03-22-2005, 05:26 PM
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#1 (permalink)
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That's what she said
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Big bully Clear Channel recieves minor bruise during beatdown of competition
Linky: http://www.suntimes.com/output/busin...n-clear22.html
Quote:
Clear Channel hit with $90 mil. verdict
March 22, 2005
BY ERIC HERMAN Business Reporter
A 10-person jury dealt Clear Channel Communications Inc. a stunning defeat Monday, ruling it interfered with a Chicago promoter's bid to produce motorcycle events, and ordering it to pay $90 million.
The verdict marks a triumph for Jerry Mickelson, the concert promoter who founded Jam Productions and later tried to branch out into promoting "supercross" dirt-bike events through another company, JamSports.
After U.S. District Judge Matthew Kennelly read the verdict, Mickelson, 53, hugged his lawyers and beamed.
"I feel vindicated. This is a win for all the little guys," Mickelson said.
The jury rejected JamSports' antitrust claim -- potentially the most costly to Clear Channel. But it found the entertainment giant had interfered with a JamSports contract and business relationship, and awarded $17.1 million in missed profits and $73 million in punitive damages.
"Punitive damages are awarded when a jury believes that the litigant has engaged in willful or malicious conduct, bordering on criminal," said JamSports' attorney Jeffrey Singer. "If you have enough courage and strength in America, with our civil justice system, even David has a chance against Goliath."
The lawsuit had its origins in JamSports' efforts to take Clear Channel's place as the promoter of supercross. In 2001, Jam and the American Motorcyclist Association entered a 90-day exclusive negotiating period. During that time, Clear Channel approached the AMA about a deal.
According to JamSports, Clear Channel also interfered with the talks by threatening stadium owners, and pledging to start a rival supercross series. In the end, JamSports' deal with the AMA fell apart, and Clear Channel won a renewed deal to promote supercross.
Clear Channel asserted it competed fairly, and that JamSports simply lost out to a more qualified company.
"We are very disappointed that the jury didn't see this case for what it really was: a disgruntled competitor who couldn't succeed in the marketplace, and took his case to the courtroom," Clear Channel said in a statement.
The company plans to file an appeal, the statement said.
Still, it was the testimony and e-mails of Clear Channel executives that apparently lost the case. A source who spoke to jurors after the verdict said the testimony of Chief Financial Officer Randall Mays and executive Brian Becker were especially damaging. One e-mail cited the need to "kill, crush and destroy" competition.
The rivalry between Mickelson and Clear Channel predates the supercross fight. Mickelson, a native of Rogers Park, founded Jam Productions with pal Arny Granat in 1972. They built a concert promotion business that puts on rock shows throughout the Midwest. They also own the Park West and the Vic theater.
Clear Channel became the country's biggest concert promoter after acquiring SFX, which had grown by buying up smaller, local promoters. With $9 billion in annual revenues, Clear Channel also owns about 1,200 radio stations, seven of them in Chicago, including WGCI-FM (107.5) and WLIT-FM (93.9). It also owns more than 150,000 outdoor advertising displays.
In Chicago, it owns or has exclusive promoting rights at the Tweeter Center, Allstate Arena and the Cadillac Palace Theater, among other venues.
In February, the Chicago Park District chose San Antonio-based Clear Channel to build an 8,000- to 10,000-seat outdoor concert facility on the site of former airport Meigs Field. Mickelson complained about Jam Productions being passed over, and claimed the facility was his idea.
Another defendant, AMA affiliate Paradama Productions, was ordered to pay JamSports $169,315.
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I want to be happy about this civil court victory against Clear Channel... a company I think has about as much ethics as Enron... but unfortunately, $90 million is nothing when you look at their annual revenues of $9 BILLION. In fact, they can probably cover this loss with the money they'll make from the supercross contract that this lawsuit was about in the first place.
The real bummer in this story is that the anti-trust part was rejected. The FCC should've never loosened their regulations and allowed CC to grow this big in the first place... they have so much power now it's ridiculous, not to mention down right scary.
Last edited by dirtyrascal7; 03-22-2005 at 05:38 PM..
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