Weekend Update

Local Radio Freedom Act Reintroduced in the House U.S. Representatives Gene Green (D-Texas) and K. Michael Conaway (R-Texas) have reintroduced the bipartisan Local Radio Freedom Act (H. Con. Res. 16), which "would oppose any new fees, taxes or royalties for music played on local radio stations." The House resolution has 71 additional original cosponsors. According to a news release, "The recording industry has lobbied for a new 'performance tax,' which would require local radio stations to pay a fee for each song they play on air. Local radio already provides free advertising and promotion for the recording industry, and these fees could put the future of these stations in jeopardy." Says Green, "I'm glad to join Mr. Conaway and many of our colleagues again in introducing this important resolution to preserve free over-the-air broadcast. Radio provides a great service to people, no matter their income, age, or education, and it’s an important part of maintaining an informed and engaged society. We can’t introduce a new system of fees that will cut people's access to public safety information, news, weather, or entertainment." Conaway adds, "Communities rely on their local radio stations for news, weather alerts and other emergency broadcasts, and the suggested performance tax could jeopardize the future of many of these struggling stations. I'm pleased so many of my House colleagues have joined with me in supporting local radio stations and listeners while pushing back against punitive fees." The new resolution, we're told, is identical to H. Con. Res. 21, which Conaway and Green introduced in the 112th Congress. David Landau Receives $1.2 Million to Exit Dial Global David Landau will receive $1.2 million, plus other benefits, for stepping down as a co-CEO of Dial Global. According to an SEC filing, Landau is to receive his contractual base salary of $600,000 per year for two years, and unspecified benefits paid for by Dial Global. Landau was a co-founder of the company in 2002. With his exit package, Landau also has 1.6 million stock option shares at an exercise price of $3.27 per share, which he can cash in at that price on August 8, or for 15 percent immediately. In exchange for being paid for another two years, Landau has agreed to a two-year non-compete agreement with Dial Global. As we reported on February 11, Dial Global restructured its top-level management team, with Spencer Brown becoming the company's sole CEO, while Ken Williams became President, reporting to Brown. Landau, who had been a co-CEO along with Brown and Williams, resigned. Dial Global said the changes were intended to "sharpen the company's strategic focus and provide greater clarity" to its advertising clients, station affiliates, and stockholders. However, it's no secret that Dial Global continues to be in serious trouble, with large financial losses. Last November, we reported that DG even said it may not survive its financial problems. At that time, the company first announced that it would quit Nasdaq, and reported that it was unable to file its then latest SEC quarterly report on time. SBS Sued by Lehman Over Dividends Non-Payment Spanish Broadcasting System is being sued by Lehman Brothers Holdings, based in New York, which claims SBS owes $29.36 million in preferred stock dividends. Lehman is asking a Delaware Chancery Court judge to rule that SBS violated a contract by not making the payments, and is therefore prohibited from incurring additional debt, according to court papers. Bloomberg reports that Lehman lawyers said in the complaint, "Despite the fact” of the contract, and non-payment to Series B preferred stockholders since mid-2009, “the company proceeded in 2011 and 2012 with the incurrence of hundreds of millions of new debt -- including a $275 million refinancing." Lehman is seeking a ruling that the broadcaster caused a “triggering event” by not paying the dividends, that incurring debt was prohibited. It is also asking for unspecified damages “to be determined at trial,” according to the filing. SBS has not yet commented on the suit. Dana Davis Rehm Exiting NPR Marketing in Reorganization NPR SVP of Marketing, Communications and External Relations Dana Davis Rehm (pictured) will exit after 12 years, May 6. Rehm joined NPR in 2001 as VP for Member and Program Services. Director of Branding and Creative Services Kathie Miller is also leaving after 14 years with NPR. Both of their positions are being eliminated with the reorganization of the marketing department as the Marketing, Branding, and Communications Division, under new Chief Marketing Officer Emma Carrasco. With the reorganization, the Audience Insight and Research Department is being merged into the new division, with Director Lori Kaplan reporting to Carrasco, and two new positions will be opened up, Director of Marketing and Branding and Director of Branded Events. Carrasco says in an internal memo, "Since stepping into the newly created role of Chief Marketing Officer for NPR in December 2012, I have been focused on assessing the many opportunities our brand has to be amplified. They are boundless! In order to leverage the many strengths of the NPR brand, I am making a strong pivot in NPR’s marketing, branding, and communications to deliver support for NPR and our Member stations."