Jury rules Clear Channel must pay $90 million to rival promoter

Monday, March 21st 2005, 9:38 pm

By: News On 6

CHICAGO (AP) _ A federal jury Monday ordered Clear Channel Communications Inc. to pay a rival promoter $90 million for engaging in anticompetitive behavior to land a deal to promote motorcycle races.

Chicago-based Jam Productions Ltd. had accused Clear Channel of illegally using its entertainment industry might to scuttle Jam's bid to promote Supercross dirt-track motorcycle racing at arenas across the country.

Jurors ruled that while Clear Channel did not violate antitrust laws, the company had intentionally interfered with Jam's contract and its business relationship with the American Motorcycle Association. They ordered Clear Channel to pay $17 million in lost profits and $73 million in punitive damages.

``This is an important case in that this jury found that Clear Channel's conduct here was so grossly inappropriate that they awarded punitive damages,'' said Jam attorney Jeffrey Singer.

Clear Channel said it would appeal.

``We are very disappointed that the jury didn't see this case for what it really was _ a disgruntled competitor who couldn't succeed in the marketplace and took his case to the courtroom,'' the company said in a statement.

At issue was how Clear Channel won a lucrative bid to promote Supercross races. Jam's attorneys claimed Clear Channel plotted to intimidate stadium owners and the American Motorcycle Association after learning Jam was set to land the deal.

The motorcycle association, a Supercross sanctioning body, had signed a letter of intent with Jam in 2001 giving the promoter 90 days of exclusive negotiating rights to finalize a promotion deal. During that period, Clear Channel made a counteroffer.

Jurors ordered the association to pay about $170,000 in out-of-pocket expenses to Jam for breach of conduct. An attorney for the association did not immediately return a call Monday.

San Antonio-based Clear Channel operates about 1,200 radio stations and 41 television stations and is the world's largest producer of concerts and other live-entertainment events.