It is about Clear Channel being over leveraged and it applies to other companies that bit off more than they could chew, only to go through bankruptcy and royally screw the shareholders and lenders, but most of all, the employees.TheBigA said:SirRoxalot said:This is all about Clear Channel being overleveraged, and unable to renegotiate its debt. They're trying to avoid bankruptcy by cutting expenses.
If that was the case, then why did they hire a bunch of high priced people the very next day? Guy Zapoleon didn't leave his own company for minimum wage or stock options. I take Pittman at his word when he says this wasn't for cost cutting. And the remaining talent won't be taking on extra markets for free. This retooling will cost real money. And it comes just six months after they spent $110 million for Metro Traffic. So they don't seem to be having money problems. And a lot of smart people seem willing to leave good jobs to take their checks. They don't have to do that.
"Who could have predicted such a severe downturn in the economy?" Seriously? Prior to 2008, there were at least a half dozen advisories and warnings about the housing run-up and banking indiscretions the chief causes of the downturn. But still, CEOs couldn't resist their hubris and bought wildly. And we heard this sadsack refrain, "I should have sold instead of bought," a few years later. Genius. But it really didn't hurt them all that much, as they walked away with $35 million platinum parachutes.
Nobody here, to the best of my reading, is naive about what's going on in media. As to voice-tracking, most of those voice tracking over multiple markets do get paid to pick up extra markets, but in some cases, they don't. It's a matter of "here's another job to do if you want to keep working for this company." Most companies "reward" multi-market voicetrackers with a nominal fee, but it's not even close to the salaries of the air talent they replaced.
A friend of mine voice tracked eight stations for CC. He did AC, Country and Classic Rock, along with his daily live AC midday gig in Austin. He received an additional $300 per week for voice tracking. That's $37.50 per week, per station; $7.50 per day. Wal-Mart radio. Real nice. Of course, companies that do multi-market voice-tracking save on insurance, FICA and other expenses, which figure into the "saving through synergies" promise.
As to that "great" national talent? Stop. There are men and women on national TV and radio who are immensely talented. But for every Brian Williams or Christiane Amanpour, there seem to be an equal number of performers who open their mouths and butterflies emerge. But they look great and giggle nicely. There are many talented people in Buffalo, Rochester, Syracuse and Albany that have great presentations, voices and relate to listeners (that "two way" thing that's so important) and developed great ratings. They know how to pronounce Scajaquada, Chili, Tully and Cohoes properly, they know where those communities are and what makes 'em tick, Rick. Beth Adams, by all accounts, was one of those local, community people on the radio. Yes, I'm an NPR advocate, but there are also a dozen people on Buffalo radio whom I enjoy listening to because they do better radio than any satellite or voice-tracked out of town person.
Open eyes, open ears, open mind: Yet at this point in my life and career, that's just the way I see it, hear it and know it to be.