Inauguration Blues at Clear Channel
By Brian Lambert
Several interesting stories have burbled up since the plug was pulled last Thursday. In the interest of keeping these things brief and readable enough for the ADHD set, I'll try to play them out throughout the next few days instead of running everything now.
One of the better stories is what will go down tomorrow at Clear Channel radio and outdoor advertising offices all across America. Clear Channel is a poster child for how to game the debt financing system. It has moved from private to public to private again with key players soaking up fat profits in every move--at least until this last one. Now the cards crumbled from under it and its new share price has fallen under the cost of a Starbucks's high-rise macchiato. So . . . Clear Channel will announce something in the range of 7 percent cost reductions everywhere, amounting to total reduction of $400 million company-wide.
Now, I have also been "right-sized" by Clear Channel. (Their actually wording was "a bad fit," which I had to agree with. I mean, come on, me on right after Rush and Sean Hannity? Think about it.) Point being, I can tell you that not only is there no fat on the bones in Clear Channel's local radio offices--Cities 97, KTLK, KFAN, KOOL 108, KDWB, and The Score--there is no bone on the bone. This round of cuts comes after so many previous hackings as the Mays family, ex-Viking owner Red McCombs, and other major investors sawed the legs off everything with a pulse to squeeze another drop of profit out of it; they are pretty much sucking marrow this time around.
When I got there in '06, I was laughed at for asking where the computer was for my desk. "Computer!?" the program director snorted, like I was asking for a kilo of coke and a Mercedes, "What? Don't YOU have one?" If I had offered to bring in my own toilet paper and light bulbs, they'd have taken me up on that, too.
Anyway . . . with time on my hands Friday, I called Mick Anselmo, former boss of all those Clear Channel stations and now running WCCO, WLTE, and JACK-FM for CBS Radio. Mick had already had a pretty good week. He had punk'd his Clear Channel successor and a handful of credulous local media reporters with rumors of a format switch on JACK, a robot operation with nearly nonexistent overhead. Working his network here and down through Nashville, where he still has mojo with the country crowd, the rumor had JACK switching to "The Bear," a country format, which would put Anselmo in direct competition with K102, long Clear Channel's top-earning format here in Minnesota.
It was all bulls**t of course. But since commercial radio practically runs on bulls**t, or at least couldn't survive without it, it worked.
Anselmo was pretty pleased with himself over that one. "Gotta have some fun, man. There's no point being in this business if you've got to be serious all the time.
"It was pretty good, wasn't it? I knew Crushie [his successor, Mike Crusham] hadn't been in the office in a week. [Clear Channel execs were all sequestered in Texas practicing their guillotining skills.] I had their attention, and they showed their hand. And I bet JACK had a bigger audience at 5 p.m. last Monday [when it was supposed to switch to country] then it's had since it went up."
He professed to have no inside wire on how his old company was going to stab itself this time but said, "I'll be like a baseball general manager on Tuesday, watching the free agent wire. There could be some interesting talent shaking loose." He did not elaborate with any specific names, other than pointing out he has Jack Rice's noon to three slot to fill on 'CCO. (I'd suggest you ignore that "nationwide search" behind the curtain.) So if Clear Channel is stupid enough to "right-size" an established commodity or two in favor of The Ryan Seacrest Show (and no, that is not one of my lame jokes) or The Best of Sean Hannity: The Clinton Years, ol' Mick might be just the guy to hold the net . . . at a deep recessionary discount, I'd be guessing.
Rumors have Clear Channel moving to even more "national programming," which in radio terms includes all the syndicated right-wing yobs--Limbaugh, Hannity, etc.--and also "voice-tracking DJs" for wilderness outposts such as Minot "hosted" on tape/hard drive from St. Louis Park. Or, taken one step further, the Twin Cities hosted from San Antonio.
He called his Rice replacement, "a key hire for ['CCO], potentially a real game-changer for this market."
Mick, your noon show? A "game-changer"? The buzz around town says your mid-morning act--Eleanor Mondale and Suzy Jones--might need some tweaking. . . long silence.
"Well, this is a big ship, a big mature brand. It can only be turned slowly."
In radio circles, there's been plenty of cackling about Clear Channel trying to mask this latest gutting by letting the blood flow while most of the country is distracted by the inauguration of Barack Obama.
Clear Channel, as I have often said, is a high-profile embodiment of two of the most pernicious trends of the Bush era. Namely, with its absurd, reckless over-leveraging in pursuit of obscene profit for a few, we see the same mentality as the naked, wretched greed of your average Wall Street investment banker. AND with its relentless blanding-down, homogenizing, and "de-contenting," we also see the withering of your average daily newspaper, desperately trying to be everything to everyone to please shareholders but succeeding most in being very little to anyone.
Finally, off topic . . . a point of acute interest for Obama's speech tomorrow. Ever since it became clear he was going to win (I had him winning by eight points back in March, remember?), I've wondered how he was going to finesse that standard courtesy of inaugural speeches, the "thank you" to his predecessor for his "service to the country." There's no way to put that honestly.
But I guess something like, "If it weren't for you, President Bush, I'd have never gotten close to this job" will cover it.






Brian, at the risk of being ignorant, what does Clear Channel have to do with MSP magazine? Darn, I hope the answer is nothing. Your blog is the best.
LAMBERT: As of last Thursday I am no longer at MSP. The blog will continue here for a bit longer.
Posted by: momkat on January 19, 2009 at 11:19 PM
My prediction:
Politics In Minnesota spends some of Dolan's money to snap up Lambert's media-by-way-of-politics blog to their growing stable of writers that now includes the politically piquant, Steve Perry in their ongoing effort to make more salient that still somewhat wonkish insider's title.
I base this only on what anyone with an ounce of sense would do.
LAMBERT: Interesting. But my salary demands are invariably outrageous.
Posted by: Jim Leinfelder on January 20, 2009 at 12:25 PM
Redandnater has some of the CC names tossed out today...including Chad Hartman and Doogie....
LAMBERT: I'm checking that.
Posted by: bertram jr. on January 20, 2009 at 12:36 PM
I would love to know what talent is so good when Clear Channel cuts costs?? This is the kind of thinking that has produced the problems in radio today. Cheap talent, lack of talent, and people who really just give the time and temperature. There is no real local radio anymore and that is why other choices are so much more enjoyable. WCCO is a mess and getting rid of Rice and the Mondale Jones combo is a good start. But, only if 'CCO can find someone worth spending time listening to!! Why can't these so called radio experts understand the importance of doing radio right is the real problem here? The way I see it is local radio is dead. Local television is close behind. How long can any market have four stations doing news at the same time? How can markets support more than one local newspaper? These so called fat cats think that purchasing more is the answer when in reality, less is more. There simply is too much choice and not enough quality. Less choice, more quality, good talent, and a real understanding of the market is the true way to run any media business.
LAMBERT: The irony that "local, local" -- the empty mantra of so many uninspiring media managers -- taking the direct hits is quite stark. But media - which in most cases has nothing to do with journalism -- made a Faustian bargain with predatory investors and their banking cartels. The result might have been intended to be new vibrancy, but once the cut-to-profit cycle begins, all you really get are the same half dozen acts in every city ... and an exodus of the brighter demographics to niche media.
Posted by: Tim on January 20, 2009 at 12:36 PM
I hope you will let us know where we can find your future work. I will miss your take on many things. I hope all works out well for you.
LAMBERT: Thanks, Tim. I appreciate you reading.
Posted by: Tim on January 20, 2009 at 12:38 PM
Boy this is just really super. A terrific blog about the implosion of the journalism industry that ends with the talented journalist who hosts it being let go.
I also would like to hear where you end up.
Good luck and thanks very much.
LAMBERT: Thank YOU. I don't want to make to much of my situation, but I guess it includes most of the pressures bearing down on the journalism industry. Not the least of which is that if you happen to be in an end of journalism that doesn't speak directly to scarce ad dollars, you're more liability than asset.
Posted by: Paul Scott on January 20, 2009 at 3:43 PM
Woe is us. I've been reading your columns and blogs for years. On some days, your column was the only item worth reading in the Dispatch. Those of us who have followed your travels through TC media outlets know that you have a rare talent for analysis, honesty, humor and opinion--all with style. Plus, you can put words together to form a sentence. This time I'll get it right: name the time and place and the Captain Morgan and root beer is on me. Let us know where you land. Best wishes.
LAMBERT: As I say, for the moment I'll be right here. (Just as on the internet no one knows you're a dog, does anyone really GO anywhere in cyberspace?) But I appreciate your kind words.
Posted by: Paul's kid on January 20, 2009 at 8:09 PM
Jeez, I'm all bubbling over with pride for my country today, actually taking a perverse glee in the CC dismantling (as someone in the record biz, don't even get me started on local radio here and trying to get a new single - in any genre, practically - added to the playlist), I finally get around to clicking on the link in my RSS feed...and your out the door at MSP?
PLEASE go to the Minn Post or something - 4 - 5 regular commentors from here and you've tripled their readership! They need you! Us media junkies need you!
Seriously, I hope to keep reading you somewhere...let us know!
LAMBERT: Believe me, I'll get the word out when I move. Thanks for the sentiment.
Posted by: essar1 on January 20, 2009 at 9:39 PM
Prediction: Mick and Chad renew professional acquaintances, he lands the noon-3 slot on WCCO, and when the Old Neighbor regains the Twins rights, Chad finds himself with a prominent role in Twins broadcasts. Assuming, of course, he can tone down the frenetic NBA cadence. I think he can do folksy. He'd be a 100% improvement over the current Voice of the Twins, and might even find a way to bring out some professionalism from The Dazzle Man.
Brian, keep us posted on your next steps so we can update our bookmarks. And of course, best of luck in finding the right fit for your talents and interests.
LAMBERT: Chad would be a good fit for 'CCO, if 'CCO can clean out the ad-traffic-promo clutter. He's a smart, well-rounded guy who is hip enough to a younger crowd than 'CCO's current audience -- (oh sure, make your jokes) -- that he'd be an asset. But 'CCO needs to decide what the really want to do. If they want a 21st century version of the Good Neighbor they've got a half dozen critical changes to make.
And again, thanks for the nice words.
Posted by: Patrick on January 20, 2009 at 9:46 PM
I hope something good emerges from this carnage. Personally, I just want some local site that is going to aggregate, organize and simplify my local life. Lets me pick and choose, gets me easy, quick access to the best of our outstanding local talents (e.g., BL). I'm cheering for Minnpost, but right now that site looks like a lightpole in Uptown, cluttered with handmade signs. Makes my eyes hurt.
LAMBERT: I feel like I've got a couple thousand staples in me.
Posted by: Paul Kane on January 21, 2009 at 10:07 AM
Brian,
Is it difficult for you to call Mick, knowing that he was the number one reason you didn't get a fair shot on your KTLK radio show? I know there was support for your show with other programmers there, but Anselmo just cut the cord as soon as he could.
I enjoy your commentary but don't understand your fawning over a re-tread manager who is just using you to spread his propaganda.
Enemy of my enemy? Or is he just that big of a cartoon?
LAMBERT: Mick is an interesting case. i actually enjoy talking to him. The way it works is I ask him a question, he says what he says and then I try to diagram it. He's a big boy who likes to play.
Posted by: Ken Fortuna on January 26, 2009 at 4:42 PM