It is known and reported as fact that Ronn Owen's "super agent" - Don Buchwald (representing Howard Stern and others,) presented an offer on behalf of Owens to Cumulus, that was made to lower his over $1-million-a-year salary for a three-year-extension of Owens' contract. The idea didn't fly with Cumulus and was rejected out of hand.
Due to a contract clause from his five-year-agreement from 2006, there is, as in many corporate contracts an "indemnity" clause that, depending on wording, would, if the clause is violated "for willful cause" to terminate the contract with no buyout or even that the person under contract would have to "buy out" a substantial sum to the employer to pay for "damages" for loss of services to the corporation so writing the contract.
That's why you hear of talent in many markets renegotiating at a lower rate for an extension of a contract, or a company buying out a contract (which Cumulus allegedly refused to do,) or the "talent" just up and up quitting, thus breaking the contract and not only not collecting what remains on the contract, but potentially having to pay back the corporation for "loss of services."
**Cumulus is the company known for it's high tech "management style." Aside from it's often cruel and disastrous consequences dealt to employees who are terminated, the company has in the last two years, installed cameras in sales offices that allow Atlanta headquarters to "keep an eye and ear" on meetings in its properties (at least it's biggest ones) to make sure that policies and corporate strategies were being followed to the letter. Legal? Yes. People are "out in the street" and not hanging around offices when they know (or don't know) if "Big Brother" is watching from the "eye in the sky." The company has other odd tactics, too. And watch out on those health plans, medical coverage reimbursements and expenses. A book could be written about these practices.
As I have said repeatedly, Cumulus is not in the broadcast business. They're bankers. They care about money and their shareholders. Everything else is secondary. Period.
*Rich Lieberman 415 Media Exclusive
*Tips/E-Mail: Rich.Lieberman@Gmail.com (All confidentiality assured)
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When is Len Tillum's first show? Ronn is screwed. I'd like to hear Len's "on air" advice for Ronn.
ReplyDeleteWhy would Ronn want to extend his "sentence" with this outfit? Going through the motions for a full year would definitely take it's toll.
Welcome to corporate America. Hope the sheeple enjoy this crap while they laugh at those trying to change it in the Occupy movement.
ReplyDeleteWait - I thought stations never let their hosts do goodbye shows. Owens gets a whole year?
ReplyDeleteI don't really understand - why would the employee try to extend the contract at a lower rate partly due to the indemnity clause - too technical for me.
ReplyDeleteAll legal, but not necessarily ethical. Ethics? What ethics? Tricky Dickey strikes again!
ReplyDeleteWow, Ronn is screwed either way. And I feel sorry for anyone who still works at KGO. :(
ReplyDeleteRich thanks for these updates.
ReplyDeleteInteresting reading.
Michael Luckoff said it best and I am paraphrasing
"these guys are bad people"
Now we know why.
The work envirnoment at KGO sounds toxic.
ReplyDeleteI am surprised Mel Baker has not piped in to defend the practice of cameras in the sales department...
ReplyDeleteThere will be no farewell show.....I'd guess around Thanksgiving he'd be called into a room after his show and told his services are no longer needed. If he has met the terms of his contract, he will be paid the last month. Temporary fill ins may take over the time spot, however they may just replay the last hour of news a few times as well.
ReplyDelete....And with a little luck, Jared will be out the door right behind him. Ah yes, Karma can be a beautiful thing.
ReplyDeleteHe'll go on 'vacation' at the end of the year, tell his listeners that he hopes to be back etc.
ReplyDeleteBut he'll be let go while he's gone, avoiding the embarrassment of having to have his work area cleared while Cumulus security watch him. He'll clean it out before he heads off for vacation.
Commenter @ 2:58 PM - LOL! That made my day. :`D
ReplyDeleteYour description of Cumulus' business practice sounds quite similar to that of Bain & Company. We all know who the co-founder of Bain right?
ReplyDelete..and if anyone would know what a bad person is, it's Luckoff.
ReplyDeletealways a good read to see how misinformed you are. keep up the "work" rich! dont get worn doe like the last few weeks. and please, dont set foot on a treadmill. it would be fatal. Also, keep posting your source list. could prove useful when fingering those to withold info from.
ReplyDeleteOh, poor Anonymous at 4:29 p.m., someone took the punctuation and spelling chip from his memory card. It's always a shame when those who are intelligent have such a hard time putting their thoughts into words that actually make sense.
ReplyDeleteAnd as for me, keep up the good work, Rich. I do mean it. I appreciate hearing what's going on with KGO after those other extremely intelligent minds at Cumulous made those highly rational decisions to fire some of the best talk talent in the U.S.
I don't quite understand why Ronn would want to play ball with these ....bags, unless they've somehow threatened his family. I always thought he was a pretty intelligent guy whom I sometimes disagreed with, but I never thought he would stoop to shilling in the land of make believe. He had tons of fans who would have stood by him, just as we did the other fired hosts, so that when his time comes, he'd still have loyal listeners. I wonder what his ratings have been like since the firings?
I wish I could say I'm surprised at what you have reported. But, I'm totally not surprised at all.
ReplyDeleteI think this explains why Ronn has been so indifferent to the mass firings of his cohorts. He's going to be going through the motions for the next 10 - 11 months before Cumulus will finally buy him out and go to some other cheapo format that will be cheap to air but no one will listen to. The poster at 3:42 is about right.
Gene burns is right, Ronn's screwed after his time at KGO. Ronn knows it too. I hope he saved enough money for retirement.
Anon at 4:29 PM, I guess you aren't too busy getting coffee for the gang at 55 Hawthorne right now, eh?
confirms my initial assessment that Ronn may have to indemnify Cumulus if he quits for whatever reason before his contract expires. which also shows Rich's fair and balance reporting.
ReplyDeleteCumulus is from Atlanta. modern management style they are not. when did you last have a Google, Facebook, Apple, Intel, eBay, Hewlett Packard out of Atlanta? answer: none. all they have is Coca Cola (toxic obesity drink) and CNN (nobody watches).
Oh, my, Anonymous at 4:29 pm, pretty much sums up the Cumulus perfect "type." 'Nuff said. But I'll put it this way: Perfect example of the dumbing down of America.
ReplyDeleteWe normal intelligent folks really appreciate you keeping us up-to-date. I miss KGO as much as I did those first few days... the emptiness is not going away.
Ronn still at KGO in a year? Who thinks Cumulus will be around in a year?!! KGO is decimated, and Ronn may never get paid. The reason Ronn wanted a three-year extension, albeit at a lower pay rate, is 3 years at 65% is better than one year at 100% in these shaky times. Ronn is no fool.
I do a little cheer every time I hear 910 announce its line-up for next week. Gene and Len. Ah, something good to look forward to!!
I am warming up TuneIn Radio so I can listen to Gene next week while I am away.
ReplyDeleteMike posted: I am warming up TuneIn Radio so I can listen to Gene next week while I am away.
ReplyDeleteYou won't be able to listen to Gene on TuneIn. All the Clear Channel stations are streamed on the iHeart Radio app only.
There's only one way that Lieberman would have received this info...it's from someone in Ronn's camp. Basically it's Ronn telling us that his back is pinned to the wall. That really has to suck.
ReplyDeleteAmen to the new line up at 910 with Gene, and Len. I have listened to KGO a few times, well actually I listen on the week-end when the have talk hosts on. I like Stacy Taylor, and thought he was a good addition before they fired my favorites, Gene,John and Gil. I have listened to the news a few times, but too boring to stay tuned, too much sports, repetition, too many stories about things I don't care about. Have written the new management several times, wonder if they even bother to read comments from loyal listeners, I have listen to KGO since 1996. Can't wait to hear what Gene has to say, I'm off work that day and will tune in to both Len and Gene from beginning to end, sure many former loyal listeners to KGO will as well. As least someone at Clear Channel had some brains.
ReplyDelete