The background provided by Kmagrille adds even more fuel to my fiery question suggested by my earlier post. How can an IRS-beleaguered business be helped by a rules-ignoring, license-heavy operator (TV AND radio) that has a proven track record of eeking out a meager living at best?
Several years back, I was forced into a broadcast "education" by my financial firm employer that maintained an on-going due diligence effort, keeping a constant eye on a rather large loan they had approved for radio stations. The loan committee members got swept up into excitement they remembered about radio stations, big contests (cars and money giveaways), big voices, morning shows with multiple sidekick characters, concerts, tee-shirts, record/CD giveaways, elaborate vehicles, remote broadcasts, etc. etc. etc.
Once approved and into the loan portfolio, I had the displeasure of watching the new buyers, more bankers than radio people, attempt to show the broacasters who'd sold it how THEY knew nothing about business. For a while, profits reported were pretty good, considering the debt payments, but that feat was accomplished almost exclusively by cost-cutting. It wasn't too long before things slipped and every call to check on things was met with more ideas for saving money. They found "consultants", promised format changes and attempted to pass those off as a "magic dust" that would automatically create more revenue, yet I don't recall that actually ever happening. They built websites, bartered programming off the satellite, and attempted to raise rates on a diminishing list of advertisers. Fortunately for my bank, these "new broadcasters" found another group to swallow their folly and the loan was satisfied.
I remember afterwards, with another, yet smaller "radio opportunity" for the bank explaining to the new loan committee that the license cannot be considered collateral, yet it represents more than 75% of the value. End of discussion that day.
Now, as a I take "continuing education" only as an observer, I see things have only gotten worse. Just as with the housing bubble, profits can no longer be realized by selling to someone with more money seeking the glamour of your industry. Somebody had better find those men and women that knew how to make a buck because they were IN the business...not sitting on an egg waiting for the bigger deal to hatch.
(If enough seem interested in my rant, I'll post again soon in the Gainesville thread. I had an opportunity a couple of weeks ago to listen to a young person on the inside. I warn you, it's pretty gloomy.)
Back to the TRIO...DARK. The background I've seen on here tells me that a few months...a couple of quarters...or even a year from now, they'll be in even worse shape. I hope I'm wrong...for them, and for the people that used to enjoy listening to radio.
