GMG terminates Global Radio sales deal

by Sarah Crawley-Boevey , Media Week 19-Oct-07, 12:00

LONDON - Guardian Media Group's radio division has terminated its national sales contract with Global Radio amid claims it had become 'untenable'.

The move comes after Chrysalis Radio was bought by Global earlier this year, offering GMG Radio a three-month window to review the deal.

GMG today announced it was taking the contract away from Global and that a new sales arrangement would be announced shortly.

However, it is thought Global was forced into a corner after GMG demanded it provided a guarantee it would increase station revenues by more than 80%.

While the contract was held by Chrysalis, GMG’s business grew by 23% in a slow radio market and it is thought the new owners considered the demands too high.

A spokesman for Global Radio today confirmed the company had rejected new terms and conditions for the contract as "commercially unacceptable" and wrote to GMG "requesting an orderly parting of the ways"