Wrong. They didn't spend all of that money "for nothing." During the time the LMA fees were paid, Cumulus received advertising revenue from WLUP and WKQX.
Now, whether or not the Broadcast Cash Flow from WKQX and WLUP was enough to fully cover the LMA payments - I don't know for sure. However, $20 million in payments over 3.5+ years for two stations in market #3 is NOT that much money. This works out to roughly $3 million in payments, per year, per station.
Where I will partially agree with you is this: if indeed Merlin retains ownership of both WLUP and WKQX, they ought to be able to sell both stations for an aggregate price that exceeds the $50 million that Cumulus allegedly owes them.
I would be curious to know if the Put and Call Agreement contained automatic termination language in the event of Bankruptcy for the buyer (i.e. Cumulus).
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