Don: How did the corporate career help prepare you for being an agent?
Eric: I spent 15 years dealing with talent from the company’s perspective. You learn a lot by being on the other side. Having done that for over 15 years, now that I’m representing talent it gives me certain insights that other agents might not have, because they have never had the experience of serving as senior management for a radio company. It is similar to the advantage a prosecutor may have who later becomes a defense attorney.
Don: When did you first meet Casey Kasem?
Eric: I was part of the team that brought Casey from ABC to Westwood One years and years ago. And then a couple of years after I left Westwood One, Casey and his attorney approached me. Casey had always been represented by an attorney in all his previous deals, and the attorney called me up and said “Casey always liked you from his dealings with you at Westwood One. You’re really a radio specialist; why don’t you come in and be part of this team and represent him.” Now this is a good example of there’s more than just talent deals out there. Instead of just doing a talent deal for Casey, what we did was build a company around Casey. He owned the trademark American Top 40; he had a production library and 20 years of AT40 programs. We sold the assets of that company to AM-FM which subsequently was sold to Clear Channel.
Don: When do you advise clients to move to a new market?
Eric: It’s a tough call but certainly when you have clients in smaller markets there is a limit to the compensation they can achieve in those markets, so I think there is a pretty clear goal to get into a top ten market or on into syndication. No one’s going to question that it’s the right decision to move from Santa Barbara to Los Angeles. Also, a move to a stronger daypart, to drive-time, tends to be an easier decision to make.
In a circumstance when you have someone who is successful in a top market, it is not such a simple decision. There’s something to be said for staying in the position you are in and increasing your franchise value. The length of time in a market can make you more and more valuable to that station and to the advertisers and your audience. Certainly there are a lot of examples of that; Rick Dees created a franchise value that earned him far beyond what a newcomer with comparable ratings could earn. I tend to advise clients that if you’re having great success, and you’re being treated well and compensated well, and you’re in a top market at a well managed station with a good signal, then you don’t necessarily want to run the risk of a move to a new market.
Don: Does membership in AFTRA make a difference in a talent’s success?
Eric: I’m a big believer in AFTRA and I think unions do a great service in the broadcasting industry. But, I don’t think someone’s talent or ultimate success turns on whether they are AFTRA or non-AFTRA. I think what’s great about AFTRA is they do a great job of protecting the basic human and work rights of rank and file talent. Most of the clients that I represent, at least compensation wise, are not the rank and file. When you’re representing talent at that level you are dealing with issues beyond the scope of what is covered in an AFTRA Agreement.
Don: Should talent negotiate their own contracts? A lot of people think it’s like a doctor working on himself or a lawyer being his own client.
Eric: I have to tell you what you’ve said is absolutely correct. We live in a world of specialization and no one person can do everything. That’s why I specialize primarily in broadcasting. You know people have come to me for other things, but frankly I won’t take on a client in film, or theatrical, or voice-over because it’s not my area of expertise, and I don’t think it’s fair to a client. I will help my client find another agent in these fields, so that the client can build a team of specialized advisors.
As for negotiating your own deal, there are times when you have to do it, and it’s not necessary for everyone to have an agent. When you reach a certain level, there is no doubt in my mind that an agent is going to be a more successful negotiator than doing it yourself. And I follow that advice in my own life. I have a background as an entertainment and corporate attorney, but when I had a complex transaction that I was the principal in, I sought outside counsel. For example, I was the CEO and one of the owners of After Midnite Radio, which I sold to Premiere Radio Networks in 1997. As CEO of that company and as an attorney, you could have assumed that I could have handled everything involved in that transaction. While I was primary negotiator of the purchase price, I hired outside counsel to work with other aspects of the deal like tax issues – because I wanted an absolute expert to assist me in that area.
For that same reason I don’t think other people should be representing themselves. Talent is in this business because they can turn on a microphone and create magic. That is their core competency. It would be a rare individual who could do that, as well as stay on top of new opportunities, industry trends and negotiating strategy.
There’s a second aspect of it, also. I have met a few creative people who are good negotiators. They understand radio and the radio business. They read LARadio.com; they read the trades on a daily basis and really understand the business. But there’s also something else, there’s something to the fact that you go in there and you have a certain relationship with your Program Director or General Manager, and you’re trying to work together creatively and productively. It can often times be uncomfortable. It’s tough to put yourself in a position of negotiating with someone with whom you need to have a continuing positive working relationship.
