Has the Sun Set for Clear Channel?

[Mufallata Spread]

http://www.mysanantonio.com/business/49275922.html

 

[Leebo65]

Wow, this could be the end of FOX Sports Radio, KTKR... and Joe Pags,

 

[TheMinimumDose]

Wow, this could be the end of FOX Sports Radio, KTKR... and Joe Pags,

I doubt it...the stations would be unloaded, but Premiere would survive because most stations depend on syndicated shows on all levels.

 

[TheBigA]

"Foege said several radio companies would be happy to bid on Clear Channel radio stations, especially those in large cities, if they go up for sale. He listed CBS Radio (formerly Infinity Radio Inc.), Citadel Broadcasting Inc. and Emmis Communications."

Earth to Foege: If there are companies in worse shape than CC, they would be Citadel and Emmis. And CBS is trying to sell assets, not buy them. The best CC could get from CBS would be trades (which they did recently in Houston and Baltimore). Making a statement like that shows he has no credibility.

This article seems like a low grade hatchet job, with no quotes from lenders or anyone with any real knowledge. It's not even worthy of being a blog. Wikipedia wouldn't even allow this kind of writing.

No one has money to buy radio stations, regardless of the price. CC has been trying to dump hundreds of stations in their Aloha Trust for more than 3 years. You can buy entire clusters in small and medium markets for pennies on the dollar. No one is buying. Just because the lenders put them on sale doesn't mean anyone will buy. And none of this was mentioned in this so-called article.

 

[mmnassour]

Yes, but at some point, someone will buy. We may be stunned to see the price point, and it's entirely possible that some may have to shut down entirely, being replaced by new entities on those frequencies.

And wouldn't that be a shame if those were locally owned?

 

[TheBigA]

And wouldn't that be a shame if those were locally owned?

I've been following the progress of the few Aloha Trust stations that have been sold over the past few years, and none of them have made significant changes under local ownership. Most still run the same syndicated shows, most still voice-track certain dayparts, and most are cutting costs. Local ownership, especially when it's by someone who doesn't have deep pockets, isn't the panacea most think it is.

 

[johnqdoe]

Yes, but at some point, someone will buy. We may be stunned to see the price point, and it's entirely possible that some may have to shut down entirely, being replaced by new entities on those frequencies.

And wouldn't that be a shame if those were locally owned?

I too am counting the days til the Evil Empire is gone...but I don't hold out a lot of hope for the "good ole days". Look at Gap. They bought most of the smaller market CC spinoffs and are running them as cheaply as possible. Syndicated mornings, lotsa VTs, and usually 1 or maaaaybe 2 real people per station. The blueprint is out there. Any new buyers are gonna wanna save as much $$$ as they can.

 

[mmnassour]

Oh, don't get me wrong...I don't expect to see the return of strange, bearded guys who're spinning records and screaming about stax o'wax.

I just like to know that someone local is getting what revenues there are and that someone in control has some concept of what the community wants to hear. If it's syndie programming, so be it.

 

[RadioLoverIL]

Yes.....put it this way. Clear Channel installed all that automation equipment into those stations, those properties....these new owners are going to put that equipment to use.

 

[smartestguyintheroom]

It's time to get the stench that is Clear Channel Radio out of the business. The Mays stole their billions from Bain/Lee. They've destroyed thousands of careers and families. Now the same banks they sued to force them into a $20 BILLION dollar deal are the ones Bain/Lee have to beg to redo their finances. You remember Bain/Lee, the same fine folks who have done such a great job with their piece of Cumulus.

These banks are basically taking it to CC. Let's hope they can force CC to whatever chapter of bankruptcy that gets the licenses of these stations in the hands of REAL radio professionals so the business begins to recover.

Too bad the Mays family, Hogan, Owens et al can't be put in prison. They've certainly committed crimes against humanity and radio.

 

[TheBigA]

I just like to know that someone local is getting what revenues there are

Well if you live in San Antonio....

that someone in control has some concept of what the community wants to hear.

Owners are owners. That's been my experience. They're interested in one thing.

Let's hope they can force CC to whatever chapter of bankruptcy that gets the licenses of these stations in the hands of REAL radio professionals so the business begins to recover.

I read that all the time, and it never happens. If you really care about the employees of these companies you won't wish for bankruptcy. Bankruptcy won't hurt Mays or Hogan. If your goal is to hurt them, find some other way.

What I'd like to see is employee ownership. See if employees could do a better job than the current owners.

 

[mmnassour]

Corporate bankruptcy doesn't mean that people lose jobs. Yes, some will, and I'm glad I'm no longer in that kind of position. However, once the Clear Channel Cancer is cut out of the business it will be much healthier.

Yes, the Mays' and their ilk have made sure they'll be good to go. As much as I loathe their programming and rape of local radio, they at least do understand how to make money in the business. It's the non-radio types who bought in late that will take the bath. Isn't that the way it is in every overstretched industry?

 

[CCP]

When Clear Channel/Cumulus/etc. are forced to sell off properties it won't change a thing. There several people just waiting to swoop in and run things exactly like everybody else does.

 

[TheBigA]

Corporate bankruptcy doesn't mean that people lose jobs.

Sure it does. These stations are spending more than they are making. Even if you eliminate the debt. The only way to fix that is cut costs. No bankruptcy judge nor court-appointed conservator is going to dedicate time towards improving revenues. It's all about cutting things back. That's what's going on now at GM.

 

[mmnassour]

OK, OK, so I'm not much of a financial wizard! ;D So local control in radio is finished, eh?

Then so is radio.

Or, I can continue to hope that the coming CC breakup will at least mean some changes in programming. Me, I'll go with the later.

 

[TheBigA]

So local control in radio is finished, eh?

No...there are thousands of locally-owned radio stations in the country right now. In fact, most of non-commercial radio is locally owned. Some by local governments and community groups. Who cares? No one. Local control doesn't matter. What's on those stations is the issue, not the geography of their owners. This battle was fought in the 1930s when the East-coast based radio networks bought stations in California. Sure the coporate ownership was in NYC, but they had local management in LA and elsewhere that was responsive to the local area. Nothing has changed there.

I can continue to hope that the coming CC breakup will at least mean some changes in programming.

As I said, in places where CC stations have been bought by local owners, the programming has stayed the same. Maybe gotten even worse. So far, I haven't seen any that have improved. Employees and listeners of the CBS stations that were sold to Wilks and Regent have told me they haven't seen any improvement either. So I wouldn't hold my breath.

 

[MisterRadio]

It's kind of hard to tell what your opinion is Mr. BigA. You are basically saying that we are all screwed...damned one way and damned the other. I think the future of local radio is just that....local. With internet streaming, satellite radio, ipods, cell phones, etc. , the one thing that's missing is the local content, personalities that connect with a local audience and the responsive kind of programming that can bend and change with the community. Like the man said in the article, local free radio can still be attractive to the local businesses especially the local endorsments that you get from local talent. Can I say the word local any more? It isn't necessarily the ownership that matters. It's if they let the local management program the station effectively....(that's effectively, not cost-effectively). The early days of Clear Channel in Austin weren't that bad because the local management was able to exersize control without too much corporate interference.

 

[TheBigA]

It's kind of hard to tell what your opinion is Mr. BigA. You are basically saying that we are all screwed...damned one way and damned the other.

I'm saying that the problem isn't ownership. Put different owners in the same situation, you'll get basically the same results.

You talk about local local local, but the people buy national national national. The buying pattens of the last 20 years have killed most local business in this country. Walk through any mall, and all you see are national chains. Turn on the TV, and outside of a few hours of local news, it's all national. You can make the best snail stew in town. But if the people want pizza, you're in trouble. People aren't obsessed with the internet because of all the local personalities they hear. Maybe that should tell you something.

 

[captex]

maybe some bankruptcy judge will force them to sell thier stations very cheaply. probably a penny a station, that will get the greedy people out of radio and probably people who would program these stations better and be more local. well that just not gonna happened anyway. it would be nice.

 

[TheBigA]

maybe some bankruptcy judge will force them to sell thier stations very cheaply. probably a penny a station, that will get the greedy people out of radio and probably people who would program these stations better and be more local. well that just not gonna happened anyway. it would be nice.

Wishful thinking. Watch how the judges are dealing with the GM bankruptcy. No one is getting anything cheaply. The goal is to maximize the value so the debt-holders get the most return. And they are cutting all the contracts the company had with employees, dealers, and suppliers. If they do the same with any radio company, employees (those who are left) will see their salaries and benefits cut to the bone. No one should be anxious to see radio companies go bankrupt. There is no positive side to it. Especially if you're a listener.