D
diymedia
Guest
Re: WBAI massive layoffs
Nope: Pacifica's broke, too. This is a systemic issue to the network and the Foundation.
Nope: Pacifica's broke, too. This is a systemic issue to the network and the Foundation.
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WBAI Struggles
- Thread starter Theater of My Mind
- Start date
Re: WBAI massive layoffs
Problem with that: You have to find a non-comm that's willing to sell. Who might those be in either market?
jmtillery said:
Problem with that: You have to find a non-comm that's willing to sell. Who might those be in either market?
Re: WBAI massive layoffs
Looking at their 2012 statement, their revenues exceeded their expenses by $300K. They don't appear to have any debt. I don't know where folks are coming up with bankruptcy as an option.
http://pacifica.org/national/media/Pacifica_2012_Consol_BudgetPNBapprvd.pdf
Are they healthy? No. I don't see evidence of an endowment, which is critical to this kind of organization. But everything looks pretty basic.
diymedia said:
Looking at their 2012 statement, their revenues exceeded their expenses by $300K. They don't appear to have any debt. I don't know where folks are coming up with bankruptcy as an option.
http://pacifica.org/national/media/Pacifica_2012_Consol_BudgetPNBapprvd.pdf
Are they healthy? No. I don't see evidence of an endowment, which is critical to this kind of organization. But everything looks pretty basic.
Re: WBAI massive layoffs
At some point Pacifica will realize they do not need these sticks to get their programming out, and will leverage their value to create a strong Internet presence. Cuming only 100,000 people in New York makes the radio station a liability rather than an asset. They could reach every current listener online and those listeners are motivated enough to listen regardless of delivery method. It's ridiculous to sit on $75-$90 million which could be spent on programming.
TheBigA said:
At some point Pacifica will realize they do not need these sticks to get their programming out, and will leverage their value to create a strong Internet presence. Cuming only 100,000 people in New York makes the radio station a liability rather than an asset. They could reach every current listener online and those listeners are motivated enough to listen regardless of delivery method. It's ridiculous to sit on $75-$90 million which could be spent on programming.
D
diymedia
Guest
Re: WBAI massive layoffs
Tell that to the folks at Democracy Now! and Free Speech Radio News, who've seen their payments from Pacifica delayed and curtailed. Not to mention the fiscal crises that plague at least three of Pacifica's stations, and the deficits running there. Pacifica itself *is* carrying some debt...and this point in time I wouldn't trust Pacifica's own numbers (one of the reasons why the CPB and others have audited them).
If you want the real skinny, best not to ask anyone directly involved in Pacifica...I turn to Matthew Lasar at RadioSurvivor if I'm looking for honest commentary.
TheBigA said:
Tell that to the folks at Democracy Now! and Free Speech Radio News, who've seen their payments from Pacifica delayed and curtailed. Not to mention the fiscal crises that plague at least three of Pacifica's stations, and the deficits running there. Pacifica itself *is* carrying some debt...and this point in time I wouldn't trust Pacifica's own numbers (one of the reasons why the CPB and others have audited them).
If you want the real skinny, best not to ask anyone directly involved in Pacifica...I turn to Matthew Lasar at RadioSurvivor if I'm looking for honest commentary.
Re: WBAI massive layoffs
You're obviously not familiar with the famous line "The check's in the mail." I get that all the time, and it's not because a company is close to bankruptcy. It comes from accounting priorities. They pay the people they HAVE to pay first. That would be the case if they were to go through a bankruptcy. If DN's check is late, who cares? But if their transmitter rent is late, that could be a problem.
If Pacifica is carrying debt, how much is it and to whom? Because I found no evidence of it. I'm talking long term debt, like a loan, not a late payment. And honestly, who would loan them money? I know of qualified corporations that are finding it hard to get loans right now.
diymedia said:
You're obviously not familiar with the famous line "The check's in the mail." I get that all the time, and it's not because a company is close to bankruptcy. It comes from accounting priorities. They pay the people they HAVE to pay first. That would be the case if they were to go through a bankruptcy. If DN's check is late, who cares? But if their transmitter rent is late, that could be a problem.
If Pacifica is carrying debt, how much is it and to whom? Because I found no evidence of it. I'm talking long term debt, like a loan, not a late payment. And honestly, who would loan them money? I know of qualified corporations that are finding it hard to get loans right now.
Re: WBAI massive layoffs
Actually they can't because the FCC will not allow a broadcast license to be used as collateral as the license is not owned by the licensee. The licensee is only a public trustee and the license theoretically belongs to "the people" and is held in trust by the licensee to use the license in the public interest.
Nick said:
Actually they can't because the FCC will not allow a broadcast license to be used as collateral as the license is not owned by the licensee. The licensee is only a public trustee and the license theoretically belongs to "the people" and is held in trust by the licensee to use the license in the public interest.
Re: WBAI massive layoffs
That would make sense if Pacifica was a business. They're not. Words like "leverage" aren't in their vocabulary.
They're more interested in reach than reality. To them, WBAI can reach 16 million people. The fact that it cumes a lot less is not important, because they're not selling cume.
raZadio said:
That would make sense if Pacifica was a business. They're not. Words like "leverage" aren't in their vocabulary.
They're more interested in reach than reality. To them, WBAI can reach 16 million people. The fact that it cumes a lot less is not important, because they're not selling cume.
Re: WBAI massive layoffs
^THIS.
jmtillery said:
^THIS.
Re: WBAI massive layoffs
But, of course, any financing for a radio or TV acquisition where the purchase price exceeds any tangible assets is really employing the license and its related goodwill as collateral. While the exact term is not used, the assumption that a loan to a station "includes" the near-certainty of ongoing license renewal means that the license is given a value and is part of such loan evaluations.
jmtillery said:
But, of course, any financing for a radio or TV acquisition where the purchase price exceeds any tangible assets is really employing the license and its related goodwill as collateral. While the exact term is not used, the assumption that a loan to a station "includes" the near-certainty of ongoing license renewal means that the license is given a value and is part of such loan evaluations.
Re: WBAI massive layoffs
The frequency is owned by "the public." The license to that frequency is granted with certain rights and privileges that have value. The licensee is allowed to sell that license at a market price, albeit with the approval of the FCC. The FCC is not entitled to any portion of that sale price. So there is a form of ownership implied for a licensee. One can't sell something one doesn't own. The ownership is for the right to operate.
Having said all that, I don't see Pacifica taking out a formal loan to preserve its stations. What's more likely is finding a like-minded benefactor. For many years, that's how they operated.
The frequency is owned by "the public." The license to that frequency is granted with certain rights and privileges that have value. The licensee is allowed to sell that license at a market price, albeit with the approval of the FCC. The FCC is not entitled to any portion of that sale price. So there is a form of ownership implied for a licensee. One can't sell something one doesn't own. The ownership is for the right to operate.
Having said all that, I don't see Pacifica taking out a formal loan to preserve its stations. What's more likely is finding a like-minded benefactor. For many years, that's how they operated.
Re: WBAI massive layoffs
While this is true, a lien cannot be placed on any broadcast license. Loans made to acquire stations are largely made in good faith the licensee will continue to be the licensee and there is sufficient positive cash flow to justify the loan amount. And with few exceptions, a licensee continues to be the trustee of the license until such time the licensee decides to voluntarily transfer the license to another public trustee.
DavidEduardo said:
While this is true, a lien cannot be placed on any broadcast license. Loans made to acquire stations are largely made in good faith the licensee will continue to be the licensee and there is sufficient positive cash flow to justify the loan amount. And with few exceptions, a licensee continues to be the trustee of the license until such time the licensee decides to voluntarily transfer the license to another public trustee.
Re: WBAI massive layoffs
The license IS NEVER sold. It is voluntarily transferred to another licensee to serve as public trustee of said license. What is sold are the assets which includes any broadcast equipment, accounts receivable, good will, advertisers client list, format, imaging, and positive cash flow. If you will note, any contract for sale of any radio station is known as an Asset Purchase Agreement and not a license sale although the APA will have a paragraph stating the seller agrees to voluntarily transfer the station's broadcast license, contingent upon FCC approval, to a new licensee. If the licensee outright owned the license, either constructively or implied, FCC approval would not be necessary.
TheBigA said:
The license IS NEVER sold. It is voluntarily transferred to another licensee to serve as public trustee of said license. What is sold are the assets which includes any broadcast equipment, accounts receivable, good will, advertisers client list, format, imaging, and positive cash flow. If you will note, any contract for sale of any radio station is known as an Asset Purchase Agreement and not a license sale although the APA will have a paragraph stating the seller agrees to voluntarily transfer the station's broadcast license, contingent upon FCC approval, to a new licensee. If the licensee outright owned the license, either constructively or implied, FCC approval would not be necessary.
Re: WBAI massive layoffs
I see what you are attempting to do. There is very little market value in the hard assets since there is no positive cash flow from WBAI. However, the license authorizes the licensee to operate with a full class B commercial New York signal. Keeping this in mind, if Pacifica so chooses, or any other licensee should Pacific transfer the license to another entity, said entity can use the license authorization to program a format filling a market void and sell advertising in any amount the market will bear generating a substantial positive cash flow for the licensee. Therefore the license has considerable value which no one is disputing. However, license value is not the same as license ownership as the licensee does not own the license and cannot sell it. The licensee can only use the license in the "public interest" and may voluntarily transfer the license and receive payment from a buyer based on the total asset value or projected asset value. The assets are worth whatever anyone is willing to pay for it.
TheBigA said:
I see what you are attempting to do. There is very little market value in the hard assets since there is no positive cash flow from WBAI. However, the license authorizes the licensee to operate with a full class B commercial New York signal. Keeping this in mind, if Pacifica so chooses, or any other licensee should Pacific transfer the license to another entity, said entity can use the license authorization to program a format filling a market void and sell advertising in any amount the market will bear generating a substantial positive cash flow for the licensee. Therefore the license has considerable value which no one is disputing. However, license value is not the same as license ownership as the licensee does not own the license and cannot sell it. The licensee can only use the license in the "public interest" and may voluntarily transfer the license and receive payment from a buyer based on the total asset value or projected asset value. The assets are worth whatever anyone is willing to pay for it.
Re: WBAI massive layoffs
It's the Pacifica way. They've existed their entire life by conning people into believing in their politics and handing over hard earned money to a losing proposition. They know no other way, and now that the deep pockets are empty, they're going to have to face reality.
Nick said:
It's the Pacifica way. They've existed their entire life by conning people into believing in their politics and handing over hard earned money to a losing proposition. They know no other way, and now that the deep pockets are empty, they're going to have to face reality.
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