800.275.2840 MORE NEWS» insideradio.com THE MOST TRUSTED NEWS IN RADIO TUESDAY, NOVEMBER 3, 2015 Bubba-Beasley Woes Stretch Into October. For a second consecutive month, Beasley Media Group is the recipient of a harsh Nielsen ratings delistment for rocker “Bubba 98.7” WBRN-FM in a Tampa ratings scandal that has widened to include the October ratings. Beasley says it was “blindsided and disappointed” by the latest delistment. In a notice to Tampa ratings subscribers issued Monday morning, Nielsen said it has “further evidence of panel- tampering attempts” by Bubba The Love Sponge Clem, who is the defendant in a $1 million suit brought by Nielsen in federal court over alleged ratings fraud. “Nielsen has assessed the evidence of these additional panel tampering attempts in context with the previously disclosed panel tampering efforts that were acknowledged by this personality,” the notice says. “As a result of these additional activities, and pursuant to Nielsen’s Rating Distortion guidelines,” Nielsen said it isn’t reporting October audience estimates for WBRN-FM. Nielsen issued the Tampa ratings yesterday at 1pm, six days after their scheduled release date. The second delisting came as a surprise to Beasley after Nielsen said, one month ago when it first delisted WBRN-FM, that the improper activity was discovered in a timely manner and that it removed the tainted panelist’s results from the delayed September survey numbers. But based on allegations made in Nielsen’s suit, the syndicated host engaged with multiple PPM panelists in a carefully coordinated scheme. Nielsen’s admission of “further evidence of panel tampering attempts” suggests the scandal goes deeper than what was initially uncovered. The eight other markets where Clem’s show is heard will receive a notation about WBRN-FM’s delistment and the additional panel tampering attempts. “The ratings themselves were not affected in any of the markets and for that reason, no data reissue is necessary,” Nielsen said in a statement. Beasley Incensed By Collateral Bubba Damage. Reacting to a widening ratings scandal, Beasley Media Group said late Monday that it was kept in the dark by Nielsen about a second delisting of the Tampa radio station it has built around morning man Bubba The Love Sponge Clem. “Nielsen has not shared with us, its longstanding client, any specific evidence of ratings distortion which could have had any impact on the October 2015 Ratings Report, thus suggesting that this action is related solely to the ongoing litigation between Nielsen and Mr. Clem,” company president Bruce Beasley said in a statement. “The fallout from this dispute may inflict collateral damage on Beasley, which, indisputably, has done nothing wrong.” Beasley isn’t named as a defendant in Nielsen’s lawsuit against Clem. Beasley added that the broadcaster has had “a constructive dialogue with Nielsen as we were also victimized by Mr. Clem’s actions.” Beasley’s remedial actions against Clem, who is not a company employee but works for the station as an independent contractor, were reviewed in advance by Nielsen, Beasley said. They included compliance training for Clem and his employees and the distribution of guidelines reiterating the importance of avoiding conduct that could cause ratings distortion to all Beasley employees. “As Nielsen itself acknowledged, we cooperated fully to ensure the accuracy of their past and forthcoming ratings,” the statement said. That “collateral damage” was something executive VP/CFO Caroline Beasley brought up with investors Friday during the company’s earnings call. Referring to the September delisting, she said: “This negatively impacted the Q3 share for the station and the cluster.” And in the company’s Monday press release, it noted that the second delisting “may further adversely impact Beasley.” Gray Shifts, Sells Schurz Radio Holdings. When Gray Television announced its $442.5 million acquisition of Schurz Communications’ broadcast assets on Sept. 14, Gray said it had every intention of holding on to and learning from its new [email protected] | 800.275.2840 PG 1 NEWS insideradio.com TUESDAY, NOVEMBER 3, 2015 radio properties. However, in a reverse move yesterday, Gray said it would spin off the radio stations to three companies for a combined $16 million. “We originally intended to acquire and operate the Schurz radio stations for the long-term,” said Kevin Latek, Gray’s senior VP for business affairs, in a release. “In recent weeks, it became clear that experienced radio broadcasters could better lead these successful radio stations into the future than we could hope to accomplish.” Gray struck the deal with Schurz for its TV portfolio—the three small market clusters in South Bend and Lafayette, IN and Rapid City, SD would have added up to less than 1% of total Gray cash flow on a pro forma basis. The company said it liked what it saw after meeting with the Schurz radio management team, which explained the promotional value the radio stations bring to its sister TV stations in the three small markets. But sources say Gray, which has no experience running radio stations, got cold feet and decided to sell the stations in pieces to different buyers to maximize its receipts. Latek called the three buyers “stellar family-owned companies” that already operate “similar high-quality radio stations” in nearby markets. “More importantly, each of the buyers shares the passion and vision of the Schurz organization, which ensures that these radio stations continue to serve their audience and employees as well as any broadcast stations in the country,” Latek added. Who Gets What In Gray’s Schurz Radio Deal. While the sale of Schurz Communications’ radio stations was orchestrated by Gray Communications, the three radio buyers will directly pay Schurz a combined $16 million cash for the assets, reducing the total amount Gray will pay Schurz for its television stations. Here’s what each of the radio groups is acquiring. Mid-West Family Broadcast Group will pay $5.5 million for classic hits WZOC (94.3), “New Country 99.9” WHFB-FM, “Sunny 101.5” WNSN, Talk/Sports WSBT (960) and translator W241AD in South Bend, IN. The cluster meshes nicely with Mid- West Family’s portfolio in seven markets in nearby Wisconsin, Illinois, Michigan and Missouri. In four of those markets, it competes with Gray’s television stations. In Lafayette, IN, Neuhoff Communications is paying $8 million for oldies “Super Hits 98.7” WASK-FM, sports “ESPN Radio 1450” WASK, rock WKHY (93.5), country “K-105” WKOA and CHR “B102-9” WXXB. Neuhoff will own 20 radio stations in five markets in Illinois and Indiana. CEO Beth Neuhoff recently joined Gray’s Board of Directors. And in Rapid City, SD the HomeSlice Group is adding classic rock KFXS (100.3), hot AC “93.9 The Mix” KKMK, country KOUT (98.7) and CHR “Hot 93.1” KRCS plus 3 translators for $2.5 million. The deal reunites the stations with farm/ classic country “The Big 81” KBHB and classic hits “Smash Hits 920/104.7” KKLS 920 in Rapid City, which HomeSlice acquired from Schurz in July 2014. Gray says the three radio deals will be signed simultaneously with the Gray-Schurz transaction, which is expected to close in the fourth quarter of 2015 or the first quarter of 2016. Wells Fargo served as the broker for Gray; Bob Heymann of Media Services Group was the broker for Mid-West Family. As Sports Rises, CHR Takes October Tumble. In the zero sum game of market share, record ratings in one format typically mean declines in others. So while spoken word stations hit new highs in Nielsen’s October survey, some of the summer’s hottest music formats saw corresponding drops. And no format took a bigger hit than CHR. The format’s AQH share fell from an 8.4 in June to a 7.4 in October. And while CHR remains on top in both the 18-34 and 25-54 demos, “the format’s listenership did not fare well in October,” Nielsen says in a new ratings report. In fact, it was the lowest October on record for CHR under PPM measurement among 6+ listeners and the second-lowest month ever recorded—only the Holiday 2011 survey saw a lower CHR number (7.3). Bringing the format’s two-year trend of post-summer growth to a grinding halt, October 2015 tied for CHR’s lowest October in 18-34 and the third-lowest October among listeners 25-54. Country was softer in the October survey, though not to the same extent as CHR. Continuing the October doldrums it has experienced in each of the past four years, country dipped slightly from a steady 8.2 share the last three months, to a 7.9 in October. Most notably, the format fell behind last October’s pace, when it experienced its first major audience decline in several years. “It’s hard to say if that is about to happen again as we continue to move toward the end of the year,” Nielsen says in the report. Yet country’s year-over-year performance is down in the October 2015 survey in the three major umbrella demos—8.2 to 7.9 among listeners 6+, 9.5 to 9.3 with audiences 18-34 and 8.0 to 7.8 in the 25-54 demo. [email protected] | 800.275.2840 PG 2 NEWS insideradio.com TUESDAY, NOVEMBER 3, 2015 Marketron Launches Programmatic Ad Exchange. Business software provider Marketron announced Tuesday that it is rolling out its Mediascape Marketplace programmatic ad exchange for radio to 2,900 of its stations. The company says the platform will enable the purchase and scheduling of ad inventory and the delivery of ad creative in real time.