Emmis sues L.A.’s Big Boy over possible move - a Multi-MILLION Dollar battle (includes revenue share and company jet usage)

Story by Inside Radio

Emmis Communications has filed a lawsuit in California Superior Court against rhythmic CHR “Power 106” KPWR, Los Angeles morning man Kurt Alexander, known to listeners as Big Boy, to block him from crossing the street to iHeartMedia. The suit alleges iHeart offered him a lucrative deal to leave his Emmis radio home of two decades with the intention of building a new L.A. station around the personality’s brand.

Emmis claims its contract with Alexander gives it the right to match the offer put on the table by iHeartMedia — something the company says it has done — and now it’s asking a judge to issue an injunction keeping the 45-year old personality from moving to the competitor. His current agreement expires February 28.

Emmis CEO Jeff Smulyuan says he’s “dismayed” by Alexander’s efforts to leave KPWR — the station discovered him working as a body guard more than 20 years ago. “I am personally saddened by his actions and the impact they will have on our brand and our people,” Smulyan said in a statement.

Emmis’ effort to keep longtime “Power 106” KPWR personality Kurt “Big Boy” Alexander will likely come down to whether a judge concludes its offer is “substantially similar” to what iHeartMedia is offering. It also offers a peek into what some of radio’s top personalities are earning in 2015.

According to Emmis’ complaint filed in a Los Angeles courthouse yesterday, Alexander was offered $3.5 million in annual compensation to jump to iHeart. The three-year deal would also include a 16% net revenue share once the newly-launched station starts making money, a commitment of $1 million of marketing for the station a year, custom channels on iHeartRadio, $200,000 a year to develop video and TV projects, and access to the company’s private jet twice a year.

Alexander’s current Emmis contract says if the company ponies up whatever a rival offers, he agrees to stay at KPWR. “Emmis wishes to continue its long-term, highly successful relationship with Alexander,” the company tells the court.

While the legal fight moves forward, Emmis has pulled “Big Boy’s Neighborhood” off the air. And the company says several of his show’s cast members have quit KPWR over the past few days. Night host J. Cruz is currently anchoring the station’s morning show.

The Emmis complaint doesn’t indicate which station could become Big Boy’s new iHeart home, and the company declined to comment on the suit. But there may be signals the company is aiming to revive its urban “The Beat” brand on what’s currently rhythmic oldies “Hot 92.3” KHHT with the anonymous registration of the website 923TheBeatLA.com last week.