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At conventions people with a smirk used to ask me “how’s the
railroad business”. Our RADIO company was named Pacific and
Southern (P and S) which I admit does have some
railroad-sound alike in it. In actuality, the merger of a
Hawaiian TV and Atlanta TV station was the basis for the
name. During the merger a company called Jupiter
Broadcasting was absorbed into Pacific and Southern as their
radio group. And I was part of Jupiter, and became President
of P and S Radio charged with a responsibility of expanding
the radio group from two markets.
First, some business history of that time: the late 60’s and
early 70’s. CAPITAL CITIES was the largest and best
independent (non-network) radio group. They built their
company with great operators/people. . We decided to build P
and S with their blueprint. And, as President of the radio
group, it was my job to hire great operators and find the
stations for them to operate.
We also, decided that P and S would be
a “product” group…meaning that product strategy and control
came from the top. This did not mean that local GM’s and
PD’s did not have discussion with product input….they most
certainly did!!! However, I had at my headquarter office in
Atlanta George Burns and Sylvia Clark who dealt with the
stations daily and reported to me on the progress. If there
were disagreements, I was the final word.
In our founding P and S group we owned WQXI AM-FM Atlanta;
and WSAI AM-FM Cincinnati…both doing super with revenue and
ratings. First purchase target was KIMN in Denver and KYXI
in Portland…both highly rated AM’s owned by the Ken Palmer
group. We realized we would soon have to add FM’s to each
market. Second target was KRHM in Los Angeles that we
renamed KKDJ now known as KISS. We contracted both targets
to purchase.
We looked for more purchase targets. One of them was KEZY in
Anaheim that was owned by the Davis family. I can’t recall
Mr. Davis first name. His law office was located on Little
Santa Monica Drive in Beverly Hills. He was a political
figure in Southern California. Bill Davis, one of his sons,
and I became friends. At 5 each evening ol’ man Davis would
open a can of salmon (self-caught and professionally
canned), and bring out the scotch from his cabinet. The four
of us would talk radio and cable (they were in cable as
well) until dinner. (You’ll learn more about the Davis’
family in a future column titled “One of the jobs I should
have accepted!!!”). We elected not to proceed to purchase
the Davis properties so I eventually lost contact with them.
Still looking for more targets I received a phone call from
the Chairman of P and S who stated that since we were to be
a public company at closing it would be beneficial to have a
signal covering Wall Street and Madison Avenue. He
identified WJRZ in New Jersey. He wanted to buy it for six
million and rename it WART. I choked and laughed on the
phone at the same time!!! (what awful call letters, unless
your first name is Art, or course). . After driving the
signal of WJRZ it was clearly a DAYTIME (no night time)
signal over New York City!! It also had a full time signal
in New Jersey. I reported to the board the facts, and stated
that I was opposed to having a part time signal over the
Apple. I suggested we might try to build or buy an FM
station that would have the necessary coverage. I lost the
argument to the board. They said, “buy it”, but at least I
got WWDJ as call letters (as opposed to WART)!!!! A very
small win!!!! In retrospect, that was an old-fashioned
board…long on financial experience, but shallow in
operations (certainly in radio).
With the closing imminent, the hiring of people and
preparation of the operating budgets for our new
acquisitions in Denver, Portand, Los Angeles, and Bergen
County, NJ. were on a fast track.. Our new GM “hires” were
John Bayliss in Denver (yep ,that John Bayliss), David
Croninger (from WNEW) for Bergen County, Jim McGovern
already in Portland, and Jack Carnegie to commute between
our Los Angeles station and our sister Cincinnati station.
Subsequent to my appointment as President of P and S I named
Gerry Blum, my GSM in Atlanta, as the new Atlanta GM to
succeed me. All of the five year projections looked terrific
except for Bergen County. There the numbers reflected a loss
of at least 700,000 a year (a great deal of it was union
featherbedding) which was too much.. The chairman called me
daily to tell me that my expenses/budgeting was not
accurate. I advised him daily they were accurate; and that
he should to go talk to the union to get the dead weight off
our back.
So we finally closed/purchased all the markets in New York
City. It was the second attempt at closing. The Chairman
didn’t have all the financing in order for the first
closing. (I guess he thought he could ad-lib through it…I
know he offered one firm 2/3rds of the contracted sales
price), and everybody got up and went home. We had two
floors of attorneys…I can’t imagine how much that cost. But,
hooray, some months later he was prepared for the second
closing, and we got it done!!!
Everyone went to their respective GM posts and got at it
hard and heavy. We moved the operational offices from
Atlanta and New York City to Denver for geographical
purposes. In the case of Art McCoy, COO, of the radio and TV
group, he was going back to Colorado where he was born. In
my case, I wanted to be as far away from the Chairman as
possible. Something wasn’t right between us. Others in the
company felt what I felt, but they had not bothered to share
their thoughts with me because they all thought I was
“close” to the Chairman as the Chairman led them to believe.
I flew to all of the markets after the closing, to meet the
staff’s and be with the GM’s. They were all in business for
sure, and on a roll. This was terrific. A year later it was
time to look for another station or two. Right? Wrong. Our
radio division was doing terrific in profits, but our TV
division was doing lousy. Who ran the TV division? Our
chairman!!! This was not welcome news. Nor were his drunken
outbursts toward me at private clubs. If as a reader you
want to know what the chairman said in those moments call me
on my cell 305 439 8871. I would not want to print it.
Obviously, the problems from top were real, and the
employees were beginning to feel it.
Next shock, “Reduce all expenses in
radio by 10 percent, so the money can be used in TV” the
Chairman wrote me. No problem for me except I ran FAT FREE
stations. To delete 10 percent meant firings…something that
was not in my game plan…but I did it anyway. My next jolt
came when Arthur McCoy, our COO, advised me that he was
leaving P and S. As close as Art and I are I never have
asked him “why?”. I already knew in my heart. He couldn’t
take the Chairman anymore.
The Chairman called and said, “lets get together”. We did.
In New York City. At his former wife’s condo (on Park Ave as
I recall it). He promised me that I would be the next COO as
soon as he could put together a board meeting, and we will
have our money problems fixed soon. I said “terrific”, and
left the building knowing I had been lied to by the Chairman
for the last time, You see, .I had plenty of friends inside
P and S who kept me informed. I knew everything!! Yes, he
definitely lied.!!! Not once. Not twice. But many times!!!!
Decades later I still find it disgusting… this very fine
company with very fine talent was brought down by the guy
who originally conceived it. (Eventually, Jefferson Pilot
and Combined Communications bought and split it).
While writing this column, I suddenly
realized I have been sitting on a radio/business novel ….a
story of intrigue…. for all these years. I WILL write it
giving assumed names to characters who will certainly not
want to be identified. Others will be identified by name.
I WAS THERE , so I might as well
author it. 300 pages worth!!! A lot of intrigue! Romance!
Money! Neon! All first-class! All glitter! Board meetings in
the Bahamas!! Yep, I think I’ll write it. I probably know
three people who will buy it, and I know they know that I
know who they are. A few of them may even perspire a bit.
NEXT WEEK: Jobs I should have
accepted!!!
e-mail Kent
kent@kentburkhart.com
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