http://www.latimes.com/news/nationworld/nation/la-000026774apr14.story
THE NATION
Concert Giant Rearranges Top Ranks as Returns Sag
By JEFF LEEDS
TIMES
STAFF WRITER
April 14 2002
Clear Channel Communications, the
nation's biggest radio and concert conglomerate, has ousted its two top concert
executives in a management shake-up, sources said Saturday.
Sources said
Brian Becker, chief executive of Clear Channel's entertainment division, had
been disappointed with the performance of the concert operation's co-chiefs,
Rodney Eckerman and Irv Zuckerman. It was unclear Saturday whether the two would
take other roles at the company. Veteran concert executives Don Law and Dave
Lucas are expected to be named the new co-chiefs.
The move follows a poor
year in the concert industry that was compounded by canceled tours and lower
attendance after the Sept. 11 terrorist attacks. Clear Channel's entertainment
division, which promotes concerts, motor sports and other events, saw its 2001
pro forma earnings, a critical measure for media companies, plunge 21% to $153
million. The San Antonio company recently handled major concert tours for 'N
Sync and Madonna, but it has failed to secure tours from other big acts, such as
Britney Spears and Creed.
The shake-up comes as Clear Channel, which
dominates the nation's concert business, is continuing to expand. Clear Channel
has expressed interest in buying its closest competitor, Los Angeles-based House
of Blues, which also has received interest from Denver billionaire Philip
Anschutz, former Ticketmaster chief Fred Rosen and radio broadcaster Entercom
Communications Corp., sources said.
Any deal for Clear Channel to buy
House of Blues would likely be scrutinized by the Justice Department. Last
month, a New York congressman asked antitrust officials to examine allegations
Clear Channel sought to undercut the recent sale of New York promotion firm
Metropolitan Entertainment to a Clear Channel rival, concert executive Mitch
Slater. The company has denied any impropriety.
Last week, the Justice
Department sued Clear Channel over its policy prohibiting diabetic concert-goers
from taking their medical supplies with them into venues. The federal lawsuit,
filed in U.S. District Court in Philadelphia, accuses the company of violating
the Americans With Disabilities Act by forcing people with diabetes to choose
between attending concerts or taking unreasonable health risks. Clear Channel
maintains its concert policies are in accordance with ADA.
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