• by October 16, 2000

By Sharon Benoit

In what appears to be a cost-cutting measure, Kentucky-based Clear Channel Radio has consolidated its existing Los Angeles (CA) management structure, effective immediately.

The CCR reorganization calls for Ken Christensen, VP/General Manager of KFI-AM (news/talk format), to add to his duties KXTA-AM (known as XTRA Sports, an all-sports format) and KLAC-AM (nostalgia radio). Ed Krampf continues as VP/GM of KBIG-FM and KOST-FM, two adult contemporary stations. He was formerly GM of those stations as well as KLAC under AMFM. Roy Laughlin, Clear Channel VP/GM of KIIS-FM, adds KYSR-FM and KCMG-FM (Mega 92.3) to his responsibilities. He hands over XTRA Sports to Christensen. Charlie Rahilly will take over as VP/director of sales, and David Hull has been appointed director of operations for the entire Los Angeles CCR cluster, respectively.

According to CCR president Randy Michaels, "The new L.A. team is structurally aligned to exploit specific general manager skill sets and create format and demographic synergies."

Michaels believes that Clear Channel's pacings in the L.A. market significantly exceed overall market growth. He said, "Moving these stations into format, demographic and management categories allows us to reduce overhead and production expenses, while improving the overall radio product."

What prompted one of the country's largest radio conglomerates to tighten its belt buckle this week? Speculation points to the Internet. Los Angeles is a $900 million radio market that, in the past two years, had grown nearly 40% thanks to the influx of dot.com money. However, this consolidation announcement comes hot on the heels of a recent industry gathering that sent all U.S. radio companies licking their wounds in public.

Executives from Clear Channel and other radio conglomerates met in San Francisco late last month at the National Association of Broadcasters Radio Show. The hot topic? The rapid decline of Internet stocks, which has put many dot.coms out of business or into a cut-back mode, which has caused at the very least a 3% "slow down" in radio ad sales. The ad sales growth rate this year is expected to rise 10% to 12%, as compared with the 15% of 1999. (Last year, this same group was quite boastful and enthusiastic as stations throughout the country were raking in megabucks from the dot.com world.)

Many analysts concur that the recent decline in dot.com ad sales may be a tad "overblown." But, the fact remains: Clear Channel shares fell 32% (since mid-August) and this alone could have a lot to do with this week's decision by Clear Channel's Kentucky crew to consolidate and tighten their belts in Southern California.

In the mean time, Clear Channel's top-level managers will be shifting gears with these new responsibilities. It will be interesting to watch what if any other changes will occur as a result. Right now, change is in the wind for two L.A. stations immediately: XTRA Sports will move its