Citadel Smoked Out

[Mike Sheridan]

Which is why people like you-know-who end up owning those companies, and everyone else becomes cannon fodder. If the people on this board would put together business plans and offer to buy the local stations, you wouldn't have this problem. But it's easier and less risky to let someone else do it. So you let the wolf into the henhouse. It's like the Germans electing Hitler to become Chancellor because they didn't like the previous guy. Bad idea.

So why don't WE actually do something? Lets find some investors and make it happen. I feel we really all do 'talk the talk' but rarely 'walk the walk'. I don't have much $$ but I know a few folks that could possibly help out. Would anyone else go in on it? Hell, think of all the local stations that are in the crapper these days, many frequencies to choose from. Maybe I'm just a dreamer and not a realist but sometimes, it all starts with an idea, a plan and the courage to see it through...

Nice idea but the big group owners have been effective in doing one thing and that's driving up the price of stations to where it's more difficult for the small players to survive.

There are two types here on the boards, those who remember and truly miss what radio used to be, and those who somehow believe everything is just great as it is. I could go further but anything else would just be pointless. Those who know, I don't have to tell.....The others just don't get it.

 

[Bob1370]

People who dream of the return of local owners who care about their stations, the quality of the programming they offer, and their image in the communities where they do business, may get their wish--if the recovery continues to be slow.

I'm not necessarily predicting that a whole new wave of Larry Levite-style owners is about to sweep broadcasting (though that would be welcomed) but there is a distinct possibility that prices for stations will remain depressed and a significant number of station owners will tire of struggling to meet their debt payments. So you will see some more groups struggle, and more decide to sell--with the possibility that new owners of many of these stations will be an improvement.

 

[SirRoxalot]

The most likely scenario is that the "spreadsheet wizards" currently in charge will determine that "radio is dead", and will decide that there's more upside bringing the "blessings" of "corporate entrepreneurship" to another industry. In other words, they'll look for a business with "more upside".

They're killing the business. Once they decide that they've picked the carcass clean, they'll bail. Then it will be interesting to see if radio can resurrect itself one more time.

 

[TheBigA]

Nice idea but the big group owners have been effective in doing one thing and that's driving up the price of stations to where it's more difficult for the small players to survive.

Radio stations are currently selling at about 10% of what they were selling at just five years ago. You have stations in NYC selling for $30 million. But the fact is that it's not the purchase price that would kill small players. It's the operating costs. The cost of doing business using transmitters, studios, and antennas has gone up to the point where a small operator can't even pay the insurance, much less the utilities. It's much cheaper to use other means, and if a small investor is going to take his life savings and put it in something, it won't be radio. Because if the big company loses money, he just files for bankruptcy. But if a small player does the same thing, all that's left is jumping from the roof of a tall building.

When it's someone else's money, it's easy to lecture them on how they should spend it. When it's coming out of your bank account, it's a whole lot more difficult. That's why no one on this board will ever become an owner, regardless of how cheap station prices get.

 

[Mike Sheridan]

I hear ya, and understand what you're saying. Actually there is already at least one station owner on this board.... ;D

 

[cee]

AFAIK there are at least 4 radio guys with Rochester(and Buffalo) ties who are radio station owners. Most prominent of course, here on this board, is Bob Savage of WYSL Avon(AM and FM translator). Former Rochester PD Bobby Hatfield(aka Joe Reilly) owns an AM/FM combo in Pennsylvania; Bobby's successor as PD at WBBF-FM, Dave Ratigan, owns WEBO, Owego(also AM and FM translator). Also former WHAM and WWKB PD Kevin Fennessy owned a couple AMs in PA(I think he sold them). And Dan Fischer, longtime PD/OM of WKSN/WWHG(& WJTN/WWSE?) in Jamestown, is the owner of WBTA, Batavia. I'm probably forgetting a few.

 

[TheBigA]

I doubt any of those current owners are among the regulars on this board who rag and rant endlessly about Citadel.

 

[Mike Sheridan]

I doubt any of those current owners are among the regulars on this board who rag and rant endlessly about Citadel.

Oh okay, at least now I know you're not talking about me. My target is CBS.

Overall I think Clear Channel gets bashed more than any other group owner. Why defend Citadel anyway?

 

[SRP]

Why defend Citadel anyway?

That's not the issue being discussed. The point is that the same rants about Citadel's mismanagement are being regurgitated like a two-day-old Super Mighty Taco with extra hot sauce nearly all the time on this forum.

We get it. People hate what happened.

I'll say it again: GET OVER IT.

 

[Silkie]

I'm thinking that still there are those who haven't read their SEC filings, but hey, who am I to notice?

 

[TheBigA]

Why defend Citadel anyway?

I don't think I am. I certainly have no reason to defend them. I just hate useless ranting.

And as for CBS, I think there are some folks at WYRK who certainly prefered them as owners vs. Regent.

In fact I'd say in virtually every market CBS has sold, the employees will tell you they prefered CBS to the new owners.

 

[cee]

I doubt any of those current owners are among the regulars on this board who rag and rant endlessly about Citadel.

I agree. On this board, these threads often start to move in various directions. Not being too interested in Citadel, I was trying to later the subject by commenting on Mike Sheridan's comment.

 

[OhioMediaWatch]

But the fact is that it's not the purchase price that would kill small players. It's the operating costs. The cost of doing business using transmitters, studios, and antennas has gone up to the point where a small operator can't even pay the insurance, much less the utilities.

What A said.

We just had two small AM stations sell around here - not terribly far from WNY - for $50K. One full-timer, one daytimer, both 500 watts.

There was a time that I could have afforded that price tag, and I could probably still convince a relative to do so today.

Except...

That $50K "cost of entrance" is just a start. The new owner has remodeled the one station's old studios and is moving both stations' operations in from there. I have heard from others kicking the tires on the stations that they were in not great shape.

Oh, did I mention that the market (Youngstown/Warren, OH) is even more economically depressed than Buffalo?

I'm not saying that there's not a winning combination somewhere in there. It sounds like the new owner is aiming for at least some FM full-time presence (be it a translator or another station with a low sticker price in today's economy), and he seems sharp.

It's just a big, uphill battle.

And yes, we do have station owners on here, and not just one Mr. Savage...the new owner of the above stations is a regular on R-I.

 

[chas108]

Why defend Citadel anyway?

I don't think I am. I certainly have no reason to defend them. I just hate useless ranting.

And as for CBS, I think there are some folks at WYRK who certainly prefered them as owners vs. Regent.

In fact I'd say in virtually every market CBS has sold, the employees will tell you they prefered CBS to the new owners.

Seems like now under Dan Mason they're trying to do things right, especially compared to when Joel Hollander was running the radio division.