A Couple of Preliminary Low-Info Thoughts on the Cumulus Shakeup (H/T Confessor DA)

Whenever something stirs in the radio industry, we always look forward to Confessor DA's thoughts.  He posted a couple of interesting tidbits to the last post, suggesting among other things that the new CEO has a history of taking media properties (a print property, in her case) into bankruptcy.  This and other news has suggested to some Confessors that major changes in the sound of the station are in the offing.

Anything's possible, but we need to remember that The Ticket is a very profitable Cumulus property.  I'm betting on no major shakeups in any on-air lineups, talent, or JV assignments at least until contract renewal time rolls around.  DA suggests that belt-tightening starts with sales, but I would think that competition would militate against raising rates, and it's hard to believe that slashing commissions or sales staff wouldn't be self-defeating.  DA, what's your thinking here about how a media turnaround artist deals with the marketing function?

However, I do think that when contract-renewal time comes up, all bets are off.  Bob and Dan took a per-year annual pay cut, and there may be some hosts who are sufficiently well-off that a significant salary reduction would result in some stars being a little loose in the socket and ripe for plucking or moving on to pursue a different way of making a living (or just living).

For all of these reasons, I think the Western Hemispherical Catman faces some real challenges in keeping the station tops in the local sports-talk ratings to protect his team from significant changes.

I hope they don't mess with my Georgio.

Chapter 11 bankruptcy means that the company keeps operating, but the bankrupt must submit a plan for restructuring debt and paying creditors (which requires court approval and negotiation with lenders and creditors to avoid a Chapter 7 liquidation bankruptcy) -- and yes, reducing costs.  I think DA is onto something when he suggests that dumping AM stations might be in Cumulus's future.  He's also probably right that it would be a challenge given today's listener preferences, but there's always someone out there who thinks they can make a go of a media property.  Somewhere out there there are Mike Rhyners who would be happy to pick up a bargain low-wattage 1310-type property to live the dream.  (Black Ticket, anyone?)  (I should add I don't know if Cumulus has a lot of those sitting around.)  May not bring in a lot of cash, but it would eliminate the cash drain and yield some return of capital.

Interesting times ahead for our weekday heroes and the line forming behind them.