Aug
15
Posted by: Dakota on 08/15/2013 at 12:41 pm. Filed under News, Sports.

Sales problems forcing WEEI into ICU

It is no mystery that over the past few years Entercom has gotten more involved with money decisions at the Corp level.  Entercom is a publically traded company that owns and operates about 100 radio stations in the US.  Most of these stations are not in major markets.  Boston is right at the top of its list and any issues in one of its top markets is a major concern and is a “Needle Mover”.

Obviously increased competition mainly from 98.5 The Sports Hub and an up and coming 1510 NBC Sports Radio continue to impact ad sales thus causing Entercom to continue to cut major on air talent.  The goal for corp Entercom is simple – they are now positioning themselves for one of two things. A sale of WEEI to the Boston Red Sox or John Henry’s Boston Globe or they will continue to make major cuts and run the Boston market like most of their stations around the country.

Basically Entercom is trying to cut their way to prosperity for WEEI and that never works when that impacts the product on the air.

In Entercom’s recent public filing with the SEC its clear as day – Net revenues increased the most for our stations in the Kansas City and Indianapolis markets, offset by revenue decreases for our stations located in the Boston and Greensboro markets.”

Entercom has its eyes on making money and a growth strategy for its shareholders – thus they will continue to cut in markets where they are not profitable and have increased competition.  In June they moved into the San Francisco market – a major DMA with plenty of upside for growth.  I think the plan there is to replace or try to duplicate the success that WEEI previously had in Boston.

The writing is not only on the wall – the wall is made up of the writing! Every contract that has been expiring has been either re-written or not re-signed.  Today’s news of Jason Wolfe comes at no surprise as “Big Brother” is taking more control.

In the coming months and into 2014 there will be major money decisions on the rest of the on-air talent.  Its not only “Whose Next?” but “What’s Next?” for WEEI!