Audacy Sportstalkers and Houston future

[davideduardo]

I'm sure this won't be a popular opinion, but corporate radio is a loser in 2026. It's not going to ever be a growing business again. The best SFM can hope for from their Audacy investment is that it doesn't lose too much money, but it is absolutely going to lose money. All the big radio groups do these days, and they will continue to do so.

The bulk of radio companies make money on operations. What drove some into bankruptcy is the interest payments on the loans taken to buy stations, generally (but not all) prior to the "Big three" of 2008-2009: the recession, the PPM and the smartphone.

Audacy wasn't a rational asset purchase for SFM from a financial standpoint, but it absolutely works from a mission standpoint, because making a profit is only one part of their mission.

Remember, they bought is for the assumption of some debt and the release of some. Again, the issue was debt, not operations. With less debt, they can be profitable.

They aren't shy about their political stance. "At Soros Fund Management, we are intentional and pragmatic in our approach. We identify themes that are central to OSF's mission and where we are well positioned to drive real world impact without compromising returns."

Yes... "without compromising returns". That means "continue to make money on operations (EBITDA) while sustaining our guiding principles".

Then they link to the Open Society Foundations website. Progressives on this board try to deny the mission of Soros Fund Management, but SFM itself doesn't. They appear to be quite proud of it.

Open Society Foundations

Corporate radio is a money loser these days. It's going to continue to be a money loser. SFM isn't dumb - they know this.

Radio groups with good clusters and good markets do make money. Again, EBITDA money. If released from most of their debt, they can be profitable while trying to create a new media position.

Again, "without compromising returns" is the key statement.

 

[davideduardo]

So someone is suggesting for KLOL to flip to Sports??

The 4th highest ratings in Spanish. The one that is beating the once great KLTN? The only that is also beating KAMA in ratings?? That’s 2 stations from the same company.

And the only station that has access to the many separate Hispanic budgets that never go to general market stations.

 

[TheBigA]

Soros won't get political until there's another Democrat administration.

They didn't get political with their radio investments during the last administration. They bought Latino Media Networks in 2022. The repubs in congress were convinced the entire purpose was to swing the 2024 election. The fact is they never attempted to use any of their radio signals for political purposes in 2024. That was a total red herring. It still is.

I'm sure this won't be a popular opinion, but corporate radio is a loser in 2026. It's not going to ever be a growing business again.

The future is all digital. Everyone knows it. Radio companies are transitioning their audiences and businesses to digital streaming, podcasting, and other similar businesses. That's why moving KILT610 to FM doesn't matter. The future isn't FM. It's streaming.

 

[davideduardo]

They didn't get political with their radio investments during the last administration. They bought Latino Media Networks in 2022. The repubs in congress were convinced the entire purpose was to swing the 2024 election. The fact is they never attempted to use any of their radio signals for political purposes in 2024. That was a total red herring. It still is.

And that is because, first, they bought those stations to keep Salem from getting them. Once they had them, they realized that they did not have anyone on their team that knew anything about radio. They made a bunch of ineffective hires, based on not even knowing how to recruit radio people.

The future is all digital. Everyone knows it. Radio companies are transitioning their audiences and businesses to digital streaming, podcasting, and other similar businesses. That's why moving KILT610 to FM doesn't matter. The future isn't FM. It's streaming.

Yet there is still enough revenue and enough listening to support OTA radio... and that is where the bases for podcasts, streams and the like will come from if radio wants to do something that has not already been done on 10,000 streams .

 

[2Speakers]

The bulk of radio companies make money on operations. What drove some into bankruptcy is the interest payments on the loans taken to buy stations, generally (but not all) prior to the "Big three" of 2008-2009: the recession, the PPM and the smartphone.

Remember, they bought is for the assumption of some debt and the release of some. Again, the issue was debt, not operations. With less debt, they can be profitable.

I played a what if game with ChatGPT and Audacy profitability.

I asked it to take a look at their last several years of publicly reported financial data. As a privately held company now, they aren't required to report.

Audacy entered bankruptcy with $1.9B in debt, and emerged from it with $350M.

Spoiler alert - even with the substantially reduced debt load they have today, they still would have lost money in 2022.

Their net loss in 2022 was just under $141M.

Adjusted for the debt service they have today, and the interest rate they pay to service that debt currently, Audacy would have still lost $72.6M in 2022.

The good news is an annual ~$70M loss is easily floated by the $28B Soros family office, so Audacy is an affordable toy for them, which will likely prove useful to advance Open Society Foundations initiatives in the future.

 

[BamaTX]

And that is because, first, they bought those stations to keep Salem from getting them.

The pièce de résistance was killing Radio Mambi in Miami. It was a popular conservative outlet for older Cuban-Americans in a crucial swing state.

Let's not kid ourselves. LMN was a successful venture. Despite it hemorrhaging money, the company still served it's true political purpose.

 

[Mediafrog+]

Pulling this thread away from all the Soros politics and paranoia.

A fascinating turn of events would be if iHeart beat Audacy in moving their sportstalker to FM, perhaps through an LMA of one of the rimshots with an option to purchase. Could we wake up one morning to “SportsTalk 93.3 FM and 790 AM”? Don’t think Audacy would let that slide.

 

[Mrtejano]

Pulling this thread away from all the Soros politics and paranoia.

A fascinating turn of events would be if iHeart beat Audacy in moving their sportstalker to FM, perhaps through an LMA of one of the rimshots with an option to purchase. Could we wake up one morning to “SportsTalk 93.3 FM and 790 AM”? Don’t think Audacy would let that slide.

And move Estereo Latino back to KLTN. 👍🏻

 

[BamaTX]

Pulling this thread away from all the Soros politics and paranoia.

I'm going to need for you to quote who and what was said that qualifies as "paranoia". You can't throw around shameful descriptions just because you don't like where the conversation is going. No one has said anything irrational or incoherent.

Facts are facts and you simply can't discuss LMN without the obvious political connections it was conceived from. It would be like talking about Christian talk radio without acknowledging the denomination it draws it's content from.

If anything, I think it is irrational and deranged to try to shame people into silence.

 

[BamaTX]

And move Estereo Latino back to KLTN. 👍🏻

The relaunch of Estereo Latino was a great idea that feels poorly executed. If the intent was to have KLTN and KESS have overlapping playlists, then mission accomplished. I'm not sure just how much of KESS' listeners were cannibalized from KLTN, but I suspect a few were.

The playlists simply overlap a bit too much for my comfort. Personally I would have taken KLTN to full norteno and flipped 93.3 to more mainstream Top-40 Regional Mexican with a focus on non-norteño RM subgenres.

There's also the unknown factor of KLTN being gimped after the tower accident. How much has that hurt them? I can't imagine it was ideal to lose the 300 meter stick a couple of months before SBS entered the market. I think it's safe to say that rebuilding the tower is no longer an option.

 

[Mediafrog+]

I'm going to need for you to quote who and what was said that qualifies as "paranoia". You can't throw around shameful descriptions just because you don't like where the conversation is going. No one has said anything irrational or incoherent.

I was going to overlook your post, but I now choose to reply.

The Soros talking points brought up earlier are simply regurgitating a lot of nonsense spewed by extreme right wing media. Soros is one of their favorite bogeymen.

You might want to learn about the Soros family’s experience with European fascism in the 1930’s and you might understand them a bit more.

Facts are facts and you simply can't discuss LMN without the obvious political connections it was conceived from. It would be like talking about Christian talk radio without acknowledging the denomination it draws it's content from.

Please give me examples of the politics that LMN has applied to their stations outside of Miami and the unique to the market anti-Castro dynamic.

If anything, I think it is irrational and deranged to try to shame people into silence.

I am doing no such thing, and I resent your accusation, especially when so many rightwingers are bullying their opponents, led by the Orange Narcissist.

Do that again and I will put you on ignore, along with the now-banned “TV Autism” guy.

 

[IngenieroPerron]

Could we wake up one morning to “SportsTalk 93.3 FM ?

How much we talking about? 😂

 

[IngenieroPerron]

And move Estereo Latino back to KLTN. 👍🏻

They would never admit that mistake

 

[IngenieroPerron]

I think it's safe to say that rebuilding the tower is no longer an option.

City of Houston feels its safe to build apartments on superfund sites next to the tower site with a lil bit of lead so why not another tower. I have not heard anything except rumors that SBA wants the tower back, there is plenty of room. COH just wants their cut of money, same as the apartments.

 

[Mrtejano]

How much we talking about? 😂

Speaking of sports on FM, KLTN is airing a sport game. Not a fan so can’t tell what game they’re playing. Assuming a soccer game between Bolivia vs someone else. While KLTN HD2 is airing a football game between Patriots and someone else.

 

[Mrtejano]

They would never admit that mistake

It would be a mistake to move Estereo Latino back to KLTN?

When Estereo Latino came back I told many people that it was back. They all gave my that crazy look: what are you talking about? It’s on 102.9.

 

[Mrtejano]

How much we talking about? 😂

While I was listening to UDN I heard an ad mentioning ENTEAVISIOM DEPORTES NETWORK? Care to share some light on what this is? Never heard of it.

 

[davideduardo]

The pièce de résistance was killing Radio Mambi in Miami. It was a popular conservative outlet for older Cuban-Americans in a crucial swing state.

The new owners did not kill it, but they tried to make it more centrist. The result was the departure of the key hosts on that station, and the loss of more than half of its traditional 12+ shares.

Let's not kid ourselves. LMN was a successful venture. Despite it hemorrhaging money, the company still served it's true political purpose.

It's only purpose was to keep Salem from getting the stations. But they are generally bad stations, with a few big signal AMs in large markets where AM is dead or dying.

There was a fantasy contest among broadcasters. Third place prize was two stations in Fresno. Second place was one station there, and the first place was no stations in that market.

No matter how well run those stations might have been, they could not have any weight for Soros or for Salem. But Salem has no agenda other than making money.

 

[davideduardo]

It would be a mistake to move Estereo Latino back to KLTN?

When Estereo Latino came back I told many people that it was back. They all gave my that crazy look: what are you talking about? It’s on 102.9.

I always objected to the "Estéreo Latino" name. "Stereo" ceased to be an audience draw or positive term about 4 decades ago, and using the term "Latino" is, at best, stupid.

Yet we got things like "Latino Mix" later. That is like calling a station "Black Mix" or "Asian Mix" and is borderline offensive and full-weight stupid.

 

[davideduardo]

The relaunch of Estereo Latino was a great idea that feels poorly executed. If the intent was to have KLTN and KESS have overlapping playlists, then mission accomplished. I'm not sure just how much of KESS' listeners were cannibalized from KLTN, but I suspect a few were.

I have not looked at the playlists, but it is important to look at bigger Mexican markets in NE Mexico. There you will find one owner with three or even more formats that play some elements of norteña, banda, ranchera and cumbia. They may overlap a bit, but the key to distinguishing each is not what they share but what their core is.

And the core can be defined by both listener target ages and music genres.

The playlists simply overlap a bit too much for my comfort. Personally I would have taken KLTN to full norteno and flipped 93.3 to more mainstream Top-40 Regional Mexican with a focus on non-norteño RM subgenres.

You can't go full norteña today as there are many crossover hits that appeal to everyone. Those songs also give an element of variety if well scheduled.

There's also the unknown factor of KLTN being gimped after the tower accident. How much has that hurt them? I can't imagine it was ideal to lose the 300 meter stick a couple of months before SBS entered the market. I think it's safe to say that rebuilding the tower is no longer an option.

Valid point. But there was a feeling that Bryndis was too expensive for what he was delivering while being obstinate in not following research on updating the show a bit. Interestingly, in the decade or more that I presented research to Raúl he was enormously receptive and he even attended the very lengthy several day-long one-on-one perceptual research projects to hear what his listeners liked... or not.