Opinion: Cumulus’ Poor Corporate Decisions

From Richard Wagoner, Press-Telegram.com:

Former KSPN (710 AM) general manager Bob Koontz wrote a scathing essay that was featured on Don Barrett's LARadio.com. The subject? Leadership, or lack thereof, at Cumulus Media, owner of hundreds of stations nationwide including KABC (790 AM) and KLOS (95.5 FM) in Los Angeles. 

The essay actually was a rebuttal to a recent cover story in Radio Ink magazine in which John Dickey, co-chief operating officer at Cumulus, tried to explain the problems facing radio. 

"It's difficult to know exactly where to start," writes Koontz. "(An accurate) place for blame is Cumulus. Just take a look at most or just about every Cumulus station in the major markets and you will see reduced (ad) revenue across the board. Is this the strangest coincidence you have ever seen? No, it's a company that had no business buying stations they couldn't afford under the burden of huge debt." 

The real problem according to Koontz? To satisfy investors and deal with the debt, the company fired the most experienced and costly employees. He was specifically referring to salespeople and managers, but the same could be said for on-air talent. 

Neither of the L.A. Cumulus stations even has a program director. 

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