Good Karma in talks to have LMA to run ESPN Radio affiliates in LA and New York

[Y2kTheNewOldies]

ESPN may leave local radio business as WFAN dominates

The indifference that ESPN has shown to New York’s schedule continues to be a factor, and soon, ESPN in Bristol may bow out of the business aspects of local radio.

nypost.com

KSPN and WEPN are named as the affiliates to run or managed by Good Karma if its approved.

 

[PTBoardOp94]

Good Karma expanding to WMVP in Chicago made some sense, given Good Karma's home base is in nearby Milwaukee.

It's not clear to me why they would be a good operator for standalone stations in New York or LA.

 

[Kelly A]

Good Karma expanding to WMVP in Chicago made some sense, given Good Karma's home base is in nearby Milwaukee.

It's not clear to me why they would be a good operator for standalone stations in New York or LA.

My guess it's not that they would be 'good operators' but more taking the entire expense line away from the stations. Worst case is they fail from a business standpoint, and the stations look for another sucker...I mean, partner to LMA the stations. Anymore they can't unload the stations without taking a big haircut, so cutting the vast majority of costs by letting someone else run the stations isn't a bad idea.

 

[Delete My Account]

The father of the owner of Good Karma's by no means a stranger to New York radio. I'm sure there's plenty of knowledge and connections to draw on. If sports is what they know and it's worked for them, why not?

 

[Theater of My Mind]

The article states:

That would effectively put the local business sales and marketing in Good Karma’s hands, while ESPN would retain oversight of the station’s content, according to sources.

I'm not understanding that arrangement. Good Karma "takes control" of a poorly performing station with high expenses but won't control the content?

 

[gr8oldies]

ESPN may leave local radio business as WFAN dominates

The indifference that ESPN has shown to New York’s schedule continues to be a factor, and soon, ESPN in Bristol may bow out of the business aspects of local radio.

nypost.com

KSPN and WEPN are named as the affiliates to run or managed by Good Karma if its approved.

 

[davideduardo]

I'm not understanding that arrangement. Good Karma "takes control" of a poorly performing station with high expenses but won't control the content?

The issue is local sales. "Sales" is where poor performance is judge. The station has acceptable ratings... not great, but salable. But Disney has never been good at selling local radio.

 

[TheBigA]

The issue is local sales. "Sales" is where poor performance is judge. The station has acceptable ratings... not great, but salable. But Disney has never been good at selling local radio.

And the one area the Karmazin brand is best known for is sales.

I don't know junior at all, but if he inherited sales from his dad, he will do very well.

WEPN is more than just a satellite repeater. They have several very good and popular local shows. They don't need programming help.

 

[Rusty Muck]

And the one area the Karmazin brand is best known for is sales.

I don't know junior at all, but if he inherited sales from his dad, he will do very well.

WEPN is more than just a satellite repeater. They have several very good and popular local shows. They don't need programming help.

Craig has operated WKNR Cleveland since 2007, they’re deeply sales oriented. Helps that they got into a weirdish quirky arrangement with what’s now Audacy to share the Cleveland Browns flagship with Audacy’s WNCX and WKRK-FM. He also owns WWGK 1540 which carries the ESPN network fare all day long, freeing WKNR to be all-local from 9am to 7pm (1-3 is a Browns Network show that is WKNR-exclusive).

Good Karma has made some shrewd business arrangements in recent years; they formed a consortium including Morgan Murphy to purchase WTMJ/WKTI Milwaukee from Scripps; WTMJ has been the forever flagship of the Brewers and home to the Packers since 1929.

Point being, I think Craig would excel with WEPN-FM and KRDC-KSPN. WMVP regained the Bulls rights recently which really helps their standing against WSCR. The duopoly of WKTI and WAUK is another great example of how they can balance both local and national, and I hope that WEPN 1050 is also included in this possible deal. Why not? It is about leveraging the ESPN brand and they might be able to do something even with that oft-abandoned AM (heck, WWGK is a non-factor and yet they sell it with WKNR in combo deals).

If I’m not mistaken, Craig interned at WFAN but did so with no influence or pull from Mel.

 

[Kelly A]

The issue is local sales. "Sales" is where poor performance is judge. The station has acceptable ratings... not great, but salable. But Disney has never been good at selling local radio.

When you think about it; Disney can't unload these stations, because in size, they're like a pimple on Jumbo's butt. So why not let someone else operate them while assuming whatever expenses, then do a first right of refusal with whoever works out as an LMA partner to purchase the stations? This might be a good model for other groups who find themselves stuck with AM stations that still represent debt on the books, but really want to get out from under the expense tent of being operators.

 

[TheBigA]

This might be a good model for other groups who find themselves stuck with AM stations that still represent debt on the books, but really want to get out from under the expense tent of being operators.

I agree with all of that and it might become a factor in LA where ESPN needs an FM signal to be a factor.

 

[Rusty Muck]

I agree with all of that and it might become a factor in LA where ESPN needs an FM signal to be a factor.

An LMA not dissimilar to the LMA for WEPN-FM is probably how that works.

Because no sports station in LA**—KLAC, KSPN and KLAA—has been on the FM dial to this point, it hasn't been a concern, but the upcoming major signal downgrade for KSPN plus possible IP move over to 1110 may force the issue.

** Yes, KWKW has a translator but its' reach is very small and a mere fraction of the overall market.

 

[Y2kTheNewOldies]

Disney Plans to Spread Sports Further Beyond ESPN

An increasing amount of what ESPN does isn’t going to be seen on good ol’ ESPN. “Sunday Night Baseball” has been a mainstay of the Disney sports network since the show’s launch in 1990, but on Augu…

variety.com

Some of this is going to be how Disney will manage ESPN going forward. This talk about KSPN and WEPN going to Good Karma for LMA may be one sign here.

 

[TheBigA]

Some of this is going to be how Disney will manage ESPN going forward. This talk about KSPN and WEPN going to Good Karma for LMA may be one sign here.

Disney is in the content business. The platform is just a tool. The problem with owning radio & TV stations is there's too much energy involved in just running the platform. They'd rather just provide the content and let someone else deal with the other stuff. I think we'll see the same thing with NBC. They'll use their cable channels in ways that work for them. Viacom/CBS is now spreading its content beyond narrow portals. The CMT Awards on CBS is one example. We see that more, with cable channels diverging from their heritage themes.

 

[Kelly A]

Some of this is going to be how Disney will manage ESPN going forward. This talk about KSPN and WEPN going to Good Karma for LMA may be one sign here.

ESPN as a brand, has boxed itself into a corner with a lowering ceiling. ESPN Radio is such a tiny element of the Disney empire, it makes sense to let someone else run/sell for the individual stations. Disney can spend more time leveraging the sports agreements and contracts into more online ventures separate of ESPN the brand. It's called diversification.