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Payola: Dave Universal Rips Into Spitzer

S

Slinky

http://www.buffalonews.com/editorial/20050803/1007283.asp

Excerpt:

"Air time is often determined by undisclosed payoffs to radio stations and their employees," Spitzer said at a news conference. "This agreement (with Sony) is a model for breaking the pervasive influence of bribes in the industry."

Not so, says Dave Universal, former program director at WKSE-FM 98.5, who called the Sony report "garbage," adding he was being made a "scapegoat."

Universal has been at the center of the Spitzer probe and was fired from Kiss in January for what Entercom Communications Corp, the station's owner, called a violation of its conflict of interest policy. Universal, who lives in Amherst, denied that anything he received from record companies influenced what he played on the air and said trips and other items were all part of doing business.

But Spitzer released an e-mail this week from a promotion executive at Sony BMG's Epic Records stating its dealings with Universal:

"Two weeks ago it cost us over $4,000 to get Franz (Ferdinand) on WKSE. That is what the four trips to Miami and hotel cost. . . . At the end of the day (David) Universal added GC (Good Charlotte) and Gretchen Wilson and hit Alex up for another grand and they settled for $750. So almost $5,000 in two weeks for overnight airplay."

Universal was angry over the report and accompanying national publicity he has been getting since it was published.

"All I'm going to say is what came out in the Sony report is a bunch of garbage," Universal stated in an e-mail response to The Buffalo News. "All three specific things they described are completely inaccurate. I never said, "Give me this and I'll add that.' We didn't break every ratings record in Kiss 98.5 history by me adding stiff records for gifts.

"Pending our future lawsuit, I can't get too specific, but apparently I'm so smart that I spent the last 14 years scamming all the billion dollar record labels and my old company was clueless. I went on business trips that led to them (Entercom) making tons of money."

Universal was particularly upset over the local impact of the report, including a front page story in The News. Universal said in a telephone interview his name will appear in upcoming future releases for the investigation.

"The last thing I want . . . is for (people in Western New York) to see my picture on the front page of the paper and think I did something wrong," Universal added in the e-mail. "I worked my butt off day and night to make Kiss 98.5 special for 17 years because I loved that station and the people I worked with.

"I was a client for these guys. Me hanging out at games or in Miami is no different than what every single politician does on a daily basis. It was never tit for tat."

The $10 million Sony will pay won't make much difference to the company or other major labels, Universal stated.

"$10 million, tax deductable, to these guys is like 100 dollars to you and me. Making me a scapegoat is the real issue - how they "write off' their expenses is very easy for them to do. I am shocked that Mr. Spitzer's report was released as if what Sony claims is true."
 
Question for Dave Universal

If Sony's money did not influence airplay, then why in the world do you think they, and other companies, part with the money?

This reminds me of what Charles Keating said. For those who may not remember, Charles Keating was convicted of fraud in the 1989 Savings and Loan Scandal. Government officials naturally denied that Keating's political donations had influenced them.

But when Keating himself was asked if his expensive and massive lobbying efforts had influenced the government officials, he famously replied:

"I certainly hope so!"<P ID="signature">______________
Jerry

"Everyone is entitled to his own opinion, but not his own facts" - late Senator Daniel Patrick Moynihan</P>
 
> "The last thing I want . . . is for (people in Western New
> York) to see my picture on the front page of the paper and
> think I did something wrong," Universal added in the e-mail.
> "I worked my butt off day and night to make Kiss 98.5
> special for 17 years because I loved that station and the
> people I worked with.

Cry me a freakin' river. The guy is a sleazebag and when the DA indicts him, in part with the blizzard of e-mail this guy generated over his goodies, he can tell it to the judge.

> "$10 million, tax deductable, to these guys is like 100
> dollars to you and me. Making me a scapegoat is the real
> issue - how they "write off' their expenses is very easy for
> them to do. I am shocked that Mr. Spitzer's report was
> released as if what Sony claims is true."

"I am shocked... shocked to discover gambling going on in here."
 
Re: Question for Dave Universal

I'm not defending Unversal's practices, nor am I going to guess what actually went on, but the form of "payola" that he is defending is consistent with what happens in just about every business.
My brother is a physician who is contstantly being offered trips (mostly from drug companies) to exotic locals where he and his wife will be feted and treated while attending conventions that introduce new products and services that he might use in his practice. He is also given drug samples just about every day. He accepts them all and occasionally turns around and gives them to patients who might want to try them out or can't afford to shell out for the exorbitant price tags these drugs carry.
Occasionally he accepts the trip or the hotel room...or at least a dinner out with other doctors, some of whom go to the theatre or the local watering hole as guests of the drug reps after dinner. I know this because he once came to Toronto on such a junket and invited me to join him there because the drug company would pay for a good dinner for me, since my sister-in-law didn't travel with him.
If this kind of "payola" is going on in the medical profession, do you think the Spitzer will be investigating it and you'll see your local doctor's face on the front page of the paper because he let a drug rep take him to dinner and a show and gave him $xx.xx worth of samples to do with what he wanted?

I think that somehow the pharmeceutical lobby would step in and have this kind of investigation squashed. But then again, their lobby is a lot stronger than the communication industry's, isn't it?
 
Question for Desi-Bell

> I'm not defending Unversal's practices, nor am I going to
> guess what actually went on, but the form of "payola" that
> he is defending is consistent with what happens in just
> about every business.

Are the laws regarding payola the same for radio as they are for other businesses? I don't know. I do know that there are long-standing and well delineated laws, rules, and regulations regarding payola in the radio industry.

The Attorney General's office has outlined the practices and laws regarding their payola probe in the first section of their press release on their settlement with Sony Records.

The crux of the matter is whether or not Dave Universal (and many others) received money, goods, and/or services in exchange for adding a performance to their playlist. Dave says no. The memos and e-mails included in the second part are offered to support the AG's contention otherwise.

Do the same laws apply to other industries? Should they? That is a topic for discussion with your local attorney or congressman. If you're in radio, you'd better know and understand the rules. Most owners require you to sign a disclosure agreement annually regarding payola, and that agreement usually spells out your responsibilities quite well.

To me, your line of thinking smacks of the discussion we've all had with our parents, along the lines of "Everybody else does it!".
 
Re: Question for Dave Universal

We're getting into an area I know little about (legalities with regard to drug company practices) but I don't think free drug samples are analagous with prizes or money. That's more like the free CD's radio stations receive. Items below a certain value are not considered enough to influence anyone. Lunch for example. A sales rep is buying his prospects time, but not expecting a purchase for such small consideration. But exotic vacations from a vendor in any profession is obviously unethical. Legalities are another matter. From what I read, Vermont has a law unique in the country requiring disclosure of such payments to physicians but does not ban them. Source: Times-Argus

In the case of radio, there are very clearly defined laws on payola. No doubt that Spitzer is a publicity seeking politician but that doesn't mean his charges are without merit.

For my part, allow me to declare my lack of innocence. I spent 24 years in radio. I was a General Manager for a good number of those years. I was naive to the practice at first. Then when I realized what goes on, I only made vague complaints similar to what I wrote above: "if we aren't adding records for money, why are they paying us?" I never really did anything about it.

At one point within the last five years, I was working as a GM for a large publicly-traded radio comapany and sat in my office with a regional Programming VP and a new RVP. I was explaining to the new RVP how blatant and obvious it was that vast amounts of payola was occurring under our noses, especially among the urban stations. The RVP expressed shock and the programming VP nodded in agreement with what I was saying. There was a belief that some higher ups in the company were well aware of it but didn't want to deal with it because of the racial implications. (Or possibly, unbeknownst to us, were dealing with it behind closed doors.) It was agreed that we just shouldn't go there. It was our urban consultant who impressed upon me that the problem was even bigger than I thought.

It wasn't that much later that radio companies began severing ties with indies. I applaud them. It didn't come soon enough but as I said, I'm in no position to point fingers. I wasn't exactly railing to executives, let alone legal authorities.
<P ID="signature">______________
Jerry

"Everyone is entitled to his own opinion, but not his own facts" - late Senator Daniel Patrick Moynihan</P>
 
Re: Question for Dave Universal

When a grade B movie talent shows up on some talk show they're being paid. When TV and Radio trades half-hour and hour long blocks selling real estate schemes, vitamins, used cars or jewelry, there's money being passed around. When Ann Coulter shows up on Fox, spews a few charged words, hawks her book and flashes her legs she's probably got a nice hotel room, limo package and a few other perks.

When it comes to Rap and Rock artists however they invite the wrath of the government who, backed by archaic laws from the McCarthy era, clamp down on language and threaten liscenses.

Rigged contesting is one thing. Pay-for-play is something that everyone, everywhere does all of the time in media. Want payola corruption in music radio? Look at Nashville and the Country guys. Way worse than Top 40 but...it's in Red state country. Drinking, fighting, cheating and cussing is O.K. on Music Row but anything that some freaky Rap or Rock artists does gets scrutinized by...the local Attorney General.

We live in an ultra-capitalist society, part of the consequences since the end of the Cold War. We have an MBA President, Congress and, soon, Supreme Court. Even Spitzer is after you. Think about that.
 
Re: Question for Dave Universal

"When a grade B movie talent shows up on some talk show they're being paid."

Yeah, scale. Any other benefit is mutual. There are no laws regulating it so no laws are broken.

'When TV and Radio trades half-hour and hour long blocks selling real estate schemes, vitamins, used cars or jewelry, there's money being passed around."

Yeah, it's called "selling airtime" whether its cash or barter.

"When Ann Coulter shows up on Fox, spews a few charged words, hawks her book and flashes her legs she's probably got a nice hotel room, limo package and a few other perks."

Of inconsequential financial value. Al Franken gets the same perks although I hope he doesn't flash his legs. This is how The Tonight Show works. You get paid scale, you get some exposure. The show gets guests.

"When it comes to Rap and Rock artists however they invite the wrath of the government who, backed by archaic laws from the McCarthy era, clamp down on language and threaten liscenses.

Oh, please. What McCarthy era laws do you refer to? By zeroing in on Coulter, Fox and McCarthy, you betray your true motives. They are obviously political, not ethical.

"Rigged contesting is one thing. Pay-for-play is something that everyone, everywhere does all of the time in media. Want payola corruption in music radio? Look at Nashville and the Country guys. Way worse than Top 40 but...it's in Red state country. Drinking, fighting, cheating and cussing is O.K. on Music Row but anything that some freaky Rap or Rock artists does gets scrutinized by...the local Attorney General.'

Evidence. You need evidence. Got any? Besides, Spitzer has no jurisdiction in Tennessee.

"We live in an ultra-capitalist society, part of the consequences since the end of the Cold War. We have an MBA President, Congress and, soon, Supreme Court. Even Spitzer is after you. Think about that."

I'll think about that. But first I am thinking about something else. I'm thinking that this is my real name and I stand by my words while I argue with someone who rants anonymously. There are good reasons for some people in radio to conceal their identity on a radio board. But you are a bartender. What's that about?<P ID="signature">______________
Jerry

"Everyone is entitled to his own opinion, but not his own facts" - late Senator Daniel Patrick Moynihan</P>
 
Re: Question for Dave Universal

Just dishing it out Jerry. I know it's very tough for the hardcore liberals in places like New York to actually clench there fists and stand up for themselves against the non-stop bile, and hijacking of the commercial airwaves, that permeates the corporate media.

And yes my motives are political so what're you gonna do about it huh! Reveal your identity. And how does it feel backing hacks like Coulter, a Fairfield Co. deb you'd probably never have a chance at dating, let alone talking too. And just how is it that you're so familiar with the disclosure regulations?

Inconsequential followed by slamming Al Franken! What's your point. Did Rush do anything to help the Feds with his pill popping scheme? How about Bennett and his gambling problems! Does it comfort you that many significant voices, over our airwaves, belong to convicted felons like Liddy and North? So Franken has bad legs and I'm sure he'd be the first to tell you that but he's never been CONVICTED of it, or anything else that I can recall.

In the meantime some goof named Dave Universal is getting skewered. And by the way I really don't know who you are, real name or not, so it's O.K. to be anonymous. You don't have to broadcast that. I'll smear your insignificant name just like your convicted felons do all of the time.


> Yeah, scale. Any other benefit is mutual. There are no laws
> regulating it so no laws are broken.
>
> 'When TV and Radio trades half-hour and hour long blocks
> selling real estate schemes, vitamins, used cars or jewelry,
> there's money being passed around."
>
> All perfectly legal if fully disclosed. If not, illegal.
>
> "When Ann Coulter shows up on Fox, spews a few charged
> words, hawks her book and flashes her legs she's probably
> got a nice hotel room, limo package and a few other perks."
>
> Of inconsequential financial value. Al Franken gets the same
> perks although I hope he doesn't flash his legs. This is how
> The Tonight Show works. You get paid scale, you get some
> exposure. The show gets guests.
>
> "When it comes to Rap and Rock artists however they invite
> the wrath of the government who, backed by archaic laws from
> the McCarthy era, clamp down on language and threaten
> liscenses.
>
> Oh, please. What McCarthy era laws do you refer to? By
> zeroing in on Coulter, Fox and McCarthy, you betray your
> true motives. They are obviously political, not ethical.
>
> "Rigged contesting is one thing. Pay-for-play is something
> that everyone, everywhere does all of the time in media.
> Want payola corruption in music radio? Look at Nashville and
> the Country guys. Way worse than Top 40 but...it's in Red
> state country. Drinking, fighting, cheating and cussing is
> O.K. on Music Row but anything that some freaky Rap or Rock
> artists does gets scrutinized by...the local Attorney
> General.'
>
> Evidence. You need evidence. Got any? Besides, Spitzer has
> no jurisdiction in Tennessee.
>
> "We live in an ultra-capitalist society, part of the
> consequences since the end of the Cold War. We have an MBA
> President, Congress and, soon, Supreme Court. Even Spitzer
> is after you. Think about that."
>
> I'll think about that. But first I am thinking about
> something else. I'm thinking that this is my real name and I
> stand by my words while I argue with someone who rants
> anonymously. There are good reasons for some people in radio
> to conceal their identity on a radio board. But you are a
> bartender. What's that about?
>
 
Re: Question for Dave Universal

By the way Jerry I remember Keating. Kind of hard to forget when a relative lost some money. You might want to note that it cost this country over 500 billion dollars. The sheer number of GOP scumbags involved meant that the Justice Department decided to just write it off. According to the government it would've taken well over a decade and, untold millions, if not billions, to prosecute these jerks. Keating was the fall guy. Nothing more.
 
When the law is not enforced

EVERYBODY DOES DO IT IN BUFFALO, AND ALMOST EVERYWHERE ELSE!!! Lets just say there will be alot of openings in radio soon!!! For any one person to believe that Dave was, or is the only PD in todays era to do these things is living in the land of make believe.. When laws are not enforced this is what happens, now it is getting enforced and now everyone is starting to sweat!
 
Whoa! Check your facts

> You might want to note that it cost this country over 500 billion dollars.
> The sheer number of GOP scumbags involved meant that the Justice Department decided to just write it off. <

GOP scumbags? The Keating 5 were four Democratic Senators (Cranston, DeConcini, Glenn and Riegle) and a Republican-in-name-only, McCain (how quickly they forget!) And let's not forget the Dems were in control of the Senate during the first Bush administration and were eager to sweep it under the rug.
 
Until now...

> EVERYBODY DOES DO IT IN BUFFALO, AND ALMOST EVERYWHERE
> ELSE!!!

Which is why Dave Universal, WKSE, and Buffalo are not the only people, stations, or markets named in the release by Spitzer's office.

Once again, Spitzer has not charged Dave Universal with anything. He has offered information that seems to implicated Dave Universal, among others.

Spitzer has taken on "business as usual" - meaning corrupt - in the insurance industry, on Wall Street, and now in the media. Each time, pundits have declared that the "sacred cow" could not be butchered, and each time Spitzer has won. In general, his actions have resulted in positive changes that benefitted "the good of the many" instead of "the good of the few".
 
Re: Whoa! Check your facts

How many Dems are bankers? Like I said they found some folks to take the fall. Keating got airtime, they fingered some Dems too, conveiniantly, and they washed there hands.

The GOP have been playing the blame game since Carter. It's getting old. And broadcasting, in general, has some serious issues to deal with in regards fair play. Playing fair, in todays media, is something mom should've tought you. It's not taught within the confines of a corporate media board meeting.

By the way just what are your facts. Where are they?
 
Re: Whoa! Check your facts

> How many Dems are bankers?

The obscenely wealthy Robert Rubin and John Corzine come to mind.
 
Re: Whoa! Check your facts

> GOP scumbags? The Keating 5 were four Democratic Senators
> (Cranston, DeConcini, Glenn and Riegle) and a
> Republican-in-name-only, McCain (how quickly they forget!)
> And let's not forget the Dems were in control of the Senate
> during the first Bush administration and were eager to sweep
> it under the rug.

Party affiliation has nothing to do with the payola scandal. There are dirty politicians on all sides of the aisle... nothing new there.
 
Re: Question for Desi-Bell

> > I'm not defending Unversal's practices, nor am I going to
> > guess what actually went on, but the form of "payola" that

>
> To me, your line of thinking smacks of the discussion we've
> all had with our parents, along the lines of "Everybody else
> does it!".
>

As I said, Rox, I'm not defending Universal or his practices, but bottom line is why is he being singles out here? Why a Buffalo station owned by a minor player in the radio corporate game? I did read a post below that indicates that Universal has not be singled out by name in Spitzer's filings (which I was not aware of), so this whole topic may be somewhat misleading. Perhaps the right questions to ask are why Entercom is hanging Dave U out to dry...and why aren't bigger communications/radio companies being investigated for what are more obvious and blatant transgressions (like Clear Channel's owning concert venues and bullying artists to play them or get their songs dropped by CC stations).

Come to think of it, even that may be a wrong question since what I just said raises questions that are better answered at a federal rather than state level.

And then there's the fact that a universally liked man (pun intended) who from all reports is also a good radio guy is being sacrificed in what is beginning to look like a political move that will open the door for Elliot Spitzer to run for Governor. Unless, of course, I'm being way too cynical.
 
Reading Comprehension Test

> > > I'm not defending Unversal's practices, nor am I going
> to

Desi, have you READ the AG's release? If not, go HERE and take the time to educate yourself.

> As I said, Rox, I'm not defending Universal or his
> practices, but bottom line is why is he being singles out
> here?

This has already be answered several times, but let me try once more:

One might conclude that either DU was the most demanding, or that he p*ssed off the most people at SONY. Once again, he wasn't the only one "fingered". His name is the most prominent because he has responded in the media, and taken on Spitzer in the court of public opinion. The other guys have learned to STFU and let their attorneys do the talking.

> Why a Buffalo station owned by a minor player in the
> radio corporate game?

Minor player? If you consider the 7th ranked ownership group, with over a hundred stations as a minor player, I guess you have a point. WKSE, and Dave Universal in particular had a reputation for breaking records. I guess most people weren't aware that it's a lot easier to pick hits if you know which songs and artists the record company is going to pour a lot of money into. Also, he apparently wasn't very clever about isolating himself from the "benefits".

> I did read a post below that indicates
> that Universal has not be singled out by name in Spitzer's
> filings (which I was not aware of), so this whole topic may
> be somewhat misleading. Perhaps the right questions to ask
> are why Entercom is hanging Dave U out to dry...

Dave apparently broke the laws regarding payola, which probably voids his contract with Entercom, and brings the wrath of Spitzer down on Entercom. Dave hung Entercom out to dry as much as the reverse is true, and hasn't been smart enough to STFU in public, creating even more problems for Entercom. And, Dave is NOT the only one named, just as WKSE is not the only station named, and Entercom is not the only group named. Dave's continued public statements are what draws attention to him and his part in the charges against Sony.

> and why aren't bigger communications/radio companies being
> investigated for what are more obvious and blatant
> transgressions (like Clear Channel's owning concert venues
> and bullying artists to play them or get their songs dropped
> by CC stations).

Who says that's not being investigated? As a matter of fact, there have been several court cases regarding such practices. CC has settled some of them out of court, and I think they lost at least one. It's apparently worrisome enough that they've split the company, and they're spinning off the concert business.

> Come to think of it, even that may be a wrong question since
> what I just said raises questions that are better answered
> at a federal rather than state level.

Spitzer's the NY AG, and is running for governor in NY. As has been stated in other threads, the media is just the most recent sacred cow to get gored. It also seems that payola is so widespread, the pockets of the perpetrators so deep, that the case will make headlines and bring in significant dollars in fines.

> And then there's the fact that a universally liked man (pun
> intended) who from all reports is also a good radio guy is
> being sacrificed in what is beginning to look like a
> political move that will open the door for Elliot Spitzer to
> run for Governor. Unless, of course, I'm being way too
> cynical.

Spitzer is running for governor. That is not news to anybody. Dave was NOT universally liked, and created his own mess by getting greedy. READ THE AG's RELEASE. It's pretty much laid out in black and white.
 
Re: Reading Comprehension Test

>
> Spitzer is running for governor. That is not news to
> anybody. Dave was NOT universally liked, and created his own
> mess by getting greedy. READ THE AG's RELEASE. It's pretty
> much laid out in black and white.
>

Thanks for straightening me out on somne of those points, and I will read the AG release as soon as I have a few minutes.
The one thing I need to say here is that my contacts inside the industry in Buffalo tell me that Dave spoke out only AFTER he had been fired by Entercom, which to me indicates that they were hanging him out to dry. What the time line is in terms of when indictments were handed out and who got them is not clear to me (or my source) at this time.
 
Timeline

> The one thing I need to say here is that my contacts inside
> the industry in Buffalo tell me that Dave spoke out only
> AFTER he had been fired by Entercom, which to me indicates
> that they were hanging him out to dry. What the time line is
> in terms of when indictments were handed out and who got
> them is not clear to me (or my source) at this time.

The AG's office came in an starting collecting boxes and boxes of records from the local radio stations last October. Dave was fired the end of December, most likely after pointed inquiries regarding some of those records were made to upper management at Entercom. That hardly sounds like being "hung out to dry". Amputation of a festering limb is likely to be a more apt analogy.
 
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