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Edited on Mon May-03-04 11:25 PM by IMRadioactive
Pound wise & penny foolish? We don't know the financing structure of AAR, and there has to be some kind of hang-up in this area. Two points.
First, when the network first was starting up, they said they were buying stations...specifically the L.A. & Chicago ones, which were up for sale at the time (actually in bankruptcy). Instead those stations were taken over by Multi-Cultural broadcasting, the company that ended up with them in court.
That leads to part two...almost every brokerage agreement, especially a first one, requires the broker to put up the first month or two or three in cash. Obviously, if it appears the broker has solid financing, you will defer some of that money, but I'm certain, Liu (who has been in the brokered business, and I hear a real asshole, for a long time) wanted his money and couldn't care less about anything else. No money, no show.
What made this L.A. and Chicago fiascos still hazy is that they never did return in L.A. and only were permitted another two weeks in Chicago...neither station made it past the first month. If the time had been paid for, I can't see a judge letting Multi-Cultural toss them any sooner. It'd be like you paying a month's rent and the landlord kicking you out two weeks into that month.
My bets the brokered time isn't as expensive as you estimate. Even with your numbers, remember, when you own you assume lots of other expenses...property, utilities, engineering, legal and a slew of debts and notes from the purchase. This drains a lot of money you can put into hiring two or three good stations relations people, a high-powered Ad exec and focus on selling Franken and Rhodes; right now all they've got to sell.
Yes, it's vital to be in major markets, but it's also where you are in those markets. Advertisers know KABC or KFI or WABC or WOR or WLS or WGN...they don't know WNTD or WLIB. Name recognition takes time to build, and many successful shows that start small spend as much on station relations and "buying" up in markets as they do in anything else.
Finally, I know you didn't post this, but I saw it in the string, about the marketability of a Franken, Rhodes or Schultz. Honestly, there's not much there there. This is more because talk is a local format, not a national one. Yes, I know the Rush's & the Hannitys, but their the exception, not the rule...and all their major stations have locally produced news and morning and afternoon shows that draw the audience to Rush and visa versa. AAR had no local programming that would attract the soccer mom who likes the local weather and chit-chat or the Joe Six-Pack who stumbled across on his way from one sports station to another.
Again, Hate Radio is an industry and world unto itself now. A Liberal network can only succeede by developing along side, not in direct competition...we just don't have the guns to do it. But we do have the talents, dedication, truths and the creativity!
Cheers.
On Edit: If you want a good model of how a station is run and leans liberal, check out both KGO in San Francisco and KOMO in Seattle...both excellent operations. Maybe others know of liberal/moderate talk stations in other markets, I'd like to hear about them.
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