Veteran to Lead Clear Channel’s Radio Division

Entertainment conglomerate Clear Channel Communications Inc. plans to appoint John Hogan as chief executive of its sprawling radio division today, making him one of the most powerful figures in the radio industry, sources said.

The appointment of Hogan as head of the 1,200-station operation, the nation’s biggest, had been expected. He will succeed Randy Michaels, the often controversial radio chief who stepped down last month.

Hogan, 45, spearheaded the company’s development this year of a specialized sales unit to push advertisers to commit to broad deals across Clear Channel’s diverse assets, which include radio stations, concert venues and billboards. Before becoming the division’s president and chief operating officer in August 2001, Hogan oversaw Clear Channel operations in radio markets such as Los Angeles, Atlanta, Houston and Dallas.

Clear Channel is not expected to name a replacement for Hogan, who likely will move to San Antonio where Clear Channel is headquartered, sources said. But it was unclear whether the conglomerate’s top programming officials, based in Covington, Ky., would be asked to relocate there. Also unclear was whether Clear Channel would continue to program its stations with “brand managers” overseeing various music formats--a structure developed by Michaels.

Insiders say the appointment of Hogan, who worked as Michael’s deputy and has little programming experience, is part of an effort by Clear Channel President Mark P. Mays to take more of a role in the day-to-day operation of the $3-billion-a-year radio division, Clear Channel’s biggest.

Last month Mays helped engineer the exit of Michaels, who stepped down to run a newly created internal think tank focusing on wireless and broadband technology. His departure from the job came as the Mays family had grown uncomfortable with Michaels’ management style.

Michaels long had been a controversial figure in the radio and music industries, in part because of his flamboyant public appearances and occasional confrontations with record executives. But Michaels was credited in the last three years with orchestrating Clear Channel’s consolidation of radio stations and with developing a national pop radio format. His exit sent Clear Channel’s stock plunging.

Hogan takes the reins at a time when the company is battling congressional critics who say it engages in anti-competitive practices, capitalizes on regulatory loopholes and skirts anti-payola laws by cutting deals with independent record promoters paid by major record labels to get airplay. Critics also say the company has leveraged its massive holdings in stations and concert venues to squeeze competitors and prevent artists from appearing at rival stations or concerts.

A source said Monday that Hogan’s mandate includes taking a “kinder, gentler” approach in dealing with record labels.

A Clear Channel spokesperson declined to comment.

Clear Channel’s shares closed Monday at $32.50, up $1.93, on the New York Stock Exchange.