Big-Fish Radio Capital Shaky in 2017

The second fiscal quarter’s come and gone, so it’s worth reviewing how the first half of the year’s played out for radio’s big-fish investment-games:

Clear Channel iHeartMedia: The #1 radio conglomerate in the country just extended its long-term debt refinancing offer to reluctant bondholders for the twelfth time. While going through those motions a key coalition of creditors — who hold more than 10% of iHeart’s $20+ billion debt – have been mulling over the implications of tipping the company into Chapter 11 bankruptcy.

Apparently, they’ve devised a plan by which if they’re given 49% of the company’s equity and more favorable debt-repayment terms, they’ll keep the debt-refinance shuffle going. After missing a full payment in 2016 the company ponied up on schedule this summer toward debt due in 2021. More than $8 billion comes due in 2019. Read More

Paper Tiger Apes Big Bad Wolf

The FCC’s taking a cue from the Three Little Pigs, huffing and puffing about the work it’s doing to combat the “problem” of pirate radio. Just in time for the National Association of Broadcasters’ annual Radio Show in Austin, the FCC’s gone on an enforcement spree of sorts over the last month or two.

With 158 enforcement actions on the books at the end of August, the agency is now on pace to meet or exceed the number of actions it took against unlicensed stations in 2016. For the eight years we’ve experienced of this decade so far, 2017’s enforcement-trajectory seems on target to rank as third or fourth-busiest.

States visited by the FCC hunting radio pirates, 2017Field agents have traveled far beyond the most popularly-recognized East Coast “hotspots” this summer. Arkansas gets on the board for the first time in the history of our Enforcement Action Database, while the closure of the Seattle FCC field office made it San Francisco and Los Angeles-based agents’ responsibility to visit Alaska in pursuit of a Baptist church – the first time since 2013 that the FCC’s made waves there. (Alaska is the 36th most active U.S. state/territory for pirate radio, just behind FCC Chairman Ajit Pai’s home state of Kansas.) Read More

FCC and Pirates: Going Through the Motions Faster

Signifying what the industry trades call a “crackdown” and added “pressure” on unlicensed broadcasters, the FCC’s Enforcment Bureau has stepped up its issuance of warning-letters, primarily to pirate stations in New York and New Jersey. Of the 94 enforcement actions against unlicensed broadcasters this year, 52 of them have taken place in these two states. Enforcement activity also includes two Notices of Apparent Liability and seven Forfeiture Orders, for cases that originated in 2015-16. Overall, however, the pace of enforcement actions is running behind the totals of a year ago.

This is not necessarily an expansion of enforcement duties. NYC-based field agents especially are now doing what they call “follow-up investigations” – in a nutshell, agents now re-visit unlicensed stations they’ve already contacted. If they are still on the air, they issue yet another warning letter to the operator (or, in the case of one New Jersey-based pirate, to the owner of the property where the station is housed, who was not in on the first-round contact). “Follow-up investigations” typically occur within 1-3 months of initial contact with the offending station. But if stations aren’t fazed by the first FCC nastygram they get, what are the odds the second one will change their ways? Read More

Now They Tell Us: FCC, Congress Rethinking Enforcement Drawdown?

Radio World revealed earlier this month that the acting chief of the Enforcement Bureau, Michael Carowitz, held a videoconference with members of the Bureau’s field-agent staff. The call revealed that the FCC’s downsizing of its enforcement resources has begun, with 11 field offices closed over the last several months (Anchorage, AK; Buffalo, NY; Detroit, MI; Houston, TX; Kansas City, MO; Norfolk, VA; Philadelphia, PA; San Diego, CA; Seattle, WA; Tampa, FL; and San Juan, PR) and 14 remaining open.

At present, that leaves just 34 field agents covering the entire country – this includes one of two roving “Tiger Teams” of agents organized to backstop the decimated staff in-residence. That’s almost a cut of half from the prior force of 60 that spanned the nation. It’s also important to keep in mind that these agents are responsible for enforcing all FCC regulations, not just the broadcast license requirement. Read More

FCC Anti-Pirate Enforcement in 2016: Symbolic Inflationism Ahoy


A surprising uptick in the Enforcement Action Database for 2016: 201 total actions were logged last year, which is up from the prior two years. Furthermore, the frequency of threats of fines and actual fines against unlicensed broadcasters also rose: 9 NALs issued for a total of $155,000, and 5 forfeitures handed out for a total of $65,000. We haven’t seen numbers this large since 2014.

It gives some statistical credence to recently-former FCC Chair Tom Wheeler’s assertion that, despite the agency’s admittance that its license-enforcement protocol is effectively broken, it hasn’t ceded the field entirely. Unfortunately, statistics can be fudged, and the FCC’s done that well in the last year. Read More