Debits on the left, credits on the right ...

According to Tom Taylor, Clear Channel is just now learning basic budgeting procedures:

From the Rumor Mill – new “metrics” for paying the morning show, at Clear Channel?
At least one market says there’s a 30% test being imposed. If the budget for the morning show’s more than 30% of its revenue, there must be cuts made. We’ve already seen some two-person morning shows turn into solo flights, and there have been recent rumors of more cutbacks ordered by principal owners Bain Capital and Thomas H. Lee Partners. Tying the paychecks for talent to a revenue number with a “metric” sounds like the kind of thing a business-like private equity company might do – one that’s still learning the radio business.

This is basic restaurant management economics.  One-third to food stock and debt, one-third to employees, and one-third to the bottom line. All profits from alcohol go to the owner, and the employees benefit from increased tips upselling the tables with drinks.

Maybe if CC served booze...

But CC will never have real radio types as owners now, and the bean counters will never understand that the morning shows are the engines that pull the trains.  Morning show hosts who are legends (or even just well-rated) in their markets can bring in dollars way beyond their sign-off times, by their association with the call letters.

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