(By Chuck Knight) With the final quarter of the year just days away, and following recent rulings by the Northern District of Texas and the US Supreme Court, radio needs to take a hard look at one of the biggest labor issues affecting the industry: the non-compete.
In our industry’s case, the argument is that broadcast owners invest so much in developing talent, that without non-competes, they would be harmed by an employee crossing the street at the end of their relationship. Is that really the case today?
For many, the investment seems to be posting a talent’s own selfie on the station’s website. Marketing, research, seminars, coaching, support materials, and staff? That’s in extremely short supply for talents today – from small companies to large.
For comparison’s sake, let’s look at another industry: professional sports.
Teams invest millions in scouting and drafting players, then millions more on training facilities, strength and conditioning, dietary specialists, coaches specific to every player’s position, safety equipment, and updated uniform designs, just to name a few. How about the team’s top-secret strategic playbook?
If there is a business that could be truly harmed by a talent crossing the street after this kind of real investment, professional sports would be it. Yet if a player becomes a free agent or is released, the NFL, NBA, MLB, and NHL don’t have non-competes. The player is free to sign with another team tomorrow.
We’ve all seen too many people and families harmed by non-competes. Unfortunately, many companies don’t even pay them out. Federal and State laws need to change and Radio companies big and small need to do the right thing. It’s time to delete the non-compete from contracts.
Chuck Knight is the former Brand Manager of Jerry Lee Radio/WBEB Philadelphia, iHeartMedia San Antonio, Emmis Indianapolis, and Saga Communications Columbus. He is President of Chuck Knight Media and these are his opinions. Reach him at ChuckKnightMedia.com or [email protected].
Athletes are well represented by a union that collectively bargains on their behalf. Sports actually makes money, while radio revenue continues to fall and talent becomes increasingly scared of losing their jobs. So many have taken voluntary pay cuts the last 5 years. There is no collective base that media companies respect. Mainly an aging talent pool who announce songs and tease contests…. not much to argue over.