Radio giant owns both KGO and KSFO; future of both stations unclear--
Citadel Broadcasting Corp., the third-largest radio broadcaster in the U.S., is preparing to file for bankruptcy by the end of the year, according to people familiar with the matter.
Citadel's long-expected move is yet another reminder of the travails facing media companies, which are up against stiff competition and shifts in consumer habits. Advertising revenues have plunged for newspapers, radio broadcasters and television stations.
For radio companies, overall ad revenue is expected to drop 19% this year, according to research firm BIA/Kelsey.
++Locally, both dominant KGO Radio and KSFO are owned by Citadel. For the short term, there will be no noticeable major change from an on-air talent standpoint, but industry observers expect an eventual overhaul, in areas of news personnel, sales dept. shake-ups and lower and mid-level management.
Although KGO is the Bay Area's dominant, perennial #1 radio station in the PPM's "overalls" (overalls 6+listeners) it lags far behind in the advertiser-coveted A25-54 demo. The story at right-wing/conservative "hot talk" KSFO is essentially the same.
Both stations have some of the highest-paid broadcasters in the SF market; KGO's Ronn Owens, who rules the overall ratings and has tonsiled at the station for over 34 years, commands a seven-figure salary. Owens is one of the few talents in the biz that possesses a "personal-services" contract. His agent is Don Buchward, who also represents Howard Stern.
Could Citadel's BK affect Owens' future at KGO? What about the money? Earlier this year, I e-mailed Owens about that very subject. He indicated that because he has a "PS" contract, he would be protected by any potential Citadel BK filing.
My best guess is that Owens will carry on, at least for the length of his contract. KGO may be forced to make significant cuts in its news and sports dept.
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