Opinion: Ryan Seacrest, Clear Channel's Face of Firing

From Jerry Del Colliano, Inside Music Media:

If the overpayment of Ryan Seacrest to continue as the face and voice of Clear Channel is representative of the second coming of Bob Pittman to the radio industry, then we’re all in trouble.

Pittman’s first official act was to announce the rehiring of Ryan Seacrest for double the pay he was previously getting -- $60 million for three years.

And if that doesn’t rankle you, then you’re obviously not one of the thousands of Clear Channel professionals who made a lot less and did a lot more before you were fired from live and local radio.

So, Pittman throws lots of Lee and Bain money around in his current role as chairman of Clear Channel’s media and entertainment division.

It seems so easy.

The cutbacks that occurred for years – once over a thousand in one day -- are erased by a venture capital poster boy who clearly doesn’t get it.

Or does he?

Does Pittman know how to run the largest radio group ever put together on the face of the earth or do you?

And does it even matter when Clear Channel is head over heels in debt that can only lead to bankruptcy?

Pittman is likely to be the heir apparent to Mark Mays as Clear Channel CEO when Mays steps down next year so he had better know.

But paying Seacrest more than Glenn Beck and less than Rush Limbaugh shows you how easy it is to play monopoly when the venture capitalists are the bank.

Why?

Because $60 million is chump change to them even if $60,000 is called a living to their thousands fired employees.

This is not a slap at Seacrest who is a good and talented guy, but a criticism of how stupid radio consolidators are when they come up with crazy cutback plans, overpay their CEOs (are you listening Tricky Dickey and Fagreed Suleman?) and are quick to pull the plug on the one thing Apple, Pandora – the entire Internet cannot compete with – live and local radio.

I get that Seacrest will be a busy guy – helping Clear Channel not rehire local talent in markets as he continues to replace them with his syndicated work so to them his salary is a bargain.

I get that Seacrest will do some developmental work with Clear Channel – whatever that is. And in the scheme of things – doesn’t really matter.

But there is another side to this story that may well show you what 2011 is going to be like at many other consolidated radio groups.

Three things.

So, sit down and remove any sharp objects from sight while I lay it all out.

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