When Anthony Gargano was hired by ALLCITY Network to appear on its new PHLY Sports channel and national network, he was sued by Beasley Media Group for breach of contract. The former 97.5 The Fanatic host came to terms on a preliminary injunction that prohibits him from contributing to any sports media content that is specifically targeted to the Philadelphia marketplace, as the designated market area (DMA) is defined by Nielsen Media Research. Gargano’s original intent was to work at both outlets simultaneously, but he remained restricted for the last several months while continuing to work with FOX Sports Radio and starting a sports betting podcast with Parx Casino.
Gargano and Beasley Media Group will now be proceeding to a settlement conference, which will take place on Jan. 17, 2024 before Magistrate Judge Scott Reid.
Within the lawsuit, Beasley claims that Anthony Gargano is under contract with the company until Oct. 7, 2024, and that there are provisions within the deal and “the common law duty of loyalty” that preclude his ability to provide services to competing businesses. Inside Radio was the first to report the news of the disputation moving to this step in an effort to reach a resolution.
Should the settlement conference prove unsuccessful, a pretrial date has been set by the court for May 7, 2024, and a trial date is set for two years later. Beasley had previously agreed to a request by the defendants to extend the deadline to file a response to the complaint from Nov. 17, 2023 to Jan. 16, 2024.
Gargano and BSN Live (doing business as ALLCITY Network), his new employer, are legally required to respond to the lawsuit filed against them by Beasley by that time, according to an order filed on Nov. 16, 2023. For the settlement conference itself, lawyers have been directed to have their clients physically present for its duration and with “ultimate authority to settle.”
In a previous interview with Barrett Sports Media, ALLCITY Network Chief Executive Officer Brandon Spano explained how the goal of the company is to implement talent who are able to inform and entertain their audiences in various locales. The company also eliminated non-compete clauses from most of its contracts, with Spano stating that they were originally included because it was the industry-standard practice.
“I have a real problem with this idea that these major corporations are laying off dozens, if not hundreds of people, quarter-over-quarter, and then the people that they don’t lay off, they say they cannot look for jobs or work anywhere else,” he explained. “That’s just not good business, and it’s giving sports media a bad wrap. Sports radio right now, because of those actions, is giving sports media a bad look. It’s a very dangerous game.”
Gargano was originally included in the promotional video for PHLY Sports but has yet to appear on one of its programs. Concurrent with the launch of the company’s new national network, he was able to make his debut and has been contributing on the ALL NFL show with Brian Baldinger. Spano articulated that the company was about to reach profitability prior to the introduction of its Philadelphia and national networks and is preparing for another funding round later on. At the moment, the goal is to double the size of the company and launch in another local market as the outlet looks to expand and launch a free ad-supported television (FAST) channel in the future.
