iHeartMedia 2000 Annual Report Download - page 26

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additional billboard restrictions has been introduced in Congress from time to time in the past. Changes
in laws and regulations affecting outdoor advertising at any level of government, including laws of the
foreign jurisdictions in which we operate, could have a material adverse effect on us.
Tobacco and Alcohol Advertising
The outdoor advertising industry is subject to regulations related to outdoor tobacco advertising.
In addition, recent settlement agreements and potential legislation related to outdoor tobacco advertising
have and will likely continue to affect our outdoor advertising operations. Out-of-court settlements
between the major U.S. tobacco companies and all 50 states include a ban on the outdoor advertising of
tobacco products.
In addition to the above settlement agreements, state and local governments are also regulatin g
the outdoor advertising of alcohol and tobacco products. For example, several states and cities have laws
restricting tobacco billboard advertising near schools and other locations frequented by children. Some
cities have proposed even broader restrictions, including complete bans on outdoor tobacco advertising on
billboards, kiosks, and private business window displays. It is possible that state and local governments
may propose or pass similar ordinances to limit outdoor advertising of alcohol and other products or
services in the future. Legislation regulating tobacco and alcohol advertising has also been introduced in
a number of European countries in which we conduct business, and could have a similar impact. Any
significant reduction in alcohol related advertising due to content-related restrictions could cause a
reduction in our direct revenue from such advertisements and a simultaneous increase in the available
space on the existing inventory of billboards in the outdoor advertising industry.
Antitrust Matters
An important element of our growth strategy involves the acquisition of additional radio stations,
outdoor advertising display faces and live entertainment properties, many of which are likely to require
preacquisition antitrust review by the Federal Trade Commission and the Antitrust Division. Following
passage of the 1996 Act, the Antitrust Division has become more aggressive in reviewing proposed
acquisitions of radio stations and radio station networks, particularly in instances where the proposed
acquiror already owns one or more radio stations in a particular market and the acquisition involves
another radio station in the same market. Recently, the Antitrust Division, in some cases, has obtained
consent decrees requiring radio station divestitures in a particular market based on allegations that
acquisitions would lead to unacceptable concentration levels. There can be no assurance that the Antitrust
Division or the FTC will not seek to bar us from acquiring additional radio and television stations or
outdoor advertising display faces in any market where our existing stations or display faces already have a
significant market share. In addition, the antitrust laws of foreign jurisdictions will apply if we acquire
international broadcasting properties.
Environmental Matters
As the owner, lessee or operator of various real properties and facilities, we are subject to various
federal, state and local environmental laws and regulations. Historically, compliance with such laws and
regulations has not had a material adverse effect on our business. There can be no assurance, however,
that compliance with existing or new environmental laws and regulations will not require us to make
significant expenditures in the future.
Financial Leverage
We currently use a significant portion of our operating income for debt service. Our leverage