For The Record

I didn't talk about this record breaking contract signing when it happened last year. But I remember it like it was yesterday. It brings to mind a heartwarming story about a man with alzheimers smiling when his son read him the newstory.Blacks hate Conservatives so bad they just say anythng that comes to mind and nobody calls their hand.

I don't know whether this guy really beleives the things he says or just says things to cause a stir. Local radio personality Bobby Ojay said Rush Limbaugh doesn't have that many listeners. Then he went on to explain that he probably won't get the whole 400 million dollars. He probably didn't think about the fact that they work for the same company. Read the article below.

Clear Channel, Limbaugh Ink $400 Million New Contract Article
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more in Deals »By SARAH MCBRIDE
Conservative radio talk-show host Rush Limbaugh Wednesday inked an eight-year contract for around $400 million, underscoring how radio is spending big sums on bankable talent to compete in the crowded entertainment field.

Mr. Limbaugh's compensation of $38 million a year, plus a signing bonus of about $100 million is less in absolute terms than the five-year, $500 million contract Howard Stern cut in 2004 with Sirius Satellite Radio Inc. But Mr. Limbaugh's contract could net him more, as Mr. Stern must pay costs for his cast and production.

It's a big jump from Mr. Limbaugh's last contract, which at $285 million was a record for a radio personality when he signed it in 2001. Since then, the weekly audience for his three-hour midday show has held steady at about 20 million listeners, according to his syndicator, Clear Channel Communications Inc.'s Premiere Radio Networks. But advertisers are increasingly anxious to reach that audience.

Mr. Limbaugh's show is the nation's most-listened-to, followed by fellow conservative Sean Hannity's show, distributed by ABC Radio Networks, a division of Citadel Broadcasting Corp. Premiere is in advanced talks with Mr. Hannity to try to woo him away for a sum in the $200 million range over eight years, a person familiar with the situation said. Representatives for Mr. Hannity didn't respond to requests for comment. A spokeswoman for Premiere declined to comment.

On Wednesday's show, Mr. Limbaugh, 57 years old, said he was "ecstatic" about the deal.

As radio fights for market share in a fragmented entertainment market, its national stars are becoming increasingly valuable. Ryan Seacrest, whose radio shows are also syndicated by Premiere, recently made a deal where he owns and controls a portion of the advertising on one of his shows.

Radio reaches about 93% of the population each week, according to Arbitron Inc., with listeners tuning in an average of about 18.5 hours. That is a decline from just over 22 hours per week 10 years ago. Radio advertising, including on radio Internet sites, totaled $21.3 billion last year, down from $21.7 billion the year before.

Mr. Limbaugh's fans are fiercely loyal to the host and very responsive to his show's advertisers, media buyers say. "He is a proven commodity," says Mark Lefkowitz, executive vice president and media director at Furman Roth Advertising Inc.

Mr. Limbaugh's show also delivers revenue through ancillary businesses such as his "24/7" club that costs about $60 a year. Those businesses have grown substantially, a person familiar with the show said. For example, "24/7" members can watch video of the show live online and tap into a growing number of Internet-based frills.