Local radio can be very competitive, local advertising dollars are limited and stations are often battling for them. Add to that the ego of the talent, who are all battling for listeners who also are limited. Those two things combined result in one cluster of stations constantly monitoring what the other clusters in market are doing and trying to predict their next moves.
One thing I learned when I worked in corporate radio is that competition may lead to celebration when one local station or cluster beats the others, but that celebration rarely has any carry over to the failures of the larger radio corporations. Most seasoned radio employees realize the failures of one major corporation are often a harbinger of things to come for their employer.
While a round of layoffs in one company may temporarily deliver an advertising or ratings win, it is normally a hollow one. Most don’t want to see colleagues lose their job. That creates a in the stomach knowing it could be them next time.
Audacy is the large corporation currently in the negative spotlight. The second largest radio ownership group was delisted by the New York Stock Exchange on May 16th after its stock price dipped below $0.10 per share. The outlook is grim. They blame the current economic climate and falling advertising revenue for their stock price, which has dropped more than 60% year-to-date.
News like this, which seems to come with greater frequency than it ever has, is cause for many in the radio industry to strongly consider risking it all to leave the perceived safety of the large corporations to see if they can make it on their own. This is the decision my show made in June of 2021.
I can absolutely say we made the correct decision, I can also say it was an incredible learning experience. As I will never have to do it again, perhaps I can use the lessons I learned to help anyone considering doing the same thing.
If you are considering walking away from corporate America’s radio stations, here is some advice I can give you.
1. Save Money Now
There is a very good chance you will have to go several months with no regular paycheck. Almost any radio contract, especially the standard boilerplate contracts, have a non-compete clause that can last as long as six months. Large corporations often are adamantly opposed to waiving that clause as it is a deterrent to other employees from jumping to other competing ventures. Once you’re your own boss and own financial provider, plan accordingly.
2. Know Your Contract
Our show has had the same representation for 13 years, two attorneys who are the very best at what they do in the sports agency realm. I can’t recount the number of times they have saved us legal headaches and made certain we have maximized all that is available to us. I can’t be more direct than this: Get. An. Agent.
They aren’t free but they are invaluable. As our’s once told us: all corporations and athletic directors say they won’t deal with agents, of course they won’t, they’ve negotiated hundreds of contracts, you’ve negotiated zero. The playing field heavily tilts in their favor.
One painful lesson we learned as we started our journey was how little thought we had given to some of our post-contractual restrictions. As our agents pointed out; “Everyone in your field focuses on their non-compete clause while completely ignoring the non-solicitation clause”. It is very likely you have no idea that exists in your contract or what it even prohibits.
If you have intentions of starting your own advertiser funded competitive venture, that clause is going to be very important to you. If you, like me, have no legal degree, it would be beneficial to have an attorney explain to you how to avoid violating that restriction.
3. Have A Plan But Be Flexible
Chances are, you do not own a radio station. That means your venture is going to be digital in nature. There is still a lot of uncharted space in the digital world and the same things that worked on radio will not work there. This is one of the reasons so many large radio companies have failed in the digital space. It is impossible to serve both masters simultaneously.
You may have a plan that you think will work anywhere but be ready to get slapped in the face by the consumption habits of a digital audience, almost always much younger on average than your broadcast audience. It is great to have a plan but make it a flexible one. I can promise you are going to learn as you go in the digital world.
Going it on your own can be a terribly frightening world, I was incredibly fortunate to be part of a team that launched our own digital platform together.
I can tell you there have been many surprises in the last 23 months, both good and bad, but this has been the most rewarding period of my professional life. You will be jumping into a space that can make you feel very isolated but it can also be the most freeing moment of your career. You may only get one chance to make this decision on your own. If you do, make it count.
If you have any further questions about the prospect of leaving corporate media to launch your own enterprise, please feel free to reach out to Ryan at: brown@nextroundlive.com
Ryan Brown is a columnist for Barrett Sports Media, and a co-host of the popular sports audio/video show ‘The Next Round’ formerly known as JOX Roundtable, which previously aired on WJOX in Birmingham. You can find him on Twitter @RyanBrownLive and follow his show @NextRoundLive.
