Clear Channel To Cut $400M From Budget

[Scoobyfan1]

I've been noticing something veeery intereting(to quote someone) things listening to Fox Sports Radio the past couple of days, first yesterday Andrew Sciliano and Krystal Fernandex were not on in their usual time slot, also Ben Maller and Karen Kay were not in addition in their usual time slot, in addition to that listening to JT The Brick's show last night at the end of it he mentioned the CC layoffs and losing some good friends at Fox Sports Radio, btw Chris Mohr and Deb Carson were on in Andrew Sciliano's time slot and John Fricke and Steve Desager(sp?) were on it Ben Maller's time slot. I just hope CC didn't do something stupid and lay off the four regular hosts and update anchors that I mentioned because if they did FSR can pretty much get ready to start closing down, although it may be nothing and they just had the day off yesterday but still, I really enjoy listening to Andrew and Krystal and also to Ben Maller's show because the deviate from the usual straight sports talk, both shows usually are pretty entertaining to listen to and I enjoy both of them. Hopefully all the regular hosts will be back in today in their time slots although when CC is concerned who knows.

 

[Scoobyfan1]

I just read an article listing some of CC's layoffs and I am not a happy camper, most of the great hosts and personalties I like and a lot of other people like as well are gone: James Washington, Craig Shemon, Andrew Sciliano, Krystal Fernandez, Ben Maller, Deb Carson all gone, poof. The only show I still like on FSR is JT The Brick and who knows whether he'll last the way CC is going, this show a couple of things: one, Clear Channel sucks; why would they lay off several great hosts from what undoubtedly was one of the great sports radio networks, two why get rid of hosts, why not cut CEO salaries or something like that, three I am only in my twenties but I have come to realize that things really suck in the economy nowadays, four I have XM Sateliite Radio and i'm seriously thinking about cancelling the service, finally CC should shut down Fox Sports Radio right now, there is no reason to keep the network going with only one good show: JT The Brick and Tom Looney, my prediction: FSR shuts down by the end of the year, RIP Fox Sports Radio 2000-2009, it was a great run but nothing lasts forever.

 

[TVradioguru]

You summed it up well Bill.

In spite of Clear Channel going private with a combination of bank debt and Private Equity, they still have some incredibly hefty debt payments coming up. For right or wrong since the economic slide is gathering speed, Clear Channel has to prepare itself to make the next round of payments regardless of the economic conditions at that time. Being mindful that even if the advertising business started to pick up again, it would take months to make up for the lost revenues compiled over the past year. In the mean time the media business continues to lose traction, yet expenses including cost of living for employees goes ever higher.

I'm sure that the anti-business contributors on this board are going to flame the buhjesus out of me for saying this, but I can tell you with complete honesty and candor that absolutely NO ONE at Clear Channel corporate, nor any other station group owner is happy about having to reduce head count. Contrary to what the CCU bashers say who know nothing about the business of broadcasting, I know the Mayes brothers from a business relationship and have found them to be honorable and honest when it comes to running the company or dealing with others.

Depending on the station, if you were to actually look at the P&L of a radio station, 60-75% of the total expenses are Full Time Employees and talent operating on contracts which were negotiated three years ago. Unfortunately that and marketing/promotions is the first place where one has to cut. .

Right now broadcasters are in simply survival mode, trying to save their companies from going under completely and losing several thousand employees in the process by having to shut stations down. Mark my words though, this year there will be groups forced into liquidation, which means even some major market stations will be going all syndicated or silent.

 

[TVradioguru]

I just read an article listing some of CC's layoffs and I am not a happy camper, most of the great hosts and personalties I like and a lot of other people like as well are gone: James Washington, Craig Shemon, Andrew Sciliano, Krystal Fernandez, Ben Maller, Deb Carson all gone, poof. The only show I still like on FSR is JT The Brick and who knows whether he'll last the way CC is going, this show a couple of things: one, Clear Channel sucks; why would they lay off several great hosts from what undoubtedly was one of the great sports radio networks, two why get rid of hosts, why not cut CEO salaries or something like that, three I am only in my twenties but I have come to realize that things really suck in the economy nowadays, four I have XM Sateliite Radio and i'm seriously thinking about cancelling the service, finally CC should shut down Fox Sports Radio right now, there is no reason to keep the network going with only one good show: JT The Brick and Tom Looney, my prediction: FSR shuts down by the end of the year, RIP Fox Sports Radio 2000-2009, it was a great run but nothing lasts forever.

Settle down there Scooby! You do know that Clear Channel doesn't own FOX Sports Radio Network don't you, but merely an affiliated station in KHHO? Hate to rain on your parade further, but many of the hosts you're so upset about are not broadcasting from Tacoma.

FOX Sports Radio Network is owned by Newscorp, and is a small division of FOX Sports.

 

[Scoobyfan1]

I just read an article listing some of CC's layoffs and I am not a happy camper, most of the great hosts and personalties I like and a lot of other people like as well are gone: James Washington, Craig Shemon, Andrew Sciliano, Krystal Fernandez, Ben Maller, Deb Carson all gone, poof. The only show I still like on FSR is JT The Brick and who knows whether he'll last the way CC is going, this show a couple of things: one, Clear Channel sucks; why would they lay off several great hosts from what undoubtedly was one of the great sports radio networks, two why get rid of hosts, why not cut CEO salaries or something like that, three I am only in my twenties but I have come to realize that things really suck in the economy nowadays, four I have XM Sateliite Radio and i'm seriously thinking about cancelling the service, finally CC should shut down Fox Sports Radio right now, there is no reason to keep the network going with only one good show: JT The Brick and Tom Looney, my prediction: FSR shuts down by the end of the year, RIP Fox Sports Radio 2000-2009, it was a great run but nothing lasts forever.

Settle down there Scooby! You do know that Clear Channel doesn't own FOX Sports Radio Network don't you, but merely an affiliated station in KHHO? Hate to rain on your parade further, but many of the hosts you're so upset about are not broadcasting from Tacoma.

FOX Sports Radio Network is owned by Newscorp, and is a small division of FOX Sports.

I am aware that CC owns 850 and not Fox Sports Radio and I am aware that many of FSR's hosts broadcasts from elsewhere in the US, like LA; the reason why I am unhappy about this is because i and many people out there like all of Fox's shows because they are different from the regular "let's talk nothing but sports all day" types of shows, I do enjoy those types of sports show but I like entertainment mixed as well; basically what i'm saying is that it's a shame that so many great hosts and personalities lost their jobs today and will no longer be on the air. I understand that these are radio shows and are purely entertainment but some days with things the way they are that's just the kind of thing I need, entertainment to basically forget the world for a while.

 

[TVradioguru]

I am aware that CC owns 850 and not Fox Sports Radio and I am aware that many of FSR's hosts broadcasts from elsewhere in the US, like LA; the reason why I am unhappy about this is because i and many people out there like all of Fox's shows because they are different from the regular "let's talk nothing but sports all day" types of shows, I do enjoy those types of sports show but I like entertainment mixed as well; basically what i'm saying is that it's a shame that so many great hosts and personalities lost their jobs today and will no longer be on the air. I understand that these are radio shows and are purely entertainment but some days with things the way they are that's just the kind of thing I need, entertainment to basically forget the world for a while.

Super! So what does Clear Channel have to do with your rant about FOX Sports radio Net., other than some not-so-popular Clear Channel hosts have been let go? I'm sorry you're upset, but I fail to see the correlation.

 

[the brakes]

From TVRG

In spite of Clear Channel going private with a combination of bank debt and Private Equity, they still have some incredibly hefty debt payments coming up. For right or wrong since the economic slide is gathering speed, Clear Channel has to prepare itself to make the next round of payments regardless of the economic conditions at that time.

Let's assume that's true TVRG...but did you read Taylor On Radio today? At some clusters...what an apropos name their...that some people were called to the conference rooms one-by-one OVER THE ENTERCOM! Others were told to leave the building A.S.A.P. without having the chance to say their good-byes...."we'll ship your things home...no need to get them now". Other facilities had Police Officers at the door...most weren't even allowed to ask H-R simple questions about health insurance etc. They treated these people like second class citizens without even an ounce of common courtesy. That you have to agree SUCKS! Their ploy to "bury the firings" on Inaguration Day seemed to pay off tho...you'll find a small story on Page Two of today's N.Y. Times. Yep...pretty classy people running that....ahem...CLUSTER!

 

[TVradioguru]

From TVRG

In spite of Clear Channel going private with a combination of bank debt and Private Equity, they still have some incredibly hefty debt payments coming up. For right or wrong since the economic slide is gathering speed, Clear Channel has to prepare itself to make the next round of payments regardless of the economic conditions at that time.

Let's assume that's true TVRG...but did you read Taylor On Radio today? At some clusters...what an apropos name their...that some people were called to the conference rooms one-by-one OVER THE ENTERCOM! Others were told to leave the building A.S.A.P. without having the chance to say their good-byes...."we'll ship your things home...no need to get them now". Other facilities had Police Officers at the door...most weren't even allowed to ask H-R simple questions about health insurance etc. They treated these people like second class citizens without even an ounce of common courtesy. That you have to agree SUCKS! Their ploy to "bury the firings" on Inaguration Day seemed to pay off tho...you'll find a small story on Page Two of today's N.Y. Times. Yep...pretty classy people running that....ahem...CLUSTER!

As I'm sure you probably know, Mark Mayes wasn't setting policy or procedures of how staffing reductions were handled at individual stations. I'm willing to bet that was at the discretion of the market or station GM. To your other point, somehow I doubt Entercom was making announcements about who got RIF'd at a Clear Channel station, so I assume you meant to say intercom.

The unpleasant reality is sometimes people can go overboard in their rage when being let go from a job. I've seen first hand the ugly results of someone's displeasure manifest itself in the form of physical violence, vandalism, and disruption to other employees and managers. As unpleasant as it is to have security present when a large RIF occurs, it is for the protection of the station, and the remaining employees.

 

[Scoobyfan1]

I am aware that CC owns 850 and not Fox Sports Radio and I am aware that many of FSR's hosts broadcasts from elsewhere in the US, like LA; the reason why I am unhappy about this is because i and many people out there like all of Fox's shows because they are different from the regular "let's talk nothing but sports all day" types of shows, I do enjoy those types of sports show but I like entertainment mixed as well; basically what i'm saying is that it's a shame that so many great hosts and personalities lost their jobs today and will no longer be on the air. I understand that these are radio shows and are purely entertainment but some days with things the way they are that's just the kind of thing I need, entertainment to basically forget the world for a while.

Super! So what does Clear Channel have to do with your rant about FOX Sports radio Net., other than some not-so-popular Clear Channel hosts have been let go? I'm sorry you're upset, but I fail to see the correlation.

I don't know, I guess the fact that a lot of shows I like got canned kind of made me unhappy. However, I listened to a bit of the new FSR line-up yesterday after I got home from my voluteering job and it's actually still good. I never really listen to Chris Myers show but with the LA guys joing the show it maybe entertaining, the Petros and Money show that replaced Andrew and Krystal is pretty entertaining too, hopefully FSR will get a good replacement for Ben Maller in the overnight slot.

 

[melcham]

A few corrections, TVRG.

1) It's Mays without an e.
2) Clear Channel's wholly owned subsidiary Premiere Networks actually owns Fox Sports Radio through a licensing agreement with Newscorp.

But I do agree with you that we are faced with unprecendented pressures both economically and technologically. The reality is that traditional media are in trouble. The monopoly that newspapers, television and radio once held on point to multi-point communication is gone. Media consumption habits are changing. And the cold hard fact is that paid search has changed the game. No longer are advertisers willing to play the guessing game around what sort of reach, frequency and CPM will hopefully deliver the results. They are testing ad copy within hours on Google and seeing what produces. And we are ill prepared to deal with this new reality.

In this horrid economy with debt piled high based on rosier revenue projections several large groups are likely going to be forced into bankruptcy as they trip debt to equity or debt to cash flow covenants with their senior lenders. It is going to be a rough year, and lay offs are simply a necessary part of prudent business.

Hopefully the strategy coming from our friends in San Antonio is one that is designed with the changing media landscape in mind, not simply the poor economic conditions facing us. Check out Bain Capital's website. They're providing the strategic direction down there and they're pretty smart operators. I have a feeling they've got their eye on the right ball.

 

[Board Editor 3]

MOVED: Re: Clear Channel To Cut $400M From Budget

Some posts have been moved to Take It Outside.

[iurl]http://boards.radio-info.com/smf/index.php?topic=118932.0[/iurl]

 

[AQH]

Hopefully the strategy coming from our friends in San Antonio is one that is designed with the changing media landscape in mind, not simply the poor economic conditions facing us. Check out Bain Capital's website. They're providing the strategic direction down there and they're pretty smart operators. I have a feeling they've got their eye on the right ball.

Unfortunately, there's a lot of talk that even more CC cuts are coming as soon as next month.

 

[Mack Daddy]

Hopefully the strategy coming from our friends in San Antonio is one that is designed with the changing media landscape in mind, not simply the poor economic conditions facing us. Check out Bain Capital's website. They're providing the strategic direction down there and they're pretty smart operators. I have a feeling they've got their eye on the right ball.

Unfortunately, there's a lot of talk that even more CC cuts are coming as soon as next month.

They should cut the CEO's and end the nightmare!

 

[Bongwater]

Hopefully the strategy coming from our friends in San Antonio is one that is designed with the changing media landscape in mind, not simply the poor economic conditions facing us. Check out Bain Capital's website. They're providing the strategic direction down there and they're pretty smart operators. I have a feeling they've got their eye on the right ball.

Unfortunately, there's a lot of talk that even more CC cuts are coming as soon as next month.

They should cut the CEO's and end the nightmare!

That's the LAST thing this or ANY corporate industry will do without nice big golden parachutes for all of them instead of prison terms. It's an "old boys" club, through and through and the fact THEY'RE not cellmates with Bubba by now PROVES it.

 

[AQH]

Hopefully the strategy coming from our friends in San Antonio is one that is designed with the changing media landscape in mind, not simply the poor economic conditions facing us. Check out Bain Capital's website. They're providing the strategic direction down there and they're pretty smart operators. I have a feeling they've got their eye on the right ball.

Unfortunately, there's a lot of talk that even more CC cuts are coming as soon as next month.

They should cut the CEO's and end the nightmare!

That's the LAST thing this or ANY corporate industry will do without nice big golden parachutes for all of them instead of prison terms. It's an "old boys" club, through and through and the fact THEY'RE not cellmates with Bubba by now PROVES it.

What law(s) were broken?

 

[TVradioguru]

That's the LAST thing this or ANY corporate industry will do without nice big golden parachutes for all of them instead of prison terms. It's an "old boys" club, through and through and the fact THEY'RE not cellmates with Bubba by now PROVES it.

Once again ladies and gentlemen, please note the intelligent answer from Sir Bong-bastic about sending people who downsize their business workforce to jail. Yes that makes about as much sense as sending people who have no idea about the business of radio, yet frequently make stupid comments via a discussion board to prison.

Here's a newsflash for Bong and Mack..Nobody OWES you a job, nor is it a crime to have a RIF in a business because of economic hard times. If I were your boss, I could fire you for looking at me in the hallway, or any reason I deemed legitimate. Now of course that example wouldn't be fair or politically correct, but legally it would hold up. Having to lay people off because radio stations have lost 50% or more of their value, banks stopped lending, and national advertising has come to a grinding halt, is not illegal.

Certainly a case could be made, and has been, for investigating the business dealings various banks who started this downhill slide of our economy, but involving other business with no relationship to preditory lending would just be an ignorant and expensive witch hunt.

 

[IndigoCoyote]

Negligence of feduciary duties, fraud, insider trading, and illegal personnel practices are all actionable crimes. Greed, arrogance, and stupidity are not. Unfortunately.

If you fired Steve Slaton- reducing the value of your property and causing your stockholders to lose assets- due to your pigheaded, short-sighted, idiotic (but legal) decisions, then you deserve to get fired. If you fired him because you got caught in a pump and dump hot potato stock scheme, then you should get fired and prosecuted.

And in either case, in a fair world, he would get his well-deserved gig back. But it's a mean ol' world.

 

[TVradioguru]

Negligence of feduciary duties, fraud, insider trading, and illegal personnel practices are all actionable crimes. Greed, arrogance, and stupidity are not. Unfortunately.

If you fired Steve Slaton- reducing the value of your property and causing your stockholders to lose assets- due to your pigheaded, short-sighted, idiotic (but legal) decisions, then you deserve to get fired. If you fired him because you got caught in a pump and dump hot potato stock scheme, then you should get fired and prosecuted.

And in either case, in a fair world, he would get his well-deserved gig back. But it's a mean ol' world.

Mean? Well I suppose from a purely emotional and historical perspective one could see it that way.

I'm not sure who this Steve Slaton is, nor why a half dozen people on this board have their underwear in a bunch about his departure, but I assure you if Mr. Slayton was making the station money through his stellar on-air performance and popularity, he wouldn't have been released during cutbacks. I hate to sound like a skipping CD, but radio is a business you know... It's not personal.

You're absolutely correct that insider trading is illegal, but cutbacks that involve releasing has-been DJ's from a bygone era...not illegal.

 

[IndigoCoyote]

cutbacks that involve releasing has-been DJ's from a bygone era...seriously, who is the one being "emotional" here?

I would buy your argument, except for the following:

1) Doubtful the decision was based upon a pure cost-benefit analysis, given what we know about the bigger picture right now at CBS nationally. More like, "reduce short-term costs right now, and worry about the long-term later if ever." If your own job depends upon reducing costs over the next week, and you figure that it may be someone else's job to rebuild the station later, then a higher paid dude is an obvious target.

2) Has-been? Odd assessment, but if you have the numbers to back that up, great. Seems like he was the perfect fit for that format. A very successful format, by the way. KZOK is profitable...better be, given their numbers. But, hey, if we can save 300k right now and totally screw the pooch long-term, well, where do I sign? That seems to be the thinking.

I am a historian by education. I can back up the "mean ol' world" statement until the cows come home.

 

[TVradioguru]

cutbacks that involve releasing has-been DJ's from a bygone era...seriously, who is the one being "emotional" here?

I would buy your argument, except for the following:

1) Doubtful the decision was based upon a pure cost-benefit analysis, given what we know about the bigger picture right now at CBS nationally. More like, "reduce short-term costs right now, and worry about the long-term later if ever." If your own job depends upon reducing costs over the next week, and you figure that it may be someone else's job to rebuild the station later, then a higher paid dude is an obvious target.

2) Has-been? Odd assessment, but if you have the numbers to back that up, great. Seems like he was the perfect fit for that format. A very successful format, by the way. KZOK is profitable...better be, given their numbers. But, hey, if we can save 300k right now and totally screw the pooch long-term, well, where do I sign? That seems to be the thinking.

I am a historian by education. I can back up the "mean ol' world" statement until the cows come home.

You seem to be a reasonable person, yet also appear to contradict yourself on a couple points:

In point number one you claim the owners of KZOK will be in need of "rebuilding" later, but you rightfully point out that KZOK is profitable with their high numbers. So why would one have to rebuild if you're already on top? Also you assume that just because KZOK has good ratings currently, that somehow they are currently also profitable. I'd be willing to bet that no station is turning a profit these days, not because of radios supposed failures that some on this board would have you believe, but simply because of the economic conditions.

From little that I know regarding Mr. Slaton, I hear he was working as a music director and pulled an airshift. In an effort to cut expenses, many groups have made the decision to cut positions such as assistant PD's and music directors. However that being said, you are correct that its all about the margins. To use your assumption that Mr. Slaton was grossing $300K yearly, yet his airshift, separated out, grossed a net profit of say..$160K or less, then he's a liability, not a national treasure as you seem to assert.

As was mentioned in an earlier thread, unlike with TV news anchors, the vast majority of radio listeners could care less about the tenure or history of a particular DJ. And unlike the claims made by some on this forum, I CAN back up that statement with recent research numbers.

If you are KZOK, and can make the same revenue from Mr. Slaton's former slot with either automation and voice tracking, or a younger DJ at a lesser cost, then the decision is simple. Modern radio listeners listen to a classic rock station for the music, and can care less about what DJ interrupts every quarter hour to read a concert calendar or give a weather forecast.