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JERRY LEE, SHAME ON YOU!

  • Thread starter fred flintstone
  • Start date

F

fred flintstone

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How low can you go? B101 has a "cheesy" contest (literally). A woman wins. B101 tells the IRS she got prizes worth $26,250.00 including a $22,000.00 ring. The woman owes the IRS $7,000.00 in extra taxes. She tries to sell the ring and finds out it's really worth maybe a few hundred bucks. Due to strings attached, she can't take the ski trip that was part of the package. I hope she at least got to eat the cheese assortment. The woman is suing B101. I hope she cleans their clock. This should be a classic case study of business ethics in radio.Inquirer - Mikey Klein:
Inqlings | Ring is poor bling, says B101's winnerBee careful what you wish for.Loyal B101 radio listener Tina Grodziski of Rhawnhurst won a "Cabot Cheese Dazzle Your Sweetheart" prize package valued at $26,250 from the light-rock station early last year.The package included a blue tanzanite ring valued at $22,000. The rest was a $4,000 spa trip to Vermont and $250 in merchandise from Cabot's catalog.B101 then sent Grodziski a 1099 statement describing her winnings to the IRS. She says that's when she realized prizes are taxable income."Don't get me wrong," Grodziski says. "I know nothing in life is free, but I had no idea I'd have to pay over $7,000 in taxes" on the $26,250 in additional income.So she decided to sell the ring.When she shopped it around Jewelers Row, she says in a lawsuit filed recently in Common Pleas Court, she was told it was, in one appraiser's words, "a piece of garbage" with a value of several hundred dollars to perhaps several thousand dollars.Grodziski, 42, a paralegal for a Bucks County company, called B101 and tried to return the ring, says her attorney, David Shulick. No luck.In April, she put her tax bill on her credit card.She says she never got the chance to take the trip before the deadline last December. The certificates for the cheese - and the cheesy ring - are sitting in Shulick's safe.The complaint, which seeks in excess of $50,000, alleges negligence and fraud. B101 general manager Blaise Howard said he could not comment...
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If you win over a certain amount of money or merchandise (I believe its in excess of $1000, but not totally sure - plus, I had always thought it was solely based on cash and not material items) you are required by law to report your winnings to the government via a 1099 form. You'll get the same thing in AC if you strike it rich. That being said, B should have a disclaimer in regards to this matter. Perhaps, now they will.
 
Rockin Rob said:
If you win over a certain amount of money or merchandise (I believe its in excess of $1000, but not totally sure - plus, I had always thought it was solely based on cash and not material items) you are required by law to report your winnings to the government via a 1099 form. You'll get the same thing in AC if you strike it rich. That being said, B should have a disclaimer in regards to this matter. Perhaps, now they will.
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i dont think thats the problem...i think its the fact that they lied about the price of the ring...
 
Kind of like the way those prizes on The Price is Right are never worth anything near the "actual retail price?"
 
B101...Why Start Defrauding Listeners Now?

Why would B101 with all that's at stake for them as the heritage AC in Philadelphia, attempt to put one over on a "loyal listener"? There's obviously more to this story than has been made public. B101 is very protective of their place in the market and I find it extremely hard to believe would knowingly be party to fraud. Come on, you're talking about Jerry Lee. It's just not the way he does business. Jerry is nationally respected both in broadcasting as well as in the field of criminal deterance and rehabilitation. Those of you ready with the noose must have an agenda. Let it play out and you'll see.
 
It's his station. He is responsible.This indicident would not have become a law suit or a newspaper story had the station responded when the woman who won their "contest" first contacted them.It's one thing to do this "valued at" thing to hype the contest. B101 crossed the line when they reported that amount to the IRS (deduction for them; taxable income for her). I wouldn't be surprised if an audit is coming.And Jerry Lee is not talking. Speaking of heritage stations, who sold a true heritage station to Salem? Jerry Lee sold the legendary WFIL 560 AM, a great signal that's now a brokered platform for preachers to get money out of the gullible and lost forever to true broadcasting.Listeners? Does anyone ever listen to AC - even in elevators and dentists' offices?
 
I firmly believe promos for give-aways (of significant financial worth) should include a "winner subject to income taxes" phrase. I won a trip to Hawaii back in 2000 from WJJZ. I knew when I heard my name called that I would have to pay tax on the value of that trip. Not everyone realizes that.A second issue is the value of the ring. It should have been appraised and certified with a certificate presented along with the ring. That would protect B101. The value of the ring and the amount a jewler will pay for a "second hand" item are not anywhere near the same. When you sell jewlery, you may only get 25% of the value.Radio stations need to protect themselves when running promotions of this kind.
 
WTUX said:
A second issue is the value of the ring. It should have been appraised and certified with a certificate presented along with the ring. That would protect B101. The value of the ring and the amount a jewler will pay for a "second hand" item are not anywhere near the same. When you sell jewlery, you may only get 25% of the value.
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Excuse me, Tux. The value of anything is what somebody will pay for it. Economics 101. Jewelry and precious stones and metals do not depreciate because they are second hand. When a jeweler appraises something, he is saying what he would pay for it.Now that you mention it, I wonder how much B101 (or whoever put the contest package together) actually paid for the ring.
 
fred flintstone said:
Now that you mention it, I wonder how much B101 (or whoever put the contest package together) actually paid for the ring.
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Fred, Fred, Fred...This is RADIO we're discussing...since when did a station PAY for a prize? Remember "trade outs"? I'm wondering which cheesy jeweler's name was attached to the contest; HE'S responsible for providing this bad bling, no?(And, btw, from the photo in The Inky...that was the crappiest looking tchotchke ever!)
 
Two points. First, there is wholesale value and retail value. Value is also what it can be SOLD for. That is what the jewler thinks of when making a purchase of sellable material. Good point on the sponsor. B101 will count as income the value placed on the ring by the sponsor who gave it to the station, or contributed it for a particular number of ads. Trade outs count for tax purposes the same as the outright purchase of ads with cash payments.What happened to this particular prize winner has opened up a BIG can of worms. Bet B101 will ask future potential prize winners to state their occupation in order to be elligible! They will be placing a disclaimer in promotions "paralegals are not elligilbe to win"!
 
Someone has an agenda here....Fred. It's very obvious.I happen to like XM radio. But...I still need the local connection with Philly "Terrestrial" Oh, and I don't take the bus, you elitist.
 
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