Connoisseur Media Rises Again…Like Lazarus.

Profiles In Erie Media

If anyone had radio waves running through their veins it is Jeff Warshaw, CEO and founder of Connoisseur Media. According to a March 2006 Radio INK article, Jeff’s parents and an uncle owned Universal Broadcasting. Even as a student, he purchased his first station in Indiana that began the incarnation of his company.

His in-home exposure to classic radio really set the tone for his future and that of Connoisseur Media. He is what I would call a… broadcaster. He is enthralled with the medium itself and knows how to make money in the current climate.

In a short period of time, he amassed a sharp team of second lieutenants headed by long time friend and his CFO, Mike Driscoll and Vice-President, David Bevins. In a few years, they acquired 39 stations and later sold the entire group to Cumulas Communications for 258 million.

So what do you do when you are still a relatively young man and have 258 million in your back pocket burning a hole? You build a second broadcast empire just like you did with the first except you use a different approach.

After a bit of R&R, Warshaw reassembled his crew of lieutenants and reviewed the radio market conditions. He quickly observed stations were selling for far too high multiples to make a decent return on investment in the shortest possible time. In a May interview this year with RBR/TVBR, Warshaw said, “We just couldn’t find deals that made sense for us.”

Instead, Jeff’s gang decided to do the reverse of what is usually expected--they decided to build brand new stations from scratch from FCC auctions of new frequencies. He was successful in getting 10 of 20 construction permits he sought. So the company was reborn again. (Halleluiah)

One of the exceptions to this approach was Erie. A few weeks ago, I had the opportunity to break bread with Dave Bevins, who makes his home in Cleveland but currently makes the I-90 run to Erie to monitor the former Nextmedia properties.

Bevins said that “the Erie radio properties represented a rare opportunity as they were well run, mostly competitive and well positioned in the marketplace. " (It didn’t hurt that they were selling at a favorable price or Warshaw wouldn’t have touched it with a polish kielbasa)

The reputation of Connoisseur Media in the trade and blog world is thus far rather stellar. The company seems to get a lot of respect for its decision making process, target marketing and its ability to turn a handsome profit. (Are Professor Warshaw and his lieutenants giving lessons?)

In the Radio INK interview, Jeff Warshaw explained his philosophy of radio this way: “Our creating value is not based on hitting quarterly numbers, nor is it to keep our stock prices afloat in order to fund acquisitions. As a result, we spend heavily on research and promotion. We invest continuely in our properties. We believe that is one way to build long-term value.” (That is the mark of a broadcaster and not just a bean counter.)

What advice does he give to his station’ staff? “Turn your swords away from your competitors in the radio industry and focus on growing the radio business in our community.” (I remember Myron Jones using the same philosophy)

After my conversation with VP Dave Bevins, I have a feeling we are going to see some positive changes at the former Rambaldo properties. Talk radio could be more local talk again and personalities will continue to rule the music airwaves. And we will see more radio promotion!. (That is my hope) “The Wolf” was the first signal of that change. I can say that they seem intent on learning the Erie market and not looking for cookie cutter quick solutions.

For me, that makes for exciting radio to look forward too for the listener and twice as exciting if you are advertisers.

As for the current senior management of the Erie Connoisseur stations, I had the impression that they were satisfied with what is there. Replacing Rick Rambaldo with a new GM may not be as easy. Word has it that a few at One Boston Store Place would be interested in the job and they are being considered. However, I get the feeling that this company wants the right person with multi-station experience and they are willing to take their time in reviewing their options and people including out-of-market candidates.

Time will tell.

Congress passed a law on February 1, 2006, setting a final deadline for the DTV transition of February 17, 2009. Most television stations will continue broadcasting both analog and digital programming until February 17, 2009, when all analog broadcasting will stop.." FCC http://www.dtv.gov/

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