Target Market News

Clear Channel fires two following internal review

By Charles Duhigg
Los Angeles Times
(October 12, 2005) Clear Channel Communications disclosed Tuesday that it fired two employees after an investigation by New York Atty. Gen. Eliot Spitzer alleged that some of the radio giant's programmers improperly accepted gifts from record companies in exchange for airplay.

In a statement, the nation's largest radio broadcaster said it concluded an internal review into "pay-for-play" allegations raised in a recent settlement between Spitzer and Sony BMG Music Entertainment, finding two instances of wrongdoing. San Antonio-based Clear Channel would not disclose the names of the fired employees.

"We take this issue very seriously, and our policy is clear: If you engage in pay-for-play, you cannot work for Clear Channel," said John Hogan, CEO of Clear Channel Radio. "We believe the vast majority of our programmers are doing a terrific job, fully within the law."

Sony BMG settled with Spitzer in July, agreeing to pay a $10-million fine and admitting the company had used some improper promotional practices. Immediately, Clear Channel vowed to investigate allegations that some of its employees had received improper gifts and mete out "swift and appropriate disciplinary action" if necessary.

Two specific incidents involving Clear Channel program directors were detailed in the settlement document.

In the first, which Spitzer alleged occurred in August 2004, promoters working for the Sony Urban label agreed to provide Michael Saunders, program director at Clear Channel station WWPR in New York, with a plasma TV and entertainment system worth several thousand dollars. In exchange, Spitzer alleged, Sony Urban's albums were assured airplay on the station.

A Sony Urban promotion executive obtained Saunders' home address and attempted to falsely account for the transaction as promotional support for WWPR, the settlement document said. As a result of Spitzer's investigation, however, the transaction was discovered and Saunders never received the equipment, according to the document.

Another incident detailed in the settlement document allegedly occurred in November 2002, when an employee of Sony's Epic label gave Clear Channel program director Diana Laird of KHTS in San Diego a 32-inch flat-screen TV. In return, Spitzer alleged, Laird added songs from Jennifer Lopez's album "This Is Me … Then" to her playlist.

In addition, the document also identified a Clear Channel programmer, Donnie Michaels of WHYI in Miami, as having received improper trips when he worked for a previous employer, WFLY in Albany, N.Y., owned by Albany Broadcasting Inc.

It is unknown whether Saunders, Laird or Michaels were among the employees dismissed. None could be reached for comment. Clear Channel declined to elaborate on its statement.

Spitzer, who is conducting his investigation under New York law, continues to scrutinize the three other major record companies — Universal Music Group, EMI Group and Warner Music Group — as well as Clear Channel.

Additionally, the Federal Communications Commission has opened an investigation into the wrongdoing uncovered by Spitzer, and one FCC Commissioner has said he may push for stations to lose their broadcast licenses if evidence of corruption exists.
Click here to read statement issued by Clear Channel

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Click here for free delivery of the Target Market News Bulletin You'll receive news of breaking stories, exclusives, updates and headlines on the latest developments in African American marketing and media Black Stats Frequently requested data on African American consumers Black Buying Power: $656 Billion (2003) Black U.S. Population: 38.3 million Top Five Black Cities - New York - Chicago - Detroit - Philadelphia - Houston Top Five Black Metros: - New York-New Jersey - Washington-Baltimore - Chicago-Gary - Los Angeles - Philadelphia Top Five Expenditures: - Housing 145.2 bil. - Food 56.5 bil. - Cars/Trucks 32.6 bil. - Clothing 23.0 bil. - Health Care 18.0 bil. Click here for more stats from "The Buying Power of Black America." ______________________ Get quick access to key U.S. Census Bureau Data Click here to go to African-American Census Bureau data _____________________ Copyright `© 2005 by Target Market News Inc.` All rights reserved Business address: 228 S. Wabash Ave. Suite 210 Chicago, IL 60604 t. 312-408-1881 f. 312-408-1867 info@targetmarketnews.com	Clear Channel fires two following internal review By Charles Duhigg Los Angeles Times (October 12, 2005) Clear Channel Communications disclosed Tuesday that it fired two employees after an investigation by New York Atty. Gen. Eliot Spitzer alleged that some of the radio giant's programmers improperly accepted gifts from record companies in exchange for airplay. In a statement, the nation's largest radio broadcaster said it concluded an internal review into "pay-for-play" allegations raised in a recent settlement between Spitzer and Sony BMG Music Entertainment, finding two instances of wrongdoing. San Antonio-based Clear Channel would not disclose the names of the fired employees. "We take this issue very seriously, and our policy is clear: If you engage in pay-for-play, you cannot work for Clear Channel," said John Hogan, CEO of Clear Channel Radio. "We believe the vast majority of our programmers are doing a terrific job, fully within the law." Sony BMG settled with Spitzer in July, agreeing to pay a $10-million fine and admitting the company had used some improper promotional practices. Immediately, Clear Channel vowed to investigate allegations that some of its employees had received improper gifts and mete out "swift and appropriate disciplinary action" if necessary. Two specific incidents involving Clear Channel program directors were detailed in the settlement document. In the first, which Spitzer alleged occurred in August 2004, promoters working for the Sony Urban label agreed to provide Michael Saunders, program director at Clear Channel station WWPR in New York, with a plasma TV and entertainment system worth several thousand dollars. In exchange, Spitzer alleged, Sony Urban's albums were assured airplay on the station. A Sony Urban promotion executive obtained Saunders' home address and attempted to falsely account for the transaction as promotional support for WWPR, the settlement document said. As a result of Spitzer's investigation, however, the transaction was discovered and Saunders never received the equipment, according to the document. Another incident detailed in the settlement document allegedly occurred in November 2002, when an employee of Sony's Epic label gave Clear Channel program director Diana Laird of KHTS in San Diego a 32-inch flat-screen TV. In return, Spitzer alleged, Laird added songs from Jennifer Lopez's album "This Is Me … Then" to her playlist. In addition, the document also identified a Clear Channel programmer, Donnie Michaels of WHYI in Miami, as having received improper trips when he worked for a previous employer, WFLY in Albany, N.Y., owned by Albany Broadcasting Inc. It is unknown whether Saunders, Laird or Michaels were among the employees dismissed. None could be reached for comment. Clear Channel declined to elaborate on its statement. Spitzer, who is conducting his investigation under New York law, continues to scrutinize the three other major record companies — Universal Music Group, EMI Group and Warner Music Group — as well as Clear Channel. Additionally, the Federal Communications Commission has opened an investigation into the wrongdoing uncovered by Spitzer, and one FCC Commissioner has said he may push for stations to lose their broadcast licenses if evidence of corruption exists. Click here to read statement issued by Clear Channel Go to Target Market News homepage	__________________ SUBSCRIBE TODAY! The trade publication for in-depth coverage of Black Consumer Marketing and Media news ORDER THE WORKBOOK NOW! The sixth annual event examining the latest trends, findings and practices in marketing to African-American consumers Presentations from: America Online Arbitron Inc. Burrell Carol H. Williams Advertising E. 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