say favours a WPP solution.
However, Sky's chief marketing officer, Jon Florsheim, and the brand
marketing and sales director, Charles Ponsonby, are said to be pressing
for an open pitch.

Although "Team Sky" will most likely operate out of Grey, Ogilvy &
Mather's new central London conflict shop could also potentially handle
the account.

Sky's expected departure places a question-mark over the future of
United. It will leave the agency with billings of around £20
million, and will inevitably lead to redundancies and transfers of staff
to other WPP agencies.

A source close to United says Campbell and his co-managing partner, Jim
Kelly, want to remain at the agency and run it as a start-up, albeit in
a much smaller form than it currently operates. The pair bought a 25 per
cent share of the agency for just £15,000 at the beginning of the
year.

Comment, page 44.

RUNNERS AND RIDERS

Team Sky - A group of WPP staffers, but most likely a offshoot of its
Grey agency.

Clemmow Hornby Inge - CHI's chances of winning the business have been
weakened by its Carphone Warehouse client's move into broadband,
presenting a significant conflict with BSkyB's broadband offer.

WCRS - WCRS has held talks with BSkyB. However, there is potential
conflict with its 3 account, as well as with the BBC, should the agency
succeed in its current pitch.

Venture 3 - The design agency enjoys a healthy relationship with BSkyB.
Sources close to the company suggest it could set up an ad capability to
secure some of BSkyB's account.