Re: Howard: Hanging It Up? or Contract Ploy?

[dan.Strassberg@att.net]

Gimme a break! Such stories are de rigeur whenever 
highly paid talent (and in Stern's case, I use the word 
advisedly) goes into contract negotiations. Mel and his 
minions will bargain hard, but in the end, there isn't a 
chance that they will let their cash cow get away. The 
affiliates will just have to pay more as their contracts 
come up for renewal. A few stations will undoubtedly 
turn away, but WWI will simply find new stations that 
are willing to pay more for the syndication rights in 
their markets. Maybe some stations, as has been the case 
with WEEI and Imus, will even be able to claim that they 
made a smart move.

It sure could get interesting, though, if some Infinity 
stations balk at the price. I don't know how much, if 
any, of an Infinity GM's compensation is based on how 
the parent company (CBS) does. Most likely, a GM does 
much better financially in a year in which his group 
does well but CBS's financial performance is flat than 
in a year in which CBS does well, but the GM's group is 
flat. Still, this thought could certainly lead a GM to 
consider spurning a deal for Stern that WWI proposes. 
Nevertheless, Mel must have many ways to keep people at 
the GM level from breaking ranks.

Moreover, stories such as the one you referenced are 
good publicity for Stern and for CBS. Listenership will 
increase as his fans tune in even more faithfully to 
hear his daily accounts (almost said blow-by-blows) of 
his negotiations.

> http://news.excite.com/news/eonline/000301/15/howard-hanging-it