BREAKING NEWS: AAR Has Just Declared Chapter 11 - Staying On Air-Will Reorganize

[fred flintstone]

So one assumes if they do Chapter 11 .... any no-competes would be invalidated?

Not at all. Non-competes are contractual covenants, entirely unaffected by bankruptcy. Especially if the operation/contracting party continues (as the reorganization is doing). Non-competes protect the broadcaster from having the good-will and possible commercial relations directly or indirectly attached to an on-air talent heaped upon another station/competitor, plus having any programming philosophy, trade secrets (formats, data, etc.), and the like from unjustly enriching a competitor.

There could be a limited non-compete even if there wasn't money involved (though the reasons for it lessen when it's not a commercial transaction).

And in the cases in which AAR has not paid the talent in question for their work, then what?

 

[Johnny Morgan]

When Clinton was in office, the Dow was breaking records everyday. When you adjust the Dow for inflation, it's actually way down today. (It hasn't recovered from the Bush losses yet) Low Unemployment? I guess you don't actually read the number and take the Bush spin instead. Gas prices are still a lot higher since a Democrat was President.

Stay the course? over 1/2 million dead in Iraq. Afghanistan is having a Taliban revival. N. Korea has nukes. America's standing the world has never been lower. Airman and sailors are being put in jobs outside their specialites in Iraq. The Air Force is downsizing and the Army/Marines can't maintain the rotations too much longer.

But stay the course.

Since this is a purely off-topic partisan political post, I shant respond but to say that this quoted post contains numerous factual errors. I can, and should, be disregarded. If you wish to debate these issues, try the Off-Air board. Your screenname is familiar with it, RBA.

 

[Johnny Morgan]

And in the cases in which AAR has not paid the talent in question for their work, then what?

Then they are free to leave AAR, if they so choose, but reasonable limits on their re-employment would still be enforceable, e.g., a minor time limits, geographic limits, revealing of trade secrets, portable business relationships (ad clients), formatic materials (promos, air names, format clocks, etc.)

 

[fred flintstone]

AAR, welcome to the free market.

NPR, be thankful you are subsidized...

NPR is not subsidized. Stations pay NPR for the programs they carry.

Stations get CPB grants which are a small portion of total revenue - much smaller even than pledge money. Most of public radio revenue comes from advertising - I mean from "enhanced underwriting." And public radio stations are doing very well in the free market, thank you. They pay well, especially executives. They often have lavish new buildings and state of the art equipment. And with left-over money, many stations have invested in profitable businesses. They do very well, in deed.

 

[Legend City]

If NPR had to compete, they would have been dead years ago.

At least they can bray and whine for pledges all the time.

PBS and NPR are subsidized, you can spin all you want, but they are. And with the world of choices available these days, they should not get another dime and be forced to compete on a level playing field.

 

[kaufcom]

"Capitalism is evil! Don't buy at Wal-Mart! The big oil companies are controlled by Bush! Corporations
exploit workers! OK, let's go to a commercial break...let's see here...what...? No advertisers?
OK...Now here's a public service announcement, right here on Air America!"

Brilliant--just brilliant. This is EXACTLY what I've been saying about WAOK in Atlanta--it's the laughingstock of talk radio. Being a "black" talker, this station is a PSA machine for the very same reason. No (quality) programming, an anti-capitalist and anti-business message, and anti-American. To add insult to injury, the sales department at CBS Radio Atlanta doesn't even answer their phones!!! How and the world is an advertiser going to go anywhere NEAR that station? The same question can be asked about Air America in general. Rush CLOBBERED this issue today.

Is this how the big lie works. One right wing blogger places a quote on this string about five pages back without any atribution and another right wing blogger picks it up to comment about a station issue that has nothing to do with this thread.

Brilliant--juit brilliant!

 

[HHH]

If NPR had to compete, they would have been dead years ago.


Not true.

NPR's "Morning Edition" is the #2 most listened-to national radio program in America.

They certainly have the numbers that could attract some lucrative advertizers. Suspect that "All Things Considered", "Car Talk" and "Prarie Home Companion" could very well profit in the commercial marketplace if NPR went commercial.

I am sure that if the non-comm rules ever went out the window, many NPR network shows could survive very nicely on their national ratings.

 

[BenTehelenbach]

Anyone who sees commercial barter affidavits is familiar with the phrase "Cannot air on stations that air Air America." If national advertisers want to stay away from AAR in droves, how could they expect to survive?

 

[BenTehelenbach]

Admittedly, affidavits are full of "Cannot air in or ajacent to controversial programming." But I've seen Air America mentioned specifically on affidavits, with greater frequency than Howard Stern was, back in his terrestrial days.

 

[fred flintstone]

If national advertisers want to stay away from AAR in droves, how could they expect to survive?

I've seen Air America mentioned specifically on affidavits, with greater frequency than Howard Stern was, back in his terrestrial days.

Now that you mention it, I do recall people asking the same question about Howard when he was starting out.

 

[kaufcom]

AAR Press Release on Bankruptcy--This regrettable action became necessary only recently when good faith efforts to resolve outstanding debt with a creditor from the company's earliest days broke down.

Does anybody have any doubt that the "unnamed creditor" is Arthur Lui, owner of Multicultural Broadcasting

 

[fred flintstone]

AAR Press Release on Bankruptcy--This regrettable action became necessary only recently when good faith efforts to resolve outstanding debt with a creditor from the company's earliest days broke down.

Does anybody have any doubt that the "unnamed creditor" is Arthur Lui, owner of Multicultural Broadcasting

That would be my guess.

 

[inorm99]

Raccoon Radio States "And liberals don't really seem to know much about how radio works..."
I see the threads stating prematurely that Air America will disband.
If you want the same ole' B.S. lies and homophobia, and race bating, and generally then continue to listen to those who " know how radio works"
By the way, how does radio work up there at Salem State?
Give props to Limbaugh, OReilly, Hannity, Severin, Bennett and the whole plethora of righty blowhards who do nothing than repeat the talking points that are faxed over from the righty think tanks to Karl Rove and then to Westwood One, ABC and whoever else carries these hosts.
If that is how radio works, then I'll gladly listen to those who don't know how radio works

 

[Radio1360]

One station here in Atlanta dropped its "Air" supply and went "Adult Standards" this past spring....WWAA-AM 1690.

 

[thebroker]

My personal opinion, after reading the Chapter 11 filing, is that it is shameful and disgraceful for Air America to shaft as many people as they have. The thing is, these people are masquerading as a legitemate corporation while doing nothing apart from furthering their political agenda. Are they a Political Action Committee or a for-profit corporation? It's time to decide. Looking through the bankruptcy filing, a whole lot of people are going to lose money, not the least of which are dozens of employees.

Air America can't even manage to pay an $11.00 MCI bill, or their $134 DirecTV bill. When a company is this distressed, how can any logical person who understands anything about business believe that any amount of restructuring will do any good? It's just a stall tactic, obviously. I think that the past three years or so has proven that Air America is simply NOT a viable business model. Why not go home instead of beg for more money from investors? The officers and board of Air America obviously know NOTHING about the radio business. They should do the honorable thing and just give up instead of continuing to rack up bills that won't be paid.

Does that mean LibTalk isn't viable? Absolutely not. In fact, I think LibTalk has a very bright future, and plenty of great personalities. However, I think logical people would understand that Air America isn't the vehicle through which to air liberal talk. I guess you could sum up my opinion like this...Air America is a sinking ship, but it's passengers are very capable of surviving.

 

[Herb999]

I hope that lib talk radio survives and prospers. Otherwise when we get a lib dem president, they will have to censor conservative talk by bringing back the un-fairness doctrine.

I think Alan Colmes is a great liberal personality. He actually makes sound arguments with truth and honesty. However since he is honest and not foaming at the mouth with hate, most liberals dislike him.

 

[HHH]

Yes, there is something very wrong about how Air America is managed, run and financed, but it has nothing to do with the fact that they air "liberal" programming. The business people were just irresponsible.....just as irresponsible as the management of the 700 Club with Jim and Tammy Baker, but nobody talked about how "conservative-religious" programming was a failure, or that right-wing religos didn't know anything about business.

By the way, how *** nobody talks about Salem's right-wing talk network having generally pretty crappy ratings? Maybe because Salem has deep pockets and is covering all the losses for "political" reasons? Hmmmm. Must be nice......

 

[thebroker]

I think nobody talks about Salem having crappy ratings for a very simple reason...they aren't having financial problems, and they aren't just about to bilk creditors out of Twenty Million dollars. Plus, a good many of their properties are very profitable despite poor ratings. Nobody ever said you had to have high ratings in order to be profitable...

And I also agree with the assertion that Air America's failure probably has less to do with programming than with management. LibTalk COULD be profitable.

 

[dampier]

My personal opinion, after reading the Chapter 11 filing, is that it is shameful and disgraceful for Air America to shaft as many people as they have. The thing is, these people are masquerading as a legitemate corporation while doing nothing apart from furthering their political agenda. Are they a Political Action Committee or a for-profit corporation? It's time to decide. Looking through the bankruptcy filing, a whole lot of people are going to lose money, not the least of which are dozens of employees.

I'd say there are plenty of operations on the right, from Salem to the religious stuff that pollutes the FM educational band that could go right under your own category of what constitutes furthering a political agenda.

AAR is a PRIVATE corporation. It does not have stockholders. AAR exists to provide liberal talk radio programming to a network of affiliates around the country. It did that Thursday, it did that today, and it will do that next week as well. If AAR wanted to "shaft" people, they could have declared Chapter 7. Chapter 11 allows a company to restructure without creditors forcing them to liquidate assets. It's become a very common corporate tool. Does the airline you fly on that is under the same Chapter 11 bankruptcy doing it to further their agenda and shaft people? How about a pension plan that went insolvent because a company didn't want to cover it any longer?

Air America can't even manage to pay an $11.00 MCI bill, or their $134 DirecTV bill. When a company is this distressed, how can any logical person who understands anything about business believe that any amount of restructuring will do any good? It's just a stall tactic, obviously.

Obviously you don't understand bankruptcy laws and how these things must be filed. A bankruptcy court wants a full accounting of assets and liabilities.

And your evidence it is a "stall tactic" is?

Does that mean LibTalk isn't viable? Absolutely not. In fact, I think LibTalk has a very bright future, and plenty of great personalities. However, I think logical people would understand that Air America isn't the vehicle through which to air liberal talk. I guess you could sum up my opinion like this...Air America is a sinking ship, but it's passengers are very capable of surviving.

We will find out soon enough.

 

[mr_arbitron]

If you ask Damp and the Doc, they would say, that this is vast right wing conspiracy, but on the other hand Bankruptcy is good for Err Amerika, becuase this is how the Fairness Doctrine should work... Have the American taxpayer help you rip people off.. And also, it's why Damp and Doc hate the bankruptcy bill.. You should be able to get a credit card, run it up, and then BK out, because under liberal Doctrine, you can and should claim you're a victim.. Just say "I thought it was free money" and that should get you off, right Phil boy?