ThinkProgress: Air America To Declare Bankruptcy

[FightingIrish]

Air America Radio will announce a major restructuring on Friday, which is expected to include a bankruptcy filing, three independent sources have told ThinkProgress.

Air America could remain on the air under the deal, but significant personnel changes are already in the works. Sources say five Air America employees were laid off yesterday and were told there would be no severance without capital infusion or bankruptcy. Also, Air America has ended its relationship with host Jerry Springer.

(snip)

Radio giant Clear Channel is so committed to progressive talk radio that, this week, it will announce a partnership with the Center for American Progress, Jones Radio, and MSS Inc., to conduct a nationwide search for the next Progressive Talk Radio Star.

http://thinkprogress.org/2006/09/13/air-america-bankruptcy/

Now, this does not mean AAR is kaput. Many companies have gone through bankruptcy or restructured (just look at the airline industry). My prediction is AAR will be sold eventually. If I were to gamble on this, I'd put a wager on Jones or Randy Michaels. So Brian Baloney can put away the vasoline for now. They ain't dead.

It should be noted that Thinkprogress.org is part of the Center for American Progress, but I doubt they'd put out wrong info about AAR. They need AAR as much as AAR needs other talkers. And Jones does have a lot at stake in AAR, as they handle AAR's ad sales.

[Phillip Dampier]

Evidently another major reason for this includes the voiding of their existing talent contracts, which I suppose partially explains how they can renew Malloy and then get rid of him and also jettison Jerry Springer.

In another development, the lawyers at AAR are sending cease and desist letters to some of the private show archivists who have been maintaining free audio archives of shows like Randi Rhodes since before there was an Air America.  Apparently the people that will always get paid no matter what are the lawyers.  Most of the archivists are going to quietly move their efforts to torrent and newsgroup distribution, so the only thing that changes is a web page in the end.

I am not certain about the selling of the whole venture, but it would be interesting to see how things change structurally, especially at the top.

[raccoonradio]

can't get link to work--maybe overloaded by high demand. Radio Equalizer does talk about it though

http://radioequalizer.blogspot.com/

[RBA]

Smart move.  They can write off all their startup costs.  Maybe jettison Al Franken (I like him, but he's can't fill 3 hours).   This is a business decision and a smart one.  Just like any other industry nowadays.

[evnlee]

Evidently another major reason for this includes the voiding of their existing talent contracts, which I suppose partially explains how they can renew Malloy and then get rid of him and also jettison Jerry Springer.

does this affect the contracts that Franken and Rhodes got recently, or only Springer and Malloy?

I love this quote, though:

"In fact, Air America succeeded at creating something that didn’t exist: the progressive talk radio format. That format is now established and strong and will continue with or without Air America. Indeed, many of the country’s most successful and widely-syndicated progressive talk hosts — Ed Schultz and Stephanie Miller, for instance — aren’t even associated with Air America."

Boy, talk about 'spin'. As if 'Airhead America' is responsible for creating the 'progressive(liberal) talk format' that employed talent like Malloy who was broadcasting in Atlanta in 1997

Now, I suppose it's time for the usual suspects to come in and tell everyone how AAR declaring bankruptcy is somehow a positive development, then say a couple nasty personal remarks about anyone who can see the naked emperor and tell him 'your network stinks'.

Dang. If they had only sold more 'premium memberships' maybe they wouldn't have to go bankrupt.

[Johnny Morgan]

Apparently the people that will always get paid no matter what are the lawyers.

In a bankruptcy, only one class of persons has an interest higher than that of a secured creditor--the debtor's attorney.  He is paid first out of the estate the reasonable sum of his services, and then the remainder may pay the creditors--both secured and unsecured.

One reason why a bankruptcy lawyer's retainer or base fee, which would otherwise be an avoidable preference under the bankruptcy laws because it was extraordinary within 90 days of filing, is excluded.

Haha...SUCKERS!!!   

[fred flintstone]

Boy, talk about 'spin'. As if 'Airhead America' is responsible for creating the 'progressive(liberal) talk format' that employed talent like Malloy who was broadcasting in Atlanta in 1997

In all fairness, AAR does deserve credit for creating the progressive talk format.
Excluding the short-lived UAW network, which hardly anyone heard or heard of, there was no such thing as a progressive talk (or liberal talk, for those who prefer) format before AAR launched.
There were some liberal hosts (going back to Michael Jackson on KNX in the early 60s).  When Rush started on WABC, he was sandwiched between two liberals (Lynn Samuels, now on Sirius, and Joy Behar, now on The View). 
Mostly, liberal talkers on the same station with conservative talkers did not do well and many in the industry concluded that liberal talk shows would not get an audience.
AAR, to their credit, realized that progressive talk is a distinct format.  Music radio learned in the late 50s and early 60s that it does not work to mix music styles on a station schedule; AAR realized it does not work to mix talk styles either.

I suspect at some point AAR will not continue as an independent entity (although some shows will - just as Democracy Radio's two shows continue); but the concept of the progressive talk format will be its legacy.

I'm glad someone saw this item someplace other than Radio Equalizer and posted THAT first; otherwise, we'd just be arguing about how Maloney hates AAR and you can't believe anything he says.

[fred flintstone]

OK, here's what Maloney is saying (based on his "own sources").

• AAR is broke and up for sale.
• AAR has two potential buyers but a deal is stalled by some AAR board members who want to "hand" the network back to Sheldon Drobny.  Maloney does not say whether "hand" means give or sell.
• If Drobny takes control of AAR, Maloney says he plans to bring back departed COO Carl Ginsberg.
• AAR does not have the cash to pay their AP bill.
• Maloney claims AAR's financial condition activates a clause in Al Franken'scontract that lets him leave.
• Maloney speculates this story was leaked to Think Progress to allow AAR to develop "spin."  Funny, when someone wants to develop spin, they generally keep a story under wraps until the spin is developed.
• Finally, Maloney blasts blogging cohort Matt Drudge because, Maloney says, Drudge doesn't blast AAR enough.

[evnlee]

Boy, talk about 'spin'. As if 'Airhead America' is responsible for creating the 'progressive(liberal) talk format' that employed talent like Malloy who was broadcasting in Atlanta in 1997

In all fairness, AAR does deserve credit for creating the progressive talk format.
Excluding the short-lived UAW network, which hardly anyone heard or heard of, there was no such thing as a progressive talk (or liberal talk, for those who prefer) format before AAR launched.
There were some liberal hosts (going back to Michael Jackson on KNX in the early 60s).  When Rush started on WABC, he was sandwiched between two liberals (Lynn Samuels, now on Sirius, and Joy Behar, now on The View). 

How does AAR get credit for creating a 'format'?

Rush created a talk 'format', and changed radio. Stern did the same with 'shockjock' radio.

AAR took an existing format and parroted it. They didn't do anything 'new', they just took what was out there and copied it ( poorly).

There were liberal ( progressives, whatever ) hosts and liberal stations before AAR came into being, but IMHO, you create a 'format' when your the first one doing it.

It's all semantics, but I think it's pretty funny.

Hopefully this bodes well for Miller. She's the best of the bunch. I think she understands it's about 'entertainment' and 'selling stuff'. Too many of the maudlin 'talent' AAR used didn't get it.

[bigtalkradiofan]

Excluding the short-lived UAW network, which hardly anyone heard or heard of, there was no such thing as a progressive talk (or liberal talk, for those who prefer) format before AAR launched.

I'm old enough to remember listening to i.e. America on the internet. 

Peter Werbe & Mike Malloy were hosts (although I thought Malloy was far more listenable back then, than he is now - no wants to listen to 3 hours of someone shouting and yelling in your ear the whole time (even if you ideologically agree with them) - he needs to go back and re-learn how to express anger and dismay on radio, without resorting to shouting and yelling).