Stern has told his listeners while interviewing Bubba The Love Sponge 1/21 that he’s been contacted by several terrestrial radio execs. “I actually have an offer,” Stern said. “Well, not a bona fide offer, but people have been making them.”
Stern is currently in the last year his five-year, $500 million contract with Sirius XM, which has been paying him more than $100 million per year under a contract that expires this year. So, the next few months will bring some interesting bargaining with Sirius XM CEO Mel Karmazin.
While Stern is likely significantly too expensive for Sirius XM under his current contract, Sirius XM can afford to pay quite a bit to keep him on satellite radio. Unlike back when the current deal was struck, Sirius XM is actually a positive cash flow business.
In November, Stern speculated on-air about leaving Sirius XM. “I don’t think I’m going to be re-signing. I know exactly what I want to do here (referring to working less hours) and I don’t know if it would interest them.”
RBR-TVBR observation: Stern will likely stay with Sirius XM, he may be just posturing as the negotiations continue. Looks like if he does stay, however, he will be paid less and be required to work less – a win-win for both. The is a possibility that he could end up doing both, a la the Opie and Anthony model, but that would likely mean more work for him in the long run. Also, advertisers are pretty gun-shy these days about shock jocks.