Major cuts made at WMMR

[davideduardo]

Here we go with the arrogant responses (“you don’t understand the challenges faced…”). There are absolutely mom and pop owners who have local air staffs. And many of them exist in small markets all over the country.

Yes, and these are generally single owner or small partnership organizations that have existed for many years... if not decades. You see very few new single station ownership situations.

I looked at ownership about a decade ago. Despite a convincing resume and plenty of references and adequate capital of my own, no financing was available for single station or single market deals, and multi-market deals required "different economies" in the various markets. It was nearly impossible to find any reasonably priced money.

You don’t have to look hard to find them. My favorite example is WPLM/Plymouth, MA. They run a hell of a local station with a live, local air staff and live weekenders. I can even name some mom and pop operators in Iowa, of all places, where I’m sure revenue isn’t high.

Again, all are heritage operations. When the original owner wants to retire, they can't find buyers unless it is the "other owner" in the same or adjacent market. Nobody "new" is coming into this.

If some of the huge operators went into Chapter 7, the assets would be sold for pennies on the dollar. There are plenty of wealthy individuals or businesses that would take on radio stations if they could be bought for cheap. Heck, a lot of big time sports owners are interested in doing just that.

I thoroughly doubt that any of the large groups would be sold in bits and pieces. Most likely is another reorganization with the unsecured lenders taking a hit. This is basically putting a retread on old tires because they can't afford new ones.

 

[ScottBurns]

Yes, and these are generally single owner or small partnership organizations that have existed for many years... if not decades. You see very few new single station ownership situations.

I looked at ownership about a decade ago. Despite a convincing resume and plenty of references and adequate capital of my own, no financing was available for single station or single market deals, and multi-market deals required "different economies" in the various markets. It was nearly impossible to find any reasonably priced money.

Again, all are heritage operations. When the original owner wants to retire, they can't find buyers unless it is the "other owner" in the same or adjacent market. Nobody "new" is coming into this.

I thoroughly doubt that any of the large groups would be sold in bits and pieces. Most likely is another reorganization with the unsecured lenders taking a hit. This is basically putting a retread on old tires because they can't afford new ones.

OK, then. I guess I’m wrong. I guess you’re saying that the huge operators are “too big to fail.” In the meantime, they continue to make radio listening a miserable experience for me and many others. I’m thankful for those “heritage” owners, as you call them. Some of them operate incredible stations.

 

[TheBigA]

I thoroughly doubt that any of the large groups would be sold in bits and pieces. Most likely is another reorganization with the unsecured lenders taking a hit. This is basically putting a retread on old tires because they can't afford new ones.

If they did Chap 7, the sale of stations wouldn't be enough to pay back the debt. Given a choice of pennies on the dollar or a reorganization of debt, most lenders seem to prefer reorganization. At least in terms of radio. I'm watching Ed Stolz struggle with this in his company. He believes his 3 stations are worth more than they are. So far, he hasn't been able to get the price he wants in his current bankruptcy case.

 

[Joseph_Gallant]

Could WMMR -93.3 axe longtime morning hosts Preston and Steve, replacing them with the syndicated Dave And Chuck The Freak, who are heard on several other Beasley-owned rock stations?

It would save the station a lot of money, but in the other hand, WMMR would likely face incredible backlash from listeners.

 

[PTBoardOp94]

The debt hasn't changed for either company.

Well, Audacy has been losing money for a while, so their debt has been slowly increasing. Long-term debt is up $140 million in the last 18 months.

If they did Chap 7, the sale of stations wouldn't be enough to pay back the debt. Given a choice of pennies on the dollar or a reorganization of debt, most lenders seem to prefer reorganization.

If the liquidation value of the assets is less than the debt, that seems like the ideal time to liquidate. Otherwise you're just setting up a zombie firm that can't afford to operate.

 

[Larry]

Could WMMR -93.3 axe longtime morning hosts Preston and Steve, replacing them with the syndicated Dave And Chuck The Freak, who are heard on several other Beasley-owned rock stations?

WMMR signed them to a long term contract through 2030 last year. Of course, Beasley could always try and negotiate a buyout of the contract and it’s possible the contract terms have a few outs.

 

[atthestars]

WMMR signed them to a long term contract through 2030 last year. Of course, Beasley could always try and negotiate a buyout of the contract and it’s possible the contract terms have a few outs.

Exactly. The gang is signed through 2030, which (in my opinion) will probably be when Preston and Steve retire. That gives Beasley plenty of time to figure out what to do for the post Preston & Steve era.

They are cash cows, and bring in WAY more money than they are paid. They're not going anywhere.

 

[MarkW]

Beasley doesn't have "unsustainable levels of debt."

I think the jury is still out on that question. A distressed debt exchange or a chapter 11 reorg at some future date are not out of the question. Either process would serve to significantly reduce debt balances.

 

[TheBigA]

I think the jury is still out on that question. A distressed debt exchange or a chapter 11 reorg at some future date are not out of the question. Either process would serve to significantly reduce debt balances.

As I said, the issue isn't paying off debt. The issue is markets not meeting their budget. The choice is increase the spot load by 20%, or lower the number of employees. What do you choose?

 

[wibgradio99]

And to think the powerhouse of today was almost flipped like WNEW-FM, when Infinity took over YSP and MMR as they did with NEW-F and WXRK and decided to flip NEW-F and keep K-Rock. MMR was sold away from Infinity in the nic of time, and the Rock format was saved, even though they were behind YSP in ratings.

 

[Bill Jacobs]

I don't believe that Infinity ever owned WMMR.

 

[TheBigA]

I don't believe that Infinity ever owned WMMR.

Correct, it was sold to Group W Westinghouse when Metromedia sold its stations in the 80s, and stayed in that group until Westinghouse bought CBS and was forced by ownership rules to sell some stations. At that point it was bought by Greater Media, who sold it to Beasley. Infinity was covered by older ownership rules, but was lumped in with CBS and Westinghouse when Mel Karmazin did that deal in 1995.

 

[Miguelito]

I don't believe that Infinity ever owned WMMR.

In my lifetime, WMMR has been owned by Metromedia, Metropolitan, Group W, Greater Media, and now Beasley. Never Infinity.