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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