Author Topic: Sirius XM Slashing Salaries of Top Talent, Says Anchor of Howard Stern Channel  (Read 2529 times)

Offline Reginald Hudlin

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from THE HOLLYWOOD REPORTER:

.EXCLUSIVE: Sirius XM Slashing Salaries of Top Talent, Says Anchor of Howard Stern Channel
6:49 PM 1/4/2011 by Paul Bond

"They've asked everybody to take a pay cut," claims Bubba the Love Sponge, who quit after being told his salary would be reduced by 80%.

After having struck expensive deals with such Hollywood personalities as Oprah Winfrey, Martha Stewart and Jamie Foxx, Sirius XM has been asking some of its top radio talent to take dramatic cuts in pay.

So said Bubba the Love Sponge, who for five years was the No. 2 talk-show host at Sirius XM until he quit a few days ago after he says management tried to cut his salary by 80%.

In December, CFO David Frear talked of "more favorable economic terms" as content deals came up for renewal, so it's no secret that Sirius XM is trying to rein in costs. If a glimpse into Bubba's salary negotiations is any indication, the cost-cutting measures could be brutal.

Even top talker Howard Stern hasn't been immune, as analysts figure he re-upped at Sirius XM for about $80 million a year, down from a previous deal that had him earning $100 million annually.

But while Bubba attracts an audience about 38% the size of Stern's (roughly 2 million compared to 750,000, according to insiders), it turns out his worth to Sirius XM was negligible in comparison. And he's not alone, he said.

"They've asked everybody to take a pay cut," he told The Hollywood Reporter on Tuesday. "With me, it was a take it or leave it offer. We decided to leave it."

Bubba was earning $1 million annually at Sirius XM, and the company wanted to slash that to $200,000 beginning this year, he said.

Bubba blamed management's penny-pinching on its obsession with striking rich deals with Hollywood, sports and music personalities who have name recognition but no discernible talent for radio. Sirius XM, for example, pays Winfrey about $18 million a year and Stewart roughly $7 million.



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"They've asked everybody to take a pay cut. With me, it was a take it or leave it offer. We decided to leave it."
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The company also has on its payroll Eminem, Jimmy Buffett, Bob Dylan, skateboarder Tony Hawk, skier Bode Miller, Entourage actor Jerry Ferrara and a host of other prominent names.

"They paid an exorbitant amount for Hollywood people like Jamie Foxx with no f---ing radio talent, so radio people like me have suffered," Bubba said. "A lot of good radio people aren't getting an opportunity because of these Hollywood people."
Sirius XM didn't respond to requests for comment.

"Eminem doesn't even have to show up and they pay him zillions of dollars. Where does Bubba the Love Sponge sign up for that!" he joked.

"I don't have any business on a movie set, and actors don't have any business behind a radio mike," Bubba added. "You Hollywood f---s stay out of radio, and we'll stay out of Hollywood."

Bubba has for years had an unusual relationship with Sirius XM. He joined the same day as Stern and anchored the Howard 101 channel. A year later, he accepted a pay cut but was allowed to syndicate the show to a half-dozen traditional radio stations. That's when he cleaned it up in order to pass muster with the FCC. A year after that, he began delivering four hours of exclusive and uncensored content to Sirius XM.

"Three times we were able to do a deal. This time we came to an impasse," he said. "I didn't think an 80% pay cut was fair market value for my services."

Instead, Bubba has joined radioIO.com, making him the first major radio personality to ditch satellite in favor of the Internet. RadioIO is owned by ioWorld Media, a publicly traded company.

At RadioIO, Bubba will host a free show plus another show that will become part of the service's subscription package. Plus, members of his on-air radio crew will get to program their own music channels based on the genres they like.

"They gave me a fairly lucrative base salary, plus incentives like stock and commission on subscribers. It's far better than Sirius ever was," he said.


Offline Battle

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Ah! A chink in the Hollywood armor...
What Bubba doesn't seem to understand is that radio was the original dormain and pre-cursor to show biz before television (at home) and eventually motion pictures (in theaters).

Offline JLI Jesse

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Ah! A chink in the Hollywood armor...
What Bubba doesn't seem to understand is that radio was the original dormain and pre-cursor to show biz before television (at home) and eventually motion pictures (in theaters).

Bubba does have a point in some places.  I think they are paying Oprah something like $50 million to basically just use her name and let Gail King (and friends) have a radio show.  Big waste of money in my view.  I've never heard of anyone listening to the channel.  Certainly not enough to command that much money.  People want to watch Oprah, not listen to Oprah related hosts.

Offline Battle

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The only point Bubba has made is QQing over some major changes in an industry that rapidly changes according to demand (pay radio?!). Had he created a lucrative brand in print, television and movies there would be no cause for concern, now would it?

Offline Hypestyle

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....hmm... at least this means there will be more $$ room for me to squeeze in one day...
Be Kind to Someone Today.

Offline Battle

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Howard Stern's Suit Against Sirius XM Over Pay Is Dismissed

by David McLaughlin and Chris Dolmetsch, 2012 Bloomberg News
Wednesday, April 18, 2012

According to Bloomberg News, Howard Stern's lawsuit against Sirius XM Radio Inc., in which the radio personality sought to recover $300 million in unpaid stock awards that he claimed he was owed, was dismissed by a New York judge.
 
Justice Barbara Kapnick of state Supreme Court rejected arguments by Stern's production company that subscribers to XM Satellite Radio, which merged with Sirius, should be counted when calculating performance-based compensation.

Would You Like To Know More?
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/04/17/bloomberg_articlesM2MJ0H6K50Z301-M2N8U.DTL

http://news.yahoo.com/howard-stern-lawsuit-vs-sirius-xm-radio-thrown-122202437--sector.html

Offline BmoreAkuma

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Howard Stern's Suit Against Sirius XM Over Pay Is Dismissed

by David McLaughlin and Chris Dolmetsch, 2012 Bloomberg News
Wednesday, April 18, 2012

According to Bloomberg News, Howard Stern's lawsuit against Sirius XM Radio Inc., in which the radio personality sought to recover $300 million in unpaid stock awards that he claimed he was owed, was dismissed by a New York judge.
 
Justice Barbara Kapnick of state Supreme Court rejected arguments by Stern's production company that subscribers to XM Satellite Radio, which merged with Sirius, should be counted when calculating performance-based compensation.

Would You Like To Know More?
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/04/17/bloomberg_articlesM2MJ0H6K50Z301-M2N8U.DTL

http://news.yahoo.com/howard-stern-lawsuit-vs-sirius-xm-radio-thrown-122202437--sector.html
What an idiot. Doesnt he know that once a company merge your stocks "merge" too? 
With these choices, I felt that the American black man only needed to choose which one to get eaten by; the liberal fox or the conservative wolf because both of them will eat him.