ThinkProgress: Air America To Declare Bankruptcy

[FightingIrish]

Air America Radio will announce a major restructuring on Friday, which is expected to include a bankruptcy filing, three independent sources have told ThinkProgress.

Air America could remain on the air under the deal, but significant personnel changes are already in the works. Sources say five Air America employees were laid off yesterday and were told there would be no severance without capital infusion or bankruptcy. Also, Air America has ended its relationship with host Jerry Springer.

(snip)

Radio giant Clear Channel is so committed to progressive talk radio that, this week, it will announce a partnership with the Center for American Progress, Jones Radio, and MSS Inc., to conduct a nationwide search for the next Progressive Talk Radio Star.

http://thinkprogress.org/2006/09/13/air-america-bankruptcy/

Now, this does not mean AAR is kaput. Many companies have gone through bankruptcy or restructured (just look at the airline industry). My prediction is AAR will be sold eventually. If I were to gamble on this, I'd put a wager on Jones or Randy Michaels. So Brian Baloney can put away the vasoline for now. They ain't dead.

It should be noted that Thinkprogress.org is part of the Center for American Progress, but I doubt they'd put out wrong info about AAR. They need AAR as much as AAR needs other talkers. And Jones does have a lot at stake in AAR, as they handle AAR's ad sales.

 

[dampier]

Evidently another major reason for this includes the voiding of their existing talent contracts, which I suppose partially explains how they can renew Malloy and then get rid of him and also jettison Jerry Springer.

In another development, the lawyers at AAR are sending cease and desist letters to some of the private show archivists who have been maintaining free audio archives of shows like Randi Rhodes since before there was an Air America. Apparently the people that will always get paid no matter what are the lawyers. Most of the archivists are going to quietly move their efforts to torrent and newsgroup distribution, so the only thing that changes is a web page in the end.

I am not certain about the selling of the whole venture, but it would be interesting to see how things change structurally, especially at the top.

 

[raccoonradio]

can't get link to work--maybe overloaded by high demand. Radio Equalizer does talk about it though

http://radioequalizer.blogspot.com/

 

[RBA]

Smart move. They can write off all their startup costs. Maybe jettison Al Franken (I like him, but he's can't fill 3 hours). This is a business decision and a smart one. Just like any other industry nowadays.

 

[evnlee]

Evidently another major reason for this includes the voiding of their existing talent contracts, which I suppose partially explains how they can renew Malloy and then get rid of him and also jettison Jerry Springer.

does this affect the contracts that Franken and Rhodes got recently, or only Springer and Malloy?

I love this quote, though:

"In fact, Air America succeeded at creating something that didn’t exist: the progressive talk radio format. That format is now established and strong and will continue with or without Air America. Indeed, many of the country’s most successful and widely-syndicated progressive talk hosts — Ed Schultz and Stephanie Miller, for instance — aren’t even associated with Air America."

Boy, talk about 'spin'. As if 'Airhead America' is responsible for creating the 'progressive(liberal) talk format' that employed talent like Malloy who was broadcasting in Atlanta in 1997 :

Now, I suppose it's time for the usual suspects to come in and tell everyone how AAR declaring bankruptcy is somehow a positive development, then say a couple nasty personal remarks about anyone who can see the naked emperor and tell him 'your network stinks'.

Dang. If they had only sold more 'premium memberships' maybe they wouldn't have to go bankrupt.

 

[Johnny Morgan]

Apparently the people that will always get paid no matter what are the lawyers.

In a bankruptcy, only one class of persons has an interest higher than that of a secured creditor--the debtor's attorney. He is paid first out of the estate the reasonable sum of his services, and then the remainder may pay the creditors--both secured and unsecured.

One reason why a bankruptcy lawyer's retainer or base fee, which would otherwise be an avoidable preference under the bankruptcy laws because it was extraordinary within 90 days of filing, is excluded.

Haha...SUCKERS!!! ;D

 

[fred flintstone]

Boy, talk about 'spin'. As if 'Airhead America' is responsible for creating the 'progressive(liberal) talk format' that employed talent like Malloy who was broadcasting in Atlanta in 1997 :

In all fairness, AAR does deserve credit for creating the progressive talk format.
Excluding the short-lived UAW network, which hardly anyone heard or heard of, there was no such thing as a progressive talk (or liberal talk, for those who prefer) format before AAR launched.
There were some liberal hosts (going back to Michael Jackson on KNX in the early 60s). When Rush started on WABC, he was sandwiched between two liberals (Lynn Samuels, now on Sirius, and Joy Behar, now on The View).
Mostly, liberal talkers on the same station with conservative talkers did not do well and many in the industry concluded that liberal talk shows would not get an audience.
AAR, to their credit, realized that progressive talk is a distinct format. Music radio learned in the late 50s and early 60s that it does not work to mix music styles on a station schedule; AAR realized it does not work to mix talk styles either.

I suspect at some point AAR will not continue as an independent entity (although some shows will - just as Democracy Radio's two shows continue); but the concept of the progressive talk format will be its legacy.

I'm glad someone saw this item someplace other than Radio Equalizer and posted THAT first; otherwise, we'd just be arguing about how Maloney hates AAR and you can't believe anything he says.

 

[fred flintstone]

Maloney's Spin

OK, here's what Maloney is saying (based on his "own sources").

• AAR is broke and up for sale.
• AAR has two potential buyers but a deal is stalled by some AAR board members who want to "hand" the network back to Sheldon Drobny. Maloney does not say whether "hand" means give or sell.
• If Drobny takes control of AAR, Maloney says he plans to bring back departed COO Carl Ginsberg.
• AAR does not have the cash to pay their AP bill.
• Maloney claims AAR's financial condition activates a clause in Al Franken'scontract that lets him leave.
• Maloney speculates this story was leaked to Think Progress to allow AAR to develop "spin." Funny, when someone wants to develop spin, they generally keep a story under wraps until the spin is developed.
• Finally, Maloney blasts blogging cohort Matt Drudge because, Maloney says, Drudge doesn't blast AAR enough.

 

[evnlee]

Boy, talk about 'spin'. As if 'Airhead America' is responsible for creating the 'progressive(liberal) talk format' that employed talent like Malloy who was broadcasting in Atlanta in 1997 :

In all fairness, AAR does deserve credit for creating the progressive talk format.
Excluding the short-lived UAW network, which hardly anyone heard or heard of, there was no such thing as a progressive talk (or liberal talk, for those who prefer) format before AAR launched.
There were some liberal hosts (going back to Michael Jackson on KNX in the early 60s). When Rush started on WABC, he was sandwiched between two liberals (Lynn Samuels, now on Sirius, and Joy Behar, now on The View).

How does AAR get credit for creating a 'format'?

Rush created a talk 'format', and changed radio. Stern did the same with 'shockjock' radio.

AAR took an existing format and parroted it. They didn't do anything 'new', they just took what was out there and copied it ( poorly).

There were liberal ( progressives, whatever ) hosts and liberal stations before AAR came into being, but IMHO, you create a 'format' when your the first one doing it.

It's all semantics, but I think it's pretty funny.

Hopefully this bodes well for Miller. She's the best of the bunch. I think she understands it's about 'entertainment' and 'selling stuff'. Too many of the maudlin 'talent' AAR used didn't get it.

 

[bigtalkradiofan]

Excluding the short-lived UAW network, which hardly anyone heard or heard of, there was no such thing as a progressive talk (or liberal talk, for those who prefer) format before AAR launched.

I'm old enough to remember listening to i.e. America on the internet.

Peter Werbe & Mike Malloy were hosts (although I thought Malloy was far more listenable back then, than he is now - no wants to listen to 3 hours of someone shouting and yelling in your ear the whole time (even if you ideologically agree with them) - he needs to go back and re-learn how to express anger and dismay on radio, without resorting to shouting and yelling).

 

[FightingIrish]

Re: Maloney's Spin

OK, here's what Maloney is saying (based on his "own sources").

• AAR is broke and up for sale.
• AAR has two potential buyers but a deal is stalled by some AAR board members who want to "hand" the network back to Sheldon Drobny. Maloney does not say whether "hand" means give or sell.
• If Drobny takes control of AAR, Maloney says he plans to bring back departed COO Carl Ginsberg.
• AAR does not have the cash to pay their AP bill.
• Maloney claims AAR's financial condition activates a clause in Al Franken'scontract that lets him leave.
• Maloney speculates this story was leaked to Think Progress to allow AAR to develop "spin." Funny, when someone wants to develop spin, they generally keep a story under wraps until the spin is developed.
• Finally, Maloney blasts blogging cohort Matt Drudge because, Maloney says, Drudge doesn't blast AAR enough.

Considering that it's been two years since Maloney's own radio career bombed out (fired for making racist comments) and he still hasn't landed on his feet, I find it ironic that he still spends his time holding a grudge and writhing in others' misfortunes.

The man is full of pure hate, spite and negativity. And I'm glad Think Progress beat him to it. Hell, it was up on my blog long before it was on his or Malkin's.

And the Drudge comment was hilarious! Drudge doesn't quote The Radio Lobotomizer because he knows Baloney is full of s--t!

 

[evnlee]

Re: Maloney's Spin

Considering that it's been two years since Maloney's own radio career bombed out (fired for making racist comments) and he still hasn't landed on his feet, I find it ironic that he still spends his time holding a grudge and writhing in others' misfortunes.

The man is full of pure hate, spite and negativity.

Ironic indeed. Your laughing at Baloney for the exact same thing you are doing to him

glad to see your not 'full of hate, spite, and negativity', or 'holding a grudge' against him Fighting Irish. Especially, when your moniker is pretty 'insensitive' in it's own right :

 

[FightingIrish]

Re: Maloney's Spin

Considering that it's been two years since Maloney's own radio career bombed out (fired for making racist comments) and he still hasn't landed on his feet, I find it ironic that he still spends his time holding a grudge and writhing in others' misfortunes.

The man is full of pure hate, spite and negativity.

Ironic indeed. Your laughing at Baloney for the exact same thing you are doing to him

glad to see your not 'full of hate, spite, and negativity', or 'holding a grudge' against him Fighting Irish. Especially, when your moniker is pretty 'insensitive' in it's own right :

And what exactly does that make you?

And no, I don't spend my days poking pins in my Brian Maloney voodoo doll.

And how exactly is my moniker insensitive? I happen to be Irish, BTW.

 

[fred flintstone]

A Point of Semantics

As a fan of semantics, maybe you should get clear on the distinction between a show and a format.

One hint: Shows (or programs or broadcasts) existed from the beginning of radio.
Formats started in the early 50s. Todd Storz invented the radio format.

Rush did not create anything.
Barry Gray at WMCA invented the call in talk show.
Ben Hoberman at KABC and Robert Hyland at KMOX invented what is now the news-talk format.
Joe Pyne invented the conservative political talk show.
Others, including Wally George and Bob Grant were doing conservative talk shows before Rush spun his first top 40 record on the radio in Cape Girardeau.
Rush got into talk radio by taking over a conservative talk show at KFBK from host Morton Downey, Jr.

How does AAR get credit for creating a 'format'?

Rush created a talk 'format', and changed radio. Stern did the same with 'shockjock' radio.

AAR took an existing format and parroted it. They didn't do anything 'new', they just took what was out there and copied it ( poorly).

There were liberal ( progressives, whatever ) hosts and liberal stations before AAR came into being, but IMHO, you create a 'format' when your the first one doing it.

It's all semantics, but I think it's pretty funny.

Hopefully this bodes well for Miller. She's the best of the bunch. I think she understands it's about 'entertainment' and 'selling stuff'. Too many of the maudlin 'talent' AAR used didn't get it.

 

[Radio_Realist]

In all fairness, AAR does deserve credit for creating the progressive talk format.

Excluding the short-lived UAW network, which hardly anyone heard or heard of, there was no such thing as a progressive talk (or liberal talk, for those who prefer) format before AAR launched.
There were some liberal hosts (going back to Michael Jackson on KNX in the early 60s). When Rush started on WABC, he was sandwiched between two liberals (Lynn Samuels, now on Sirius, and Joy Behar, now on The View).

Mostly, liberal talkers on the same station with conservative talkers did not do well and many in the industry concluded that liberal talk shows would not get an audience.

AAR, to their credit, realized that progressive talk is a distinct format. Music radio learned in the late 50s and early 60s that it does not work to mix music styles on a station schedule; AAR realized it does not work to mix talk styles either.

First you say that they created a format, then proceed to provide the proof that they did not create the format. I couldn't do a better job of proving your lead sentence was wrong than you did yourself.

Of course, in your most recent post, you disprove your earlier statement even more emphatically.

What AAR attempted to do was to create a brand name identity for their liberal talk programming. They attempted to make Progressive into a trade-mark label for their product, much as Seven-up used the term "The Uncola™" as a trade mark. Had things gone according to AAR's desires, they would have the exclusive rights to Progressive™ Talk Radio. They were hoping that the Progressive™ Talk Radio brand would be to liberal talk radio what Jack™ FM or "Solid Rock 'm Gold" was to packaged radio music formats.

Clear Channel made that impossible by quickly adopting the term "progressive" to describe their own liberal talk radio shows in order to deny AAR's ability to turn the word into a brand name. And the gullible fools who argue that "progressive" is simply the modern, accurate name for liberal talk radio are simply doing what Clear Channel wanted to see done, denying AAR their brand name.

In any event, whether AAR comes out of bankruptcy stronger or disappears, liberal talk radio will always have a place in American radio. It might never achieve level of mass market success that conservative talk radio achieves, but it will be profitable in some markets.

 

[fred flintstone]

First you say that they created a format, then proceed to provide the proof that they did not create the format. I couldn't do a better job of proving your lead sentence was wrong than you did yourself.

Of course, in your most recent post, you disprove your earlier statement even more emphatically.

It's pointless to lie when anybody can read what I said for themselves.
Your are really reaching in your urge to stir up sh*t.
Or maybe you didn't bother to read either post yourself.

Is said AAR invented the progressive talk format.
I did not say they invented talk radio, political talk radio, or the news-talk format.

 

[fred flintstone]

What Happens Next?

AAR declares bankruptcy.
They lay off/fire people.
Those people get no severance (according to Think Progress).
AAR does not have to pay debts its suppliers, subcontractors and providers.
Do they stop supplying, subcontracting and providing?
When AAR had its first financial crunch, employees lost their insurance benefits when the company could/did not pay premiums? Could this happen again.
And at that same time, AAR defaulted on payments for LMAs in Chicago and Los Angeles. Could AAR's LMA for WWRL be in jeopardy?

 

[dampier]

Re: Maloney's Spin

OK, here's what Maloney is saying (based on his "own sources").

• AAR is broke and up for sale.
• AAR has two potential buyers but a deal is stalled by some AAR board members who want to "hand" the network back to Sheldon Drobny. Maloney does not say whether "hand" means give or sell.

Well, if they are restructuring, it's no big reach to suggest they are "broke" but for sale? As usual, no named sources. One interesting side note - Drobny's wife was in studio with Randi Rhodes yesterday afternoon, so it isn't a reach to guess Sheldon is involved.

• If Drobny takes control of AAR, Maloney says he plans to bring back departed COO Carl Ginsberg.

I don't remember his reign frame at AAR.

• AAR does not have the cash to pay their AP bill.

Please... that should be the least of their issues. AP is on the pricey side, but not THAT pricey. And considering how their newscast doesn't do actualities, one would guess they are only using the text service. Google News would work just as well.

• Maloney claims AAR's financial condition activates a clause in Al Franken's contract that lets him leave.

I would assume any bankruptcy would null and void all of their contracts. That's one reason why companies will declare bankruptcy. Johnny would have more info on this aspect of it. Maloney is always obsessed about Franken, so no surprise he'd focus on him.

• Maloney speculates this story was leaked to Think Progress to allow AAR to develop "spin." Funny, when someone wants to develop spin, they generally keep a story under wraps until the spin is developed.

This one doesn't seem that likely to me, especially because they could have leaked to to several progressive blogs to launch a major spin effort. I think it is appropriate to have some sort of public relations offensive to combat the inevitable right wing nonsense that AAR will be off the air by the end of the week. I suspect the Center for American Progress, which provides guests to various AAR shows, probably learned about this and told Think Progress, which is I believe part of their operation.

• Finally, Maloney blasts blogging cohort Matt Drudge because, Maloney says, Drudge doesn't blast AAR enough.

Yawn. Obsession is not just a fragrance.

I would like to compliment you on returning to the more even-handed Fred Flintstone that was around here this past summer. I think we share a lot of the same questions about what the future is going to hold with their LMA and payroll issues.

 

[fred flintstone]

AP is on the pricey side, but not THAT pricey. And considering how their newscast doesn't do actualities, one would guess they are only using the text service. Google News would work just as well.

Google gets their news from AP and Reuters. So does Yahoo! If AAR tried taking AP news of the web, I suspect AP's lawyers would be all over them. I know they wouldn't get any money out of a bankrupt company but they could get a restraining order to stop AAR (and AAR would be in contempt if they did not). According their website, AAR started using AP Video News on their website, as well (for which they also must pay).

Maybe this is the time for AAR to drop their pathetic excuse for newscasts completely and send Wayne Gellman back to ICBC.

 

[Scribbler]

AAR declares bankruptcy.
They lay off/fire people.
Those people get no severance (according to Think Progress).
AAR does not have to pay debts its suppliers, subcontractors and providers.
Do they stop supplying, subcontracting and providing?
When AAR had its first financial crunch, employees lost their insurance benefits when the company could/did not pay premiums? Could this happen again.
And at that same time, AAR defaulted on payments for LMAs in Chicago and Los Angeles. Could AAR's LMA for WWRL be in jeopardy?

Bankruptcy may wipe out or reduce past debts, but that doesn't mean you can't pay for current services. And according to ThinkProgress, AAR did NOT say it wouldn't pay severance...it said it would pay if it got a fresh infusion of cash or if a bankruptcy court approved it. When you declare bankruptcy, it's up to the court to approve who gets paid and how much. Several airlines and lots of other businesses are operating under bankruptcy rules. Here's an example from today's AP wire:

ATLANTA -- Delta Air Lines Inc., the nation's third-largest carrier, said Wednesday it will offer on-demand movies, television shows and music to all customers on some long-haul domestic flights.
(snip)
Atlanta-based Delta has been operating under bankruptcy court protection for about a year.