Originally published on August 28, 2024.
Following last Tuesday’s ruling by the Northern District of Texas and a recent ruling by the U.S. Supreme Court, there’s renewed focus on non-competes. It’s no surprise that the National Association of Broadcasters and the U.S. Chamber of Commerce have come out in defense of non-competes. Remember, there is a critical word left out of the names of these organizations. It’s the National Association of Broadcast OWNERS and U.S. Chamber of Commerce OWNERS. It’s not the National Association of Broadcast TALENTS or U.S. Chamber of Commerce EMPLOYEES.
In our industry’s case, the argument that broadcast owners invest so much in developing talent, that without non-competes, they would be harmed by an employee crossing the street at the end of their contract, or if they were terminated, is ridiculous. In most cases, that investment in a talent used to be posting a picture on a billboard. Now it’s posting that talent’s own selfie on the station’s website. Marketing, research, seminars, coaching, support materials and staff? That’s in extremely short supply for talents today from big companies to small.
Let’s look at another industry, professional sports teams. They invest millions in scouting and drafting players. Millions on training facilities, strength and conditioning, dietary specialists, coaches specific to every player’s position, safety equipment and updated uniform designs, just to name a few. How about the team’s top secret strategic playbook? If there is a business that could be truly harmed by a talent crossing the street after this kind of real investment, professional sports would be it. Yet if a player becomes a free agent or is released, the NFL, NBA, MLB and NHL don’t have non-competes. The player is free to sign with another team tomorrow.
What Radio invests in talents today is practically non-existent. The National Association of Broadcast OWNERS don’t need non-competes. It’s today’s form of indentured servitude as most companies don’t even pay out non-competes. We’ve all seen too many people and families cruelly harmed by them. Non-competes need to be abolished. Federal and State laws need to change. Owners have their mouthpiece in the NAB lobbyists. Talents need one too.
Pic designed Freepik.com.
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Chuck Knight is the former Brand Manager of Jerry Lee Radio/WBEB Philadelphia, iHeartMedia San Antonio, Emmis Indianapolis and Saga Communications Columbus. He is President of Chuck Knight Media and these are his opinions. Reach him at ChuckKnightMedia.com or Chuck@ChuckKnightMedia.com.