Cumulus Fears a Seller Rebellion

One of radio’s most financially troubled companies is afraid that they will take significant losses of salespeople due to the downturn in advertising revenue.

Cumulus has taken some action to build a safety net for their better sellers to keep them from leaving out of financial necessity but they also are looking to jettison the dead weight.

Cumulus has been failing to generate adequate revenue to contribute to both operating expenses and pay down debt which is approximately $1 billion.

Westwood One has been hit by the loss of sports dollars with March Madness and the Olympics being cancelled while stations have seen double digit erosion of local ad dollars and more of a reliance on cheap remnant ads.

Tuesday April 28th Bob Walker, Dave Milner and an HR rep got on the phone with market managers for a confidential conference call about their future plans.

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