Pending Business: Non-Compete
By Steve Lapa
Lapcom Communications Corp
President
It’s complicated, this whole Federal Trade Commission ruling potentially banning the non-compete. Considering where you stand on the non-compete concept, it’s really all about evaluating the five “C” profile of your media business.
Personally, I sit at a roundtable where all sides are given equal consideration. More about that roundtable later.
First the five Cs of your media business: Company, Culture, Customers, Competition, Compensation. Let us define each.
1. Company – What is the image and reputation of your Company (management) internally?
Externally? Is your Company viewed as a destination or last resort for employment?
2. Culture – Is the atmosphere on your sales team or in your talent pool upbeat, positive performance driven, supportive, with access to key management? Is there a feedback loop that makes employee voices valued in this new world of Zoom, Teams, etc.? Is achievement recognized in a positive manner? Do sellers and talent have input into goals? Are missed goals treated like broken glass or the start of a learning curve?
3. Customers – Advertisers and audience are important customers. Advertisers, the cash register of any ad-based media model, move in only three directions – increase their spend, decrease their spend, flatline spending. Audience scale is the currency of your performing talent. Audience, like advertisers, can only go in three similar directions – increase, decrease, level off. If you are a subscription-based media entity, pay close attention to overdelivering subscriber expectations and lowering churn.
4. Competition – Keep a close eye on what your competitors are paying, how they are recruiting and what they are changing.
5. Compensation – My favorite. Have the courage to pay for performance at the high end and many of your non-compete clauses may not be needed.
Check the boxes on all five Cs in the model as outlined. Now back to my roundtable.
When you consider your company’s view, the non-compete in any media business that provides training (sales, talent, and other personnel), promotional investment, exposure to confidential research and strategies, is not simple to eliminate.
Consider the following:
1. The talent/show that is backed with a six-figure promotional campaign. Should the talent/show be allowed to seek employment at a competitor who is smart enough to realize, your company invested the money to make the talent/show a success, and all the competitor needs to do is revise compensation and lift a few restrictions? Your company’s investment could never be paid back.
2. Ever sit in on a focus group project? When the participants open the perception spigot, the bucket can fill up with verbal gold. Whomever gains access to that research and the resulting strategic change in direction has their hands on confidential information that can help drive results off the charts. How is the company’s investment in that research protected? What about the employees learning how it all works?
3. Good sales training, seminars, and off-site are not cheap, and considered an investment in all sellers and management. Should you really be permitted to walk across the street with no notice and all that expensive training in your laptop?
I’m writing this column as a roundtable, considering all sides and it is still complicated.
Steve Lapa is the president of Lapcom Communications Corp. based in Palm Beach Gardens, FL. Lapcom is a media sales, marketing, and development consultancy. Contact Steve Lapa via email at: Steve@Lapcomventures.com.
over for Greg Olsen alongside play-by-play announcer Kevin Burkhardt. Francesa is quoted saying that Brady obviously has a deep knowledge of the game but he believes Brady will struggle. “I don’t think his personality is such. I don’t think he’s going to be great at it. I really don’t. I think there’s a unique quality that you have to bring that allows you as an analyst to see the game, see the game quickly, plus bring personality into it. It’s a tricky job for the analyst in football because you’re going to spend a lot of time over replay. You’re going to spend a lot of time breaking down what happens on replay. And you also have to be very personable and glib in how you do it. I don’t see him there.” 
Soros, would become the largest shareholder in New Audacy and that Soros would “control these radio stations to advance their particular brand of activism.” Further, MRC objects saying that the FCC has an obligation to complete a full and thorough review and that the Commission is being asked to approve the change in ownership without this review, specifically 
regarding the foreign ownership issue which the MRC says would not be handled as required by Section 310(b)(4) of the Communications Act of 1935 if the Soros Group gets what it wants. It’s asking the FCC “to waive that process and put it off until sometime down the road – indicating that those foreign stakeholders will be given ‘special warrants’ in the meantime. The Soros group says that putting off the required foreign ownership review will enable the FCC to expedite its approval of the Soros applications and thus allow them to more quickly realize their ownership interests in and take over the hundreds of local radio stations across the country.” The MRC argues that the Communications Act of 1935 “does not contain a special Soros shortcut.” 
Interestingly, marketers and media agencies massively underestimate the immense sales effect power of creative. NCSolutions says that creative drives half of sales, about two-and-a-half times what advertisers perceive. The Advertiser Perceptions February 2024 study reports brands and media agencies say creative only represents 19% of total sales effect. NCSolutions science reveals creative generates an eye-popping 49% of incremental sales. According to System1 chief customer officer Jon Evans, “Creative is the number one factor in explaining the performance of your advertising and yet most marketers still don’t realize it. That means that those who focus on getting the creative right have a huge competitive advantage. Firstly, marketers need to wake up to the importance of creative and secondly realize it isn’t some dark art but something you can measure and improve to give you an advantage over the competition who haven’t realized this yet.” 
Time to thank the lawyers in the Donald Trump trial for once again proving beyond any doubt the power of talk radio.
I asked ChatGPT: “Vendors are now offering radio stations a service that delivers advertising commercial copy generated by AI. Because AI draws from what’s already been done, this risks sound-alike scripts. Is there a list of commercial clichés users should instruct AI to exclude?”
Yesterday’s column
involved, consistently doing the work necessary to drive meaningful change.” Farber’s long and storied broadcasting career includes her work leading the RAB for the past 12 years. MIW board president Ruth Presslaff says, “What more can be said about Erica that hasn’t yet been said? She is a strategic thinker and true trendsetter who gives generously of her time and wisdom. MIW is a better organization because of her. The industry has been enriched in countless ways because of her. What an impact this woman has made!” Farber comments, “I am deeply honored. Being recognized by such influential women in the industry is incredibly meaningful and humbling to me. I owe immense gratitude to the mentors and inspirational women who have supported and uplifted me along the way. They are the foundation of my success. My heartfelt thanks go to Ruth and the MIW Board, and to all of you who share my passion for radio and the impactful work we are privileged to do every day.”
who is returning to Philadelphia as a host at the company’s “SportsRadio 94WIP.” Audacy New York market president Chris Oliviero says, “Ryan knows radio, sports and New York, making him a triple threat to take the reins of WFAN, which continues to be the city’s most influential and dominant sports platform. In addition, with Infinity Sports Network, Ryan will have a major impact on the sports conversation nationwide. All of us at Audacy are excited to welcome him to the team.” Hurley, who joined ESPN New York as an intern in 2004 after graduating from Hofstra University and worked his way up to PD in 2017, says, “I am excited and grateful to have the opportunity to join this legendary station. The term ‘dream job’ can get thrown around a lot, but as someone who grew up listening to ‘The Fan’ religiously, that is exactly what this is. There is an incredible team here led by Chris Oliviero, and I look forward to this journey ahead with them.” Additionally, David Mayurnik has been named assistant brand manager of WFAN and Infinity Sports Network and will report to Hurley.
The media headlines are dizzying these days, yet they all share one common thread. See if you can solve this puzzle.
7:00 pm. KNX says, “In her first broadcast town hall as mayor of Los Angeles, Karen Bass takes the stage at KNX News to take questions from Angelenos on a broad range of public safety-related topics the day after her State of the City address. As the City searches for a new chief to shape the future of the LAPD, Mayor Bass will hear from constituents about what they want that future to look like.” The show is being aired on KNX News 97.1 FM, the Audacy app, and streamed live on YouTube.
It seems every hour Nielsen and Pierre Bouvard of Cumulus fame (formerly of Westwood One) put out a release stating that radio is just fine, thank you. Radio is more persuasive than TV, direct mail, streaming and print. Radio is a proven success for over 100 years. Most of the buildings housing Procter & Gamble were built on radio – not TV – advertising success. Happily, P&G realized radio’s clout and is now a dominant radio advertiser – again!