M
MikeShannon914
Guest
Indeed, their "The Seat is Always Down" and "'Broad' Topics" billboards have faded into memory for this women's talk-formatted station. If you never knew the story of the Station That Lasted Three Days, here it is...as balanced as I could write it back in 2004 after the dust had long settled:
"Many rumors and much conjecture surrounded KCAF after its quick fall. Articles in the Dallas Morning News and the Dallas Observer painted owner Schum as the bad guy, going into the transaction undercapitalized and with little business experience. Dave Schum agreed to an interview for this website in 2004, and the following timeline is based on documentation and his personal recollection of those events. This is not meant to explain all sides of the story; others who spoke to me on the subject had varying observations, and further input or challenges to the following information by those involved would be welcome and will be posted. I also encourage you to click the Observer link above for another take on the story. I claim NO responsibility for the accuracy and/or truthfulness contained in the following summary:
"After receiving a license for 990 in 1997, station owner and Dallas restauranteur Dave Schum hired Scott Savage in 2002 to put together a format and hire talent to be used on Schum's dormant frequency. The process became a rush job right off the bat. The pricey, former KVIL penthouse studios were rented, which were left stripped and bare (and early hires brought furniture from home to work from.) Ira Lipson, longtime programming consultant who had come up with the "Zoo" idea for KZEW years earlier, was brought in to develop the format. Savage did all the hiring and arranged for all the working capital, but finances ran short very quickly. Savage used his personal credit card to pay for some needed studio equipment (Schum estimates about $5,000 worth.) Some of the operations employees became aware of the cash shortage, but pushed ahead to get the station on the air anyway, reportedly at Savage's insistence. According to Schum, most of the on-air talent was signed to long-term contracts (six years, in some cases.) Already, there were reservations from the staff about the station not being ready in time, and the power output being poor (a much-needed power upgrade CP was left in limbo due to financial shortages.) Putting off the start date was considered, but the billboard company put heat on the station to run all 60 advertisements according to the original date planned. On the premiere date, 10/21/2002, Schum realized that he wouldn't be able to make the first payroll. First, Schum approached Savage about a loan to cover payroll; Savage agreed, but then reneged. Schum then checked into bridge financing (a short-term loan to cover immediate needs,) but was turned down for a $1.5 million request. He then offered to sell the station to Savage. Savage, who Schum says had already formed a consortium on the side and was actively seeking a local station to buy anyway, contacted his own business partner, Ed Ferreri (dba Pinnacle Broadcasting,) who offered Schum a pitiful $1 up front, and a lump payment of $250,000 later for the entire operation. (A reasonable price for a working, rimshot AM station at the time would have been $6-$10 million.) Schum balked at the lowball offer. On the second day of operations, October 22, some employees received paychecks that did indeed cash, but HR was told to not pass out any more. An employee meeting held that evening allowed Schum to explain what was going on, and all of the employees decided to go forth and keep the station on the air anyway...provided Schum accepted Savage's buyout offer. Savage indicated that he had the cash to cover payroll, but wouldn't cover it if Schum didn't sell him the station. At 3PM the following day, October 23, the employees were gathered again for Schum to announce that payroll would still not be met, and at 7PM, Schum told the group that he had refused Savage's offer. Everyone then packed their bags and walked out, after a mere three days on the air.
"Schum's ongoing contention is that Savage always had his sights set on wrestling the station away from him, and that Savage rushed the premiere process along and made the station doomed to fail. Schum identified one employee, who was a friend and former co-worker of Savage's, who engaged in theatrics during the meetings to galvanize the rest of the employees against Schum. He also blames CFO Carla Phillips for hastily cutting the check for the billboards instead of making payroll. Regardless, Schum sought bankruptcy to protect his assets, and was filed on by Savage, Ira Lipson and TM Century (local jingle service,) along with many of the employees who were not paid and/or had contracts. By early 2004, Schum said that he was through most of the process of paying off those debts, and that 990 would again take to the airwaves that April. While Schum's second attempt at running a station lasted longer, it was met with much of the same financial woes, and ended up being sold to a creditor at auction in October, 2005."
"Many rumors and much conjecture surrounded KCAF after its quick fall. Articles in the Dallas Morning News and the Dallas Observer painted owner Schum as the bad guy, going into the transaction undercapitalized and with little business experience. Dave Schum agreed to an interview for this website in 2004, and the following timeline is based on documentation and his personal recollection of those events. This is not meant to explain all sides of the story; others who spoke to me on the subject had varying observations, and further input or challenges to the following information by those involved would be welcome and will be posted. I also encourage you to click the Observer link above for another take on the story. I claim NO responsibility for the accuracy and/or truthfulness contained in the following summary:
"After receiving a license for 990 in 1997, station owner and Dallas restauranteur Dave Schum hired Scott Savage in 2002 to put together a format and hire talent to be used on Schum's dormant frequency. The process became a rush job right off the bat. The pricey, former KVIL penthouse studios were rented, which were left stripped and bare (and early hires brought furniture from home to work from.) Ira Lipson, longtime programming consultant who had come up with the "Zoo" idea for KZEW years earlier, was brought in to develop the format. Savage did all the hiring and arranged for all the working capital, but finances ran short very quickly. Savage used his personal credit card to pay for some needed studio equipment (Schum estimates about $5,000 worth.) Some of the operations employees became aware of the cash shortage, but pushed ahead to get the station on the air anyway, reportedly at Savage's insistence. According to Schum, most of the on-air talent was signed to long-term contracts (six years, in some cases.) Already, there were reservations from the staff about the station not being ready in time, and the power output being poor (a much-needed power upgrade CP was left in limbo due to financial shortages.) Putting off the start date was considered, but the billboard company put heat on the station to run all 60 advertisements according to the original date planned. On the premiere date, 10/21/2002, Schum realized that he wouldn't be able to make the first payroll. First, Schum approached Savage about a loan to cover payroll; Savage agreed, but then reneged. Schum then checked into bridge financing (a short-term loan to cover immediate needs,) but was turned down for a $1.5 million request. He then offered to sell the station to Savage. Savage, who Schum says had already formed a consortium on the side and was actively seeking a local station to buy anyway, contacted his own business partner, Ed Ferreri (dba Pinnacle Broadcasting,) who offered Schum a pitiful $1 up front, and a lump payment of $250,000 later for the entire operation. (A reasonable price for a working, rimshot AM station at the time would have been $6-$10 million.) Schum balked at the lowball offer. On the second day of operations, October 22, some employees received paychecks that did indeed cash, but HR was told to not pass out any more. An employee meeting held that evening allowed Schum to explain what was going on, and all of the employees decided to go forth and keep the station on the air anyway...provided Schum accepted Savage's buyout offer. Savage indicated that he had the cash to cover payroll, but wouldn't cover it if Schum didn't sell him the station. At 3PM the following day, October 23, the employees were gathered again for Schum to announce that payroll would still not be met, and at 7PM, Schum told the group that he had refused Savage's offer. Everyone then packed their bags and walked out, after a mere three days on the air.
"Schum's ongoing contention is that Savage always had his sights set on wrestling the station away from him, and that Savage rushed the premiere process along and made the station doomed to fail. Schum identified one employee, who was a friend and former co-worker of Savage's, who engaged in theatrics during the meetings to galvanize the rest of the employees against Schum. He also blames CFO Carla Phillips for hastily cutting the check for the billboards instead of making payroll. Regardless, Schum sought bankruptcy to protect his assets, and was filed on by Savage, Ira Lipson and TM Century (local jingle service,) along with many of the employees who were not paid and/or had contracts. By early 2004, Schum said that he was through most of the process of paying off those debts, and that 990 would again take to the airwaves that April. While Schum's second attempt at running a station lasted longer, it was met with much of the same financial woes, and ended up being sold to a creditor at auction in October, 2005."