Radio+Television Business Report

By Rob Dumke

U.S. House Energy and Commerce Committee Republican Leader Cathy McMorris Rodgers (Wash.) and Communications and Technology Subcommittee Republican Leader Bob Latta (Ohio) have just paid a trip to the White House.

Why? To talk about the “American Broadband Act” — a topic broadcasting executives may wish to pay more attention to, given the rapid growth of streaming audio and Connected TV/OTT platforms.

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By Rob Dumke

A Class D AM radio station licensed to serve a city just west of State College, Pa., is being sold.

The seller? A licensee that in January 2020 purchased this property. He’s now selling it for a slight loss.

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By Rob Dumke and Adam R Jacobson

On February 17, the world lost Rush Limbaugh. It took more than three months for iHeartMedia-owned Premiere Networks to announce the eventual successor offering to The Rush Limbaugh Show, and that won’t arrive for more than three weeks.

For some non-iHeartRadio affiliates, including those owned by Cox Media Group, sticking with programs built around archived audio clips of the late Limbaugh wasn’t something they desired. This led to CMG-owned WOKV-FM in Jacksonville moving market veteran Mark Kaye to Limbaugh’s old slot.

Now, CMG has made a move at its flagship News/Talk property in Atlanta that can be replicated at other stations across the U.S., should it wish to defect from Premiere.

Erick Erickson, the midday host at WSB-FM 95.5 in Atlanta, is heading into national syndication.

And, it will be ready 20 days before the debut of The Clay Travis & Buck Sexton Show, the heir to Limbaugh’s talk radio throne.

The Erick Erickson Show will take the Noon-3pm Eastern slot, starting June 1.

Erickson has already been self-syndicating across Georgia.

“We’re excited to announce this partnership,” said CMG SVP of Radio Rob Babin. “Erick has performed successfully for many years on 95.5 WSB Radio, and no doubt, he’ll make an impact as the Erick Erickson show expands.”

Erickson added, “I’ve been working towards this for a very long time, and I appreciate my long relationship with CMG. We look forward to continued success at 95.5 WSB and many new affiliates across the country.”

By Rob Dumke and Adam R Jacobson

It was offered as an exclusive to The Wall Street Journal early Thursday (5/27).

And, iHeartMedia-owned Premiere Networks confirmed all of the information in the story as true — ahead of an official announcement scheduled for release at 3pm Eastern.

That’s now happened, allowing all who cover the media industry to say for themselves that a successor offering to the deceased Rush Limbaugh‘s syndicated Talk radio program has been finalized.

Taking on the noon-3pm time slot that is presently the home of freshly produced episodes of The Rush Limbaugh Show that rely on archived commentary to reflect today’s headlines are Clay Travis and Buck Sexton.

“We couldn’t be happier to have Clay and Buck — two incredibly talented personalities from our Premiere family — at the helm of this new program,” said Julie Talbott, President of Premiere Networks. “Rush Limbaugh is irreplaceable, but we’re confident they will continue his legacy by delivering their own brand of intelligent, informed and entertaining talk radio, while providing our partners with a powerful platform to connect with their consumers.”

In an interview with WSJ, Talbott insisted that Travis and Sexton are not replacing Limbaugh. Rather, their arrival is “an evolution of the show with fresh voices—those that grew up on Rush an admired him.”

Travis is 42 and is a lawyer, TV analyst and sports journalist. He is the founder of the sports website Outkick.com and has been hosting Outkick the Coverage with Clay Travis and Wins & Losses With Clay Travis on Premiere-distributed Fox Sports Radio.

He will be paired with Sexton, who is 39 years old and a former CIA offer and a New York City Police Department Counter-terrorism expert. More importantly, he is the host of The Buck Sexton Show on Premiere Networks and was a frequent guest host on Limbaugh’s program.

Sexton currently holds the 6pm hour on iHeartMedia’s Talk WOR-AM 710 in New York.

This will change on June 21, when The Clay Travis & Buck Sexton Show debuts. Interestingly, the Fox Sports host gets top billing over the Talk host.

“I’ve loved spending the past six years building ‘Outkick The Coverage’ into one of the most-listened-to sports talk shows in the country, but I couldn’t resist the opportunity to join Buck Sexton as we launch this new program in the most coveted timeslot in the talk format,” Travis said. “While no one will ever replace Rush Limbaugh, Buck and I are excited to continue advancing the causes he held dear, most importantly American exceptionalism, a fervent
embrace of capitalism, and a belief in a robust marketplace of ideas. At a time of rabid cancel culture and toxic identity politics, we will be the voice for many who feel scared to say what they
think for fear of the censorious online mob. We can’t wait to get started.”

Sexton added, “I could not be more thrilled – and am deeply humbled – by the opportunity to host this new program with my co-host. We think it’s important to carry on the
tradition of Rush Limbaugh and bring truth to the masses. One thing I can promise all EIB
listeners out there: we’re with them and we will always fight for them with the show Clay and I do every day.”

By Rob Dumke

Over the Top (OTT) provider Gamut, which is owned by Cox Media Group, has appointed Soo Jin Oh as its President.

For the past eight months, Oh has served as Co-Chief Operating Officer at CMG.

And, she’s been with CMG for four years, during which time Oh has been “a driving force at Gamut,” CMG Executive Chairman Steve Pruett said. “As a passionate and respected visionary, she brings a level of unmatched energy, diligence and entrepreneurial leadership to every role she takes on. She has a proven track record of fortifying organizational capabilities that delivers enhanced revenues and customer value, and I am thrilled that we can, once again, tap internal talent for such a critical leadership position.”

Oh commented, “I am excited to take the helm at Gamut, the leading local OTT company with the best-in-class product and the most talented team in the industry. Since Gamut’s inception, our team has rallied around always doing what’s right by each other and our customers with an unwavering commitment to excellent service and performance.”

On May 17, African American-centric media company and casino owner Urban One entered into an Open Market Sale Agreement with Jefferies LLC.

This opens the door to a Class D share offering, the company tells the SEC.

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Gordon Smith, the outgoing CEO of the National Association of Broadcasters, is the recipient of the 2021 Lifetime Leadership Award.

The formal presentation of the honor to the former Republican U.S. Senator from Oregon is set for Radio’s Financial Summit: Forecast 2022, scheduled for November 16 at the Harvard Club in New York.

The announcement was made by Deborah Parenti, EVP/Publisher of Radio + Television Business Report.

“No one could be more deserving of this recognition than Gordon Smith,” Parenti said. “His advocacy and statesmanship over the past twelve years have won many admirers throughout the industry as well as on the Beltway. He has charted a course that will continue to positively impact the industry for years to come.”

Smith joined the NAB as its President/CEO in November 2009. Under his leadership, NAB saw its New York show grow as the Radio Show evolved to a co-production with the Radio Advertising Bureau (RAB).

Aside from his time on Capitol Hill, Smith served as a senior advisor in the Washington offices of Covington & Burling LLP.

His successor is the NAB’s Chief Operating Officer, Curtis LeGeyt. He will take over on Jan. 1, 2022. Smith will transition to a 36-month advisory and advocacy role at the end of 2021, as previously reported.

Smith joins a list of previous honorees that includes Ralph Guild, Lowry Mays, Gary Fries, Eddie Fritts, Bill Burton, Dan Mason, Peter Smyth, Cathy Hughes, Bruce Reese, Dick Clark, Frances Preston, George Beasley, and Jeff Smulyan.

More information and registration for “Forecast 2022” can be found Here.

Acting FCC Chairwoman Jessica Rosenworcel has outlined the agenda for the agency’s June 17 Open Commission Meeting.

While radio and TV broadcasting leaders have had little of late to be mindful of, there is a matter involving low-power radio stations that may be worthy of your attention.

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In mid-March, a Dallas-based entertainment and e-sports company founded in 2007 snagged a multimillion-dollar investment from one of broadcast television’s biggest owner groups, Gray Television.

In this InFOCUS Podcast, that company’s CEO, Adam Rymer, answers key questions many including our editor-in-chief has, about eSports and its future, in particular for those on Wall Street seeking a real revenue driver for an industry seeking ways to combat declining traditional ad revenues.

It’s all here, in this fresh audio offering presented by dot.FM.

Listen to “The InFOCUS Podcast: Adam Rymer, Envy Gaming” on Spreaker.

Global pay TV revenues for 138 countries have been placed under the microscope by Research and Markets, a British market intelligence shop.

What does their findings show, with respect to growth trends? On a worldwide level, revenue increases stopped five years ago.

While that’s distressing enough, the dip comes as the number of pay TV subscribers rose by 15 million during the same period.

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The audio media company led by President/CEO Mary Berner on Wednesday (5/26) initiated actions designed to pay down $175 million of debt.

And, it is doing so by using cash on hand.

First, on May 17, Cumulus completed a $60 million repayment of its ABL Revolver due 2025, which represented the entirety of the amount outstanding under the facility.

Following the paydown, the ABL Revolver due 2025 is undrawn and available as liquidity for general corporate purposes.

Importantly, Cumulus was required by the terms of its debt agreements to make mandatory debt prepayments from the proceeds of its 2020 land sale in Bethesda, Md., once home to the broadcast towers of the old WMAL-AM 630, now an ESPN Radio affiliate under different call letters.

Then, on Tuesday (5/25), Cumulus moved forward with paying down approximately $89 million of its Term Loan Credit Facility due 2026 related to what Cumulus is calling a mandatory prepayment obligation.

Approximately $65 million of the prepayment is related to the Land Sale, and approximately $23 million of the prepayment is related to the Tower Sale.

Additionally, pursuant to the terms of its 6.75% Senior Secured First Lien Notes due 2026, Cumulus launched a tender offer for the Notes at par for approximately $26 million, which represents the pro rata amount required to be offered from the proceeds of the tower sale.

Following the expiration of the tender offer, any amounts that remain untendered will be directed toward an additional prepayment of the Term Loan.

In a statement, Berner noted that the continuing improvement in economic and public health conditions has created a backdrop where Cumulus can accelerate debt repayments, which will more rapidly de-lever the balance sheet and reduce interest expense, further increasing Cumulus’ cash flow.

She added that since Cumulus’ 2018 emergence from voluntary Chapter 11 bankruptcy reorganization, the company has reduced its net debt by nearly $600 million.

“Looking ahead, our better leverage profile and more than $200 million of available liquidity will provide us meaningful financial flexibility as we continue along our strong rebound trajectory,” Berner said.

Radio and Television license applications are due Tuesday (6/1) for stations located in several states.

What are the other highly important deadlines you should take note of between now and the end of August? Fletcher Heald & Hildreth put together a handy checklist that’s worth sharing with your leadership team.

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When it comes to broadcast media companies, political advertising revenue is a huge boost to the bottom line.

That said, the FCC has a bottom line when it comes to the purchase of radio broadcast time made by a legally qualified candidate for office, or by a Political Action Committee.

Section 315(e)(3) of the Commission’s Rules says that a radio station must maintain a file, publicly accessible upon request, and upload any and all information about these requests to view a political file, “as soon as possible.”

The Commission considers this act critical. But, a Colorado radio station owner didn’t abide by these rules. To settle the matter, a Consent Decree has been reached between the licensee and the FCC.

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A pair of low-powered digital television stations in the Sunshine State — one due east of Panama City and the other to the northwest of this one-time Spring Break capital — have each been warned by the FCC that they could face a financial penalty for failing to file their license renewal applications in a timely manner.

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Nexstar Media Group has selected a woman who is now charged with leading the company’s efforts to expand diversity in hiring, promotion, and retention.

It’s an individual who presently serves as VP of Human Resources at the nation’s No. 1 owner of broadcast TV stations.

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There’s a new Market President for the iHeartMedia stations serving the Minneapolis-St. Paul market.

Taking the post is Greg Alexander, who is being promoted.

Alexander has served as SVP/Sales for the Western Great Lakes Region, after being appointed SVP/Sales for the iHeart Twin Cities stations in 2012. In his most recent role, he directed sales efforts at iHeartRadio stations in Minneapolis-St. Paul and Rochester, Minn.; and Milwaukee, Madison and Eau Claire, Wisc.

As Market President, Alexander will be responsible for overseeing programming, advertising and operations across iHeartMedia/Minneapolis stations. He reports to Scott Hopeck, Division President for iHeartMedia.

“Greg’s extensive experience qualified him for this role, but more importantly his team lifted him into it, which is a testament to his leadership,” Hopeck said. “I’m confident that Greg and his team will lead our Minneapolis operation to new heights.”

Alexander began his career with Interep National Radio Sales, and then moved into a leadership role in South Florida at Spanish Broadcasting System (SBS). He joined iHeart in its Miami-Fort Lauderdale station group, rising from Director of National Sales to GSM before relocating to Minneapolis.

“This is an incredible opportunity to work with some of the country’s best brands and the
industry’s brightest minds,” Alexander said. “I look forward to collaborating with the
programming, advertising, and operations teams while helping elevate the Minneapolis market.”

Salem Media Group Executive Vice President and Chief Financial Officer Evan Masyr sat down with Noble Capital Markets Senior Research Analyst Michael Kupinski for an in-depth chat about the trajectory of the broadcast media company — and the discussion is now available for all to hear.

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Sinclair Broadcast Group has confirmed the planned retirement of Barry Faber, President of Distribution and Network Relations, effective June 25.

During his 25 years at Sinclair, Faber helped Sinclair grow into one of the largest and most diversified broadcasters in the country.

During his years as General Counsel, Mr. Faber guided the company through a multitude of acquisitions, including more than 150 broadcast stations and Tennis Channel. He has served as Sinclair’s President of Distribution and Network Relations since April 2019.

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Domestic ad spend for the pharmaceutical and healthcare category is forecast to be $11.1 billion this year, WARC notes.

What does this mean for brands, consumers and the healthcare system?

The research firm took a look.

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The E.W. Scripps Company has promoted the Director of Sales for its NBC affiliate serving Colorado Springs to the role of VP/GM.

Earning the promotion at KOAA-5 after 5 years in the shadow on Pikes Peak is Ross White.

“Ross has a wealth of experience in the local media industry and is a proven leader who has led his sales team to great success,” said Brian Lawlor, Scripps’ President of Local Media. “His knowledge of the news business, the market and the station, along with his commitment to the community, make him the ideal candidate to be the next leader in Colorado Springs for Scripps.”

Prior to joining KOAA, White served as GSM at WMC in Memphis. He began his career at KVII in Amarillo, Tex., as a news photographer, and then as Creative Services Director. He later moved to the sales department at KVII as an account executive and was promoted into several sales leadership positions, including Director of Sales.

“In my time as KOAA director of sales, we have focused on bringing the Scripps mission, ‘We do well by doing good,’ into all aspects of our operation,” White said. “As general manager, I look forward to furthering that mission in the community I call home through a continuing commitment to quality local journalism.”