Rush Limbaugh will not be pulled or cancelled

[titaniumsalute]

Rush and Clear Channel struck an 8 year $400 million contract back in 2008. If they pull him they'd still have to pay him for 4 years. This is by far Clear Channel radio's largest paid entertainer. They'd not only have the revenue loss from his show, but theyd have to try to quickly find an alternate host and also pay them.

However this could be a huge albatross for Clear Channel. They will need to continue paying Rush, of course, and if the advertisers continue to cancel then the revenue coming in doesn't pay his salary. He becomes a huge burden on their P&L sheets. In addition, local radio stations must pay a fee to carry his broadcasts. He has somewhere around 600 radio stations that carry his program. Let's say just 25 drop his program. At $25,000 per station, that would be an additional loss of $625,000 in revenue each year for Clear Channel.

How to really hit the Clear Channel network? 1. Target the major network advertisers. Those are the big boys in radio ad spending. 2. Target the local advertisers in yoru local market. It may take a few times tuning in the show but write and call those advertisers. They are usually easier to target. 3. Write the local GMs and tell them you are writing letters to the sponsors and the FCC. (Really the FCC won't do anything but if the station's license is up for renewal you can make their life a pain in the ass for awhile.)

[Raven]

1. Don't you think they have an escape clause

in his contract for stuff like this?

[RevStPatrick]

3. That's what I was just thinking.

They must have put something in there that if he says something to cause this kind of backlash, they don't have to pay him.

[lpbk2713]

4. Yup. Clear Channel could argue it was all his fault.

They could say it was entirely Limbaugh's fault in that he chose to create an issue and make comments that were clearly
over the line and unacceptable to such a degree that the majority of the public demanded his termination.

[titaniumsalute]

9. Probably not

I worked in talk radio for a long time. Most contracts do not have language about "going over the line" mostly because it is much too subjective. No attorney in the world that works for a high paid on-air talent would agree to that subjective language.

Out clauses are usually tied to hard data such as an exponential loss of ratings, maybe exponential loss of revenue, etc. But I would find it hard to believe someone as bombastic as Limbaugh would have ever agreed to a subjective content firing clause.

[ProSense]

11. They fired

Imus and the same contract claims were being thrown around.

They fired Buchanan.

[titaniumsalute]

17. Yes they fired Imus

and Imus won a huge multi-million dollar settlement for the termination. I think it ended up being about $20 million.

http://www.npr.org/templates/story/story.php?storyId=12802669

Also, CBS was looking for a reason to get rid of Imus. His affilaites had dropped to a handful and they wanted to really tweak WFAN and make mornings sports...not political talk radio. This was an ideal way to do just that.

Pat Buchanan was simply an analyst and part-time commentator...not a talk show host. No program revolved around Pat Buchanan. I am sure the contract language for these analysts are much tighter and looser than a main program host like Ed Schultz and Rachael Madow. In addition, he was suspened for 4 months (with pay) before they fired him. Nice vacation. Last, I believe I read he was at the end of a contract anyway. No need to pay him off.

[ProSense]

28. Well

Yes they fired Imus

and Imus won a huge multi-million dollar settlement for the termination. I think it ended up being about $20 million.

...whatever it takes. They unleashed this blowhard on the world, I'm not going to lose sleep that they have to pay him to right a wrong.

[titaniumsalute]

29. I'm not going to lose sleep either

But they aren't going to fire him and have to pay for his salary that was 10 times higher than Imus' salary. Not going to happen as much as I would love it to happen.

[ProSense]

31. It could

But they aren't going to fire him and have to pay for his salary that was 10 times higher than Imus' salary. Not going to happen as much as I would love it to happen.

...happen. Imus' firing proves that. He was fired because the protests erupted and the advertisers bailed.

It can happen because at some point Limbaugh can become a liablity.

I hope we're at that point. Too many passes have been given to this much despised (http://www.democraticunderground.com/1002378764) asshole.

[titaniumsalute]

32. Well a few months later Imus was hired down the street from WFAN at WABC

and now he makes more money. Oy vey./

[ProSense]

35. Yeah, but

Well a few months later Imus was hired down the street from WFAN at WABC

and now he makes more money. Oy vey./

...I'd still love to see this episode end with Limbaugh being given the boot. It would have huge implications (that people aren't willing to stand for his crap anymore), much more than Imus' firing.

That blowhard deserves it more than anyone.

[titaniumsalute]

37. Hey Pro

I'm not trying to be a dick arguing for Rush or anything. Nothing would make me happier then the fat slobbing getting ass kicked to the curb.

It's just I'm trying to share what I know about how these radio groups, networks and local stations operate.

[ProSense]

39. I know

I agree with you. I'm just fleshing out the debate.

Nothing will happen if there isn't intense pressure on the advertisers.

[MADem]

41. It was MSNBC, who carried IMUS over morning TV, that started that chain of events, I thought.

WFAN got the spirit later.

[titaniumsalute]

44. Yes MSNBC was first

But WFAN was the flagship of the broadcast. Imus worked for CBS, not MSNBC. They were essentially an affiliate (albeit TV.)

WFAN had other things in the works that I knew about working in the industry.

[MADem]

46. I understand that--Imus was on WFAN eons before he was on MSNBC.

I believe MSNBC paid WFAN to carry him; they also built him a new studio in Secaucus, NJ because he complained about the WFAN one.

When MSNBC cut the cord, that started the dominoes falling...or at least that is how I understood it. Had MSNBC simply suspended him and tried to tough it out, it might have been a tougher thing for them to get out of.

WFAN went to a morning sports-talk format after he left, didn't they? They were transitioning that way anyway.

I always thought they were trying to move Imus along by getting GE to pick up his salary. That ended when he made his Big Ass Gaffe.

[titaniumsalute]

48. Yeah that was pretty much it

CBS had visions of creating a huge radio network with Imus...but outside of WTKK in Boston he really had small potato stations around the country. And I think his affiliate list was down to about 8 when they blew him out.

[Ter]

38. Chump change compared to what Limballs makes

$400 million is just to much of a loss.

[ProSense]

42. Who

Chump change compared to what Limballs makes

$400 million is just to much of a loss.

...cares? The amount they charge advertisers (and I know it's tied to audience share) is likely linked to the amount of his contract.

If most of his advertisers bail, they'll dump him. That's what happened to Imus.

[Warpy]

22. Well, it looks like revenues are going down quickly

and ratings will likely go down somewhat as women refuse to tune in. Clear Channel has an out on those grounds.

"Thou shalt not alienate sponsors" is the first law of radio. He's violated that

[titaniumsalute]

25. I worked in the ratings business for 10 years

He really didn't have any female listeners anyway. And now with the PPM measurement if a bunch of people tune in to hear his recants and BS blabbering next week the ratings will go up.

[MADem]

40. Most big money contracts do.

They have a "Don't disgrace us by going over the line with hate speech" clause and a "mutual non-disparagement clause" which prevents each party from flinging shit in a media war.

I'll bet they could, if they had a mind to, come to terms and pay him a fraction of his future salary to go away.

The question is, do they have a mind to do that?

Are there still some folks out there who think his commentary was cool or edgy or neat? If there are, it's those people who need to understand why his remarks were despicable. Once they start to get it, then he's history.

They could always move his show to some shitty timeslot, like midnight to three.

[titaniumsalute]

45. Of course not

Premiere (Clear Channel) does not want to deal with the firing of Rush Limbaugh. In addition, do you really think Rush would accept a fraction of his future salary to go away? Of course not.

[JSnuffy]

47. Lots of wishful thinking in this thread...

I suspect he will continue on with new sponsors and higher ratings in the immediate future.

[Kingofalldems]

49. Big fan?

[Redford]

53. Anytime Rush gets his name in the press for being an obnoxious tool

His ratings go up. The best way to get him off the air is to simply ignore him.

[titaniumsalute]

54. His ratings won't necessarily go down

But right now he is toxic for advertising. This year has proven that when the people speak (AKA Bank of America fees, Koman, etc.) that it can have a devistating effect on business.

I think the Marketing Directors, Sales Directors, Boards of Directors, etc. of many of these companies do NOT really want to be associated with such toxicity right now. That is why 7 major network sponsors have already pulled ads. That is very significant.

I would not be so sure to say the advertisers will quickly be replaced.

[MADem]

50. Others have been fired. Opie and Anthony come to mind.

Didn't Howard Stern get a settlement after being fired years ago, as well?

Keith Olbermann was fired from MSNBC. He got most if not all of his salary on the way out the door.

There's Pat Buchanan, too--they just "declined to renew" him. And Imus--who may be surviving financially, but he lost his entree to a lot of his favorite interview subjects when people turned their backs on him.

It happens.

Rush might not be in a good position to negotiate if enough people find his conduct offensive. It's not likely that will happen, or that he'll even be axed, mainly because there are a lot of stupid people who thrive on hate in the world, but hey--one never really knows.

Clear Channel might be looking over at the "Murdoch Empire" and saying to themselves "Who thought that could happen to them?"

[liberal_mama]

2. I'm wondering about the escape clause too

Isn't that how they managed to fire Charlie Sheen? Because there was something in his contract about not engaging in bad behavior? If they don't have a clause in their contract with Rush, they'd have to be nuts.

[HopeHoops]

6. "bad behavior"? That's all Rush does! That's what he's PAID to do.

[shcrane71]

5. His hate doesn't need the microphone of our public airwaves during the worst

economic crisis this country has seen since the great Depression. Americans are under enough stress. He needs to go.

[Shankapotomus]

18. +1

I think all this talk of clauses, contracts and money is irrelevant. The American people have HAD IT with this bozo and no amount of money, contracts or whatever is going to change that...The longer this sociopath stays on the air the worse it's going to get for him, clear channel and his sponsors.

[ProSense]

7. They always

find a way to fire everyone else.

This blowhard is being protected because he helps Republicans spew hate and lies.

[dynasaw]

8. Seven Companies Have Pulled Out

"By Saturday morning, Legal Zoom, Citrix Success, Heart and Body Extract, AutoZone, Quicken Loans, Sleep Train, Sleep Number and Oreck said they yanked ads from Limbaugh's show.

Nine companies remain on the list: ProFlowers, CARBONITE, Inc., Mid-West Life Insurance Company of Tennessee, American Forces Network, Mission Pharmacal Company, Life Quotes, Inc., Life Lock, Tax Resolution and AOL, parent company of The Huffington Post."

That's a big loss of revenue.

http://www.huffingtonpost.com/2012/03/02/rush-limbaugh-boycott-reddit-twitter-facebook_n_1317698.html

[BlueToTheBone]

16. Mission Pharmacal Company is closed on Friday's

So Monday should be a very big day for them. I left my messages on their corporate office extensions. Went through their list and told them all that too many women take Citracal for them to stay with someone who hates their customer base.

[karynnj]

33. My husband wrote proflowers this morning saying that he would never again order flowers

if they did not stop advertising with Limbaugh. Within an hour, he got a response saying that they advertise in a wide range of places - and said something to the affect of not endorsing the shows that they placed ads on. My husband's response was that he could not in good conscience use them again - adding that I would not enjoy the flowers if they came from a Rush Limbaugh advertiser. He mentioned that their were plenty of other flower vendors.

[wendylaroux]

10. too bad

i was looking forward to: pulled pork.

[TheManInTheMac]

14. I love pulled pork, but that meat would be rancid.

[Walk away]

12. The entire republican base would have to grow brains first.

As long as there are people listening to him he will ahve a job.

[wandy]

23. Take a look at a few far right forums. He is a hero to those people....

I think they must play his radio programs over and over untill they they have the exact wording memorised.

[ProSense]

13. I do agree

that more advertisers bailing would be a big hit.

That is the primary route to Limbaugh being shown the exit.

[wendylaroux]

15. small town stores

my town has a small grocery store that used to have rush on the speakers,i finally told them me and my large family would never shop there again if they did not stop playing him.so far so good,no rush.

also one of the reporters on the town newspaper came to deliver papers at a store,i stopped him and asked if he knew how stupid it made him look to listen to that liar,he turned beet red and scurried off.--not alot,but i enjoyed it.

[AsahinaKimi]

19. He may have a contract with Clear Channel but that

Doesn't mean local radio stations have to carry him. Maybe they can just "forget to slot his show a number of times" or just drop him from the roster. Some stations did that with Glenn Beck, if I remember correctly.

[titaniumsalute]

26. A non-Clear Channel station can kind of do that

But again, if they have a contract to "air" a program they must do so. Stations actually fill out affidavits to prove they aired a broadcast. They must do this legally to prove to agencies and advertisers that their ads ran in the slotted program in the local markets.

WBAL, a huge talk station in Baltimore, dropped Rush years ago at the end of a contract. They went back to local talk radio. They ended up making more money because of it.

Stations that are non-clear channel can maybe air the ads for Rush's show and not his content. I know the station I worked for did this with CBS radio news commercials many times. Not sure how the Rush agreements look for this though.

[AsahinaKimi]

34. What about Armed Forces Radio?

I think they should have dropped him a long time ago.

[MADem]

43. Well, now they have an excuse, don't they?

Democratic administrations are less heavy-handed than GOP ones, I've observed.

Every time I go on a military installation, I look up at the TVs in the public areas to see what's what. Under Bush, it was All Fox, All The Time.

Now, it's CNN. I never see Fox. Ever.

I have no idea if that was a "Let the word go forth...." edict or if people were finally allowed to pick and choose, and they went for the station with an iota of content and international news.

[EFerrari]

20. The sponsors are pulling out because "obscene and indecent" material

is actionable by the FCC. It's the only thing they really do any more and that big @sshole went there.

Any station that airs his cr@p is looking at trouble.

And that's why the sponsors are spooked this time.

[Life Long Dem]

21. What did Mitt say?

"Let Detroit go bankrupt". Let Clear Channel go bankrupt. Wouldn't that be ironic given the owners of Clear Channel - Bain Capital which Mitt founded.

[TexasBill]

24. As long as he pulls the numbers, Rush rules

I am sure umpty-jillion dittoheads think Sandra Fluke is a slut because Rush said she was. The fact that women might also need to take birth control pills for reasons other than contraception or that what Ms. Fluke was actually championing was fair treatment for women's health issues never crossed whatever little minds the thrice-married drug addict and his devotees possess.

Rush's fans have stuck with him through various embarrassing personal revelations, including baldfaced lies; I see no reason they would stop now and that's what will count: radio stations and networks live and die by the numbers and Rush still pulls them in. And there are plenty of advertisers out there owned or managed by Limbaugh fans, or people who want to reach them. They know this will blow over and as soon as it does, they will be there paying the freight for Limbaugh to keep preaching to the faithful.

One does wonder if Limbaugh has any first-hand knowledge of consensual, non-commercial sex. There are few details about his marriages, but those that have emerged are a bit weird.

[Initech]

27. That POS is worth $400 million??? Obscene!'

[calimary]

30. Make sure you see this thread, too. How to strike back at the local level.

This is EXCELLENT!!! I've already shared this with five other Facebook pages besides just my own!


http://www.democraticunderground.com/1002374653

Read. Understand. And then try it for yourself!

[titaniumsalute]

36. Yes local GMs and General Sales Managers will squirm easily

If the stations are owned by Clear Channel, CBS Radio, Cumulus, etc. they are all public companies. (OK, Clear Channel is private now but they operate like a public company.) Their P&Ls are very tightly controlled. Bonuses are usually based off of sales (and sometimes ratings.) If these senior managers of stations start getting some serious pushback and some major local advertisers pull out, it will do two things. It will have immediate impact on revenue.

In addition, if some major advertisers pull out the station will want to try to quickly insert new advertisers. In order to do this they will take price cuts. Price cuts also mean lower revenue.

Keep up the pressure folks.

[donco]

55. I called a station (toaster power) yesterday

in a small town near where I live. Mentioned that I didn’t appreciate rush(small r large A**) calling someone my granddaughters age a slut and a whore.

Said that I would be contacting local sponsors if they didn’t contact the whales people and demand an apology. Got a call couple of hours later from the toasters sales manager, he said they have already shown their displeasure with…whatever.

[titaniumsalute]

56. Bullshit

No GSM has expressed anything to Premiere radio. Don't threaten...call the advertisers. Write them letters and copy them to send to the local sales managers. THAT will get their attention.

[donco]

51. Gotta be a morals clause

in there somewhere against soliciting porn.

[spin]

52. Good. Rush is doing a lot of damage to the Republican Party...

A few more stupid comments and he will guarantee Obama's win and make it more possible to win control of both houses of Congress again.

He just managed to piss off 50% of the voters and unless the Republican Party has the balls to distance themselves from Rush, many women will remember his foolish statement when they visit the voting booth in the fall.

[nanabugg]

57. My take: Even if they had the balls, they do not have the real desire to distance themselves. They

are, in their callous hearts, all Rush Limbaughs.

[spin]

58. If true, their ultra-conservative views will cost them in the upcoming election...

as they will alienate the independent voters.