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CapRadio Endowment formally dissolved with both CapRadio and KVIE getting settlement checks.

michael hagerty

michael hagerty

Essential pull-quote:

The dispute between CapRadio, KVIE and the Capital Public Radio Endowment stretched back to the beginning of the radio station’s financial crisis in 2023, following the release of a damning audit by the California State University’s Chancellor’s Office.
The audit flagged the relationship between the endowment and CapRadio, labeling the former organization “unauthorized,” and recommended integrating the endowment with a Sac State auxiliary meant for investing and distributing funds.
CSU auditors had previously raised concerns about the “interrelationship” between CapRadio, the Capital Public Radio Endowment and another nonprofit as far back as 2011. In 2013, the endowment also changed its bylaws to no longer solely provide funding to CapRadio, but to also support similar entities.

The endowment’s board released a public letter on March 19, 2024 addressed to Sac State President Luke Wood and senior advisor Mark Wheeler calling for a merger between CapRadio and KVIE. The organization also said it discovered “significant deferred maintenance” at the CapRadio broadcasting tower in Elverta. Sac State and CapRadio ultimately refused to budge.

Just over a week later the endowment donated the tower and land to KVIE. CapRadio had maintained its ownership of the tower and land, pointing to a 1990 lease agreement.

Station officials said days later the endowment had “overstepped in concerning ways” in an attempt to “publicly force an ill-planned merger.”
Click to expand...

www.capradio.org

CapRadio, KVIE receive payouts from tower settlement

Sacramento’s NPR and PBS affiliate stations received a combined $2 million from the Capital Public Radio Endowment. CapRadio also received the title for an Elverta property housing its main broadcasting tower from KVIE.
www.capradio.org www.capradio.org
 
While this was a good short-term deal for both Cap. Public Radio and the PBS affiliate (with the radio network getting the better part of it, I think), it leaves both entities more reliant on public and corporate support than before the deal was announced.
 
ted chittenden said:
While this was a good short-term deal for both Cap. Public Radio and the PBS affiliate (with the radio network getting the better part of it, I think), it leaves both entities more reliant on public and corporate support than before the deal was announced.
Click to expand...

The endowment was deeply flawed, poorly structured and (in the end at least) ultimately operated in bad faith. It did nothing for KVIE (the PBS station) until it went rogue and gave CapRadio's tower to them in a half-baked scheme to force a merger (which, as proposed would have been a takeover of CapRadio by KVIE).

It was originally intended as financial insurance for CapRadio, but the mismanagement of the station under Jun Reina detailed in the forensic audit (criminality must still be determined by a jury---he's back in court September 17) turned it into an essential for survival that it was never intended to be.

This is a major step in a return to normalcy.
 


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