OVITZ SNATCHES BIG NAMES FROM FORMER AGENCY.

Byline: Bernard Weinraub The New York Times

Michael Ovitz, the man who was once Hollywood's most powerful agent, has returned as a talent manager. And after his first few weeks back, one thing is clear: No star or big-name director is off limits, not even the clients of his old agency.

Already, Ovitz had lured some veteran directors and old friends, including Barry Levinson, Martin Scorsese and Sydney Pollack, to his new company. But Hollywood had been waiting for the former agent to sign up his first marquee actor. And last week he did, plucking one of the stars from the firmament of his former agency.

Ovitz lured Robin Williams away from, of all places, the Creative Artists Agency. Ovitz, a founder of the agency, helped hire and train many of its top agents. He has been paid tens of millions of dollars by the agency as part of his departure package.

``Isn't this a Greek play - a father turning on his sons?'' said one of Hollywood's top entertainment lawyers, speaking on condition of anonymity.

The defection last week of Williams, who earns nearly $20 million a film, came after Ovitz hired Michael Menchel, who has represented the comedian for years at Creative Artists.

What surprised rival agents and some top Hollywood lawyers is that Ovitz was starting his new management company by swooping into Creative Artists and taking off with one of its top money-making stars. Because Williams sometimes makes two films a year and is among the most popular box office stars, he was considered one of Creative Artists' prizes.

Several Hollywood lawyers and talent agents, all speaking on condition of anonymity, said Ovitz has been actively pursuing Creative Artists clients even though he and the agency's current partners once had ties as close as those in many families. In recent years, the ties have become frayed.

Outrage and disbelief

Privately, at least, some Creative Artists officials expressed outrage and, as one put it, disbelief that their one-time boss and mentor was seeking to raid his own former agency. Ovitz did not respond to phone calls.

Richard Lovett, the president of the agency and once Ovitz's loyal friend, said only, ``Robin Williams is a tremendous talent and a wonderful person.'' Referring to Williams and his wife, Lovett added, ``Robin and Marcia have been great friends to the agency. We hope to continue working with them.''

In some ways, Ovitz may be getting into the management business at a fortuitous time. The talent agency business, which ruled Hollywood in the 1980s and early 1990s - partly because of the ascendancy of Creative Artists - has been in turmoil. Partly because of the cutback in studio film production, large agencies such as International Creative Management Inc. and William Morris Agency, as well as Creative Artists, have sought to cut costs through dismissals and attrition of agents. On the other hand, management companies have proliferated.

Managers and agents play two contrasting but sometimes overlapping, roles. Agents are licensed by the state and earn their money finding work for clients and negotiating contracts for them. Talent agents are not allowed to earn more than 10 percent commissions. Managers, on the other hand, are unregulated and have traditionally charged 15 percent of their clients' fees. Managers also are able to create projects and take potentially lucrative film and television production fees. By law, managers are only supposed to advise and cannot secure employment for their clients. In practice, the line between the roles of managers and agents is sometimes blurred.

According to agents, Ovitz's appeal to Williams was heavily focused on the comedian's wife, Marcia, who now serves as a producer on some of his films. Ovitz apparently views the new management company as moving into film production, with stars and directors playing important roles overseeing their projects. By all accounts, Williams will be represented by two management companies now, Ovitz's as well as his longtime managers, Morra, Brezner, Steinberg & Tenenbaum.

Frayed relationships

One problem for Ovitz, though, is that his relationships with two of the biggest studios, Walt Disney and Universal, a unit of Seagram Co., are frayed for personal reasons. He does not speak to Michael Eisner, the Disney chairman who fired him. At Universal Studios, Ron Meyer, president and chief operating officer, barely speaks to Ovitz, his former partner at Creative Artists and once his closest friend.

As an agent, Ovitz helped start Creative Artists in the 1970s and turned it into a powerhouse representing top stars and directors. He got a settlement agreement that may have run higher than $50 million when he left the agency in 1995. Since then, his career has been marked by uncertainty. He worked for 15 months as president of Disney until he was fired by Eisner, the chairman. Ovitz walked away with a settlement package of cash and stock reportedly worth $100 million. Since then, Ovitz's $20 million investment in Livent Inc., the theater company, has turned to shreds amid accusations that the company's founder, Garth Drabinsky, and others engaged in financial irregularities.

More recently, Ovitz started his new company, Artists Management Group. He began his agency as majority owner and hired Rick Yorn, an aggressive and ambitious 30-year-old manager whose star client is Leonardo di Caprio. Ovitz also hired Yorn's sister-in-law, Julie Silverman Yorn. The Yorns represent such performers as Cameron Diaz, Samuel L. Jackson, Matt Dillon and Geena Davis. The Yorns' departure seriously damaged their former management company, Industry Entertainment, whose partners are furious at Ovitz.

Luring agents

Ovitz is also believed to have spoken in recent weeks to agents at Creative Artists, International Creative Management and William Morris to try to lure them to his new management company. One agent, Michael Gruber, a former agent at William Morris whose clients include George Clooney and Cindy Crawford, is believed to be in talks with Ovitz.

Ovitz has told friends that he wants to emulate Brillstein-Grey, the largest and most successful management company. It was founded by Bernie Brillstein, a veteran manager whose clients included many top comedians, and is now run by Brad Grey. Both men are highly respected in the entertainment business. The company's clients range from actors Brad Pitt, Sylvester Stallone and Adam Sandler to the writers Elmore Leonard and Larry McMurtry.

Its financial success, though, is largely based on its television production. Brillstein-Grey has financed some shows, such as the Home Box Office hit series ``The Sopranos,'' NBC's ``News Radio'' and ABC's ``Politically Incorrect.'' Brillstein, who has tangled with Ovitz, seemed to sum up the feeling now about him. ``This guy has a knack of putting fear into people in this town,'' Brillstein said.

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Photo: (color) Ovitz