Industry News

Audacy Files for Chapter 11 and Enters into Restructuring Support Agreement

On Sunday (1/7) Audacy, Inc entered into a restructuring support agreement (RSA) with a supermajority of its debtholders on the terms of a comprehensive restructuring that the company says will “significantly deleverage its balance sheet and further position Audacy for long-term growth.” Through the restructuring, Audacy and its debtholders will undertake a deleveraging transaction to equitize approximately $1.6 billion of funded debt, a reduction of 80% from approximately $1.9 billion to approximately $350 million. The company does not expect any operational impact from the restructuring, and trade and other unsecured creditors will not be impaired. To implement the deleveraging transaction contemplated in the RSA, Audacy and certain of its subsidiaries commenced prepackaged Chapter 11im proceedings in the United States Bankruptcy Court for the Southern District of Texas and has filed a proposed Plan of Reorganization that incorporates the terms of the RSA and is subject to approval by the Court. Under the terms of the RSA, a supermajority of debtholders committed to vote in favor of the Plan, which, when approved, will reduce Audacy’s funded debt from approximately $1.9 billion to approximately $350 million. Audacy’s debtholders will receive equity in reorganized Audacy. Audacy expects that the Court will hold a hearing to consider the approval of the Plan in February and to emerge from bankruptcy once regulatory approval is obtained from the Federal Communications Commission. Audacy has filed with the Court a series of customary “First Day Motions” to obtain Court authority for the Company to continue operating its business in the ordinary course without disruption to its advertisers, vendors, partners or employees. Audacy expects to operate normally during this restructuring process under its current leadership team. During the Chapter 11 process, certain of Audacy’s existing lenders have committed to provide $57 million in debtor-in-possession (“DIP”) financing, comprised of $32 million of a new term loan and a $25 million upsize of the Company’s existing accounts receivables financing facility from $75 million to $100 million. Subject to the Court’s approval, the DIP financing and the Company’s cash from operations and available reserves is expected to enable Audacy to fulfill commitments to employees, advertisers, partners and vendors. Audacy common stock will continue to trade over-the-counter under the symbol “AUDA” through the pendency of the Chapter 11 process. The shares are expected to be canceled and receive no distribution as part of Audacy’s restructuring. Audacy chairman, president and CEO David J. Field states, “Over the past few years, we have strategically transformed Audacy into a leading, scaled multi-platform audio content and entertainment company through our acquisition of CBS Radio and by building leading complementary positions in podcasting, audio networks, live events, digital marketing solutions and our direct-to-consumer streaming platform. While our transformation has enhanced our competitive position, the perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative radio ad spending. These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring. With our scaled leadership position, our uniquely differentiated premium audio content and a robust capital structure, we believe Audacy will emerge well positioned to continue its innovation and growth in the dynamic audio business.”

Industry Views

Monday Memo: “Try this…”

By Holland Cooke
Consultant

Companies hire consultants to avoid experiments. We improve results by customizing and implementing Best Practices proven elsewhere. So, I’m about to break a rule, because advertisers in a super-opportune category have become a noisy blur.

Personal Injury: The gift that keeps-on-giving

Legal representation of purported victims of fender benders, slip-and-fall accidents, and other “injuries caused by the negligent, careless, or reckless actions of others” is an industry in which supply exceeds demand. Thus, all the outdoor and TV advertising. And too little radio.

In the Providence, RI TV market I watch at home, this category stands shoulder-to-shoulder with look-alike automotive spots in sheer dollars over-spent. And their message is the same on billboards:

— The attorney’s head shot (also a real estate agent cliché); and

— 6-figure settlements touted.

Because they’re all shouting the same thing, they resort to tactics:

— Attorney Rob Levine is “The Heavy Hitter,” and runs enough TV that viewers in Southern New England can sing the jingle: “The Heavy Hitter is the one for you. Call one-eight-hundred-law-one-two-two-two.” To his credit, it’s a different phone number than his web site offers, so he can track TV results.

— Easier to remember: Bottaro Law: 777-7777.

Watching local Las Vegas TV while at CES recently was a deep dive into Law advertising. The pitch from several I saw was we charge less, like a shameless radio competitor dropping-trou’ to get the entire buy.

If we don’t win, you don’t pay

 “What are your rights? What is your case worth?” Possibly a cash amount divisible-by-3, if that’s the attorney’s contingency.

Those expensive nationally syndicated TV spots (customized for the local firm) depict fearful insurance executives eager to settle. And the attorney may threaten that, “if they don’t, we’ll beat ‘em in court.” Baloney, that’s the last thing the lawyer wants. Too time-consuming and risking a losing verdict.

Like radio commercials, attorneys’ inventory is perishable

— We can’t sell yesterday’s empty spot avail; and lawyers’ closing opportunity is “B.I.S.,” Butts In Seats for that free, no-obligation consultation, in-person, where the seller goes for the close.

— If nobody was sitting in that chair today (“intake”), no sale.

— And that’s how attorneys are missing a bet not using radio.

“The lawyer is in, the meter is off”

 That’s the proposition when they field listener calls in brokered weekend talk radio shows.

— DONE RIGHT, these shows can run-rings-around TV and outdoor ROI.

— Forgive caps lock in that last sentence, but it’s a crying shame how – at too many stations – the audition for pay-for-play weekend talkers is the-check-didn’t-bounce. One of the things I do for client stations is coach-up weekend warriors — in hosting fundamentals that are second-nature to us — but not to non-career broadcasters. Results = renewals. Otherwise brokered hosts churn, a management distraction, and upsetting listening habits.

— Occasionally, in markets where I don’t even have a client station, I’m working with lawyers (and real estate agents, financial advisors, foodies, and other ask-the-expert hosts), because nobody at the station is doing airchecks with them.

— No billboard or tacky TV spot can humanize the attorney – and demonstrate the comforting counsel – like eavesdropping on a conversation with a caller’s relatable situation.

Think “sales funnel”


We know how to make the phone ring, specific dance steps. The more callers, the better.

— When lines are full, screeners can choose callers whose dilemma is in the attorney’s lane. If, for instance, the host specializes in Personal Injury (or “Family Law,” translation divorce; or another specialty), calls about real estate transactions are off-topic.

— Do this right, and – before the host can offer – callers will often ask “May I call you in the office on Monday?”

Admittedly, this is an experiment…

…because I am frustrated witnessing all this noisy me-too advertising.

Personal Injury cases are he-said-she-said. So try this, and tell me if it works.

— Sales 101: That first call is Needs Assessment, right? Know the prospect’s pain.

— Yet too many radio reps resemble Herb Tarlek, telling the station’s story. Amoeba-shaped coverage maps and ratings rankers and rate cards all look alike…like Law firm marketing.

— I’m telling any attorney willing to listen to make four words the centerpiece of the marketing message, and they’re the same four words that turn callers into clients for weekend talkers: “Tell me what happened.”

The Free Prize Inside: Podcasts

Lifting weekend calls to repurpose as on-demand audio is digital marketing value-added.

Holland Cooke (HollandCooke.com) is a consultant working at the intersection of broadcasting and the Internet. He is the author of “Multiply Your Podcast Subscribers, Without Buying Clicks,” available from Talkers books; and “Spot-On: Commercial Copy Points That Earned The Benjamins,” a FREE download; and the E-book and FREE on-air radio features Inflation Hacks: Save Those Benjamins.” Follow HC on Twitter @HollandCooke

Front Page News Industry News

Thursday, April 21, 2022

Bill O’ Reilly is This Week’s Guest on Harrison Podcast. Multi-platform news/talk media star and best-selling author Bill O’ Reilly is this week’s guest on the award-winning PodcastOne series, “The Michael Harrison Interview.” O’ Reilly’s 40-plus year career has been colorful, controversial, and continues to be consequential. After gaining prominence as an anchor for the mainstream TV networks ABC and CBS, he served as host of the groundbreaking celebrity gossip entertainment-industry show, “Inside Edition,” and then evolved into politics going on to be the top-rated host at FOX News Channel for approximately two decades. Today, his short-form commentaries, syndicated by Key Networks, are heard on hundreds of news/talk radio stations across the nation and he’s currently in the process of launching a new nightly, long-form syndicated program titled, “No Spin News.” Harrison and O’ Reilly discuss the state and future of modern era news/talk media in addition to looking back at what it was like for the independent-minded talker to co-host and partner with former President Donald Trump on his recent four-city “History Tour.” Be sure to meet Bill O’ Reilly at the forthcoming Talkers 2022 conference at Hofstra University on Friday, June 10. To listen to the entire podcast, please click here.

 

Sean Hannity Becomes Longest-Running Primetime Cable News Host. According to FOX News Channel, primetime superstar Sean Hannity notches another industry milestone as he tops the late Larry King to assume the mantle of the longest-running primetime cable news host in U.S. television history. Today (4/21), marks 25 consecutive years, six months, and 15 days at the helm of a primetime cable news program – beating King’s run on CNN. Hannity has been a staple of FNC’s primetime lineup since the launch of the network in 1996. He was co-host of “Hannity & Colmes (with the late Alan Colmes) that debuted on October 7, 1996. FOX News Media CEO Suzanne Scott says, “Sean’s authenticity and insightful commentary have created one of the most enduring connections with our audience and it’s been an honor to watch him over the years. A FOX News original, he has helped innovate the industry, and we are incredibly proud of his extraordinary success.” Hannity comments, “I am extremely grateful to FOX News Media and to our loyal, dedicated viewers whom I am proud to serve every night.”

 

WHAM/WSYR Talk Host Bob Lonsberry Pens Blog Post About Personal Mental Health. Longtime WHAM, Rochester and WSYR, Syracuse talk host Bob Lonsberry’s April 20 post to his blog reveals a man searching for help to deal with mental health issues he confesses have plagued him his entire life. The blog doesn’t go into specific detail about his own struggles but does document to some degree his family history of mental illness, especially that which tormented his mother for most of her life. He begins the post saying, “This column is not intended to elicit sympathy or be seen as courageous. Not by any means. It is rather a report on the final desperate action of a man who has destroyed the lives of his family, hurt countless other individuals, failed at his religion, and probably devolved from narcissist to sociopath. This isn’t pretty or sweet, but neither is it manipulative or attention seeking. It’s just a column. Please, leave me the delusion that I’m a writer. And if me being nuts makes you more comfortable asking if you might be nuts, too, and maybe need some help, too, then good. That’s the point.” Read the blog post here.

 

Round Two of March PPMs Released. The second of four rounds of ratings information from Nielsen Audio’s March 2022 PPM survey has been released for 12 markets including: Washington, Boston, Miami, Seattle, Detroit, Phoenix, Minneapolis, San Diego, Tampa, Denver, Baltimore, and St. Louis. Nielsen’s March 2022 sweep covered March 3 – March 30. Today, TALKERS magazine managing editor Mike Kinosian presents his Ratings Takeaways from this group of markets. In Washington, Hubbard Radio’s all-news WTOP-FM jumps 1.4 shares for an 8.7 share (6+, weekly AQH share) finish and climbs to the #2 rank, while Cumulus Media’s crosstown news/talk WMAL-FM slips two-tenths for a 3.9 share finish good for the #10 rank. iHeartMedia’s news/talk WRKO, Boston continues its ascent, tacking on 1.1 shares to wrap the survey with a 4.7 share and the #8 rank, while sister all-news WBZ-FM slides seven-tenths to a 5.5 share and the #6 rank. In Seattle, Bonneville’s news/talk KIRO-FM remains on top posting a 7.4 share to stay ranked #1. The talk in St. Louis is dominated by Audacy as heritage news/talk KMOX finishes with a 3.6 share, after shedding two-tenths, and remains ranked #11, while sister talker KFTK-FM drops eight-tenths for a 2.6 share finish good for the #15 rank. You can see Mike Kinosian’s complete Ratings Takeaways from this group of markets (as well as the first round) here.

 

Meghan Ottolini Joins WEEI-FM, Boston’s ‘Merloni & Fauria’ Show. Boston sports media personality Meghan Ottolini is getting an expanded role on sports talk WEEI-FM’s “Merloni & Fauria” afternoon drive program, effective May 4. She’s been serving as a part-time host on the show since January of 2021. Audacy Boston SVP and market manager Mike Thomas says, “Meghan is a rising star in this industry, and we are very excited to have her join ‘Merloni & Fauria’ each afternoon. Writing is a passion of Meghan’s and she will be able to continue to do that for our station’s website, enabling her to create can’t-miss content for Boston sports fans – both on air and online.” Ottolini most recently served as a multimedia reporter for the Boston Herald since 2017. Additionally, she was an on-air talent for NBC Sports Boston’s “Quick Slants” television program. She comments, “I’m thrilled to join WEEI and work alongside Lou [Merloni] and Christian [Fauria] delivering premier sports talk coverage in the best sports city in the country. This opportunity is such a privilege and I look forward to having a lot of fun in this next chapter of my career.”

 

The TALKERS magazine 2022 Heavy Hundred of Talk Radio Hosts is Published. The 2022 edition of TALKERS magazine’s annual list of the 100 Most Important Radio Talk Show Hosts in America – also known as the Heavy Hundred – has been published. Since the early 1990s, TALKERS editors – with input from industry leaders – have compiled this annual feature created to recognize the hard-working talk radio personalities in America. TALKERS executive editor Kevin Casey says of this 2022 edition, “Creating the Heavy Hundred is always a challenging task for our editorial staff. Our use of both hard and soft factors in evaluating candidates for the list only adds to the difficulty in selecting the “most important” radio talk show hosts, but it’s a project that allows us to really get a big-picture look at the key players in this format and it’s something that we take very seriously. Congratulations to all of the talk radio personalities who are recognized on this year’s Heavy Hundred!” See the list here.

 

FOX News Digital Top Performer in Multiplatform Minutes for March. According to the Comscore data for the month of March, FOX News Digital finished as the top-performing news brand in the competitive set in multiplatform minutes. FOX News Digital says this marks its fourth consecutive quarter ranking as number one in the category in the news competitive set. FOX News Digital delivered 3.5 billion total multiplatform minutes, topping closest rival CNN.com (3.35 billion). For the first quarter of 2022 (Jan.-Mar.), FOX News Digital delivered 9.2 billion total multiplatform minutes versus CNN.com’s 7.85 billion. However, In the multiplatform unique visitors metric, CNN.com was far and away on top with 136.3 million compared to FOX News Digital’s 79.2 million for March. For the first quarter, CNN.com’s multiplatform unique visitors total was 147.9 million to FOX News Digital’s 85.3 million.

 

Radio Pros Launch New Consulting Firm. The new firm is called the Smith Richards Collective and is being launched by radio executives Steve Smith and Tim Richards and digital marketing strategist Heidi McIvor-Allen. The organization says it “brings deep radio operations, programming, and digital marketing experience to radio stations and groups, with a fresh approach and innovative strategies to help stations grow their audience and revenues, while saving money.” It adds that in addition to podcast and radio talent coaching services, the Smith Richards Collective offers full-service white glove consulting for radio stations and groups, as well as an embedded full-service digital marketing agency, McIvor Marketing, which offers stations and groups a full spectrum of digital resources and support.

 

Salem New York’s ‘The Answer’ to Produce ‘The Salem Business Breakfast.’ Next Wednesday (4/27) Salem Media Group’s news/talk WNYM-AM, New York “AM 970 The Answer” is presenting “The Salem Business Breakfast” at Bergen Community College in Paramus, New Jersey. It takes place from 6:00 am to 10:00 am as Joe Piscopo broadcasts the morning show live. An interactive business panel discussion will be moderated by attorney and AM 970 The Answer personality Arthur Aidala that will include: Bernie Kerik, former NYPD Police Commissioner; Steve Perillo, president & owner of Perillo Tours; Ace Watanasuparp, national director of strategic sales at Citizens Bank Home Mortgage Division & founder of Chase Restaurant Group; Jason Greene, vice president of Magniflood INC; and Melanie Landano, founder & owner of Mel’s Butcher Box.

 

TALKERS News Notes. New York City Audacy radio stations are airing the podcast episodes hosted by WCBS-FM personality Patty Steele for which she won a 2022 Gracie Award in the category National Podcast – Lifestyle Limited Series. The program is titled “The Deep 6” and the episodes that will be aired on April 24 at 6:00 am consist of her interview with her 26-year-old son Jake about his heroin addiction and his journey to recovery. Steele, a mother of three,  reveals her struggle through the ordeal that simultaneously occurred with her breast cancer diagnosis. With five years of sobriety under his belt, Jake and his mom decided it was time to make their story public with the hope of helping others. Steele comments, “It’s important that we take the stigma away from addiction issues and talk openly about what is truly affecting our children. I’m so grateful that Jake and I are in such a good place that we’re able to share our journey.” WINS director of news and programming Ben Mevorach states, “Patty’s conversation with her son is heartbreaking, inspiring, life-affirming, and compelling. It is one of the most important podcasts to come along in a very long time. What makes it so powerful is its authenticity. You can feel the pain and unrelenting love for her son on this very personal journey. Patty is brave beyond words to share and explore all that has happened and because her story could be any parent’s story, every parent will find a part of themselves in it.”…..Pictured at left is Salem Radio Network talk radio host Mike Gallager(left) with 16-time WWE World Champion wrestler Ric “The Nature Boy” Flair (right). Gallagher bumped into Flair while taking his first “maskless” flight since the pandemic began in 2020…..Audacy is conducting 45 volunteer events nationwide to celebrate Earth Day as part of its 1Day1Thing Sustainability Initiative. The series of events, which will engage employees across the company, aim to make a positive impact on the communities in which the company serves and the planet. Projects including tree planting, park and waterway cleanups, recycling projects and habitat restoration, among others. Audacy director of sustainability Jaimie Field says, “We pride ourselves on our relentless commitment to supporting the health and success of the communities that are at the heart of our business, and we’re thrilled to unite our teams across the country to do some good for our planet. Sustainability is a focal point of our Audacy Serves initiative, and we’re looking forward to leveraging these actions this Earth Day to make a lasting impact on our environment, both today and for generations to come.”…..Good Karma Brands president Steve Politziner has been inducted into the 45th class of the Palm Beach County Sports Hall of Fame. Each year, the Palm Beach County Sports Commission recognizes an elite group of individuals who have made major impacts to the Palm Beach County sports landscape. By bringing ESPN to the market through the power of radio, TV and events, he helped shape Palm Beach County’s sports identity, created a home for sports fans and has provided coverage to the great sports stories, teams and athletes that make up the community.

 

Russia-Ukraine War, Netflix Crash/Financial Markets/Inflation, Midterms/Trump & the GOP, DeSantis vs Disney, College Debt Forgiveness, COVID-19, Macron-Le Pen Race, and Arizona Wildfire Among Top News/Talk Stories Yesterday (4/20). Russia’s ongoing invasion of Ukraine and its ICBM test and threat of nuclear weapons use; the crash of Netflix’s stock, its effect on the financial markets and the broader issue of high gas and food prices; the battle for control of Congress in the November midterm elections and Donald Trump’s influence over the GOP; Florida Governor Ron DeSantis pushes legislation to strip Disney of its decades-old special district benefit; the Biden administration’s move to provide 50,000 students with college debt forgiveness; the ruling that cancels the air travel mask mandate and the BA.2 variant; the tight race between Emmanuel Macron and Marine Le Pen for president of France; and the raging Arizona wildfire were some of the most-talked-about stories on news/talk radio yesterday, according to ongoing research from TALKERS magazine.