WBAI Struggles

Barry · Jul 9, 2013

Re: WBAI massive layoffs

The more I think about it, the more it seems to make sense that WBAI should seek a commitment from NYC to sell them WNYE 91.5, which has equally abysmal ratings. Then 'BAI could sell 99.5 to whomever (WRXP, the last class B to be sold in New York fetched around 70 million). Perhaps if NYC does not want to sell WNYE, they could lease it to 'BAI. It simply does not make sense for a low-rated non-profit station such as WBAI to remain on a commercial frequency. And I believe that WNYE with its transmitter in midtown Manhattan has a stronger signal in New York City than WFAS FM, which we have speculated could be traded by Cumulus for WBAI. And perhaps the fact that WNYE broadcasts from Manhattan would make it more appealing than WFAS to the many factions that do battle over the fate of 'BAI.
If WBAI were to move to 91.5, they could continue to air the leased ethnic shows that are carried there at night, giving them an existing audience, and some leasing fees.

WNYE Signal: http://radio-locator.com/cgi-bin/pat?call=WNYE&service=FM&status=L&hours=UWNYE

WVIP signal (similar to WFAS' signal, if moved to same site in the Bronx): http://radio-locator.com/cgi-bin/pat?call=WVIP&service=FM&status=L&hours=U

TheBigA · Jul 9, 2013

Re: WBAI massive layoffs

Barry said:
The more I think about it, the more it seems to make sense that WBAI should seek a commitment from NYC to sell them WNYE 91.5, which has equally abysmal ratings.

The mayor has been asked countless times about selling WNYE and he has always said it's not for sale. It's off the table.

And before Pacifica considers selling WBAI, they should first think about selling KPFT in Houston.

Barry · Jul 9, 2013

Re: WBAI massive layoffs

New York will have a new mayor, within about half a year. So this may be a good time for WBAI to study the possibility of acquiring or leasing WNYE.
And of course if WBAI were to lease WNYE, there would be no need for a sale. WNYE already leases 1/4 of its time on weekdays for a simulcast of WFUV HD3.

TheBigA · Jul 9, 2013

Re: WBAI massive layoffs

Barry said:
And of course if WBAI were to lease WNYE, there would be no need for a sale. WNYE already leases 1/4 of its time on weekdays for a simulcast of WFUV HD3.

This is not how Pacifica thinks. They're not thinking about leases or sales. They're just thinking about how to keep WBAI at 99.5.

As I said, if anything gets sold, it's in Houston.

Barry · Jul 9, 2013

Re: WBAI massive layoffs

TheBigA said:
Barry said:

And of course if WBAI were to lease WNYE, there would be no need for a sale. WNYE already leases 1/4 of its time on weekdays for a simulcast of WFUV HD3.

Click to expand...

This is not how Pacifica thinks. They're not thinking about leases or sales. They're just thinking about how to keep WBAI at 99.5.

As I said, if anything gets sold, it's in Houston.

With all due respect, how do you know that management is not considering these or similar options? Do you work for Pacifica or WBAI?
Could you explain why you believe a sale of KPFT in Houston would be more likely than WBAI? As KPFT is on a non-commercial frequency, it would most certainly bring in far less cash than WBAI, a class B on a commercial frequency.

TheBigA · Jul 9, 2013

Re: WBAI massive layoffs

Barry said:
With all due respect, how do you know that management is not considering these or similar options?

Watch what they do. Is there anything that they've done in the last five years that would make you think they're about to act like radio owners? This is the station of Occupy Wall Street. You really think they're going to sell to big corporate interests and move to some lesser frequency?

Why Houston? Because of all their owned stations, Houston is the one with the least political significance. They need NY, DC, LA and the main outlet in SF. Not for money, but for the mission.

Mediafrog+ · Jul 9, 2013

Re: WBAI massive layoffs

Barry said:
Could you explain why you believe a sale of KPFT in Houston would be more likely than WBAI? As KPFT is on a non-commercial frequency, it would most certainly bring in far less cash than WBAI, a class B on a commercial frequency.

I'm in Houston, and I am quite certain that there are many non-commercial broadcasters that would love to get their hands on KPFT. It has a solid 100kw signal that adequately covers most of the greater Houston metro area. I launched a thread on the Houston board about KPFT and WBAI a few weeks ago; worth a quick read for those in NYC.

Admittedly KPFT would sell for less than WBAI, but would still fetch a good chunk of cash that could solve WBAI's money woes in the short term. Long term I think they'll find themselves in the same financial predicament they face today.

boiseengineer · Jul 9, 2013

Re: WBAI massive layoffs

If it comes to bankruptcy, and depending on what kind, a court appointed receiver would be the one selling WBAI. They would be committed to get the most $$$ possible. Not sure if the courts could/would dictate it be sold only to another a non-profit.

jmtillery · Jul 10, 2013

Re: WBAI massive layoffs

boiseengineer said:
If it comes to bankruptcy, and depending on what kind, a court appointed receiver would be the one selling WBAI. They would be committed to get the most $$$ possible. Not sure if the courts could/would dictate it be sold only to another a non-profit.

If it comes down to a Chapter 7 liquidation, the court will require the Receiver to sell all assets to anyone who is willing to pay the most to acquire said assets. In case of bankruptcy, liquidation will not be limited to WBAI. All Pacifica assets will be sold. In case of a Chapter 11 reorganization (also known as Debtor in Possession), all creditors must agree to a payout plan that the debtor (Pacifica) will present to the bankruptcy court and must be approved by the court. In a Chapter 11 proceeding, the debtor comes up with an alternative plan to pay its debts over time unlike a Chapter 7 liquidation where the debts are discharged by the court and all assets are sold with the proceeds of said sale going to the creditors to pay off the debt owed by the debtor.

Ai4i · Jul 10, 2013

Re: WBAI massive layoffs

??? How would a chapter eleven settlement work as new bills continue to mount ???

TheBigA · Jul 10, 2013

Re: WBAI massive layoffs

jmtillery said:
If it comes down to a Chapter 7 liquidation, the court will require the Receiver to sell all assets to anyone who is willing to pay the most to acquire said assets.

I don't think the WBAI situation is indicative of the rest of Pacifica. While the finances of the one station are dire, my understanding is the rest of the group is OK. So I'm not expecting any bankruptcy.

nd2023 · Jul 10, 2013

Re: WBAI massive layoffs

Someone wrote an 8 page report about how to save WBAI http://takeforwardwbai.files.wordpress.com/2012/11/wbai-rescue-proposal-2012-frank-lefever.pdf

jmtillery · Jul 10, 2013

Re: WBAI massive layoffs

ai4i said:
??? How would a chapter eleven settlement work as new bills continue to mount ???

Everything would be included as part of the bankruptcy proceeding, again, assuming this is where the station or foundation is headed. The foundation as a whole, as I understand, has been having financial problems. In addition to WBAI New York, WPFW Washington is a good example.

nd2023 · Jul 10, 2013

Re: WBAI massive layoffs

Here's an idea: what if WBAI bids for rights to air the Yankees or other sports teams? That would provide revenue while still allowing them to keep their regular format. And the small subset of Yankees fans who are very liberal would discover WBAI.

chrocket87 · Jul 10, 2013

Re: WBAI massive layoffs

Nick said:
Here's an idea: what if WBAI bids for rights to air the Yankees or other sports teams? That would provide revenue while still allowing them to keep their regular format. And the small subset of Yankees fans who are very liberal would discover WBAI.

But that would cost them money which they don't have.

PTBoardOp94 · Jul 11, 2013

Re: WBAI massive layoffs

Nick said:
Someone wrote an 8 page report about how to save WBAI http://takeforwardwbai.files.wordpress.com/2012/11/wbai-rescue-proposal-2012-frank-lefever.pdf

There is no shortage of "rescue" plans for Pacifica/WBAI. The problem is that the board (of which Mr. LeFever is a member) can't agree to implement any of them. Even if they could, there is no guarantee that board members might not sue Pacifica/WBAI to stop or delay the board's decisions. (Mr. LeFever has been plaintiff to a lawsuit against Pacifica/WBAI at least twice)

Barry · Jul 12, 2013

Re: WBAI massive layoffs

Perhaps WBAI could learn a bit from non-profit community station WPKN, 89.5 in Bridgeport CT, which has been independent for over 20 years. 'PKN has no more than one or two paid staff members, and attracts dozens of volunteer programmers who present a wide variety of musical and talk programming.
They apparently receive enough donations to keep running without any serious financial drama.
I was surprised to read that WBAI has as many paid staff members as it does. So perhaps they could operate mostly with volunteers, and offer more music programming than they currently do.

Theater of My Mind · Jul 12, 2013

Re: WBAI massive layoffs

Barry said:
So perhaps they could operate mostly with volunteers

Thank you Captain Obvious, that is indeed what a community radio station should do but of course the union won't allow it. They already managed to force WBAI to cancel all the layoffs planned for this weekend. Now WBAI must magically keep paying all that staff despite the fact there is no money to do so.

It's sheer gridlock there. Nothing will change until a creditor forces them into bankruptcy. I wonder who it will be.

nd2023 · Jul 13, 2013

Re: WBAI massive layoffs

So if WBAI was forced to cancel the layoffs, it's likely to just go "poof" when it fails to pay the Empire State Building rent and they turn off the 99.5 transmitter.
If they file for bankruptcy, they'll get an "automatic stay" from their creditors while in the bankruptcy process. That will buy them a few months more.

boiseengineer · Jul 13, 2013

Re: WBAI massive layoffs

Station owner here ended up loosing his station, even his house to the Bank that was his biggest creditor.
Is there some kind of clause in the Empire lease that they can sieze equipment if the leasor defaults on payments? That's also what happened here. Equipment siezed before bankruptcy was filed.