Imus Suing CBS for $40 Million

[The Voice of Reason]

Published reports state that Don Imus has hired an attorney and plans to sue CBS for $40 million dollars.

 

[4dude]

I wonder if they will re-hire him to avoid the lawsuit.

 

[mostb1]

I wonder if they will re-hire him to avoid the lawsuit.

The lawyers will have none of that kind of talk. They've got a good $5 million or more to make off of CBS and Imus.

 

[oaktree]

The I-Man will be lucky to be alive to collect if this thing goes to court. He's suing for his contract, not an arbitray $40-million dollars. There's a lot of wiggle room in there, depending on the interpretation of that contract. Imus makes nada until that interpretation is agreed-to.

If CBS and Imus' lawyer play hardball, it could be precedent setting and take years to settle in the Supreme Court. Or, overturned by one or the other on appeal ... more years.

If they settle out of court, it won't be for $40 million.

Imus might own WFAN, but it won't be for $40 million ...

 

[Walter Graff]

Except that Imus' contract states that he was to do exactly the kinds of things he did so he has a case. It will not be the $40mill but he'll walk away with a nice retirement package.

 

[TowerBuzz]

I seriously douibt he retained a lawyer to sue, I think he's prolly trying to get out of his contract so that he could go work somewhere else if someone were dumb enough to bring him aboard./ Eventually someone will hire him, probably in a year or so when the furor has died down. I really dont see him suing.

 

[Mark Giardina]

I seriously douibt he retained a lawyer to sue, I think he's prolly trying to get out of his contract so that he could go work somewhere else if someone were dumb enough to bring him aboard./ Eventually someone will hire him, probably in a year or so when the furor has died down. I really dont see him suing.

CNN is reporting that Imus has hired a lawyer and that he plans to sue for the remainder of his contract, which is estimated at around $40 million dollars.

Whether he is successful or not remains to be seen, but I will agree that this litigation will drag out in the courts for years and lets face it, Imus is no spring chicken, so who knows if he will ever see the money.

Speaking of contracts, if Imus is suing CBS I wonder if Bernard McGuirk will also sue?

 

[LinoNYC]

The lawyers will have none of that kind of talk. They've got a good $5 million or more to make off of CBS and Imus.

Don't be so sure of that , there is a legal contract here and CBS can order him back if they so choose.

It may seem far-fetched, but I suspect that is what will happen, if the following things fall ino place:

1)Imus formally demands full compensation and CBS' lawyers advise same that he has a claim.

2)The revenues at WFAN tank. This is a big part of the equation, Imus is way over-the-hill but he still brought in substantial billing. The furor over his remarks has already passed and in 4-6 months will be ancient history, for the sponsors aswell.

If we were talking about a year or two remaining on the contract such as what happened when opie and anthony imploded in 2002, I 'd think Imus' return less likely, but with the conditions that exist, to paraphrase, it maybe "cheaper to keep him -and get some work out of him.

Lino

 

[TowerBuzz]

Legal contract? ok but what possible reason would they have to order him back? you're crazy. No way he goes back on the air afereverything that has gone down. The perception alone would KILL cbs, KILL It with the ad community, protesters would be there before Imus was. No way, you're not hinking straight. O and A were kept off the air because if they had gone to work for say Clear Channel they would have eaten into Stern almost immediately. Imus? who is he going to do damage to?. Nope they're not worried about an Imus comeback, he's no threat like O and A were. Maybe they never would have beaten Howard but they would have repositioned him as the old guy in a heartbeat and cut his numbers in NY by half, THAt was the fear with FIRING O and A, so instead they were "cancelled".

 

[ercjncpr]

HAHAHAHAHA ;D ;D

This story made my day! The I-man must be desparate!

 

[Walter Graff]

HAHAHAHAHA ;D ;D

This story made my day! The I-man must be desperate!

I don't look at it that way. These companies look for any reason to get out of a contract. This was a great excuse. Imus got fired without proper warning and he has a legit claim. It will not drag on as both sides know the money was allocated and they'll settle for an undetermined amount relatively quickly.

 

[LinoNYC]

Legal contract? ok but what possible reason would they have to order him back? you're crazy

-And you're a shortsighted fool, Now that we have gotten the pleasantries out of the way let's try thinking as those actually involved might...

The technicalities of the industry not withstanding, the opie and anthony case stands as precedent. Imus' act was well-known his employers knew what and who he was. They gave him multiple contracts for it. He can demand, and get payment-in-full.

According to press reports, Imus' show earned WFAN some 15-18M/yr. Since much of his audience was different than the usual sport blab listeners, WFAN will have lost these listeners and probably not be able to make up more than a small portion of the difference in billing.

Then there are the costs of litigation.

Add it all up and CBS could out some 45-50M plus a permanant loss at WFAN.

You put too much faith in "protests" When Bob (Gigante) Grant was fired for much more offensive comments there were protests, promises of boycotts etc. from the exact same cast of characters. Within a couple of weeks, he hired by WOR, protess'ers not withstanding.

In 4-6 months the Imus issue will be long since burnt out.

I don't personally care what happens to Don Imus he has grown extremely wealthy peddling his two-bit act, I don't listen to this sort of radio. I'am just being realistic.

Lino

 

[Walter Graff]

"According to press reports, Imus' show earned WFAN some 15-18M/yr. Since much of his audience was different than the usual sport blab listeners, WFAN will have lost these listeners and probably not be able to make up more than a small portion of the difference in billing. "

And don't confuse audience with revenue. Imus had about 1.6 mil listeners a week in 60 markets. But his brand was marketed as 'those that you want to advertise to'. The phenomenon of Imus was that he didn't have an audience yet billed as much as he did.

 

[mostb1]

The lawyers will have none of that kind of talk. They've got a good $5 million or more to make off of CBS and Imus.

Don't be so sure of that , there is a legal contract here and CBS can order him back if they so choose.

It may seem far-fetched, but I suspect that is what will happen, if the following things fall ino place:

1)Imus formally demands full compensation and CBS' lawyers advise same that he has a claim.

2)The revenues at WFAN tank. This is a big part of the equation, Imus is way over-the-hill but he still brought in substantial billing. The furor over his remarks has already passed and in 4-6 months will be ancient history, for the sponsors aswell.

If we were talking about a year or two remaining on the contract such as what happened when opie and anthony imploded in 2002, I 'd think Imus' return less likely, but with the conditions that exist, to paraphrase, it maybe "cheaper to keep him -and get some work out of him.

Lino

"Fantasyland" is at Disneyland and shouldn't be contained within your post. Imus isn't coming back to CBS. There are NO suits at "Black Rock" that have his back anymore. They've all been kicked out just like Imus.

If you didn't notice, they LET him implode himself. Learn what "damage control" is and how media companies that CARE about their employees implement it immediately. They didn't for Imus which leads me to the conclusion, they're happy he's out of their cross-hairs.

I've seen this kind of contract litigation first hand many times before. It will drag on up to possibly as long as a year, probably more likely 6 months or so, and there will be a settlement for more like half the contract remaining amount. That is exactly what the lawyer who Imus hires does. Look into Imus' lawyers history.

 

[LinoNYC]

"Fantasyland" is at Disneyland and shouldn't be contained within your post.

"FantasyLand" is out in L.A. where you are. I live in New York.

If you didn't notice, they LET him implode himself. Learn what "damage control" is and how media companies that CARE about their employees implement it immediately.

Those wildfires out there must have burned some strong stuff your way. Imus had a 33 year track record in market, CBS recently gave him a new 5 year contract (very rare in NY radio) they knew what they were getting and this wasn't the first controversey he'd caused.

I've seen this kind of contract litigation first hand many times before. It will drag on up to possibly as long as a year, probably more likely 6 months or so, and there will be a settlement for more like half the contract remaining amount

I'am inclined to agree, however the fact is that Imus was delivering the sort of show that CBS hired him to do. The terms for settlement are in his hands here.

In your settlement scenario, getting rid of him would cost atleast 30M including the continuing losses at WFAN, that is a "best case' outcome. CBS already set a precedent in the opie and anthony case. Imus would likely also have to be paid in-full.

Lino

 

[WTUX]

Bo Dietl has been making the rounds, talking about the Imus contract. It required him to run the type of show he did. And, as Bo puts it, he had a dog allowed one bite clause. When Imus went over the imaginary line, he was to be warned. He could not be fired.

The I-man has a case. As for Bernie, who should have been fired for going further than Imus did in bad taste, he could argue that as part of the Imus show he was protected by the same clause.

 

[winreader]

The I-Man will be lucky to be alive to collect if this thing goes to court. He's suing for his contract, not an arbitray $40-million dollars. There's a lot of wiggle room in there, depending on the interpretation of that contract. Imus makes nada until that interpretation is agreed-to.

If CBS and Imus' lawyer play hardball, it could be precedent setting and take years to settle in the Supreme Court. Or, overturned by one or the other on appeal ... more years.

If they settle out of court, it won't be for $40 million.

Imus might own WFAN, but it won't be for $40 million ...

There's a high probability that Imus has an arbitration clause in his contract designed to reduce legal costs and time for both parties. Or, CBS will likely will settle with him for a smaller amount, but it won't drag through the courts for years and certainly won't come within 200 miles of the Supreme Court. There are no precedent setting constitutional issues here. It's a labor dispute, pure and simple, and it's happened many times before.

 

[mostb1]

"Fantasyland" is at Disneyland and shouldn't be contained within your post.

"FantasyLand" is out in L.A. where you are. I live in New York.

If you didn't notice, they LET him implode himself. Learn what "damage control" is and how media companies that CARE about their employees implement it immediately.

Those wildfires out there must have burned some strong stuff your way. Imus had a 33 year track record in market, CBS recently gave him a new 5 year contract (very rare in NY radio) they knew what they were getting and this wasn't the first controversey he'd caused.

I've seen this kind of contract litigation first hand many times before. It will drag on up to possibly as long as a year, probably more likely 6 months or so, and there will be a settlement for more like half the contract remaining amount

I'am inclined to agree, however the fact is that Imus was delivering the sort of show that CBS hired him to do. The terms for settlement are in his hands here.

In your settlement scenario, getting rid of him would cost atleast 30M including the continuing losses at WFAN, that is a "best case' outcome. CBS already set a precedent in the opie and anthony case. Imus would likely also have to be paid in-full.

Lino

You fail to acknowlege the fact that the person who SIGNED Imus to a new contract extension and had his back is GONE from CBS.

Imus has a short life span left. IF he wants back on the radio, he will have to settle for less than the full amount of the contract. He doesn't have time to waste. Each day Imus is off the air is another day he is forgotten and a day closer to his grave.

There is no need to discuss what Imus did or did not do for the suits or any "one bite" clause. It's irrelevant. His employment at CBS is at an end and he won't be returning. Imus isn't a young man who can take the time to rebound from this. He was bringing declining ratings and revenue to the company. Now, he's got advertisers who won't touch him with a 10 foot pole. Not a good situation to be in.

I would not say Imus has the ball in his court when it comes to lawyers. It's out of his hands now. He'll get plenty of cash. So will the lawyers. The real question is how long will he let CBS drag this out and be off the air before he caves and settles? CBS has that ball. He's not going anywhere until he settles.

Rick Dees has been in L.A. for 28 years. He had 3 years remaining on his contract with Clear Channel when he was fired at KIIS-FM and replaced with Ryan Seacrest. He settled for much less just to get out of it and have a chance to get back on the air which took 2 1/2 years (about 9 months to settle the contract, btw). He was offered a gig as morning personality at CBS' Oldies KRTH but balked when they wouldn't give him all the perks he was use to (like a private plane). Then he got a reality check and settled for less for his current gig. He's now failing doing his new morning show (#26 in mornings in the ratings released this week) at Emmis' KMVN/Los Angeles. Nobody cares about him and he once was the highest rated morning show personality in modern rating history in Los Angeles. And he's 12 years younger than Imus. Get the picture? Imus has no time to waste.

Imus by hiring this specific lawyer shows he wants cash not his old job at CBS back. He better get plenty because nobody in this industry gives that kind of wad anymore.

 

[LinoNYC]

Each day Imus is off the air is another day he is forgotten and a day closer to his grave.

You sure your'e not one of those ganga smokin' screenwriters. you sure come up with some melodramatic stuff.

There is no need to discuss what Imus did or did not do for the suits or any "one bite" clause. It's irrelevant.

Wrong, Sherlock (or is it Shylock) if true, it's an enforceable obligation.

Now, he's got advertisers who won't touch him with a 10 foot pole

Advertisers are like whores, they sneak back as soon as heat is off and the money (listeners) is there.

We've been through this repeatedly with "tainted" celebs. Rap and hip-hop has an awful reputation, with little trouble getting ad buys. There are a number of damaged local personalities that weathered the storm, people seem to have less shame nowadays.

Rick Dees? Are you sure you want to draw a correlation here?

I'am familiar with this situation, L.A. is now majority Latino/Asian the days of any white host dominating that market are over. Secondly, you should also mention that the entire KVMN Movin' format is failing out there.

I used to hear Dees iwhen he hosted a countdown show carried by WHTZ here in NY, toward the end he started to sound rather old, that was years ago, I can only imagine what he sounds like today.

You've taken and obsessive interest in this Imus character, rather odd considering that you aren't even in the market where he was popular.

You need a vacation and a hobby.

Lino

 

[Beachdog]

Anything can happen and that should have Les Moonves concerned. He has not been too clever with radio talent and lawsuits. Howard Stern comes to mind. It may come down to CBS needing Les, less and less and less.