Monday, February 21, 2005

PAYOLA?

Reuters reports today that three broadcast groups in New York state have received subpoenas in connection with NY Attorney General Eliot Spitzer's ongoing probe of the link between independent promoters and radio stations.
Reuters says Clear Channel and Entercom have confirmed receiving subpoenas, while officials at Viacom's Infinity Broadcasting have declined comment on reports Infinity was also served papers. It has been reported previously that an Infinity Operations Director in Rochester and an Entercom PD in Buffalo have been terminated since the Spitzer probe began last year.
In a statement, Clear Channel said, "Clear Channel has received a subpoena from the New York Attorney General's office and is cooperating fully with the investigation into the industry's use of independent promoters and associated allegations of 'pay for play'. In April 2003, Clear Channel voluntarily severed all ties with independent promoters to avoid even the appearance of impropriety, and we are confident the investigation will show the company is in full compliance with the law.

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