Citadel Doles Out Stock To Execs, CEO Farid Suleman To Get 1.9 Million Shares

[TheBigA]

Big A, which is it? In one post in this thread, you wrote, "I know a lot of people from working in about 20 markets and taking part in all the major conventions".

Then, in a more recent post, you claim, " I've worked in about a dozen markets from sea to shining sea...".

Seems to me there's a significant difference between 12 and 20. Which is it?

I don't see how one excludes the other. Don't you know people in places where you haven't worked?

Here's how it works: I worked with someone in one market. I left for another place, they left for a completely different place. But we still keep in touch. Heck, I sometimes come out to visit. Amazing how that works.

Why are you so concerned about me personally? I find that pretty sick. Get a hobby. Or a mistress.

 

[chas108]

I'm here to say Buffalo PDs do write the liners; the live ones and the produced ones.

As I said, I know about markets the size of Buffalo where liners and positioners come from the consultant. The PD has no say. I really doubt that every PD in Buffalo writes his own liners. I don't know, but I see a lot of very standard syndicated positioners that no local PD could have written. "The best and most country," or "the best mix of the 60s, 70s, and 80s." No PD in Buffalo wrote those.

I respectfully submit that I've seen both sides...an old PD of mine was fired because he wouldn't implement a liner handed to him by the corporate owner (who currently owns multiple properties in WNY). The handwritten note was on the fired PD's Facebook page for a long time as proof. Nevermind the liner didn't fit the format...the incident happened.

Later I had the pleasure of writing the imaging for that station. The main positioning and image statements always came from the PD (often, I suspect, with corporate input) and I brought the branding to life. At least for us...it was always a group effort and I'm proud of how it all sounded.

There was a big hubbub in Country back in the early 90's over the phrase "Today's Hot New Country". Was it the main station positioner or an image statement applying to current product? Somehow coming out of a ten year old song with "Today's Hot New Country" just didn't work. But those who used it that way most likely did so because a consultant or corporate PD said to.

Today the hot thing (at least in Top 40 and Country) is to build 3rd person credibility by having listeners and artists do at least some of your liners. Leaves a lot fewer opportunities for us voice guys but I agree it's the right direction.

Seems we've traded one flawed system for another. But like everything else, the better you know how to play the game, the more likely it is you'll score points.

Here's what I've learned, and it's served me well: You can't change things you aren't responsible for. The PPM system was demanded by advertisers. I don't know if you deal with advertisers, but they're used to getting their way. This isn't a reality TV show where we get to vote. So our opinions really don't matter. The advertisers pay the bills and the salaries, and they wanted something more modern than handwritten diaries. So all we can do is find a way to work within the system, flawed as it may be.
[/quote]

Very well put A.

I've said it on other threads. I think PPM has the potential to make us better personalities. The PD's who misintrepret data or use too little data over too short of a time are the ones who see PPM as an excuse to minimize or get rid of talent...when what people actually want is a real person in the studio relating content of interest to the listener along with their favorite music.

Can Arbitron increase the sample size? You betcha!
Can they develop a PPM that doesn't look so nerdy? Let's hope so.

Yes, PPM has its flaws. But I'll take it over the diary any day of the week.

 

[TheBigA]

Today the hot thing (at least in Top 40 and Country) is to build 3rd person credibility by having listeners and artists do at least some of your liners.

That's exactly right. Some are obtained locally when an artist does a station visit. Some are obtained nationally via syndicators, consultants, or the labels.

The PD's who misintrepret data or use too little data over too short of a time are the ones who see PPM as an excuse to minimize or get rid of talent...when what people actually want is a real person in the studio relating content of interest to the listener along with their favorite music.

And the way I've seen that done the best is using the local in studio talent to do that stuff via social networking and other off-air outlets.

 

[bandontherun]

Just for clarification, the best minds in the business are saying that Citadel will be dropping anything above market #25, so Buffalo is a goner. That's why these veterans are getting booted....no interest in market #52.

 

[yugoidar]

Just for clarification, the best minds in the business are saying that Citadel will be dropping anything above market #25, so Buffalo is a goner. That's why these veterans are getting booted....no interest in market #52.

Did you mean, per chance, anything BELOW market #25? Where are the buyers?

 

[SirRoxalot]

Hey, BOTR, welcome back. All the way up to post #8 now.

I'm sure that Citadel would like to dump Buffalo, and that they're milking that cash cow for all it's worth. But, they have to find a buyer. If you're going to invest in radio, are you going to put your money into a growing market, or a shrinking market?

You'd think that it might be wiser for Farid & Co. to do things that push the revenue up, especially now that they've got their debt in order. If they keep doing things that leave Citadel Buffalo at a competitive disadvantage, they'll just push the selling price of the cluster down even more. That leaves Citadel with less money to use to buy into a growing market if they enter an acquisition phase. Also, they're planning to sell stock soon. The stock values will be higher if revenues are higher. The moves they've made have cost them way more revenue than they saved on salaries.

 

[TheBigA]

You'd think that it might be wiser for Farid & Co. to do things that push the revenue up, especially now that they've got their debt in order.

That costs money, and that's not going to happen. It'll just head them back down the same road. Too bad Townsquare is maxed out, because they now have access to some Oak Tree cash. The stock values would be higher if they had money in the bank. That's what investors want to see. The ad market still stinks. No value in improving revenue now. Radio is still seen as a bad investment. I agree with BOTR. I bet Citadel is actually in a position to help a new local owner with financing. The number to call is....

 

[Element9]

You'd think that it might be wiser for Farid & Co. to do things that push the revenue up, especially now that they've got their debt in order.

I bet Citadel is actually in a position to help a new local owner with financing. The number to call is....

When Princess Judy or Farid The Fraud answers the phone, you'll find the terms are 30% down @ 8.25%, payable in five years. Fail.

BTW, BigA, although one poster found your earlier admonishment about "annonymous posters on this board" humorous, I found it hypocritical. A poster using a fictitious name rips the credibility of other posters who use fictitious names. What's wrong with this picture?

Bwuzzat?

 

[TheBigA]

A poster using a fictitious name rips the credibility of other posters who use fictitious names. What's wrong with this picture?

Maybe you should re-read the context of what I originally wrote before you jump to conclusions.

 

[heydaybegone]

A poster using a fictitious name rips the credibility of other posters who use fictitious names

Kids...can't we just play nice in the sandbox regardless of our names? Hasn't name credibility created enough problems? If an idea is thought provoking, realistic, brainstorming material...let it fly!

Thats all

HDBG

 

[intheeno]

Sirrox-
Milking a cash cow in Citadel Buffalo? I think quite the oposite. Do you have any idea how much the Bills are are hurting the cash flow at that property? I don't think they've seen profits in years. Its a real bad deal for them. No cash their to milk...

 

[SirRoxalot]

No, you are sadly misinformed. The Bills are a loss-leader, but they're close enough to break-even to make keeping them worthwhile. The rest of the week, and the other stations in the group are very much on the plus side, especially considering that the joint ought to be paid for by now. Buffalo was the leading revenue producer for Citadel pre-ABC, and they had the Bills on the books at that time as well.

 

[intheeno]

Sirrox...read my name....you are sadly not in the know. The cluster already owns the men demo. They don't need the Bills to deliver them men that are already listening. The losses for the Bills exceeded 800,000+ per year. Take that to the bank. Stations paid for? Go back to accounting 101. The company just came out of bankruptcy. As for being the largest in the cluster? Citadel was a tiny group pre Disney. They may have been the biggest (up against the likes of Flint, etc.) but they weren't the most profitable. Currently they are getting their butts smacked against the other two clusters in town. And they are still carrying that 4 + milllion albatross (the Bills) around their neck.

 

[Bob1370]

Points raised along the way in this thread seem to merit response...

"Really? You've yet to show me a single example of a study that agrees that people want a jock- free jukebox on the radio. If that's what they want, they aren't listening to radio anyway because they've already got an MP3 player with a bunch of their favorite songs."

That hits at the heart of radio's problem, in two ways. One, samplings in the form of every survey ever taken by Arbitron in every market shows that unless you have format exclusivity in your market for your music you had better offer more than just the music...you had better have value added in the form of humor, personality and information, and not just in mornings, or people won't get into the habit of listening to your station. Just ask CBS about the lesson they learned from blowing up WCBS-FM in 2005, bringing in Jack, and going from a 4 share and a top 10 12+ and 25-54 ranking to #23 and a share in the 1s...then bringing back the jocks and jumping to a 6 share and battling (and in some books, winning) in a tight two-way race for #1.

Two, the MP3 player should never be discounted as a competitor for your music station. And it's commercial free. So you need value-added to get people to put up with the spots.

 

[SirRoxalot]

Sirrox...read my name....you are sadly not in the know. The cluster already owns the men demo. They don't need the Bills to deliver them men that are already listening. The losses for the Bills exceeded 800,000+ per year. Take that to the bank. Stations paid for? Go back to accounting 101. The company just came out of bankruptcy. As for being the largest in the cluster? Citadel was a tiny group pre Disney. They may have been the biggest (up against the likes of Flint, etc.) but they weren't the most profitable. Currently they are getting their butts smacked against the other two clusters in town. And they are still carrying that 4 + milllion albatross (the Bills) around their neck.

No, you are right that the cluster already owns men. Until the ABC fiasco, Buffalo and Albuquerque were the biggest billers. You can play with profit percentages, but Buffalo was certainly a big money-earner, and a big chunk of the reason that the banks initially approved the ABC deal.

The loss of key people on the sales side certainly affected Citadel Buffalo. They indeed went from #1 to #3 under Citadel management. And, Entercom did a fine job of upping the bidding on the Bills, then "letting" Citadel "win". The Bills haven't exactly been a big draw late in the season.

So, what you're saying here is that Citadel Buffalo has been the victim of poor management. Where does that come from? Ya think that maybe we should look at the guy who's getting 1.9 Million shares of the the new stock issue? Too late to look at the guy with $3,000 suits. He already bailed.

 

[chas108]

Just ask CBS about the lesson they learned from blowing up WCBS-FM in 2005, bringing in Jack, and going from a 4 share and a top 10 12+ and 25-54 ranking to #23 and a share in the 1s.

Thankfully, the mastermind behind that debacle, along with all the "Man" stations...is no longer with the company. The Man station in Pittsburgh actually delivered a 0.0 in one trend...

Two, the MP3 player should never be discounted as a competitor for your music station. And it's commercial free. So you need value-added to get people to put up with the spots.

Exactly. Today, radio's competition is cell phones & texting, iPods/mp3 players, the Internet, on-demand what-have-you, etc, etc...but as this stuck record has learned, it still comes down to who best makes the emotional connection with the consumer.

 

[TheBigA]

but as this stuck record has learned, it still comes down to who best makes the emotional connection with the consumer.

If that's the case, then what among the list you gave even attempts to make an "emotional connection" with the listener? Internet? Cell phone? Satellite? None of them are even in that business. Yet they certainly are a growth market.

 

[intheeno]

Sirrox-
Theres plenty of blame to go around. Citadel overpaying for an over-inflated property (thanks to Sauer). Then over-paying big time for the Bills. Then bringing in not one but two GM's who wouldn't even move into the market (Can't remember the female and then LeGrett). How about then naming your top sales reps Sales managers. Mauer should have never left the streets. He's too nice to be a "hold the reps accountable" manager. There was no clear "management" at those properties for years. LeGrett in and out kicking ass then off to another market. Then the financial problems facing the industry hit and you've got poor performing stations doing worse because of the economy. Now I'm not sure they can right the sinking ship with the people they have in place. Maybe they don't because they want to move it.

 

[JustPastBuffalo]

Then bringing in not one but two GM's who wouldn't even move into the market (Can't remember the female and then LeGrett).

Lila Prezioso, 2002-'03, previously at the CBS cluster in Pittsburgh.

 

[bandontherun]

Sauer had that place humming with people that would walk through walls for him and that place was making big money with each station in definitive roles (classic rock 97 Rock, oldies WHTT, and new rock/alternative The Edge). Lately they've had out-of-market people that don't know anything about creating a culture and no history.... why else would they throw up that a.c. format and call it Mix? Because they were too ignorant/arrogant to know that cross-town WBUF was Mix only 10 years prior (and BOMBED big-time). So, they resurrect oldies and call it classic hits and deem it a success in 11 months. If you look at the last 4 years of Arb books, you'll see that this "success" is still way behind even the Mix format, and still can't scratch its way into the top 5 Women 25-54. As for WGRF, they are cannibalizing it on WEDG (Friday morning they were playing AC/DC Highway to Hell, e.g.). Norton still is pretending he's in Buffalo, while sitting in his house in Florida. Nobody is live at night and most weekend shifts at any of their stations. Clearly running "on the cheap" is the Citadel way....