Wasn't the original move to 98.7 FM part of an effort to boost ratings, by becoming more competitive with WFAN, which was only on AM at the time? Perhaps the lack of success in that endeavor lead to management throwing in the towel.
My take is the LMA fee is based on 2012 revenue figures, and is impractical now. What was a great idea 10 years ago is obsolete now.
Emmis wants to sell 98.7 and use the money to go private. That's not Good Karma's problem.