In preparation for its upcoming spinoff, CCE Spinco has downsized from 14 business lines to six, according to an internal email from Spinco CEO Michael Rapino obtained by Billboard.
The new organization will see the Spinco broken down into divisions for Global Music, Global Theatrical, SFX Sports (considered the “content” side of the business) and Global Venue Management & Sponsorships, Marketing, and Interactive Technologies (considered the “distribution” side of the business).
Additionally, Alan Ridgeway has been promoted to Chief Financial Officer of Spinco. He most recently headed CCE’s European Music Division.
According to Rapino, the revamp was done “to be sure our focus remains tight, our strategy remains clear, and that we are able to devote the proper resources to each of our businesses so they are positioned to succeed.”
Under the Global Music division, Charlie Walker, formerly COO of North American Music, has been named president of North America. Additionally, Carl Pernow is president of international, and Thomas Johannsson is chairman of international. David Ian is chairman of the Global Theatrical division.
On the distribution side, Bruce Eskowitz heads the newly formed Global Venue Management & Sponsorships group, which oversees the 141 Spinco venues (mostly amphitheaters), as president. Reporting to Eskowitz are executive VP of national sales Russell Wallach, and executive VP of local sales and premium seats Maureen Ford.
Faisel Durrani will lead the marketing divisions as president, clearly an area of focus for Rapino. “At the core of everything we do is marketing,” he says in the memo. “We have done a great job to date building strong divisional marketing teams to sell tickets. But whether I ask talent or members of our staffs what we need to do to help sell more tickets, I hear a similar theme—more national marketing partners to drive ticket sales, more national programs to drive venue programs, and more consumer products to increase revenue.”
Bryan Perez will be president of the Interactive Technologies division.
Rapino says over the past few months Spinco has “created a lean head office, based in Los Angeles. The corporate team is charged with managing the new public-company requirements that our new freedom and flexibility brings. It will also lead our strategic growth plan.”
In regards to the recent layoffs and office closings, Rapino says in the memo, “as you know, we have eliminated some positions in each of our business units. The decision to eliminate positions is never an easy one, but the choice here was clear. We are committed to beginning life as an independent company in the strongest, most focused position and that includes having the courage to make tough decisions.”
Rapino says plans still call for Spinco to be spun off from parent Clear Channel Communications by years’ end. “I would also like to thank all of you who have contributed with suggestions to the new name of our company,” he says in closing. “We will be announcing our name to you very soon.”