WBAI/Pacifica Death Throes

Looks like it is quite possible Pacifica (the nationwide org., not WBAI) is looking at a potential voluntary bankruptcy filing.

Main options to appease creditors and/or stave off bankruptcy include: Selling Pacifica's national headquarters/archive in Berkeley (I guess they'd move in with KPFA out there), selling copyrights to archives of old shows/programming, and the lease/sale of WBAI's broadcasting license to a qualified commercial operator

http://pacificainexile.org/archives/1437

Even though, Empire State Building may be the eventual owners of the station. Depending on what piece of accounting you are using (I think its all done with mental math there), nonpayment of transmitter rent from BAI is anywhere from $500k-900k. Most settle on $550k being the amount owed (+ $40,000/month added in arrears) in legal documents. Looks like ESB and Democracy Now! not pushing Pacifica to liquidation makes them the only folks keeping this network afloat.

On the flip side, a creditor could pick up a full-power broadcasting license for a fraction of what was paid for that new Manhattan translator!

Assuming they do not pull themselves temporarily from the brink again, which option will Pacifica choose to keep the network going? Sacrifice a debt-saddled WBAI? Or sacrifice their on-air legacy?

Radio-X

This has been going on since the late 1970s. The difference now is that the old, (mostly Jewish) co-op dwelling 'socialists" have died or moved to Bocca Raton and radio is irrelevant to the younger generation whether activist, or not.

I have privately suggested an LMA on several occasions as a way to use 'the system" to fund your organization while maintaining control of what goes out on your air. I get agreement of the concept in private, but nothing happens.

For BAI to survive it needed to have become part of NYC's cultural scene much as WNYC has done. Instead it became a fiefdom of a few schemers such as Bernard White who sought to become the "big magumba" and use it to enrich themselves.

In the last two decades the station had been dominated by people who profess to cater to the interests on one or two 'minority" communities.

There are two main problems here:

1) These audiences are mainly interested in music.

2) They don't have the resources or interest in supporting a Class B FM's operating expenses.

The economic realities are closing-in on ALL OTA push media. AM is seeing a collapse that is now accelerating and FM is seeing sharply reduced PUR and attendant reductions in revenue. WBAI is just reaching the cliff a half-decade sooner than the others.

LCG

From what I have understood, most local Pacifica stations have two factions:

- Folks who are interested in keeping the 'status quo' at the local station. These would include the hucksters/schemers found (most often) on 'BAI, long-established hosts, and many of those with paid, union jobs there.
- Folks who would be called in 'socialist' parlance 'agitators'. These are concerned donors, fired/laid off hosts often with an axe to grind, and those who pride themselves in being 'revolutionaries'. They all want different things, but what seems to be a unifier is more news that is of relevance to the left.

In the national board it seems to be a faction of people interested only in KPFA vs. the rest of the cluster.

Until there is some sort of unity amongst the local boards, things will get worse until the situation is out-of-control. Planning for any future will never happen. It will be all about patching things up to prevent a meltdown.

As a 30ish (half) Jewish condo dweller (I can only afford to rent) who has been called a socialist more than once, nothing that Pacifica has put out since about 2005 appeals to me. Once they went to 22-23 hours-a-day of hucksters and specialty music, I avoided them like a bad disease. WPFW has great jazz music, but that's really it!

If you look at the last time a RFP was announced for leasing WBAI in 2013, they only had two qualified parties: One was a former BAI manager, the other a former WFUV manager. Rumors flew about that MSNBC was going to start a news/talk station, and given the radical left who tend to populate the station board, the whole leasing idea sank faster than a lead balloon.

As someone who has volunteered at both a noncom FM and a crisis line, this is like the person who calls up announcing that they are going to kill themself on a weekly basis. After awhile, you don't wish harm on them, you just get tired of hearing the same stuff from the same person on a consistent basis. The tools are there to at least stabilize/improve the situation if they would just get over the idea of impending destruction!

Just like the chronically suicidal crisis line caller, some time very soon somebody will call them out and force them to confront the situation whether they want to or not. In both Pacifica's and BAI's case, I feel the police are already en route to 'commit' them to Bellevue Hospital.

Radio-X

Those of us in Houston are keeping an eye on KPFT. One estimate I saw had the station worth $6,000,000, far less than the potential cost of Pacifica's commercial band outlets. And I don't think Pacifica would put KPFT on the block while the market awaits the sale of non-comm KUHA, as the price would be driven down for both.

I'm thinking out loud here, but would it make sense, if Pacifica felt they had to retain an over the air signal, sell the FM and buy an AM with comparable coverage. In LA and New York City especially, I would think this might offer some cash to push the demise further ahead. I doubt they'd want to do that, though. Unless they evolve I can't see any permanence just delaying the demise, but then again time can be their friend.

b-turner said:

sell the FM and buy an AM with comparable coverage.

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This idea has been offered many times over the last ten years, and from what I see, it's not even being considered or discussed by those inside Pacifica.

Any practical ideas are not applicable here. This is not a for-profit company. It's pretty unlikely they'll choose the bankruptcy option because they lose control.

The only way I see any stations being sold is if they're forced to do so. By force, I mean by the police or military means.

As WBAI reportedly owes about $600,000 to the owners of the Empire State Bldg., and adds to that amount each month they are on the air, it seems possible that they could sue the station for the money, especially if it seems that their ability to meet their debts declines even more. As Pacifica/WBAI are likely not in a position to pay anywhere near that, couldn't such a lawsuit force a sale of WBAI's primary asset, its broadcast license?

Barry said:

As WBAI reportedly owes about $600,000 to the owners of the Empire State Bldg., and adds to that amount each month they are on the air,

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Not exactly...they moved their transmitter to a much cheaper location about a year ago. The amount may increase due to interest fees, but not because of additional rent.

Pacifica has many assets, not just WBAI. It would be up to a judge to decide what their primary asset is. But any bankruptcy hearing would also involve the company's ability to stay in business and pay off the debtors, so I doubt a judge would require selling any of the licenses.

TheBigA said:

Not exactly...they moved their transmitter to a much cheaper location about a year ago. The amount may increase due to interest fees, but not because of additional rent.
.

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I don't know where you are, or where you got that info but, WBAI is still at ESB. They are reluctant to move to 4TS for fear of being sued for the remainder of their lease at Empire. I don't want to get into the whole 'BAI debacle, but let's keep things factual.

LCG

DavidEduardo said:

Radio billings are now above the ten-year-ago level despite the intervening recession. AM is off, while FM is up; this is more of a re-balancing of revenues in proportion to listening to each band.
There is certainly some PUR erosion based on new media usage, but the effectiveness of radio as a reach medium is gaining importance with advertisers while at the same time we have bankruptcies of push media and still have not seen a working business model for entities with no-charge options like Pandora.

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David, you may have newer info than I, however, the industry totals have bounced around over the last decade.

I have $20Bn for 2004 & $14.9Bn in 2014.

Locally, several stations that had led the national billings have seen marked declines.

WLTW was at $70 Mn in 2004 and $41.5 as of 2014. Similar declines have been seen at a few others as well.

The under 30's a getting fewer and the kids are gone. This is going to be a big problem.

LCG

I agree with The Big A on keeping Pacifica in business. Creditors want them to continue to operate because they have a better chance at getting a higher percentage of the debt owed.

From what I was told at a station that filed some form of bankruptcy, the judge approved a payment schedule based on existing station income. The station came out okay but it was about a year they were merely a computer and whatever the owner and his wife could sell after the approved plan meant all the employees lost their jobs. I think the conditions may vary depending on state and type of bankruptcy chosen.

L Chanon Gade said:

I don't know where you are, or where you got that info but, WBAI is still at ESB.

LCG

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From what I've read, they were threatened with eviction, and applied for and received a CP to move to 4TS.

The younger demos will listen to fm radio but you have to give them a reason to listen. They certainly are listening in Australia, listen to fox fm in Melbourne, along with Kiis and Nova in Sydney, they are programmed so much better than USA chrs it is even funny, along with exceptional talent in drive times that are a must listen for young adults.

When Hello came out, was there any reason at all not to put into power immediately? Most chrs here didn't, as the whole country wanted to hear the new Adele more so than other current song on their playlists.

WBAI is just boring, you can't say they are extremists when the hosts and guests sound exactly the same as Bernie Sanders. There may have been a time when they were but the Democrat left in this country has went hard core extremist left over the last 10 years, just listen to the things being said on College campuses right now, WBAI could make a real connection with 'Dem if they had better programming. Talking about harming Republicans has got to be good for 2 shares in NYC right now.

DOB said:

WBAI could make a real connection with 'Dem if they had better programming.

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If you ask them, they think they're saying what the country wants to hear.

DavidEduardo said:

Yes, the CP is very much active and it it definitely has the coordinates for 4TS.

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WBAI's application was granted on 7/29/14 and gives them three years from that date to construct. A renewal application was filed in January 2014 and has received no action yet.

The Ausis do not edit for content as much as we do here, either.
I remember hearing (many, many years ago) the full words for "MF" on one of the ABC stations:
"I'm a Mean MF on my Motorcycle".