NY AG Eliot "Ness" Spitzer has landed another fish. Having reached settlements with the four major music companies, he's pressing charges against radio groups for soliciting and accepting payola. This week Entercom Communications agreed to adopt strict new compliance policies and pay $4.25 million to "put the investigation behind it." The company admitted no wrong doing, but do they ever?
There's a lot to debate about these cases, about Spitzer, about the public airwaves. But I'm interested in how the damages, if that's what they are, are divided. In this case, according to the AP, $750K goes to the state of NY to cover the cost of the investigation and prosecution. The rest, $3.5 million, goes to a music education and appreciation fund. What's that? Who runs it? What does it do? In theory I'm in favor of public spending on the arts, especially music education. But is New York State benefitting from Spitzer's raids?
As it happens...




