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WBAI Struggles

Re: WBAI massive layoffs

TVCOOL said:
Well if anything staying on FM would be for the best 'because AM Radio is dying and smartphones ,MP3s ,etc have FM Radio tuners built in only.

Which are useless because the FM tuners (if any) only work with wired headphones attached. On the other hand, Internet audio streams from AM and FM stations - or no station at all - are all created equal.

FM is dying, too. It's just closer to the top of the bowl right now.
 
Re: WBAI massive layoffs

Theater of My Mind said:
Just to elaborate on the point above, IIRC the LSB discussion I read put the value of 99.5 anywhere from $5-15 million.

The current stick value of WBAI is somewhere in the range of $55 to $60 million and up, depending on how many interested parties there are.

WNSH went for $40 million, and is an inferior property.

This would mean that were Pacifica looking to stay on FM, they could take WNSH and $15 million and go to the lower rent Jersey transmitter location.
 
Re: WBAI massive layoffs

Surfing the station's finance Yahoo group since the whole situation fascinates me, I came across a post from one of the local station board members in March that might provide some insight as to what could be going on now. Or maybe not, because who knows with that operation. But it's interesting food for thought, and some of it seems like it could be playing out now:

Here is what I think the next step will be. It is probably the only sensible thing left for Pacifica to do, and in fact I am convinced that the PNB delegates from the other four stations will insist on it, in order to save the entire foundation from collapse.


I believe that Pacifica, one way or another, will have to come up with the $200,000 required to save WBAI’s Empire State Building antenna. Why? Because if WBAI went dark for lack of an antenna, the FCC would lift its license, and since that license may still be worth $5-$10 million or more in a potential swap or sale, Pacifica will not want to foreclose that option.


Once the antenna is saved (at least for the moment), I think Pacifica will close WBAI’s offices and fire all its paid staff to eliminate approximately $2 million in operating expenses and payroll costs (except for the one token person I believe the FCC requires to be in physical control of the station, and who would be paid only a minimal token salary).


Finally, in order to preserve WBAI’s license, Pacifica would begin broadcasting a direct feed to the Empire State Building antenna from KPFA or KPFK in California. This feed – if Pacifica were smart – would be a continuance of the entire current WBAI program grid, with producers working from NY, either by telephone or pre-recorded CD, which is how many programs are now produced anyway. The station’s producers could use by-the-hour rental studios. Or they could work out of their own homes (which is not as bad as it might seem, since in my opinion there has always been too much hand-wringing in Pacifica over the need for “professional studio sound quality,” which is something that I think has always been much more important to producers than it has ever been to listeners.)


There would be a huge benefit in choosing to continue broadcasting WBAI’s current programming schedule from California – rather than simply substituting the KPFA or KPFK schedules, or just playing music. The benefit is that, since WBAI’s listeners will still be hearing the programs they all know and love (we hope), the station could continue to raise money, as it has always done, through periodic fund drives.


But -- since there would no longer be any operating expenses for the station (other than the monthly antenna rent), virtually all of the fund drive revenues could go towards paying off WBAI’s and Pacifica’s past debts, at the rate of about $1.5 million per year (less antenna rent), which is what I would guess the station could still raise through its fund drives.


This arrangement would go on until the network stabilized its finances. Which, unfortunately, might be ad calends Graecum, unless steps are taken not only to improve management but also to institute more sensible policies.


But sadly, there seem to be no powers or parties in prospect able to lead, or force, a meaningful change of direction at Pacifica – certainly not at its national or local boards, which for the past several years have shown themselves to be both uninformed and impotent.


So even if the station and the foundation are able to survive, for the present, by implementing the above scenario, I do not see any long-term scenarios that include happy endings. I hope that the management of WBAI and Pacifica -- who are also reading this letter -- prove me wrong.



Dispiritedly,


Stephen M Brown

Member of the WBAI Local Station Board

and therefore also to blame
 
Re: WBAI massive layoffs

Is it simply an assumption that if 99.5 went dark, it would be reallocated as commercial instead of showing up again in a future NCE window?
 
Re: WBAI massive layoffs

stevensonair said:
Is it simply an assumption that if 99.5 went dark, it would be reallocated as commercial instead of showing up again in a future NCE window?

Short answer: No.

Longer answer: 99.5 started out as a commercial facility before being donated to Pacifica in 1960, and remained on the table of allocations as a commercial channel.

If WBAI were to surrender its license (which isn't going to happen), "258B" would simply reappear on the table of allocations as a vacant commercial channel, and would then be put in the next pool of channels for a future FM auction.

Broadcasters seeking to reserve 99.5 as a noncommercial channel would have to make the case that reserving 99.5 for noncommercial use would result in first or second noncommercial service to a significant percentage (greater than 10%, if memory serves) of the audience within the 99.5 contour. Because of WBGO, WKCR, WFUV and WNYE - not to mention all the other noncommercial signals ringing the city - that would be a high hurdle to clear. (WNYC-FM is in the commercial band, of course, and I don't immediately recall whether 93.9 is officially reserved as a noncommercial channel in order to count in this calculation.)

Bottom line: the only way 99.5 remains noncommercial is if either Pacifica continues to operate WBAI, or sells the WBAI license to another operator who will keep it noncommercial. But like WFME, it's already a commercial facility in all but license status.
 
Re: WBAI massive layoffs

Theater of My Mind said:
Surfing the station's finance Yahoo group since the whole situation fascinates me, I came across a post from one of the local station board members in March that might provide some insight as to what could be going on now.

That person, in typical Pacifica fashion, has a disconnect with reality.

A station that loses a transmitter site... due to storm, lease, etc., can do several things. One is to go dark pending finding and installing a new site... the FCC will require that proof that this is moving along be filed, but that could hold them for several years even. Or they could go silent and file for temporary authority while a buyer is found due to inability to operate. This could give them a good amount of time. Or, they could LMA the station, with or without a promise to buy, to someone who would step in and pay the ESB and put a commercial format on it.

A station can be silent for quite a long time and preserve its license if it justifies the silence with the FCC and does not lie or deceive the Commission.
 
Re: WBAI massive layoffs

DavidEduardo said:
Theater of My Mind said:
Just to elaborate on the point above, IIRC the LSB discussion I read put the value of 99.5 anywhere from $5-15 million.

The current stick value of WBAI is somewhere in the range of $55 to $60 million and up, depending on how many interested parties there are.

WNSH went for $40 million, and is an inferior property.

This would mean that were Pacifica looking to stay on FM, they could take WNSH and $15 million and go to the lower rent Jersey transmitter location.

Or do a trade + cash for 105.9, allowing WQXR to return to a full signal, and WBAI to continue reach most of their core audience (which I presume are mostly city and close-to-city listeners). Possibly in addition to having WNYC/WQXR throw in the 99.5 HD-2 for WBAI to boot.
 
Re: WBAI massive layoffs

HHH said:
Or do a trade + cash for 105.9, allowing WQXR to return to a full signal, and WBAI to continue reach most of their core audience (which I presume are mostly city and close-to-city listeners). Possibly in addition to having WNYC/WQXR throw in the 99.5 HD-2 for WBAI to boot.

But that situation would saddle Pacifica with ongoing ESB rent payments, unless they moved to a different building... unlikely.

And I don't think classical produces enough donation income for a swap to be financially justifiable.
 
Re: WBAI massive layoffs

CC's plate is full, so is CBS unless they swap an AM and cash for it (1010 most likely). I'm sure Cumulus would love to have it, and there's room at the inn and money as well, because the money will be found for a rare NYC signal opening.

There's also Townsquare.

Bottom line is that WBAI is worth quite a bit of money because it is a commercial band station, full market signal, right in the middle of the dial.

WBAI isn't a format that relies on people stumbling across it on the dial to build cume and TSL. An AM would work fine for their purposes. Most of the audience is aging hippies/radicals anyway, so they're in the AM demo. An AM for WBAI would be much better than off the air.

Personally, they're so mismanaged and dysfunctional that they deserve everything they're getting. This is what happens when the inmates run the asylum.
 
Re: WBAI massive layoffs

I put Greater Media and Townsquare at next to zero probability. It's expensive to run a stand-alone in NYC. Cumulus makes the most sense to me. Too bad YMF or Emmis don't have the money...
 
Re: WBAI massive layoffs

If they were even remotely competent, they would have moved to an AM station a long time ago. Perhaps traded with CBS for 660 last year.

I will never forget seeing someone raise money for WBAI at Occupy Wall Street by walking around Zuccotti Park with a container asking people living in tents for money to support WBAI.
 
Re: WBAI massive layoffs

The occupiers could have tapped into more of mommy and daddy's money to give to the radio station...

WBAI deserves to go down. Nobody ran that station into the ground but themselves.
 
Re: WBAI massive layoffs

pjc1961 said:
it's probably more like there were dealings going on behind the scenes for a long time before we (the public) found out what was transpiring.

Which is standard in most radio station, or any business, asset purchase agreements. Confidentiality is a must for many reasons until the correct time arrives to make a public announcement.
 
Re: WBAI massive layoffs

Suggestions that WBAI can survive if it swaps for another frequency, moves to AM, etc., seem to miss the signs that it is a dysfunctional operation, perhaps insolvent.

WBAI has been missing payrolls on and off. It has trouble meeting rent payments. It's been cut off from CPB money because of poor accounting. It's been running fund-raisers for months on end that reportedly offer snake-oil cures as "premiums."

If there are any brains at Pacifica they should throw WBAI into bankruptcy protection before it brings down the entire foundation.
 
Re: WBAI massive layoffs

This trainwreck has been a long time in the works. I have read about the dysfunctional shennanigans at WBAI for over 10 years. I have to wonder about the financial situation around the rest of the Pacifica organization. Are the other stations operating in the black or are they all circling the drain. Pacifica has two strong assets that could go a log way to solving their financial problems, those bing the New York 99.5 facility and San Francisco's 94.7. Between the two of them there should a be a stick value of $75-100 Million. SF is an easy fix. Pacifica also owns KPFB there. You sell KPFA outright and consolidate operations on KPFB using internet streaming to handle any programming overflow and propote those shows over the air. New York gets a little more challenging. Some of the posters have outlined some of the alternatives. Trading 99.5 for 94.7 could produce incremental income of $10-15M if Cumulus was interested. A swap with EMF for 103.9 might be a possibility. They'd lose a lot of coverage but not as much if they have to pull the plug on the entire operation. Acquiring WNYE might make sense, too.
 
Re: WBAI massive layoffs

I remember Pulse 87 begged for money on the air on July 20, 2009, and it got a good response. Island Broadcasting, owners of the 87.7 transmitter, imposed a deadline of July 25, 2009 to collect $500,000 in outstanding debt owed to them. Looking at their financials after they filed for bankruptcy, Pulse 87 raised over $80,000 in less than 12 hours of their beg-a-thon, and at that rate, they could have reached their $500,000 goal. They were given an option to either continue the on-air fundraising and pay the $500,000 by July 25, or stop the fundraising immediately, refund all donations, and get an extension until August 31. They chose to accept the extension. The rest of the story of why they went bankrupt is mismanagement of the finances by the people up top.

That was a well-liked commercial station with a cume of over a million listeners, many of whom are rich enough to pay $300 for a bottle at a nightclub. WBAI has less than 100,000 listeners, and their demographic is the "Occupy" people. They're also noncommercial, so no ad revenue. Let's see how quickly they can raise money.
 
Re: WBAI massive layoffs

I think the WBAI Local Station Board member's comments quoted in Reply #22 point to the most likely scenario.

- Fire all the staff (done), and close WBAI's offices saving $2 million/year in payroll & overhead.
- Keepone token person at a small office in New York that the FCC requires to be in physical control of the station
- Pick up a feed from Pacifica's facilities in California, possibly combined with some content done in New York by volunteers.
- Continue to fundraise locally using the proceeds to pay the ESB rent, with the rest going to pay off Pacifica's other debts.

I suspect they'll try to break the new lease they got for 388 Atlantic Ave. in Brooklyn as I don't think they've even started to build it out yet.

In this scenario WBAI stays on 99.5.
 
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