Redstone Buys Some Time But Not Karmazin…

Friday, December, 19, 2008 by Mel Phillips.

(Weekend Edition) 

While Sumner Redstone’s $800 million debt, due today, was extended indefinitely so that National Amusements and its creditors can work out a refinancing agreement, not so with Mel Karmazin’s $995 million debt, due in 2009.  Howard Stern’s statement that he may bail from Sirius XM when his contract ends in 2010 didn’t do much to inspire confidence in debt holders or new investors, either.  At yesterday’s shareholder’s meeting, Karmazin announced that 22% of the Sirius work force is gone, none of them named Stern.  A staff of 1,600 has been trimmed to 458.  Of course Stern’s salary probably created the loss of a thousand of those jobs…

The Mel-Man also noted that November car sales fell 37%, the weakest results in nearly three decades.  Sirius depends on selling their service through pre-installed car-radios in addition to individual subscriptions.  Karmazin projects a saving of $425 million in 2009 by the job cuts and other cost-reduction measures and has readjusted his profit to $300 million for next year.  Also readjusted is the number of subscribers forecast, from 21.5 million to 20.6 million.  Sirius stock is now at 14 cents a share and a poll by Thomson Reuters is forecasting a 2009 loss of 15 cents per share…

Look, this is a time of debt for lots of us and before you start boo-hooing for poor Sumner Redstone and Mel Karmazin, just remember that they created most of their own debt by overspending.  By paying salaries that were off the fiscal irresponsibility charts, they reached levels of fiscal lunacy.  You deserve what you get in life.  Nothing more, nothing less…

10 Timeline Memories:

1. 1620] The Pilgrims are coming, the Pilgrims are coming: The Pilgrims aboard the Mayflower go ashore for the first time at present-day Plymouth (12/21)…
2. 1880] Premiered on this date: Broadway officially becomes “The Great White Way” when the lights go on for the first time (12/20)…1946] Frank Capra’s “It’s a Wonderful Life” starring James Stewart and Donna Reed is previewed for charity at the Globe Theatre in Times Square (12/20). The next day is the official world premiere. The movie won’t become a hit until it reaches TV…1967] “The Graduate” starring Anne Bancroft and introducing Dustin Hoffman premieres (12/20)…1981] “Dream Girls” opens at the Imperial Theater on Broadway (12/20) and 25 years later (2006) the movie opens…
3. 1945] “Happy Trails“: General George S. Patton dies in Germany from injuries suffered in a car accident. Patton was 60 (12/21)…1973] Bobby Darin passes away following surgery to repair a faulty heart valve. Darin was just 37 (12/20)…1996] Astronomer Carl Sagan goes to a galaxy, billions and billions of light years away at 62. Sagan suffered from a rare bone marrow disease (12/20)…1999] Legendary Country Music star Hank Snow dies from natural causes at 85 (12/20)…2000] Former New York City Mayor John Lindsay dies from Parkinson’s disease and pneumonia at 79 (12/19)…2005] Mob boss Vincent “The Chin” Gigante dies in a Springfield (MO) federal prison at 77 (12/19)…
4. 1970] Elvis the drug czar: Richard M. Nixon has a meeting in the Oval Office about fighting drugs with Elvis Presley, who will die from an overdose of drugs (12/21)…
5. 1978] Guilty as charged: Police in Des Plaines (IL) arrest John Wayne Gacy Jr. and begin unearthing the remains of 33 men and boys that Gacy will be convicted of murdering (12/21). Gacy is executed by lethal injection in May, 1994…1996] After two years of denials, House Speaker Newt Gingrich admits violating House ethic rules (12/21). He is soon replaced as House Speaker…
6. 1980] Silent Night: No announcers are allowed in a Don Ohlmeyer experiment during the Jets-Dolphins game on NBC-TV, won by the Jets 24-17 (12/20). I remember how refreshing it was and they kept the parabolic crowd mics open so you felt like you were at the game. It’s time for this experiment to return…
7. 1987] All Paul Simon all the time: Presidential candidate Paul Simon introduces singer Paul Simon on ‘Saturday Night Live’ (12/19). Will the real Paul Simon please stand up…
8. 1988] Terrorism in the sky: 270 are killed when a Pan Am Boeing 747 explodes over Lockerbie, Scotland. A terrorist attack is responsible for one of the worst air tragedies ever (12/21)…
9. 1990] Bo knows: Bo Jackson becomes the first athlete to be chosen for All-Star games in both baseball and football when he’s selected to the NFL Pro Bowl (12/19). Had he not gotten hurt he would of been one of the all-time greats in both sports…
10. 2002] This is justice?: Citing new DNA evidence, a judge throws out the convictions of 5 young men for the 1989 attack on the ‘Central Park Jogger’ who was raped and left for dead (12/19). Miraculously she survives…

Music Memories:

• 1952] Number One on this date: “I Saw Mommy Kissing Santa Claus” - Jimmy Boyd (12/21)…1958] “The Chipmunk Song” - David Seville a.k.a. Ross Bagdasarian (12/19), one of the first Christmas records I played on the radio…1969] “Leaving On A Jet Plane” (written by John Denver) - Peter, Paul & Mary (12/20)…1979] “Escape (Pina Colada Song)” - Rupert Holmes (the last #1 hit of the 70s)…
• 1955] Recorded on this date: “Jim Dandy” - LaVern Baker (12/21)…
• 1960] Released on this date: “Calendar Girl” - Neil Sedaka (12/19). Great timing on the release. It was played into spring…

“Happy Birthday…happy birthday“:

(12/19) Jake Gyllenhall (28), Warren Sapp (36), Liz Cho (37), Jennifer Beals (45), Kevin McHale (51), Maurice White(Earth, Wind & Fire) (67), Baseball HOFer Al Kaline (74), Cicely Tyson (75) and Little Jimmy Dickens (88)…(12/20) David Wright (26), David Cook (26), Dick Wolf (62), Uri Geller (62), Bobby Columby (64), John Hillerman (76) and Charlie Callas (81)…(12/21) Keifer Sutherland (42), Roger McDowell (48), Ray Romano (51), Jane Kaczmarek (53), Chris Evert (54), Dave Kingman (60), Samuel L. Jackson (60), Carla Thomas (66), Jane Fonda (71), Phil Donahue (73) and Joe Paterno (82)…

Timeline Countdown: 2 days until winter, 2 nights until Hanukah, 6 shopping days until Christmas, 12 nights until New Year’s Eve and 15 days until the NFL Wild Card Playoffs…

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