14 April 2016

I Will Dine on His Tears, and They Will Be Sweet

It looks like I Heart Radio, the company known as Clear Channel before Bain Capital looted it, is on the edge of collapse, and it looks like Rush Limbaugh will be facing a far less generous contract when it is renewed:
One of the favorite pastimes for sports fans is commiserating over the worst contract their home team ever made; guffawing over management’s decision to waste tens of millions of dollars for a player who never justified the huge payday. (See: Gilbert Arenas.)

For talk radio, there’s probably only one contract that enters that realm of notoriety: Rush Limbaugh’s eight-year, $400-million deal, signed in the summer of 2008 with his longtime radio employer Premiere Radio Networks.

Owned by Clear Channel Communications, which has since changed its name to iHeartRadio, Premiere’s Limbaugh deal instantly dwarfed any payout in AM/FM history. (Only Howard Stern’s contract with Sirius was larger.) The contract, which included a staggering $100 million signing bonus, never panned out as the wheels began to come off Limbaugh’s radio empire.

This year, his contract is up and the timing couldn’t be worse. The talker is facing ratings hurdles, aging demographics, and an advertising community that increasingly views him as toxic, thanks in part to his days-long sexist meltdown over Sandra Fluke in 2012. (He’s also stumbling through the GOP primary season.)

Concurrently, iHeartRadio’s parent company, iHeartMedia, is heading to court, teetering on bankruptcy. The once-dominant radio behemoth is saddled with $20 billion in debt, thanks to a misguided leveraged takeover engineered by Bain Capital in 2008, the same year the radio giant inked its disastrous Limbaugh deal.
I am so amused that in its own way, Mitt Rmoney's bucket shop is involved in Limbaugh's downfall.

I am VERY amused.


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