LAWSUIT OVER THE STEVE AND VICKI COMMERCIALS

[RoddyFreeman]

There's also time value of money, opportunity costs, and carrying costs to consider. In non-MBA terms, could you do something better with the money than keeping it where it's at, and how much will you have to sink each month into a non- or under-performing asset, or how much would you have to put into that asset to get it performing again (with no guarantees)?

Maybe Cumulus offered them a buck-fifty and I look silly. But Lincoln certainly looks silly for not properly maintaining an asset they are trying to sell at some point.

Your points are all valid, but I'm not sure they're applicable to this situation.

Last year, Star 94 was the #3 biller with revenue in excess of $24 million, and that's considerably over performing compared to its share of audience. When you say there are time, the value of money, opportunity costs and carrying costs to consider, I'm not sure what they could do with the money that yields more than what they're doing. And while Star could very well become an under-performing asset, it hasn't to this point.

You say that Lincoln looks silly for not maintaining an asset they are trying to sell. Maybe the station made a big mistake with The Morning Mess. But if they did, it certainly wasn't because they weren't trying to maintain the asset; it's because somebody made a poor programming decision. They've certainly invested this year in imaging.

 

[Inside your head]

roddy do u know what 99x billed last year

 

[Tibbs4]

Roddy??? I gotta scratch my head on this one...if you are the #3 biller and strong in the prestige demo,
why in the world would anyone with a lick of sense mess with Star's performance, especially after so many
years. Steve McCoy could have handled a "lively new co-host" and brightened it all up and been fresher
if he was told to. Vikki leaving could have been a near new beginning. They could have sharpened up
the station and never taken so many risks. If you're riding the wave and not crashing, why mess it up???

Now Star has a 100kw station eating it's lunch on one side, you have a new Star about to appear on B
with countless cash for marketing and you have created a well-hated lame station (if you believe many of
the posts out there.) and you have put an unwinnable morning team in a terrible situation (no matter how
good they are elsewhere...) --- how could anyone with even a hint of business logic not see the potential
pitfalls? Did someone over there drink the water after CC's fiascos? Wow.

And they are worried about a friggin' contract and commercial. This may very well be the most unreal
360 degee turnaround in radio anywhere. When will the heads start rolling.

 

[RoddyFreeman]

Roddy??? I gotta scratch my head on this one...if you are the #3 biller and strong in the prestige demo,
why in the world would anyone with a lick of sense mess with Star's performance, especially after so many
years. Steve McCoy could have handled a "lively new co-host" and brightened it all up and been fresher
if he was told to. Vikki leaving could have been a near new beginning. They could have sharpened up
the station and never taken so many risks. If you're riding the wave and not crashing, why mess it up???

You could be right. My idea was to move Cindy & Ray to mornings and Steve McCoy to afternoon drive. That way, Star would still give people a unique reason to listen in the afternoon, and Star could go back to sounding like a CHR station in afternoon drive.

But what Star did was a decision by people with far more programming expertise than I have. Time and Arbitron will tell.

 

[RoddyFreeman]

roddy do u know what 99x billed last year

Rodney posted that last week. I think it was about $11.7 million.

 

[Tibbs4]

Expertise has ruined this industry (and almost everything else.) Your idea is a lot more valid than
basically throwing away the possibly worn, but comfortable, real version of Star 94 to a new, less
appealing station. I know you have to try to improve things, but to totally have now lost almost
everything that brought in the revenue and allowed a real signal competitor and allowing the biggest
bread winning Morning show to go to a better demo-strong station where they'll fit even better
is laughable. Geez. Heads will roll by August 1st (if not by June 1st)...look for more bleeding.
Arbitron will take to long to prove this is indeed even more fatal than Project 96-1.

 

[jabba17]

There's also time value of money, opportunity costs, and carrying costs to consider. In non-MBA terms, could you do something better with the money than keeping it where it's at, and how much will you have to sink each month into a non- or under-performing asset, or how much would you have to put into that asset to get it performing again (with no guarantees)?

Maybe Cumulus offered them a buck-fifty and I look silly. But Lincoln certainly looks silly for not properly maintaining an asset they are trying to sell at some point.

Your points are all valid, but I'm not sure they're applicable to this situation.

Last year, Star 94 was the #3 biller with revenue in excess of $24 million, and that's considerably over performing compared to its share of audience. When you say there are time, the value of money, opportunity costs and carrying costs to consider, I'm not sure what they could do with the money that yields more than what they're doing. And while Star could very well become an under-performing asset, it hasn't to this point.

You say that Lincoln looks silly for not maintaining an asset they are trying to sell. Maybe the station made a big mistake with The Morning Mess. But if they did, it certainly wasn't because they weren't trying to maintain the asset; it's because somebody made a poor programming decision. They've certainly invested this year in imaging.

If they billed that much a year ago, I'll sit down and shut up , especially if they turn things around and get over a 4 share in the next book. But then again, we're not too far removed from 99Xcrement being a marketing factor, either. I don't know of any other business where product goes bad faster than radio. I've had green bananas last longer than some radio shows.

I'll (I assume) agree with you that it's too early to tell if the Morning Mess is a success over S&V, or if S&V needed to be retired because they had gotten stale for a CHR station that had evolved far from its AC roots.

But so much of this smacks of change for change's sake, or (more likely) trying to reduce overhead to make the station more attractive to a buyer. Not that there's anything wrong with the latter--as long as you move quickly before the effects of the spending cutbacks become obvious. Cutting overhead to the bone is never a viable long-term strategy in any business.

 

[RTibbs]

Hey Inside--I can see it now. 94Q 94X. The Alt Music FM!

that would work jabba
i wouldnt even complain if they aired nascar a couple hours a week.

Good one!

 

[The Flash]

Roddy, weren't the numbers Rodney quoted from 1995 - when Star was still STRONG?

And there really WAS an offer from Cumulus on the table, but it got complicated when other LF markets were involved - specifically Denver and San Diego - and apparently LF over-estimated the value of the stations. That's why only the Charlotte cluster was sold.

Steve & Vikki's non-competes were for six months on RADIO in markets within 100 miles of Atlanta, and I understand they were on the Cox payroll within 6 weeks of their contract expiration on 12/31/07. Just because you can't appear on the air doesn't mean you can't be hired by another station to meet with advertisers, execs, etc.

I agree with Roddy's call about Cindy & Ray - who might be Star's only chance of recovery - moving them to mornings as quickly as possible before every listener with an IQ higher than their age is gone!

And it looks like Cox is going to take care of Kelly & Alpha much better than Star treated Steve & Vikki!

 

[RTibbs]

I still contend they could have given Vikki several months off to get her health straight. If 3 years weere left on the contract I wonder if that might have been the case. Wouldn't have been smarter to keep them and instead go more AC and target B98 and their huge audience share.

Instead the aim younger to try and compete with Q and to a lesser degree the Beat. If Q moved to 99x a year earlier I also wonder if they mioght have gone in a different direction.

 

[rho01]

From what I hear, that $24.4 million in revenue for Star was for 2007, down from around $28 million in 2005.

 

[Uriah]

And watch Star go to 15m in 2008. Notice the similarity to the switch from 94Q to Star 94? Then it was Murphy and McKever bombing between McKee and S&V. As to Steve and Vikki - Great run! Stellar dedication to a craft; time for a change. Remember: even Friends, Mash, etc. had to end at some point. Coming back fresh and rested on a station formatted to complement their content is a huge opportunity for Cox to move their flagship to FM as the AM's demos age and are not replace. Plus, in their absence, no one has brought game to the dial in morning drive.
Bottom Line: Cox = Broadcasters. LFM = Actuaries

 

[Tibbs4]

Any word on how Q's billing has increased since the switch?

 

[The Flash]

Oops - sorry - I meant to say revenue numbers from 2005 ... not 1995.

Still stuck in the last century! :

 

[Kabrich]

From the AJC article:
The request sent by Lincoln Financial general counsel Leon Porter states in part that the "actions of the individuals violate [contract] agreements and have caused and will continue to cause irreparable harm and damage to Lincoln Financial."

Another great example of don't believe everything you read or hear. I suspect you also believe that Vicki was actually "sick"

And you don't think Cox's lawyers did not go over the contracts LF had with S&V word by word to see what could and could not be done? Through a statement e-mailed to Buzz Central, Cox Radio President and CEO Bob Neil stated: “We are confident that there have been no violations of Steve and Vikki’s non-compete clause. It’s a shame that Steve and Vikki are being badgered while following the rules in pursuing their new career opportunities. Following their release from Star 94, Cox Radio eagerly welcomes these A-plus rated personalities to B98.5 FM.”

http://www.accessatlanta.com/blogs/...hbuzz/entries/2008/04/21/steve_and_vikki.html

I've heard radio people pontificate over the years that a non-comp would never hold up in court. I guess well see.

Depends on the state and the wording of the contract. As for on the radio, LF had the right to keep them off the radio for 6 months and they were clearly in their right to do so. No one here should take LF to task for that. Clearly, LF had to give S&V something of value to get a 6 month non-compete on the radio. Remember, it takes 2 parties to sign a contract and anything can be negotiated.

My idea was to move Cindy & Ray to mornings and Steve McCoy to afternoon drive. That way, Star would still give people a unique reason to listen in the afternoon, and Star could go back to sounding like a CHR station in afternoon drive.

C&R turned down moving to mornings - which is interesting because that means that Bert and C&R turned down the offers to do mornings on Star 94 in the last 16 months. And isn't it interesting that LF offered Bert a deal in December 2006, before it was known that Vicki was "sick".....hmmmmm. With that in mind -

I still contend they could have given Vikki several months off to get her health straight.

A long weekend would have also worked.

 

[jy]

A classic programming move is to get your competition to take their eye off of themselves and put it on you.
Classic slipup here from 94 who for decades had the air of confidence and the numbers to justify it. One has to wonder why the folks in Philly at Lincoln must be thinking about the sale and the future, now.
I don't get Kanov.
He does not renew Steve & Vikki and let's them go in the middle of the fall book. Then he let's
Rodney mention he took the Morning mess to the Waffle House in his "jaguar." He disses S&V with comments about them being too old for his hip cooler audience. He almost seems relieved they're gone. But then he is quoted as saying his miracle replacement team gets a "B" in his opinion.

His selective memory says McCoy was unknown prior to their genuis marketing at 94.
(memo to Mark: McCoy beat McKee in his later days at Z93. McCoy was at Z93 for 7 years on a station doing a 12 share in 12+ book after book. Z'sr downfall began after replacing Mccoy with Randy Miller for a moment. Phippen picked up McCoy at Power 99 as their momentum (helped by ZERO commercials for 6 months) started. McCoy unknown before 94? That's a good one. The new car smell of your leased jag must be making you light headed)
Then he murders internal confidence of the new mess, (team) by doing lawsuits. It's just giving more publicity to S&V before they begin and Star's aggressiveness makes them further look like "the good guys" "the innocent bystanders."
Truth is Kanov probably never dreamed S&V would be picked up. He thought they were washed up.
Proving once again what we all seem to witness. There are a lot of salesman in broadcasting who don't really understand the product or the programming side. They don't necessarily understand or value talent, or know what talent needs and how to feed them. In fact some feel talent are a costly liability. There are actually some people in the business that don't really "get" it and because the business isn't that hard and is very profitable execs forget what make it all possible. But it happens everywhere. Airlines, department stores, home improvement company's sometimes forget what the customer (listener) wants and they pay a price.

Funny however, why is Kanov the only name we are hearing. These decisions were approved by corporate and agreed to by the PD. It's very uncharacteristic for Mr K to be so preoccupied and vendictive. I always admired coaches who could be humble in victory and gracious in defeat. It's not like Star is desperate. Wow, I wonder how employees are supposed to react to a guy this inconsistant. He let S&V go. Period. Regrets? Maybe he's had a few. But as usual, he did it..HIS WAY

 

[sidechick1]

C&R turned down moving to mornings - which is interesting because that means that Bert and C&R turned down the offers to do mornings on Star 94 in the last 16 months. And isn't it interesting that LF offered Bert a deal in December 2006, before it was known that Vicki was "sick".....hmmmmm. With that in mind -

I don't know where you're getting your information, but Cindy and Ray were NOT offered the morning slot. And though there was communication between Bert and Star, he was never officially offered a position there. Mark Kanov remarked that, "There is no place for Bert at Star 94." Of course, that was back when Q was only 12,000 watts and before he hired the aptly-named Morning Mess. So who knows what he's thinking now...

 

[taylorengineer]

John Young's comments are right on target.
Putting a sales-weenie in charge of hiring/firing talent.......yet another example of bean counters serving up radio. This is the very reason radio has declined as an entertainment medium....people who know nothing about entertainment are calling the shots. And that includes everyone in the chain of command.......
It's funny.....the best programming in years at STAR was when engineering hijacked the HD2 channel. Then.....one day.....the pointy haired boss got a HD radio.
Kanov may know sales and he may be slicker than fresh greased owl sh*t but a programmer he ain't! And now that he(they) realizes he(they) screwed up he(they) get his(their)panties in a wad.
It is amazing to see every radio company in town cooperating to insure the success of Cox Radio/Atlanta.
Any suggestions on how the rest of us can do our parts to make sure S&V/WSB are successful?(I'll see if I can arrange to turn off our transmitters for their first week)

 

[RTibbs]

It is amazing to see every radio company in town cooperating to insure the success of Cox Radio/Atlanta.
Any suggestions on how the rest of us can do our parts to make sure S&V/WSB are successful?(I'll see if I can arrange to turn off our transmitters for their first week)

If he was concerned about their out-aging their demo he should have kept them and moved the station further in a AC direction. Star still sounds like a mom's Top 40 station and can't compare to a Q100. They should have kept the soccer moms instead of trying to get a Bert Show rip-off.

Let's compare and contrast

Compare - short host married with toddler.
Compare - female waif with Rock musician boyfriend/husband
Compare - Fat funny sidekick

Contrast - One show has a lesbian(no offense meant Melissa) to round out their zany morning show therefore lacking the Midtown demo, the other does not. the key missing element to put in place Star's The Bizarro Bert Show.
Contrast - One show followed a legendary morning show, the other becane the legendary morning and only morning show the statio has evern know.(lesson here is never follow a legend)
Contrast - One used to do prank calls on Thursday the other does hourly prank calls.
Contrast - One show has a producer I have no idea whom that is, the other has an annoying whiny voiced puritan.
Contrast - One show is hip and cool as if you took dad's mid-life crisis car to school, the other is like you are driving mom's station wagon to school and you do not want to be spotted.

 

[taylorengineer]

Main Entry: 1waif
Pronunciation: \ˈwāf\
Function: noun
Etymology: Middle English weif, waif, from Anglo-French, from waif, adjective, stray, unclaimed, probably of Scandinavian origin; akin to Old Norse veif something flapping, veifa to be in movement — more at wipe
Date: 14th century
1 a: a piece of property found (as washed up by the sea) but unclaimed bplural : stolen goods thrown away by a thief in flight
2 a: something found without an owner and especially by chance b: a stray person or animal; especially : a homeless child
— waif·ish \ˈwā-fish\ adjective
— waif·like \ˈwāf-ˌlīk\ ad

Something found without an owner....especially by chance.
I think that WAS how it happened.......
Good diction Tibbs!