(this is also posted on the news page, but I thought it was important to put it up here also!)
Preston and Steve Out of Non-compete Early?
Preston and Steve, former morning hosts for Y100, have won the preliminary ruling against former employers Radio One in their non-compete lawsuit. Basically, their old contract called for them to stay out of the market for six months. After the demise of Y100 however, they took Radio One to court, trying to make the non-compete invalid. After a lengthy court process and 4-day trial, the judge found in their favor on all counts. Radio One will appeal, but as of now, they are now free to go on the air and likely will soon.
Ooh - UPDATE (insert story here!) - Radio One VP/Operations Zemira Jones says the company will appeal today's court decision that Radio One's noncompete agreement with former Alternative WPLY (Y100)/Philadelphia morning hosts Preston Elliot and Steve Morrison is not enforceable. Jones said, "This decision not only impacts Radio One, but will have an adverse impact on all broadcasters, as it calls into question the enforceability of valid noncompetition agreements when a format change occurs, which is common in the radio industry."
The U.S. District Court in Philadelphia ruled that, because Y100 no longer exists — its former frequency is now home to Radio One's CHR/Rhythmic WPHI — and Radio One operates no competing Rock outlet in the market, Preston & Steve are free to go on the air at their new station, Greater Media's Rock WMMR/Philadelphia.
Jones continued, "This decision is ironic in that it was Preston & Steve's decision to depart Y100 that led Radio One to change Y100's format, and that change now serves as the basis for the judge's decision to bar enforcement of the noncompetes. Contrary to press reports, Radio One made every effort to renew Preston & Steve's contracts with Y100." Hahahahahaha! That's a GOOD one! Let's see - remind me again of what the press reported about those salaries... R-One offered 170k apiece, and Greater Media offered 300k, with three years guarentee? Hmm - yeah, sounds like EVERY EFFORT there...
Meanwhile, Preston called me and said "we're really excited that it went in our favor and now instead of August we can look to get back on the air in a matter of days as opposed to months and right now we're just looking to figure out how that's gonna work." I wish the former Y100 morning show well at their new home of WMMR, even if it means they have to listen to Skynyrd songs on a daily basis. But I'm really happy that they were able to take Casey and Kathy and Nick - all three of them are great people and great employees.
A four day trial... think about the legal fees both sides spent on this case... each side likely just wasted over $100,000 to defend themselves, basically over the question of whether or not P&S would have a 2 month or 6 month vacation. Hey Radio One and Greater Media, we can think of some other uses for that $200k plus - like maybe a little cat food for the Bunker cats, or a couple of cases of Newcastle for Sun Shine Jones? Or how about a shiny new Apple G5, cause the remaining x-Y100 staff over at Y100Rocks.com need one of those badly...
Jim