A Cumulus memo from Atlanta to its SF market cluster; KGO, KNBR, KSFO, KFOG and KSAN and KNBR 1050 --indicates "extensive cost-cutting proprietary" and that in addition to basic equipment and supply material, "staff reduction, particularly those who receive more than 'six-figure' compensation, high or low' would be subject to 'careful review."The memo was read over the phone to 415 Media by a local broadcast source who insisted its delivery be read rather then sent via e-mail and/or text.
Its authenticity was corroborated by a second independent source with knowledge of its content.
Among its Bay Area stations, there's selected air talent that receive both high and low compensation from Cumulus Media.
Last Friday, Cumulus dismissed KGO veterans Ronn Owens and Brian Copeland.
KNBR's highest paid talent, Gary Radnich and Tom Tolbert (among a few others) --are both in the "high-end" department but both deliver highly-rated numbers and their programs have good ratings. The memo didn't address various criteria nor who, if anyone, could be exempt only that a "major review" by department heads (themselves under the same scrutiny) be subject to the review.
In real terms, anybody making six figures is a little more nervous right now.
Cumulus recently declared Chapter 11 and has a $2.4 billion debt. Its payment on its first installment agreement was not paid as of this writing.
I hope Radnich follows Owens very soon.
ReplyDeleteRIP Herb Caen, Jazzbeaux Collins, John Wasserman, Bill Graham, Gene Burns, KGO.
ReplyDeleteLoved Jazzbeaux's overnight show in the Purple Grotto.
DeleteThis company behaves much like the idiot in Washington.
ReplyDeleteJust when you think it can't get any worse, it does!
We deserve so much better than this shite parade.
Who can afford to live in the Bay Area (with houses costing more than a million ) with only six figures?
ReplyDeleteThe millions who have had their homes for 30 years and more...and the very lucky overpaid everyone else.
DeleteNot an issue 8:13 PM, they can choose not to work in the Bay Area.
DeleteI would like to think that Murph and Mac don't make a six figure salary, but if they do please let that ax fall!
ReplyDeleteAt least with his solar roof,Murphy will still be able to pay his PGE bill. Unless,they repossess it..
DeleteMurphy could “pivot”, “circle back” and get a job delivering for that pizza joint he is always hawking.
DeleteThis company did what the Democrat party does whenever they have power. Put everything on a credit card. Now the bill is due and the company is bankrupt. At least KNBR will be safe.
ReplyDeleteDavid Ramsey is not on KSFO a Cumulus station, although I'm more liberal than conservative, I love his show and follow his principles about 80%, perhaps Cumulus management could learn something from one of their shows? Or is that too much to ask.
DeleteCumulus is a very right-wing company having contributed vast sums to the GOP. As for who puts what on a credit card, how about the GOP that put $1.5 trillion on the national debt for a tax cut that mostly goest to the one percent?
Delete@ 8:32: The company put everything on credit cards after the former CEO Lew Dickey basically looted all 500+ radio properties Cumulus bought, plus Westwood One. It became a familiar pattern: They took over, fired everyone making any real money, removed all the programming and sales chiefs and installed underpaid and overworked lackeys to (supposedly) replace them. They hollowed out stations like KFOG, eliminating talent and music directors but keeping the name and image, and milked that for as long as they could; now stuff is running out of gas after running on fumes for most of a decade. They sold news vehicles, dropped programming licenses, cashed in legacy broadcast facilities and tower sites, and picked up paid programming -- with every cent of revenue not needed for overhead going directly to Atlanta GA. By the time he got out Lew Dickey had sucked Cumulus' holdings quite dry, leaving the credit card for Mary Berner to take care of. As a parting FU, Lew and his bro John each took huge golden parachutes on their way out the door.
DeleteBTW, I think Lew is a republican, not a Democrat.
ah yes ,"David Ramsey" the con man who tells you that Jesus wants you to be rich, never mentions the money-changers being driven from the temple...
DeleteI wrote the comments at 11:32, not being religious I'm not well versed in the bible. I like Dave Ramsey's show, I like his personality, and his compassion, and the fact that is more than willing to tell his listeners about the mistakes he made with money. My point was that he gives some solid financial advise that many of us can use. Wish I would have known of his principles when I got my divorce settlement, I would be in much better financial position that I am now, not that I'm in a real bad position, but it has been up and down, and since adopting some of Dave's principals my finances had improved, and I never panic when I have a financial emergency.
DeleteI'm not a fan of Cumulus, but lets be fair, the point is that this high priced talent was/is overpaid. Once they were let go did they find an equal or better salaries, I bet not. That's the very definition of being above market
DeleteMoreover, who cares if you can sell ads for $ 600K and pay someone $ 400k, for $ 200k in gross margin, or sell $ 300K in ads and have $ 100k in syndicated program costs for a $ 200K gross margin, who cares. In fact the second option is better from an ROI basis (only invest $ 100k to mkae $ 200K vs. $ 400K to make $ 200k.
The reason you don't see new stations popping up paying top dollar for their talent and securing ad billings to support it, is that business model doesn't work anyone.
It's funny that the idiot who began this wrote what he wrote being that the Moron in Chief has proclaimed "I'm the King of Debt." How many times has he gone bankrupt? Who needed to be bailed out? The Banks? Sounds about right. The Dickeys took on debt without a product, and now they're done. When Democrats take on debt it's usually for causes like education, health, etc. Not giving tax breaks to corporations who then pocket the money - not reinvest.
DeleteRead a book, buddy.
11:41 The banks needed to be bailed out after terrible legislation passed by Clinton that finally festered under Bush. Another Colbert loving lemming with his head in the sand. I especially love how you parrot the talking points.
DeleteI'll add again that I work in the mortgage business. The legislation is not the cause of the overriding problem. It's ironic you'd call someone a "lemming".
DeleteNo one forced mortgage brokers to issue loans that could not be paid back based on stated income. It was a choice, and they were incentivized, but no one made them submit bad loans.
If the only bad loans were those that were buttressed by the administration you wouldn't have had a Trillion dollar bailout. You'd have had a correction, and some foreclosures. Not a national economic crisis.
Don't talk unless you know what you're talking about.
I would assume that Fatnich and Tolbert have contracts. Can they actually give them salary cuts if their contracts are current?
ReplyDeleteGlad 107.7, The Bone is unscaved. LaMont and Toneli are safe. They're untouchable!!!
ReplyDeleteGood job Rich, thanks .
ReplyDeleteProof that greed isn't good. Cumulus and their selfish ways have put them in a precarious situation. Too bad. You get what you deserve. Sad part is seeing all of the innocent people getting hurt in this. Hard working folks who will be sacrificed because Cumulus ate too much at the dinner table. Hey Fatnich: enjoy that stuffy snotty Bentley of yours now. You may have to trade it in for a commoner's vehicle.
ReplyDeleteGeez, I guess Muzak is in store for our local radio stations.
ReplyDeleteIn regards to Gary, when his contract is up, I could see them parting ways. For the last five years or so, all he has done is mail it in. Larry does the real work. That guy is on top of everything. Gary at times has no clue. And I like Gary, but enough is enough.
ReplyDeletePerfectly stated Some Guy at 8:07. The Dickey's weren't clueless. Their game plan was executed to perfection. They made millions and left a wake of misery behind them. It all happened in less than 5 years from their takeover in 2011. Those two guys should be strung up the flagpole.
ReplyDeleteI heard Ethan Bearman’s Show today and didn’t hear is sidekick. Sounds like she got fired too. Is there going to be a replacement for her?
ReplyDeleteThe irritating giggle girl is now working with Dr. Drew using a different moniker. And they still think we believe Bearman is Bay Area local. How stupid are they?
DeleteGod I hope she's gone. Very annoying! Why replace her? It's another expense for a loser show.
DeleteIt's damn near impossible to live here and practice what Dave Ramsey believes. If you really wanted to do that, you probably have to move. That's why we haven't seen or heard too much from him out here. His appeal is largely limited to lower or even moderate cost of living markets. Yeah...I guess it would work in Charlotte or Atlanta but get up to the Maryland burbs of DC and there's no way. Virginia burbs? Maybe...just maybe, if you live far enough away from the expensive real estate. It works pretty damn well in Ohio but you can't live in Ohio and expect to have a professional career that isn't medical or deeply plugged in legal. It doesn't exist there. It will never exist there but here again, highly paid or well educated professionals don't listen to him anyway. I listened years ago but became weary of his shtick. That's what it is.
ReplyDeleteRich, you having such deep connections to get the low down on the inner goings is such a testament to you and 415 Media.
ReplyDeleteI wish more readers would support you financially through donations, you won't get these insights from anywhere else, I'm sure you've broken stories from right under co-workers noses. BRAVO Mr.L
The unsecured claim filing by iHeartMedia joins nearly 100 other claims against Cumulus, which was carrying $2.3 billion in debt prior to the November 2017 filing. Cumulus hopes to emerge from Chapter 11 by late May.
ReplyDeleteCumulus has a key court date set for Feb. 1, when Judge Shelly C. Chapman will preside over a disclosure statement hearing to determine the possible approval of the Cumulus disclosure statement. Right now the broadcaster’s reorganization plan calls for about 83.5% of the new company, once it emerges from Chapter 11, to be held by lenders that now hold over $1.7 billion of the company’s debt. The “Official Committee of Unsecured Creditors” thinks the official lenders settlement is too generous, according to court records.
Members of the unsecured creditors committee include Enticent LLC (dba as Triton Digital), U.S. Bank National Association, Angelo Gordon Super Fund, Ivy High Income Fund, EJS Investment Holdings, Caitlin Ferrari and the Screen Actors Guild-American Federation of Television and Radio Artists. (From Radio World online) If indeed Cumulus has missed an agreed-upon payment, the judge could (legally) convert the Chapter 11 filing to a Chapter 7 and order a liquidtion sale. They'd better step up; as it's ALL on the table at this point.
I listened to Ronn's 15 minute segment today (Tue, Jan 23) and found it interesting. While I rarely listen to KGO these days, I hope that segment continues. It would give me a reason to tune in to KGO radio for 15 minutes anyway. If folks at KGO are listening in here, suggest they drop the distracting background music during Ronn's segment.
ReplyDelete