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Citadel Death Pool

So, should we start the Citadel Death Pool? The idea that they'll enter bankruptcy seems to be a foregone conclusion. The only mystery is the date.

I'm picking Friday, December 11th. Winner gets season passes to Crystal Beach, a Twin Fair gift certificate, and a ski weekend at Bluemont.
 
Deal me in!

I'll take December 22nd.

Being from the Northtowns area, I was hoping for a Two Guys gift certificate and dinner for two at Mindy's Wine Cellar (no relation to Jack)...followed by movies at the Boulevard Cinema I and II
 
Let's add to the fun!
I say Regent goes before Citadel. Regent goes 11 on December 11 but Blowhard Bill Stakelin will explain that they "are still outperforming their bankrupt peers".Citadel goes December 30.
 
Christmas falls on a Friday. I'll offer December 18 as the day Citadel goes belly-up, getting the pre-packaged bankruptcy before a judge in this fiscal year. Merry Christmas everybody! As to Regent? How'd you like to buy a house in South Buffalo for a million dollars and find out it's actually worth $100 thousand? It says here February. The banks don't want to operate Regent's radio stations. Bill Stakelin may have a better reputation than Farid Suleman on Wall Street, but that's barely a compliment considering Suleman's reputation. Regent layed out $125 million for Buffalo on the brink of the worst recession in more than 20 years? Man, CBS musta seen 'em comin'.
 
Christmas Eve, December 24. I'll settle for five pounds of Malecki sausage.
 
December 26. Merry Boxing Day. Perfect for a below the radar filing and less likely to garner any news coverage.

Off topic, I was very surprised when I found out that people here in WNY knew what Two Guys was. I didn't know that they were up here as well as in Joisey.

Two Guys was legendary for their After Christmas Sales (not related to my above contest entry) which included an enormous amoung of model trains. Some items with Two Guys sales stickers still survive intact today (ask me how I know... on the other hand, don't ask...)
 
REVISION

Although the Citadel Q3 filing indicated the company is likely to default on a required payment of $150 million due January 15, 2010, do not be surprised if a white knight comes forward and an lender-equity deal is submitted. Watch CTDB January 4-8, 2010.

Developing
 
From Taylor On Radio, 12/7/09:

The prevailing mood at NYMRAD – “It’s better than last year, thank God.”

“Last year” was the quarter when the economy tanked and radio in New York was shaken as national business started shrinking faster than a winter ebb tide at Jones Beach. Several managers and group guys I talked to at the annual NYMRAD Holiday Party say automotive’s coming back somewhat and that national is improving. Pricing is going to be an issue for a long time, because some of the buyers in that 8th floor lounge at the Marriott Marquis have gotten used to dictating rates. But there’s at least some juice coming back to the radio sellers. Paradoxically - one of the happiest-looking faces at the NYMRAD bash was Citadel CEO Farid Suleman, who’s likely only weeks away from entering Chapter 11 with his company. If Citadel’s unmeetable January 15 deadline to have scads of cash on hand for its lenders was bothering him, it didn’t show. Farid enjoys radio industry events such as this one, and every time I looked his way he was smiling – and he stayed a long time.

---

As previously noted, don't be surprised if Farid pulls a rabit out of his ass by January 15th. Must be nice to prance and mince around the media events, rubbing elbows and smiling with the lice who've taken the business into the toilet.
 
Element9 said:
As previously noted, don't be surprised if Farid pulls a rabit out of his ass by January 15th. Must be nice to prance and mince around the media events, rubbing elbows and smiling with the lice who've taken the business into the toilet.

Hmmmm. Sounds like crabs were on the menu...
 
Check out today's Taylor on Radio-Info. He says that it's all but a done deal, and that Smilin' Farid will remain in charge. Hello, McFly - this is the guy that put the company into bankruptcy with his ill-conceived ABC purchase, and you're going to leave him in charge? What's he ever done SUCCESSFULLY on his own, and not as Mel Karmazin's accountant?

Even I didn't think that Farid would be heartless enough to string this out until Christmas. With that said, I doubt that it will mean major differences for the local group. What's left to cut? 97-Rock - the cash cow - is the only station that's bears any semblance to its former self.
 
Thanks for the link...

Noted with interest were the banner and text ads that surrounded the story on the CNBC page. They weren't exactly a step above the "colon blow" radio spots that we all know and love ;) so I suppose it illustrates that broadcasters aren't the only ones having difficulty selling space.
 
I thought the "related story" links at the bottom including a piece on rampant grave-robbing (in Venezuela, but still!) was a nice touch.
 
Well, I was close without going over... I think that only counts on "The Price Is Right" however.
 
Taylor On Radio reveals the corporate dirt as word leaks from behind courtroom doors and filings. Former WABC New York manager Mitch Dolan is listed as one of the creditors owed nearly a million dollars:

Taylor On Radio said:
After Citadel took over the 23 ABC stations, Suleman kept Dolan in place as its “Major Market Group” head, reporting to him. But Mitch alleges a number of actions by Suleman that undercut him, such as replacing Los Angeles market manager John Davison in January 2009 with Farid’s friend Bob Moore. Dolan says that was done without consulting him. And further, that Suleman agreed to pay Moore the same salary Dolan was getting, even though Moore reported to Dolan. (Former ABC exec John Hare testified at the August arbitration hearing that Moore’s pay package was, in the arbitrator’s words, excessive and unprecedented.) Dolan complained that in the Summer of 2008, Suleman replaced the director of sales in L.A. without consulting either him or Davison. Also that Farid offered the GM job at WPLJ (right around the corner at WABC) to somebody without checking. And Dolan says Suleman hired a friend to run a station in Dallas – and had him reporting directly to Suleman. Former WPLJ programmer Tom Cuddy circulated the arbitrator’s decisions to some of the radio trades, because he wants to set the record straight about his former boss, Dolan. Cuddy says one trade (not T-R-I) wrote that Dolan had been dismissed in February for budget reasons. After Mitch left he filed to get his severance of $850,000 plus 9% interest – which is presumably the bulk of the $917,000 he now claims as a creditor in Citadel’s bankruptcy. Ex-employees are at real risk of becoming creditors, in the Chapter 11 stories that are yet to be written.

Citadel's obligation to honor contracts of present and former air talent and managers is of particular concern. In many cases a company that goes through bankruptcy is not obligated to honor pre-existing contracts. Much if this is decided by the courts charged with overseeing the bankruptcy filing. As an example, published reports indicate that immediately after filing for Chapter 11 protection, Citadel Media entered into a new contractual agreement representing a number of its program providers such as ABC News.

Some Citadel employees have already adopted corporate think, "nothing will change and it's business as usual." Certainly, a positive attitude in matters such as these is commendable, yet it's more likely that once bankruptcy is approved the banks will exert their control of Citadel with more pressure than has ever been applied.

The status quo may in fact be maintained if the economy doesn't founder in 2010, but the first quarter is especially harsh in radio and media in general.
 
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