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Sports Talk radio battle heating up... in court

Discussion in 'BBS Hangout' started by JPM0016, Dec 17, 2004.

  1. JPM0016

    JPM0016 Contributing Member

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    http://www.chron.com/cs/CDA/ssistory.mpl/sports/2951735

    By DAVID BARRON
    Copyright 2004 Houston Chronicle

    On Monday, Charlie Pallilo goes to work at KBME (790 AM).

    On Tuesday, he goes to court.

    Infinity Radio, Pallilo's former employer at KILT (610 AM), will ask state District Judge Randy Wilson on Tuesday afternoon to grant a temporary injunction prohibiting Pallilo from working for Clear Channel Radio until at least May 2005, six months after his final day at KILT on Nov. 2. It also seeks unspecified damages.

    At issue is the no-compete clause of Pallilo's two-year contract with KILT that expired Aug. 31. KILT claims the clause is binding, even though Pallilo's contract had expired when he agreed to join Clear Channel, and that Pallilo's departure for KBME "will be effectively robbing Infinity of its investment in him."

    Pallilo's attorney, Brian Zimmerman, said in court documents that the no-compete is "unenforceable, over broad and unreasonable" under Texas law.

    None of the parties would comment on the case Thursday.

    Judge Wilson has twice denied Infinity's requests for a temporary restraining order that would keep Pallilo from working for Clear Channel's KBME, which launches at midnight Sunday with its new all-sports format, or KTRH (740 AM), for whom he has worked since Nov. 22.

    Pallilo earlier this month asked Wilson for a judgment stating that the no-complete clause is not binding. Infinity countered with its legal action, in which it said it had reached an informal agreement with Pallilo on a new contract before he signed with Clear Channel.


    Launching the Animal
    KBME, which will be known as ESPN 790, the "Sports Animal," switches into all-sports mode after one final episode of the syndicated series When Radio Was, which ends at midnight Sunday.

    The station will air Fox Sports Radio until 5 a.m., when it airs the Mike Golic and Mike Greenberg show, Mike & Mike in the Morning, from ESPN Radio. The Fox Morning Extravaganza with Van Earl Wright and Andrew Sicilliano airs from 8 to 10 a.m., followed by ESPN Radio's Colin Cowherd from 10 a.m. to noon and ESPN Radio's Dan Patrick from noon to 3 p.m.

    Pallilo, with a boost from former KILT compatriot David Dalati, will work from 3 to 7 p.m., followed, for the time being, by Fox Sports Radio at night. Pallilo's opening-day guests will include Astros owner Drayton McLane, University of Houston basketball coach Tom Penders and ESPN draft analyst Mel Kiper Jr.

    Ken Charles, Clear Channel Houston's programming vice president, said KBME will add the rest of ESPN Radio's programming on Jan. 17, when KILT loses the ESPN franchise.

    Meanwhile, SportsBeat will continue "for the time being," Charles said, on KTRH. The long-running show will air at least through the beginning of baseball season, but Charles said its fate after then remains undecided.

    KTRH staffers Tom Franklin, Carl Dukes, Ted DeLuca and Robert Henslee will share anchor duties on KBME when Pallilo is on vacation or otherwise indisposed, Charles said.
     
  2. Faos

    Faos Contributing Member

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    Sounds like major sour grapes from 610.
     
  3. RocketManJosh

    RocketManJosh Contributing Member

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    Wow .. the exact same thing I was about to type
     
  4. MadMax

    MadMax Contributing Member

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    No-compete clauses!!! I love them!!! :) Spent considerable time with this issue. And guess what...radio is the PERFECT industry for enforceable no-compete clauses! Hard for me to comment without actually reading the clause in question. But this sort of job lends itself very well to enforceability of a clause like this.

    It's not sour grapes. It's enforcing a contract that made Charlie a fair amount of money, I'm sure. He and Clear Channel both knew that it was there, I'm sure. They'll pay something to Infinity to make it go away, I bet.
     
  5. nyquil82

    nyquil82 Contributing Member

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    yep, in this case a non-compete clause can be enforceable, but only with another company that directly competes with the first company significantly. however, Its not fair to have an non-compete clause with no time limitation, so information is needed on that. The court will determine if the non-compete period lasts a reasonable time after the resignation. 6 months though seem a little short, im sure tex law has a maximum amount of time that a non-compete clause will last.
     
  6. MadMax

    MadMax Contributing Member

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    as with most legal questions....IT DEPENDS. i've negotiated two contracts for two different radio personalilties. both had no-compete clauses...they're standard in that industry, frankly. and both were 6 months within the same radio market. i think that's more than reasonable. i would be shocked if this weren't enforced...it would be outside of what i've personally seen enforced if it weren't.
     
  7. Chance

    Chance Contributing Member

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    FOR SALE:

    One big stinking pile of dirty laundry. It is presently on display in The Houston Chronicle, for those interested.


    For real though...this sucks. It shouldn't have come to this. Keep in mind that while radio is a form of entertainment it is also a revenue source for a lot of people. It's business. And sometimes the methods of business totally suck.

    I am quite sure there will be more and I will be as candid as I can.

    Only this time I would greatly appreciate it if some of you guys didn't CTRL C, CTRL V my stuff in other BBS's. I have been chilling in here for 5 years and have been open and honest about everything. My cc.net etiquette and personality does not translate in other forums. What is a blatant joke or obvious sarcasm that the community here recognizes might seem different elsewhere.

    Thanks.
     
  8. Jeff

    Jeff Clutch Crew

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    I heard about this yesterday. I would NOT want to be in a deposition with Laura Morris on the other side of the table. :eek:
     
  9. Nick

    Nick Contributing Member

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    I guess I'm not understanding something here.... Pallilo's contract expired on Aug. 31st at Infinity, yet he still has to be under the no-compete clause for the next 6 months... even though techincally he's a "free agent?"

    I did read the part in the chronicle where it stipulates that Infinity felt they had reached an "informal agreement" (I love those) with Charlie, before he signed with Clear Channel.

    Is that what they're going to try and use to enforce the no-compete clause? I'm confused.
     
  10. NJRocket

    NJRocket Contributing Member

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    I wish Mike and the Mad Dog would go to satellite. The sports talk guys here just plain suck. I think 610 spent the entire day referring to some friggin Ornament Museum yesterday...they were about an hour late on the RJ news...and basically, if it doesn't happen in south texas, it doesn't get discussed...at least not intelligently.

    They should blow up that 610 crew and bring in some new blood.
     
  11. MadMax

    MadMax Contributing Member

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    i get enough of the national crap from ESPN and other news sources. and it's what i care about least. local is best.
     
  12. MadMax

    MadMax Contributing Member

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    yep...and very, very common in the radio industry where there is investment and identification in the personalities, themselves
     
  13. Nick

    Nick Contributing Member

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    I see.

    So, 610/infinity is very concerned over the "Power of Pallilo." One question, how come they don't seem to give a damn about the "Domination of Dalati?" :D
     
  14. SamCassell

    SamCassell Contributing Member

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    The "no compete clause" makes alot of sense. The industry spends time, effort, and money promoting a guy up until the point that his contract is up, which is basically lost money when they deal is up if the personality leaves for another gig. The person isn't being deprived of a livelihood, just is prohibited from doing the same job in the same area for a limited period of time. And I'm sure that such a contract was written, and not a "handshake deal." Like Max said, it's very common in alot of media jobs.
     
  15. Harrisment

    Harrisment Member

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    Come on 610...nut up and take Pallilo on....
     
  16. Chance

    Chance Contributing Member

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    every contract is different.

    :eek:
     
  17. Faos

    Faos Contributing Member

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    The afternoon show has become pretty much just NFL talk since The Voice moved over. At least I can get my basketball fix with MJ at night.
     
  18. Chance

    Chance Contributing Member

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    Don't paint with a broad stroke. They mixed it up a ton yesterday including an insightful hour with JVG.
     
  19. JPM0016

    JPM0016 Contributing Member

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    The afternoon show is OK, but other than the Capers and Van Gundy shows i don't make it a habit to listen to the whole show anymore.

    Anyone else find themselves turning it off at 6. Just a little too early for me to hear Matt Jackson.

    I do enjoy the 5 hour morning show though.
     
  20. MadMax

    MadMax Contributing Member

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    no kidding..what were you listening to yesterday if that is your take?? they had JVG on...they talked Rockets for a full hour.

    these shows are still caller-driven. this town is apathetic about its hoops team right now, for fair reason...you don't expect that to play out on radio sports shows?
     

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