Drew hayes out from KABC.

[BLA]

Of course, the same story has been repeated many times now as stations cash in on the 1930's "land out in the country" where the station was built is now prime and pricey property for development and worth vastly more than any AM station now.

And hundreds of AMs more have gotten translators, allowing them to eliminate complicated and expensive directional antenna systems by going to just a few watts at night while serving the market with a translator instead.

Of course no station can get a full-market translator signal in Los Angeles. And with the dial so cluttered, not even a few translators are possible.

 

[BLA]

And with every month that goes by the selling price gets lower.

And I doubt that it is being carried on the books at a substantially higher value than market. They are required to test all long-term assets for impairment on at least an annual basis and essentially mark any such asset down to fair value if it has been determined to be impaired. In other words, the book to market loss up until this point has already been mostly recognized.

I wonder if the license is recorded on sheet. "Impairment losses" I think can be deducted, I don't know what they paid for the "purchase". I suppose there had to be a huge gain on land sale. Does anyone here have thoughts on how much longer Cumulus can wait to unload it? In the realm of fantasy ... maybe they found a fund and are thinking of prying 100.3 away from God or maybe even getting KLOS.

 

[ChannelFlipper]

I wonder if the license is recorded on sheet. "Impairment losses" I think can be deducted, I don't know what they paid for the "purchase". I suppose there had to be a huge gain on land sale. Does anyone here have thoughts on how much longer Cumulus can wait to unload it?

When they sold the land, they most likely partitioned that asset from the license and paid taxes on the sale at the time.

The station itself has been losing value constantly, and as I said above, has had to be written down to fair value due to impairment losses, most likely several times over the past years. Therefore, it is most likely not being carried above market value as David E suggested above, rather it is being carried at or near its current market value. These impairment write-downs are not taxable events, but will result in a future tax deduction when the station is ultimately sold. Each time an impairment loss is written down, a deferred tax asset for the ultimate net tax effect is written up.

Accounting class over, now please back to the subject at hand. Drew Hayes has been such a controversial figure at KABC over the years, I can't believe this thread hasn't discussed him and his second departure at all. He has had just as much of a hand in destroying the station as the destruction of the signal itself. Nobody has anything to say about this? Maybe a lot of posters on this board are simply too young to know of any of this?

 

[ayoda]

Drew Hayes has been such a controversial figure at KABC over the years, I can't believe this thread hasn't discussed him and his second departure at all. He has had just as much of a hand in destroying the station as the destruction of the signal itself. Nobody has anything to say about this? Maybe a lot of posters on this board are simply too young to know of any of this?

Mr. Hayes is quite interesting. Some consider him one of the best information programmers (see this profile: One of Radio's Best PD's. KABC's Drew Hayes. - Radio Ink), others have differing opinions. I recall the unsuccessful attempt at trying John Kobylt and Ken Chiampou as morning drive hosts.

But as to what KABC is today, what I wonder is whether the station's current programming (as well as selling the La Cienega transmitter site) is due largely because of decisions made by the ownership. I'm thinking what also happened to sister station KGO and their abrupt dropping of their local talk shows in favor of full-time syndicated sports.

 

[TheBigA]

I'm thinking what also happened to sister station KGO and their abrupt dropping of their local talk shows in favor of full-time syndicated sports.

Because local talk was not attracting an audience. They invested millions of dollars in hiring local people, even bringing back some legends from the old KGO, and it all failed. The train left the station. You can keep spending money on trains, or just do something different. They chose the latter.

But yes ownership sold the tower land. Would you turn down $70 million to preserve a radio station that at best is worth 1/10th of that?

 

[davideduardo]

But as to what KABC is today, what I wonder is whether the station's current programming (as well as selling the La Cienega transmitter site) is due largely because of decisions made by the ownership.

The new site, with compensatory power increases of about 10% daytime and 15% nighttime, pretty equally cover compared to the old site. The real issues are that, first, modern-day increases in noise and interference have reduced all AM coverage areas as much as 50% and, second, the population in the area still covered will is not ethnically, culturally and racially compatible with traditional "older white guy" talk radio.

I'm thinking what also happened to sister station KGO and their abrupt dropping of their local talk shows in favor of full-time syndicated sports.

They were billing next to nothing, and getting worse. All sports betting has built in revenue from sources not accessible to traditional commercial radio... this is part of the transition of some stations away from "spots and dots" to new revenue, leaving fewer stations to compete for the available traditional ad dollars. It's a good thing for both kinds of stations!

 

[davideduardo]

Because local talk was not attracting an audience. They invested millions of dollars in hiring local people, even bringing back some legends from the old KGO, and it all failed. The train left the station.

And hit another oncoming freight train full of explosives and contaminants.

You can keep spending money on trains, or just do something different. They chose the latter.

For all we know, they launched the Hindenberg II, but at least they are trying something new with a different revenue stream.

 

[Loverofradio]

Keep in mind the license isn't where the value is. For KABC, the tower property was where the value was, and they sold it several years ago for around $70 million. That'll help pay KABC's bills for a while. I drove by the old KABC building on La Cienega, and there's a huge high rise on the property already.

How one South L.A. neighborhood got a new luxury tower — and rents starting at $3,100

The massive development at Jefferson and La Cienega boulevards got a big push from Councilman Herb Wesson.

www.latimes.com

Where’s KABC now? Do any stations occupy the KLOS/KABC building? Any reason why it’s called Cumulus District? I’m at work so I didn’t have time to read full article

 

[TheBigA]

Where’s KABC now? Do any stations occupy the KLOS/KABC building? Any reason why it’s called Cumulus District? I’m at work so I didn’t have time to read full article

Cumulus sold KLOS to Meruelo, so it's in their building. The old KABC/KLOS building was demolished (along with lots of shag carpeting). Cumulus owns Westwood One, and they have studios & offices in Culver City. KABC occupies space in that building. It's called the Cumulus District because Cumulus sold naming rights along with the land.

 

[ayoda]

The new site, with compensatory power increases of about 10% daytime and 15% nighttime, pretty equally cover compared to the old site. The real issues are that, first, modern-day increases in noise and interference have reduced all AM coverage areas as much as 50% and, second, the population in the area still covered will is not ethnically, culturally and racially compatible with traditional "older white

Makes sense, although I'm sure Cumulus made a decent profit from selling the land on La Cienega. On a separate note, my friend helped build the new studios in the 1980s housing KABC and KLOS when the stations were ABC O&O and located at the transmitter site. It was a first class facility which slowly deteriorated with each ownership change.

 

[ayoda]

The old KABC/KLOS building was demolished (along with lots of shag carpeting).

OK, I forgot about the shag carpeting.

 

[TheBigA]

On a separate note, my friend helped build the new studios in the 1980s housing KABC and KLOS when the stations were ABC O&O and located at the transmitter site. It was a first class facility which slowly deteriorated with each ownership change.

I think it was around the same time they build new studios on West End Avenue in NYC. Also first class facilities.

 

[davideduardo]

OK, I forgot about the shag carpeting.

Someone should have run DNA tests on the shag carpet remnants before they went in the trash...

 

[BLA]

... now please back to the subject at hand. Drew Hayes has been such a controversial figure at KABC over the years, I can't believe this thread hasn't discussed him and his second departure at all. He has had just as much of a hand in destroying the station as the destruction of the signal itself. Nobody has anything to say about this? Maybe a lot of posters on this board are simply too young to know of any of this?

Too young? I wish!

I don’t know Mr. Hays, and we know that 790 is the Titanic. But let’s leave the SCUBA and tank stuff be.

All of the reminiscing on this thread about KABC’s past sterling reputation and what ultimately did it in makes me think that many here wish there could be a revised modern-day edition of it. Even if the imaging be more edgy, to fit today’s tastes and norms.

I recall that in KABC’s glory days just prior to (and even well after) the music audience defection to F.M. from A.M., in the latter '70's, most markets had one successful commercial mass-appeal talk station, certainly in L.A., and I think this is still true. Today it’s KFI but they’re on A.M. with seemingly no place to go and sounding a bit old for F.M., except Handel.

When A.M. is finally ended and the religious-political, hyper-partisan-talk-fundraising and sports; mostly one-note junkcasters, hopefully going with it, any surviving or new talker will have to land on or be on a B Wilson (F.M.) signal- Period! There is room for a good terrestrial talk station despite some harping about “older demos” and it wouldn’t have to be that old anyway. Who might it be? Is 93.9 or 105.9, the original KFI-FM, b/t/w, ‘buyable’? Not bible, buyable! Or someone unexpected? Crystal Ball-sets on here anyone?

 

[BLA]

Someone should have run DNA tests on the shag carpet remnants before they went in the trash...

huh huh huh huh ha h a h a ha ha ha hee hee hee hee hee - Nice One.

 

[Weiserguy]

I think it was around the same time they build new studios on West End Avenue in NYC. Also first class facilities.

Huh? Cap Cities owned ABC at the time, pre-Disney, and the West End Ave. real estate was never intended for either WABC or WPLJ. They moved to #2 Penn Plaza, at West34th St between 7th & 8th Avenues. (Because, I assume, having trains always rumbling underneath was a cheaper alternative than replacing WABC's famous plate reverb unit.) Uptown was ABC Radio, TV and Network offices and studios, with the added advantage that Cap Cities corporate HQ already lived on West 66th Street (7 W. 66th, iirc).

IDK whether ABC used shag in any of their NYC space though.

 

[TheBigA]

Huh? Cap Cities owned ABC at the time, pre-Disney, and the West End Ave. real estate was never intended for either WABC or WPLJ.

Did I say that? No. What ABC built on West End was new state of the art facilities for the ABC Radio Networks, that had been previously located at 1926 Broadway. WABC was once located in 1926, but moved to 1330 Avenue of the Americas at some point in the 60s. Perhaps when ABC Radio Networks split into four. WPLJ was there too. The move to Penn Plaza happened later.

There had been a plan to move some of ABC Radio into 1700 Broadway, but that space was subleased to NBC Radio, and that's where they went after they were spun off from NBC/GE in the 80s.

 

[Weiserguy]

On a separate note, my friend helped build the new studios in the 1980s housing KABC and KLOS when the stations were ABC O&O and located at the transmitter site. It was a first class facility which slowly deteriorated with each ownership change.

I think it was around the same time they build new studios on West End Avenue in NYC. Also first class facilities.

Did I say that? No.

But you were responding to @ayoda, talking about KABC and KLOS. So it's reasonable to interpret your reply as pertaining to their counterparts in NYC. "They" was ambiguous. And all of ABC was out of 1330 at some point in the 80's.

 

[TheBigA]

So this is funny. Here we are talking about Drew Hayes, and look who wrote a commentary about AM Radio:

Radio Industry News, New Music, Music Promotion, Radio Station Song Charts

All Access offers the latest radio industry news and music news, music promotions for record companies new music, radio station song charts, and much more. AllAccess.com has been serving the radio and music industry since 1995, always bringing you the highest quality content with...

www.allaccess.com

I think Richard Wagoner would agree with him. The question is why he didn't carry out his own suggestion when he was running KABC.

 

[michael hagerty]

So this is funny. Here we are talking about Drew Hayes, and look who wrote a commentary about AM Radio:

Radio Industry News, New Music, Music Promotion, Radio Station Song Charts

All Access offers the latest radio industry news and music news, music promotions for record companies new music, radio station song charts, and much more. AllAccess.com has been serving the radio and music industry since 1995, always bringing you the highest quality content with...

www.allaccess.com

I think Richard Wagoner would agree with him. The question is why he didn't carry out his own suggestion when he was running KABC.

Okay, so...he's advocating lifting language restrictions and wants the audience to think the "A" in "AM" stands for "authentic".

So, to borrow the form from John Sebastian's KHJ ("Where AM means All Music"), would this be:

"KABC. Where "AM" means "Authentic", mother------."?



C'mon, Drew. You had KABC forever.