Nowhere does it say Millenium, much less Townsquare! This is about Atlantic Broadcasting. I doubt this has anything to do with 101.5. :-\
-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
NJ 101.5 For Sale???
- Thread starter DToTheJ
- Start date
What we didn't know on this board until now is that Oaktree Capital was holding a lot of Millennium's debt, or in other words was holding the mortgage on Millennium Group and its stations.
So, what's going on here appears to be the radio equivalent of a home mortgage foreclosure, when the bank that holds the mortgage takes the house back.
In this case, the most likely next step is that Oaktree will then "sell" the stations to Townsquare Media, in which it is the primary stockholder. In other words, the bank forecloses on the house and then sells it to a company it owns at a loss, and creates a tax deductible loss or tax loss carry-forward for itself and the company it owns that buys the station gets it at a realistic current price, and can then sell off the pieces or restructure the organization in a way that is profitable at current price levels. So Oaktree takes a haircut and gets tax benefits, (which is the best it can do here) and Townsquare (which it owns) gets a chance to make a profit on the restructuring.
It's going to be interesting to see how they do this, but its very likely the plans are all in places and the pieces of the puzzle will will fit together more quickly than most outsiders would expect. Stay tuned !
So, what's going on here appears to be the radio equivalent of a home mortgage foreclosure, when the bank that holds the mortgage takes the house back.
In this case, the most likely next step is that Oaktree will then "sell" the stations to Townsquare Media, in which it is the primary stockholder. In other words, the bank forecloses on the house and then sells it to a company it owns at a loss, and creates a tax deductible loss or tax loss carry-forward for itself and the company it owns that buys the station gets it at a realistic current price, and can then sell off the pieces or restructure the organization in a way that is profitable at current price levels. So Oaktree takes a haircut and gets tax benefits, (which is the best it can do here) and Townsquare (which it owns) gets a chance to make a profit on the restructuring.
It's going to be interesting to see how they do this, but its very likely the plans are all in places and the pieces of the puzzle will will fit together more quickly than most outsiders would expect. Stay tuned !
M
MickeyD
Guest
TimeIsTight said:
Dust off your resume Walter!
MickeyD said:
So the buzz is that Oaktree Capital has been buying Millennium debt. This gives the impression that Millennium finances may have been much worse than anyone has thought.
Since all the excitement and promotion revolving around the return of Judi Franco failed to move the M/S/U numbers out of the languishing low 4’s in the latest numbers a noon news block would be a good idea in addition to a morning and evening news blocks.
With these disappointing numbers the hosts and weak management made the environment ripe for Townsquare Media (who’s rumored to take over 101.5 operations from Oaktree Capital) to bring in excellent low cost effective syndicated programs to offset the high costs of the on air staff if they choose to.
These disappointing numbers apparently are a direct result of the hosts unfortunately continuing to engage in inside talk, not getting to calls quickly, not playing to the short attention span of the PPM audience and not doing nearly enough Jersey topics. They now sound like they’re just there to cash a paycheck. Weak PD Eric Johnson after being advised by some on this board that psychics are not good for PPM’s had the psychic recently on again! Is PD Eric Johnson satisfied with these low numbers or even more important will Oaktree Capital be content with these numbers? Remember friend’s higher ratings equal higher revenue. Where is Millennium’s consultant who was dubbed spineless and worthless by a Millennium talk host? Is he out on the boat he likes to brag so much about on these boards?
As we’ve all been following the ratings have been steadily trending way down since the departure of Walter Sabo. For example; in a recent random listen Casey and Rossi were discussing dumb down topics asking if you've ever discovered anything of interest or value in your house and do you rely on a landline or just a cell phone? Huh? Any syndicated program with local news, traffic and weather blocks can easily do those dumb down topics. Even if it might have happened in NJ why discuss such inane topics? As a result of these nonsensical topics and lower ratings syndicated shows have now become a viable option to increase ratings and lower costs at NJ 101.5 WKXW-FM radio. Is anyone supervising the approval of these non compelling topics? No surprise the current ratings are way down from a year ago. Has PD Eric Johnson lost control of the air staff?
The morning program of Eric Scott and Jim Gearhart are the only ones who are currently pulling their weight discussing mostly relevant Jersey topics and sounding exceptional on the air; they are indeed the highlight of NJ101.5. When Jim ultimately retires Eric Scott can easily carry mornings by himself as he’s proven during Jim’s days off.
In examining Newstalk stations in the other markets that Townsquare Media operates they air local news, traffic and weather along with low cost excellent syndicated programs. Change is good.
http://www.radio-info.com/markets/middlesex-somerset-union
Radio is a business, not a hobby.
Let's not forget that this restructuring of Millennium includes other radio stations in NJ besides 101.5 and they may have contributed more to the financial problems than the "crown jewel" station of the group, NJ-101.5, did.
Those other stations were all or mostly purchased from rival NJ broadcaster Nassau and it was taken over in a similar debt-for-equity transaction by another big money Wall Street operation, Goldman Sachs. Buying those stations at those high prices may have been the fatal mistake for Millennium. It's very possible NJ-101.5 could have survived well on its own.
As to whether NJ-101.5 should reduce its on-air payroll costs by going with national syndication programs. It was being live and local "Jersey talk" that brought the big audience and reputation to NJ-101.5. You can't do that with syndicated satellite fed programs that are designed to appeal to a national audience.
According to some published figures and rumors, NJ-101.5 may have billed $20-million or more some years. If you add up all the "big" salaries its air talent supposedly receives you come up with a ball park figure of about $2-million, tops, for programming. That is only ten percent of sales. Sure you could save most of that $2-million by running automated satellite programs and a few minutes of relatively cheap local news an hour, but then you're not "talking Jersey" and you become just another generic talk station on the radio dial and generate corresponding run-of-the-mill ratings and revenue. You might save a tax deductible $2-million on salaries, and lose $6-to-8-million in lower ratings driven sales.
You have to spend money to make money, and spending ten-percent, or less, of sales for talent that brings in the big "Jersey" audience probably wasn't the real problem that put Millennium in this financial position. It was buying stations at bubble high prices just before the national economy and the advertising market collapsed in the worst downturn in almost 80-years. The big mistake was just bad market timing and like so many other stock market investors, and home owners who saw prices of what they had purchased decline sharply, the Millennium investors were not alone in being too optimistic and thinking too positively when the financial world was about to correct and go negative...big time.
Those other stations were all or mostly purchased from rival NJ broadcaster Nassau and it was taken over in a similar debt-for-equity transaction by another big money Wall Street operation, Goldman Sachs. Buying those stations at those high prices may have been the fatal mistake for Millennium. It's very possible NJ-101.5 could have survived well on its own.
As to whether NJ-101.5 should reduce its on-air payroll costs by going with national syndication programs. It was being live and local "Jersey talk" that brought the big audience and reputation to NJ-101.5. You can't do that with syndicated satellite fed programs that are designed to appeal to a national audience.
According to some published figures and rumors, NJ-101.5 may have billed $20-million or more some years. If you add up all the "big" salaries its air talent supposedly receives you come up with a ball park figure of about $2-million, tops, for programming. That is only ten percent of sales. Sure you could save most of that $2-million by running automated satellite programs and a few minutes of relatively cheap local news an hour, but then you're not "talking Jersey" and you become just another generic talk station on the radio dial and generate corresponding run-of-the-mill ratings and revenue. You might save a tax deductible $2-million on salaries, and lose $6-to-8-million in lower ratings driven sales.
You have to spend money to make money, and spending ten-percent, or less, of sales for talent that brings in the big "Jersey" audience probably wasn't the real problem that put Millennium in this financial position. It was buying stations at bubble high prices just before the national economy and the advertising market collapsed in the worst downturn in almost 80-years. The big mistake was just bad market timing and like so many other stock market investors, and home owners who saw prices of what they had purchased decline sharply, the Millennium investors were not alone in being too optimistic and thinking too positively when the financial world was about to correct and go negative...big time.
Weak NJ 101.5 management and hosts as a result of not concentrating enough on Jersey topics made the environment ripe for better cheaper talent. Any syndicated show can put psychics on.
Every dime will matter as shown recently by NJ101.5 cutting their weekend weatherman who was rumored to make a meager salary. If salary money is no object can struggling Millennium employees expect much needed raises? Some employees work two jobs just to make ends meet while some consultants are relaxing on their boats.
Remember, every penny saved is a penny earned.
Radio is a business, not a hobby.
Every dime will matter as shown recently by NJ101.5 cutting their weekend weatherman who was rumored to make a meager salary. If salary money is no object can struggling Millennium employees expect much needed raises? Some employees work two jobs just to make ends meet while some consultants are relaxing on their boats.
Remember, every penny saved is a penny earned.
Radio is a business, not a hobby.
Y is Median J so afraid to identify him/herself? He/She really comes across as gutless.
MedianJ said:
I thought the NJ 101.5 jocks on the weekend do their own "Instant Weekend Weather" updates during their shifts. Thought it's been that way for quite some time.
(By the way... Ask Big Jay Sorensen about the inside story of the "instant weather" music bed that they've been using for about twenty years.
)Ask about what? I looped a bed! Can't say where it was from...but think Kix in '89 when I became PD. I also made the original traffic bed too...worked on that one for hours. There is some actual road traffic sounds in the background and that loop of keyboard repeats for about 4 minutes as I recall. Wait, didn't I say I wouldn't post anymore on this thing because of people hiding behind their mom's apron? BE BIG!
HarrytheK1 said:
Every penny saved is a penny earned.
Radio is a business, not a hobby.
Change is good.
The Median J is certainly overflowing with pedestrian tropes. Must be a consultant.
Now that Townsquare is taking over 101.5, will they take the station more towards a news-based talk format? If they go that way, they'd be best off doing only one news block, AM Drive, especially since WKXW is surrounded by three all-news outlets, WCBS and WINS NY and KYW Philly. They could then go with NJ-centric talk programming until 10 PM, then air syndicated programming overnite.
Of course, just MHO!
Of course, just MHO!
- Status