Most of the large national radio “operators” are really just debt servicing companies. Most have positive EBDITA’s but are addicted to debt. A story I heard in the early 1970’s, when they started de regulation was the goal was to have radio stations like gas stations “one on every corner”. One shuts down no a big deal.
I propose there should be a date at least two years from now where FCC Radio licenses are no longer collateral for loans. Two years should be enough for Audacy to go bankrupt (or restructures) to make it “even” with iHeart and Cumulus and several others chains that screwed their shareholders.
After that date, if a station “financially fails”, an automatic STA to stop broadcasting is issued, except LMAed stations independent from the failed organization. The LMA operator will be allowed to operate under the existing terms for 110 days if unless it is dependent upon a failed operator’s HD channel to operate legally. A legal notice shall be published in any newspaper of record within 25 miles of the transmitter tower for an auction. Any interference agreements between stations are still in effect. Each license will be put up for auction on the FCC website to be sold to the highest bidder after ninety days as a 3-year construction permit and existing call letters for FMs and 4 years for AM’s. No time extensions. The winning bidder will have 10 business days to get the funds to the FCC. The winning bidder will have to be able to pass any FCC ownership requirements. The winning bid has to operate the station for 3 years after the license to cover the CP is issued. The station cannot be LMAed for 2 years after the license to cover is issued. The minimum bid will be any FCC fees due and music royalties if any due. Employee back salaries will be the responsibility of the defunct station. They are usually the first ones paid when a corporation fails. All auctioned FM stations licensee’s service contours are “protected” from any downgrading for 6 years except AM. This is to keep “local” service. 6 years after auction a former “failed” station it can be bought by another station modified or shut down to improve the existing station’s coverage. AM signals with FM translators can downgrade their AM service but must keep the FM translator at least 90 % of its current coverage. Leased translators go back to the owners. If no one bids on a station it goes into “finders” pool where unloved stations go to the first bidder that clams it. If no one claims a station for 12 months it is deleted and the commission can make it part of a new allocation sometime in the future.
If an LMA station is part of a failure, and the operator is independent from the failed owner, the LMA operator will have the right run the station under existing leases and terms for 110 days. They also have the right match any winning bid for their station within 10 days of the auction. Payment will be due in 10 days after agreeing to match the bid. If the LMA operator chooses to buy the station, he / she will be issued a construction permit with the same FCC restrictions and conditions as any other winning bid.
No land or equipment is part of the auction. The new licensee will have to buy or lease land and equipment necessary to run the station. If they can work a deal with the failed broadcaster for either land or equipment that would be OK.
This might seem harsh but the FCC is supposed to be stewards of the rf spectrum for the American citizens. I feel if this was adopted, it would open the door for a different group of people owning stations. The operators might even be local person. The three-year mandatory ownership running the station after it is back on the air should keep out the speculators. It would establish a “real” station worth. The commission would get all of the bid money except for back music licensee fees.
IMHO except for the sales function, local broadcasting doesn’t require tons of capitol or people. Billing, commercial logs and scheduling are mostly a PC deal. You can satellite, VT, or syndicate programing. Most modern transmitting plants do not require daily work. Hopefully you have a person or two that’s busy creating commercials for local clients.
I propose there should be a date at least two years from now where FCC Radio licenses are no longer collateral for loans. Two years should be enough for Audacy to go bankrupt (or restructures) to make it “even” with iHeart and Cumulus and several others chains that screwed their shareholders.
After that date, if a station “financially fails”, an automatic STA to stop broadcasting is issued, except LMAed stations independent from the failed organization. The LMA operator will be allowed to operate under the existing terms for 110 days if unless it is dependent upon a failed operator’s HD channel to operate legally. A legal notice shall be published in any newspaper of record within 25 miles of the transmitter tower for an auction. Any interference agreements between stations are still in effect. Each license will be put up for auction on the FCC website to be sold to the highest bidder after ninety days as a 3-year construction permit and existing call letters for FMs and 4 years for AM’s. No time extensions. The winning bidder will have 10 business days to get the funds to the FCC. The winning bidder will have to be able to pass any FCC ownership requirements. The winning bid has to operate the station for 3 years after the license to cover the CP is issued. The station cannot be LMAed for 2 years after the license to cover is issued. The minimum bid will be any FCC fees due and music royalties if any due. Employee back salaries will be the responsibility of the defunct station. They are usually the first ones paid when a corporation fails. All auctioned FM stations licensee’s service contours are “protected” from any downgrading for 6 years except AM. This is to keep “local” service. 6 years after auction a former “failed” station it can be bought by another station modified or shut down to improve the existing station’s coverage. AM signals with FM translators can downgrade their AM service but must keep the FM translator at least 90 % of its current coverage. Leased translators go back to the owners. If no one bids on a station it goes into “finders” pool where unloved stations go to the first bidder that clams it. If no one claims a station for 12 months it is deleted and the commission can make it part of a new allocation sometime in the future.
If an LMA station is part of a failure, and the operator is independent from the failed owner, the LMA operator will have the right run the station under existing leases and terms for 110 days. They also have the right match any winning bid for their station within 10 days of the auction. Payment will be due in 10 days after agreeing to match the bid. If the LMA operator chooses to buy the station, he / she will be issued a construction permit with the same FCC restrictions and conditions as any other winning bid.
No land or equipment is part of the auction. The new licensee will have to buy or lease land and equipment necessary to run the station. If they can work a deal with the failed broadcaster for either land or equipment that would be OK.
This might seem harsh but the FCC is supposed to be stewards of the rf spectrum for the American citizens. I feel if this was adopted, it would open the door for a different group of people owning stations. The operators might even be local person. The three-year mandatory ownership running the station after it is back on the air should keep out the speculators. It would establish a “real” station worth. The commission would get all of the bid money except for back music licensee fees.
IMHO except for the sales function, local broadcasting doesn’t require tons of capitol or people. Billing, commercial logs and scheduling are mostly a PC deal. You can satellite, VT, or syndicate programing. Most modern transmitting plants do not require daily work. Hopefully you have a person or two that’s busy creating commercials for local clients.
