Re: WNRB wins Pats show from WEEI

[Dan Strassberg <dan.strassberg@worldnet.att.net>]

>Date: Sun, 28 Feb 1999 10:29:10
>To: "Kevin Vahey" <kvahey@channel1.com>
>From: Dan Strassberg <dan.strassberg@worldnet.att.net>
>Subject: Re: WNRB wins Pats show from WEEI
>
>At 05:32 AM 2/28/99 -0500, you wrote:
>>Story in the Sunday Herald about WNRB getting the rights to Pete Carol and
>>Drew Bledsoe next season away from WEEI.
>>
>Very telling quote in story from WEEI's new owners....that in effect said
>>since the show only made 2 times the expense, it was not worth the stations
>>time since we are a public company. We want TEN times revenue over expenses.
>>Sounds like heads may be rolling soon at sportsradio 850.
>>
>As I read it, the 10 times figure did not appear in a quote from anyone at
Entercom, but was attributed to an unnamed "industry source." Still, if this
does reflect Entercom's expectations, I have to ask what Entercom management
is smoking. Even Microsoft, which has to be the most profitable major
company in America (in terms of the percentage of revenues it captures as
profit), has a pre-tax margin of only about 50%, which translates into an
after-tax profit of about 25% of sales. Most companies take between 4 and
10% of sales as after-tax profit, and roughly double that percentage as
pre-tax profit. If Entercom wants a 90% pre-tax profit, they are looking for
a margin that must exceed seven times the average in US industry and is
almost double that of Amreica's most profitable large company.
>

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Dan Strassberg (Note: Address is CASE SENSITIVE!)
ALL _LOWER_ CASE!!!--> dan.strassberg@worldnet.att.net
(617) 558-4205; Fax (617) 928-4205

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