The year was 1979, and I
was consulting KITY and KONO in San Antonio, which competed with Lowry Mays'
single station, WOAI. Even then, his name was legendary in San Antonio. He had
owned the station forever and was a formidable competitor. That's my first
memory of encountering the Mays name in radio.
Yesterday I was reading a
paragraph written by our editors for our coming "40 Most Powerful People in
Radio" issue, and I added the line, "Since the resignation of brother Randall
Mays earlier in the year and with the strong direction being pushed by Clear
Channel's new owners, I anticipate that Mark Mays may soon step down as CEO of
Clear Channel." I had no idea that would happen before those words even made it
to print.
Mark Mays will continue as Clear Channel's chairman, just as
Randall continues as vice chair. But when Mark Mays, the last of the family left
inside the daily operations of the company, steps down at the end of this year,
it will be the end of an era.
Who Invented Consolidation?
Radio
consolidation was not invented by Lowry Mays, but he was the first to build a
significant group of stations, thanks in part to the acquisitions of Jacor (Randy Michaels and company), AMFM Inc.
(Jimmy de Castro), Capstar (Tom and Steve Hicks), Paxson, and others.
Several years before anyone was thinking about widespread industry
consolidation, Steve Hicks discussed the idea in the pages of Radio
Ink, responding to an editorial I'd written about the possibility. Bud
Paxson made the first move, convincing the FCC to allow him to LMA radio
stations. But it was Lowry and sons who built the Clear Channel empire,
consolidating the consolidators. Lowry Mays had a big vision, and he came a long
way from that single AM station in San Antonio.
The Evil Empire
It's been a wild ride
for Clear Channel, which quickly became known as the "Evil Empire." The industry
wanted to cling to its creative past and didn't like continual budget cuts,
voicetracking, loss of localism in many markets, nationalized programming, and
other perceived negatives. Most of those negatives have been softened or
disappeared over the past few years -- though echoes of old issues continue to
be heard, including some old news about an alleged lack of local coverage after
a 2002 train derailment in Minot, ND, that came up at an FCC hearing in March
(Clear Channel fired off a letter to the FCC to once again attempt to correct
the record). Perhaps the image has softened because of industry acceptance. Or
perhaps Clear Channel has shown that they are continuing to evolve and
innovate.
A Kinder, Gentler
Clear Channel?
Today some are celebrating that soon, no one named
Mays will be operating Clear Channel. Others, perhaps more informed, know that
Bain Capital and Thomas H. Lee Partners are a force to be reckoned with, and
they have their own ideas and initiatives to pay down the debt and squeeze out a
profit. Will we see a kinder, gentler Clear Channel with the Mays family out of
the management suite?
I suspect that if we do see a gentler Clear Channel
-- and I think we already have, in the last year or so -- that is a result of
being out of the public markets, where the pressure to perform quarterly
dictates difficult decisions.
A Dream To Take Over The World
I've
always had mixed feelings about Clear Channel and have written many scathing
pieces over the years, including one about how Lowry had a dream of taking over
the world. To his credit, when I saw him face-to-face after writing it (which is
always difficult) he was a perfect gentleman, as he always has been. When there
was an occasion for a thank you, I always received a personal phone call.
Yet for all the things we've found wrong with Clear Channel over the
years, there are a lot of things the company can be credited for doing. In spite
of our disagreement about how radio stations should be operated (it's easy to be
an armchair quarterback), the fact remains that they pulled off an amazing feat,
creating the ultimate radio company, with the most radio stations.
Though I've always fantasized that, when I'm invited onto their board,
I'll get Clear Channel to understand that investment in talent, entertainment,
localism, and local management autonomy will bring them more profit in the long
run, I also know I might not have been able to handle the pressures of the
decisions they were forced to make to survive.
Goodbye And Good Riddance?
Perhaps
others will say goodbye and good riddance, but I've never been one to stomp on
someone's grave. We should be grateful for the spectacle Clear Channel gave, for
the positive things they've brought the industry and the employees who remained,
and we should understand that the Mays family are not at all evil people.
On the contrary, they are wonderful people, who like the rest of the
industry had to learn how to consolidate and keep Wall Street happy while
feeling their way in the dark. Though many, including myself, have demonized
them for decisions we didn't agree with, they made history, changed the face of
radio forever, and opened the door to many innovations, good and not so good.
Someone was going to fully consolidate radio, and it just so happened
that Lowry and sons pulled it off. And chances are the radio industry would have
demonized whoever made those decisions.
So Long, Farewell
Today feels like
the long-anticipated last episode of Dallas. Everything is big in Texas, and the
Mays family, good Texans, built the world's biggest radio company. But, like all
dynasties, this had to have a closing episode. So as Mark, Randall, and Lowry
ride off into the sunset, let's tip our hats and wish them so long and farewell.
Eric Rhoads
Radio
Ink
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