CapRadio cuts 12% staff and cancels shows

[PTBoardOp94]

It sounds like their books were incomplete, not false.

That sounds like an argument 16 year-old me had with my parents -- and lost.
I'm not sure it rises to the level of criminal fraud or embezzlement, but it might from the published information, but it might.

And there’s a quote in the article that says they can make payroll. That’s not “insolvent”.

Sure it is. Payroll is only one responsibility of a business.
You also need to pay your vendors, which CapRadio hasn't. They are behind multi-millions with NPR.
You also need to pay for your facilities. CapRadio hasn't paid rent on their current building in 2 years, and is in arrears nearly $2 million on a loan for a new building.
You also need reserves in case revenue falls below expectations, to allow time to right-size the business to match revenue. CapRadio has none.

 

[seattlesarchiebunker]

As a person that transitioned from radio into accounting (first hotels, then casinos), nothing that CapRadio did rises to a level of criminality. Nobody according to the audit profited from this mismanagement of funds. They bit off more than they can chew with a fancy downtown studio, IMHO.

However, it is mind numbingly dumb to mismanage funds and circumvent board approval in this manner. Some heads need(ed) to roll from this, unfortunately.

 

[Weiserguy]

Let me start by stating that I wouldn't want to see this happen. But...

A logical way to dig themselves out of this hole -- ignoring the fact that digging yourself out of a hole is the absolutely wrong approach to any problem -- would be to cut a management deal with KQED to run the stations for them under contract.

KQED already has a presence in Sacramento (KQEI in North Highlands, which simulcasts KQED-FM 24-7), and much of the programming already airs in parallel on the Cap Radio and KQED stations. (12.5 hours are totally simulcast, and another 3.5 hours of content are just the same programs airing at slightly different times on the schedules. Weekends are more different.)

So merging the two news operations, en masse, with just local news and underwriting inserts customized by region, should be doable with a whole lot fewer people and operating budget than the current situation. And heaven knows KQED already has more headcount than they need for what they do.

The downtown buildings are going to have to get sold or subleased soon anyway. Cap Radio headcount, sadly, will need to be reduced even further. The only local daytime hour they produce in house (Insight with Vicky Gonzones) might be a goner in favor of KQED's Forum, or at least folded into that organization. And since the transmitter relocation project is nearly complete, that's a sunk cost that will hopefully pay off with improved listenership and better fundraising. The classical music operation may need to be subcontracted out to USC's California Classical, which already runs the KDFC stations in the SFBA. Making these changes might jump-start the effort to get the house back in fiscal order, albeit at the expense of the local flavor. (Which listeners in Tahoe/Reno, Quincy, Stockton, Sutter, Chico, etc. might not see as their local flavor, even now.)

Maybe, five years down the road, Sac State could consider taking back the operation. Or they might decide they don't really need to be in the business anymore of operating a network of stations, and leave things in place. Who knows? A lot has happened in the last five years, no reason to believe things won't be even more different then.

 

[Michael Rivers Kramer]

Let me start by stating that I wouldn't want to see this happen. But...

A logical way to dig themselves out of this hole -- ignoring the fact that digging yourself out of a hole is the absolutely wrong approach to any problem -- would be to cut a management deal with KQED to run the stations for them under contract.

KQED already has a presence in Sacramento (KQEI in North Highlands, which simulcasts KQED-FM 24-7), and much of the programming already airs in parallel on the Cap Radio and KQED stations. (12.5 hours are totally simulcast, and another 3.5 hours of content are just the same programs airing at slightly different times on the schedules. Weekends are more different.)

So merging the two news operations, en masse, with just local news and underwriting inserts customized by region, should be doable with a whole lot fewer people and operating budget than the current situation. And heaven knows KQED already has more headcount than they need for what they do.

The downtown buildings are going to have to get sold or subleased soon anyway. Cap Radio headcount, sadly, will need to be reduced even further. The only local daytime hour they produce in house (Insight with Vicky Gonzones) might be a goner in favor of KQED's Forum, or at least folded into that organization. And since the transmitter relocation project is nearly complete, that's a sunk cost that will hopefully pay off with improved listenership and better fundraising. The classical music operation may need to be subcontracted out to USC's California Classical, which already runs the KDFC stations in the SFBA. Making these changes might jump-start the effort to get the house back in fiscal order, albeit at the expense of the local flavor. (Which listeners in Tahoe/Reno, Quincy, Stockton, Sutter, Chico, etc. might not see as their local flavor, even now.)

Maybe, five years down the road, Sac State could consider taking back the operation. Or they might decide they don't really need to be in the business anymore of operating a network of stations, and leave things in place. Who knows? A lot has happened in the last five years, no reason to believe things won't be even more different then.

This could work if they let CapRadio keep their identity. The KQED brand does have a presence in Sacramento, albeit a really small one.

NPR is challenged is many markets. Here in LA, the cume is shrinking and budgetary layoffs have happened at KPCC.

 

[TheBigA]

A logical way to dig themselves out of this hole -- ignoring the fact that digging yourself out of a hole is the absolutely wrong approach to any problem -- would be to cut a management deal with KQED to run the stations for them under contract.

Not a very Californian way to handle a problem. But there are certainly a lot of very well-run public stations in the state, and that would be a way to handle it.

The specific problem here is a fundraising problem, not a programming problem. The station doesn't need content assistance, but rather direction in terms of raising money. They need to find local specialists who know how to do that and are well-connected with local business. With EMF moving out of the area, I wonder if there are some development people there who prefer to remain in the area. A public radio station is first and foremost a non-profit organization, and anyone who is successful in running any non-profit would be an asset.

But I agree that they need to get out of those construction projects and focus first on day to day.

 

[Weiserguy]

Not a very Californian way to handle a problem. But there are certainly a lot of very well-run public stations in the state, and that would be a way to handle it.

The specific problem here is a fundraising problem, not a programming problem. The station doesn't need content assistance, but rather direction in terms of raising money. They need to find local specialists who know how to do that and are well-connected with local business. With EMF moving out of the area, I wonder if there are some development people there who prefer to remain in the area. A public radio station is first and foremost a non-profit organization, and anyone who is successful in running any non-profit would be an asset.

But I agree that they need to get out of those construction projects and focus first on day to day.

I don't disagree that the problem isn't one of bad programming. (In fact, they air the BBC from 9pm-2am, then Morning Edition from 2am-9am, and ATC from 2:30pm-6:30pm, so 2/3 of their broadcast day is already consumed by just these three high-quality programs that come off the bird.)

But I think fundraising is only part of their problem, which, IMO, also includes management overreach, lack of full Board oversight, and the delegation of day-to-day ops without proper oversight by the ultimate owner and license-holder, Sac State. If you want to afix blame, those would be my "usual suspects". If anything, the lack of adequate fundraising is a consequence of those inadequacies, and (like me, who had contributed to them in past years) probably the result of a gut feeling by their donors that their contributions weren't being well spent.

 

[TheBigA]

I think fundraising is only part of their problem, which, IMO, also includes management overreach, lack of full Board oversight, and the delegation of day-to-day ops without proper oversight by the ultimate owner and license-holder, Sac State. If you want to afix blame,

I just don't see how an out-of-town operator fixes those problems.

 

[PTBoardOp94]

I don't disagree that the problem isn't one of bad programming. (In fact, they air the BBC from 9pm-2am, then Morning Edition from 2am-9am, and ATC from 2:30pm-6:30pm, so 2/3 of their broadcast day is already consumed by just these three high-quality programs that come off the bird.)

I'm something of a contrarian on that. I think the NPR newsmags are struggling after their layoffs this spring.

The weekend shows have become essentially reruns and a interviews conducted with newsmakers, authors, actors, etc. by the host.
They have also been using reruns to fill time on All Things Considered, and added more pop culture coverage to Morning Edition.

 

[TheBigA]

I'm something of a contrarian on that. I think the NPR newsmags are struggling after their layoffs this spring.

The weekend shows have become essentially reruns and a interviews conducted with newsmakers, authors, actors, etc. by the host.
They have also been using reruns to fill time on All Things Considered, and added more pop culture coverage to Morning Edition.

Don't the weekend shows have different hosts from the weekday? And WATC based in LA?

 

[PTBoardOp94]

Don't the weekend shows have different hosts from the weekday? And WATC based in LA?

Neither of those things stops them from reusing the packages from earlier in the week.

 

[TheBigA]

Neither of those things stops them from reusing the packages from earlier in the week.

Don't the hosts do the interviews? Or maybe I'm misreading your post.

 

[PTBoardOp94]

Don't the hosts do the interviews? Or maybe I'm misreading your post.

Some of them, but NPR still uses a lot of scripted/recorded 3-7 minute packages filed by reporters.

However, it looks like they have changed tack a little. Rather than using reruns of reports originally aired M-F, they are doing a long-form interview with a newsmaker (10-15 minutes) and repurposing some audio from an NPR podcast or a program produced by a member station. Today's was from WUNC in Chapel Hill.

 

[Gregg.]

Let's get back to the original post. The article says Cap Radio had a staff of 102 people. ONE HUNDRED TWO PEOPLE.

What were they doing with 102 people? A 12% reduction still leaves Cap Radio with about 89 employees.

They can't have a weekday one hour local Sacramento show along "Morning Edition," "All Things Considered," "Fresh Air," "1A," "Marketplace" and all the other typical NPR shows? Along with local news updates between NPR shows and NPR news?

And also run a Classical station from 6 a.m. to 10 p.m. with local classically-knowledgeable hosts? And run Classical 24 overnight?

Awww, how can they possible run an NPR station and a Classical station with a mere 89 employees? Maybe we can pass the hat for these 89 understaffed and overworked people.

 

[TheBigA]

Rather than using reruns of reports originally aired M-F, they are doing a long-form interview with a newsmaker (10-15 minutes) and repurposing some audio from an NPR podcast or a program produced by a member station. Today's was from WUNC in Chapel Hill.

Then they've returned to their previous policies, because they've aired segments from member stations for over 40 years. They have an acquisitions staff that handles that (aka the National Desk). They work with affiliates to get those reports, and the reporter is paid a fee. So it doesn't really save money.

 

[TheBigA]

Let's get back to the original post. The article says Cap Radio had a staff of 102 people. ONE HUNDRED TWO PEOPLE
What were they doing with 102 people?

You'd be surprised. For every one on-air person there can be as many as 10 working behind the scenes. Before I got in the business, I thought the only jobs in radio were on air. Then I got hired and found out how many more there are. A public station can have 10-12 people in "development," aka fundraising. Not all of the staff is based in Sacramento. Some of the riffed people were not full time. So not all 102 are full time with benefits.

 

[davideduardo]

Awww, how can they possible run an NPR station and a Classical station with a mere 89 employees? Maybe we can pass the hat for these 89 understaffed and overworked people.

It depends on the depth of local news coverage. When I consulted Radio 10, 710 AM in Buenos Aires, jut 20 years ago, there were more than 50 people just in the morning news block. That included 7 on-the-air, including the head anchor who handled (naturally, politics), two commentators, an editorialist, a humorist (we did a 60" comedy bit each half hour plus drop-ins), and reporters specializing in sports and finance. For the rest of the day, there were 10 talk show hosts or co-hosts, and each show had several researchers and interview schedulers. There were about 4 or 5 news people in 4 to 5 hour shifts, a news director, a promotions staff, board ops and others... around 150 people in total.. just in programming.

And the sales department, which also sold Mega 98.3, along with traffic, accounting, management, engineering, personnel and production. Full four story building, and a rooftop with a full service restaurant that ran from 4 AM to 10 PM and had coffee and yerba mate during all nights for self-brew.

Oh, and armed guards at all times.

The station was immensely profitable.

 

[SomeRadioGuy]

I wish i had 1/20th of capradio's pre lay off staff #'s

 

[TheBigA]

I wish i had 1/20th of capradio's pre lay off staff #'s

They raised $16 million last year. How does that compare?

 

[SomeRadioGuy]

They raised $16 million last year. How does that compare?

between our CPB funding and membership drive and local/regional/statewide business memberships, we dont even get 1/20th of that.

 

[seattlesarchiebunker]

The idea of KQED running CapRadio is intriguing…

It could potentially be a win-win. 90.9 runs KQEDs schedule with local hosts/news, all classical on 88.9, and what to do with KQEI? Full-time jazz/AAA or sell it off.

That being said, I doubt CapRadio’s management/operations will be outsourced (or in-sourced in this case) any further. I expect Sac State to run it for a bit to get it solvent and hand over control to another local operator. Cuts will be made, buildings will get sold. It would probably ruffle feathers if the state capital had its public radio piped in from SF, LA, or Minnesota, Nevada, etc.