More changes at TSM Buffalo?

[TheBigA]

WKSE ran Ryan Seacrest for quite a while in mid-days. It happened.

He's actually been in NYC since 2017. But Ryan has a lot of things to talk about besides the weather. Unlike most local talent.

Regardless everyone knows where Ryan is. It's no big secret. Limbaugh spent most of his last years in Florida and I don't think his audience cared.

Radio revenue never went for debt service? Where did they get the money to pay the lenders? Renting out Pittman's plane? The Mays family was effectively out of the picture for several years before iHeart's bankruptcy.

For ten years Clear Channel and later iHeart met their regular obligations, which were mostly interest payments. The principle debt was unchanged at $20 billion from what it was when Pittman checked in. He paid the interest until the major lenders were satisfied, and then negotiated a pre-packaged bankruptcy. But the point is Pittman inherited the debt and the entire financial disaster from the Mays family. He created several new revenue streams in his time as CEO, and by lowering the debt, the company is in a better financial situation.

 

[SirRoxalot]

For ten years Clear Channel and later iHeart met their regular obligations, which were mostly interest payments. The principle debt was unchanged at $20 billion from what it was when Pittman checked in. He paid the interest until the major lenders were satisfied, and then negotiated a pre-packaged bankruptcy. But the point is Pittman inherited the debt and the entire financial disaster from the Mays family. He created several new revenue streams in his time as CEO, and by lowering the debt, the company is in a better financial situation.

That's not exactly what he promised to do, is it? He "restructured" alright. Some people call it a bloodbath. Meanwhile, he added millions in bonuses while blowing up radio stations nationwide. And the result of all the "synergies" and across-the-board cuts?

NAB Admits Listening, Revenue Declining - Radio Ink

In new comments filed with the FCC, the NAB is again calling on The Commission to loosen ownership caps for radio. Two big reasons the NAB is calling for more deregulation is radio's declining revenue and audience due to the competition it's facing.

radioink.com

You'll blame it on other media growing. A lot of people think it's the decline in radio content quality that's responsible, and Pittman is at the iHeart of that.

 

[TheBigA]

You'll blame it on other media growing. A lot of people think it's the decline in radio content quality that's responsible, and Pittman is at the iHeart of that.

"A lot of people think..." doesn't make it so.

 

[davideduardo]

But the point is Pittman inherited the debt and the entire financial disaster from the Mays family. He created several new revenue streams in his time as CEO, and by lowering the debt, the company is in a better financial situation.

No, Pittman did not inherit debt from the Lowry and "Red" ownership group. The original Clear Channel entity sold to the investment banking consortium just before the Great Recession. In fact, the bankers tried to get out of the deal when the markets collapsed and the whole thing went to court and they were forced to close on the transaction.

The deal to sell Clear Channel was struck in 2006 and closed in mid-2008. Pittman did not join as CEO until late 2010. At the time of the sale, Mays owned around 5% of the company, having sold most of the shares at their peak in the 2004-2006 period.

The fact that the investment bankers wanted to get out was an indication that they knew that the deal environment had soured, but there was no escape hatch on that submarine. To avoid an immediate bankruptcy and possible liquidation so soon after the recession, they renegotiated pay-off terms so that the bankruptcy would occur at a better time.

What was done in the bankruptcy was to exchange debt for equity, diluting the former equityholder positions. But since most of the investors held both debt and equity, the real objective was to put the company in a position where could not be forced into liquidation.

 

[TheBigA]

No, Pittman did not inherit debt from the Lowry and "Red" ownership group. The original Clear Channel entity sold to the investment banking consortium just before the Great Recession. In fact, the bankers tried to get out of the deal when the markets cllapsed and the whole thing went to court and they were forced to close on the transaction.

The deal to sell Clear Channel was struck in 2008. Pittman did not join as CEO until late 2010.

Yes I know, that's why I say Pittman didn't create the debt. It was there when he arrived. Mark Mays was CEO in 2008.

So Pittman arrived to a company that was 20 billion in debt.

 

[davideduardo]

That's not exactly what he promised to do, is it? He "restructured" alright. Some people call it a bloodbath. Meanwhile, he added millions in bonuses while blowing up radio stations nationwide. And the result of all the "synergies" and across-the-board cuts?

Pittman came in towards the end of 2010, in the aftermath of the 2007-2009 recession period. He found unbearable debt and an industry with 30% or more less revenue than it had prior to the recession. He found new media exploding, with the smartphone introduction about 3 years before . And, in the markets where they got about 85% of their revenue, he found a new measurement system that reduced time spent listening and, thus, persons using radio, buy over 30%.

In other words, the boy from Mississippi came to pilot the ship in the middle of a "perfect storm".

You'll blame it on other media growing. A lot of people think it's the decline in radio content quality that's responsible, and Pittman is at the iHeart of that.

As I indicated, the problem was a very bad deal done by a couple of investment banking houses that set the company up to be destroyed by the recession, the PPM and new technology. There is a reason why investment banking folks are called "vulture capitalists"...

 

[davideduardo]

Yes I know, that's why I say Pittman didn't create the debt. It was there when he arrived. Mark Mays was CEO in 2008.

The two sons of Lowry stayed on in a lucrative contract. But it expired at the end of 2010, thus they got Pittman.

So Pittman arrived to a company that was 20 billion in debt.

But the debt was due to the LBO, not to operations. Operations had been very profitable, but could not stand up to the combination of the recession, the iPhone, the PPM and debt payments.

 

[TheBigA]

But the debt was due to the LBO, not to operations. Operations had been very profitable, but could not stand up to the combination of the recession, the iPhone, the PPM and debt payments.

Exactly.

 

[TheBigA]

More changes at TSM, from Country Aircheck:

Townsquare nationally syndicated Taste Of Country Nights Exec. Prod./co-host Amber Atnip is leaving for an opportunity outside of the industry. Her final day is Oct. 15. Atnip joined in May 2014 following time with iHeartMedia WSIX/Nashville.

The show airs weeknights on WYRK.