PHILADELPHIA — The U.S. District Court for Pennsylvania’s Eastern District has signed off on a motion for a preliminary injunction that effectively ends embattled midday sports talk host Anthony Gargano‘s employment with Beasley Media Group.
The five-page ruling from Senior Judge Timothy J. Savage specifically states that effective yesterday (10/10), Gargano is no longer associated in any way with the publicly traded radio station owner, which is the parent of WPEN-FM “97.5 The Fanatic” in Philadelphia.
This effectively concludes Gargano’s run as the station’s 10am to Noon weekday host.
That two-hour shift came into question when Gargano was sued by Beasley in a Philadelphia U.S. District Court on the grounds that a side deal he agreed to is in direct violation of the terms of his contract. That side deal is now his lone source of employment in the Delaware Valley — but there’s a catch.
Savage, who barred Gargano from any severance compensation, is permitted to seek employment with BSN Live Inc., doing business as ALLCITY Network. However, Gargano is prohibited from providing any services to, or for, ALLCITY — including its “PHLY” operation — related to the creation, provision, marketing, promotion, or distribution of sports media content for or targeted to the Philadelphia radio market as determined by Nielsen Audio until 10 months from October 10, 2023.
While this is in essence a court-enforced noncompete, Gargano is open to engage in non-public facing administrative work for ALLCITY, including assisting with the development of future content that cannot be distributed, promoted, or marketed before approximately April 11, 2024.
Gargano is also welcome to generate and market content for ALLCITY’s operations outside
of Philadelphia that is specific to those cities.
Gargano may also generate and market a sports betting-focused podcast with Parx Casino in Bensalem, Pa. However, ALLCITY is barred from marketing, promoting, or distributing that podcast to the Philadelphia market.
There’s more: Gargano is free to participate in an NFL-focused national show with Brian
Baldinger. But, PHLY can’t market, promote or distribute that podcast.
Lastly, Gargano may author and/or contribute to written articles for ALLCITY provided
that they are not specific to Philadelphia sports and they are not marketed, promoted, or distributed on PHLY.
While that technically allows Gargano to work, his calling card is Philadelphia sports and his fan base within the Wilmington, Philadelphia and Trenton corridor.
Meanwhile, the court has instructed Gargano to refrain from any sharing of non-public information regarding the Philadelphia Flyers or Philadelphia 76ers that pertains to their media relations or media business, as well as pricing/rate information that pertains to advertisers and other clients, Beasley’s client list, compensation information, and non-public Nielsen or ratings information.
Lastly, Judge Savage instructed Gargano to refrain for an 18-month period from swaying in any way a Beasley employee to quit and take a job at PHLY.
AN AD SALES BLACKOUT
Perhaps one of the biggest takeaways from Judge Savage’s ruling is that, for a period of 18 months from October 10, 2023, Gargano “will not affirmatively solicit or participate in other sales activity to recruit new customers (including proposing to ALLCITY that it seek relationships with particular advertisers) directed to advertisers or other customers currently doing business with Beasley or having done business with Beasley in the 12 months” leading up to the injunction.
Beasley is providing to Gargano and his team a list, subject to confidentiality, of who he cannot call on as potential clients.
To be clear, this does not preclude ALLCITY from doing business with such advertisers —even in connection with media content involving Gargano. But that is only permissible provided Gargano complies.
With Andrew Gallinaro of Fisher & Phillips LLP serving as its legal counsel, Beasley on September 18 filed a complaint that accused Gargano of breaching provisions of a contract signed in 2015 that dictate Beasley “is entitled to Gargano’s exclusive efforts and undivided loyalty during the term of his employment.”
Gargano’s agreement with Beasley was set to end on October 7, 2024, but that didn’t stop him from moving forward with signing a deal to produce and/or host content for ALLCITY Network, a local, digital sports network and lifestyle brand that it says “puts an emphasis on culture and community above all else.” With networks in Colorado (DNVR), Arizona (PHNX) and Illinois (CHGO) the first to go live, Philadelphia came in 2023, with the launch of PHLY.
PHLY offers articles, podcasts and a variety of sports-related content for Philadelphia region sports fans — just as The Fanatic does. And, Beasley argued, The Fanatic and PHLY seek the same local advertisers.
Gargano had not been on The Fanatic since news of his relationship with PHLY first surfaced.
