Mon Sep 12 13:44:53 EDT 2011
> WRKO could keep all spot revenue, combine the ratings, seel ALL the
spots...and control the station without worrying about the Carter gang.
Entercom would (should) only do this if:
(Spot Revenue) - (lease time for WCRN) > (current WCRN payment)
Carter would only do this if:
(lease for WCRN) > (Spot Revenue) - (current WCRN payment)
The lease may have some sort of performance based aspect, or it may not, but
I would guess
that the lease income is smaller but more predictable than the spot revenue.
It's also a lot
easier for Entercom to cut off WCRN if they aren't paying their bill than
chasing after several
advertisers that haven't been paying.
The major wrench in the machine is Howie Carr, who is likely going to leave
as soon as he
can. Given the uncertainty of this, if I were Entercom, and I was happy
with the existing
set up, I'd leave well enough alone.
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