MDC Partners' revenues are shrinking at a time when its obligations to its agency chief partners are only growing. In Q2 2009, MDC's revenues shrank 14.1 percent to $134.9 million.
Since then, Volkswagen fired Crispin Porter + Bogusky and put its $200 million account in review. That followed the loss of the $275 million Wendy's account at Kirshenbaum Bond & Partners. And there are continued rumblings about Crispin's status on Burger King.
Meanwhile, MDC reported in its Q2 presentation to analysts that it now owes $55.2 million in cash and stock to Richard Kirshenbaum, Jon Bond, Alex Bogusky et al under their earnout agreements with MDC, reported by BNET in April.
To add to the uncertainty, Kirshenbaum is going through management change. Here's the press release:
Richard Kirshenbaum and Jon Bond, co-chairman, announced today the appointment of Lori Senecal as President, CEO and Partner of the rebranded agency kirshenbaum bond senecal + partners.I'm sure MDC CEO Miles Nadal will find the money somewhere.
- See BNET's previous coverage of MDC:
- Burger King Ad Fight: The Worst-Case Scenario for Crispin Porter + Bogusky
- Crispin Porter & Bogusky and Kirshenbaum Bond Owed $47 Million by MDC Partners
- MDC Partners Q1: Revenue Down 10%; Profit Comes Following Mass Layoffs
- MDC Q1 Preview: Freeman Off the Books; Goodwill "Unimpaired"; Nadal Does a Curious Art Deal
- 163 Laid Off at Accent Marketing, the Agency That's a Big Chunk of MDC Partners' Revenues
- Cliff Freeman CEO Exits After Fla. Lottery Pitch Loss; Twitter Trail Tells Strange Tale
- MDC Partners Q4: Cliff Freeman Mystery Deepens
- Does MDC Partners Have a "Goodwill" Problem?