The Two "Air America" Explanations

One is the one Drudge is parroting from the rumor section of "All Access," a radio website - that AAR's check bounced for both the Chicago and L.A. outlets (both owned by the same company, MultiCultural Radio Broadcasting) and was replaced by their old format, Spanish-language religion. A Chicago Trib story states:

Arthur Liu, owner of Multicultural Radio Broadcasting, which owns Air America affiliates WNTD-950 AM in Chicago and KBLA-1580 AM in Los Angeles, said Air America bounced a check and owes him more than $1 million.

"They bounced a check today," Liu said. "It's a default. They have paid only a very small portion of what they owe us." Liu declined to say how much Multicultural is owed, but did say he is holding $1 million in checks that Air America has asked the company not to cash.

"They've been saying, 'We're going to get you the money' for the past two months," Liu said, referring to a security deposit that he said Air America was supposed to have prepaid in advance of its launch. "They're not honoring our agreement."

"That is an outright lie," said Evan Cohen, Air America's chairman, in a statement. "Multicultural Radio Broadcasting's conduct in this matter has been disgraceful.... [I]t is a clear violation of their contractual obligations."

A Chicago source familiar with the situation said a Multicultural representative showed up at WNTD's offices this morning, kicked out Air America's lone staffer overseeing the network's feed to the station from New York, switched over to a Spanish-language feed, and changed the locks on the doors.

Liu said the same thing happened at KBLA in Los Angeles.

The other side of the story comes first from Blah3 and Take Back The Media's Stranger who left us this comment:

Randi [Rhodes] had [AAR President] Jon Sinton on to explain.

Seems the guy who owns the two stations in question was accepting payment from both AA and the broadcaster they replaced.

They are going to court today to get a temporary injunction.

Turns out this guy is a Repub contributor, who gave money to Rick Lazio against Mrs. Clinton. Imagine that.

AAR's got this post at their website:

Statement Regarding WNTD in Chicago and KBLA in Los Angeles

Statement of Evan Cohen, Chairman of Air America Radio:

"Air America Radio is temporarily unable to be heard on WNTD in Chicago and KBLA in Los Angeles, but Chicago and Los Angeles listeners can still hear our broadcast on the web at airamericaradio.com and on XM Satellite Radio (channel 167).

"MultiCultural Radio Broadcasting's conduct in this matter has been disgraceful. To shut off a broadcast that listeners rely on without warning and in the middle of discussions is the height of irresponsibility and a slap in the face of the media industry. In addition, it is a clear violation of their contractual obligations, and we are seeking legal remedies against them in court."

Looks like AAR got screwed by the "liberal elite media" owned by none other than greedy right wing wackos.

As Stranger said - Imagine that.

Let's cut to the chase. It's hard - nay, impossible to believe that a radio network with such decent financial backing and low overhead is belly-up after just two weeks.

Secondly, they're still broadcasting in their other markets and the network is still alive and well. If there was no money, it'd be shut down. Period. That's one of the 3 or 4 immutable rules of radio (another is "Any job that lasts longer than 1.5 years is a fluke").

Also, at least in the case of KBLA, the network public service announcements were finally gone, and the station was robust with local advertisers - advertisers who spend real coin on L.A.'s other high-profile outlets like KIIS-FM, KFI, KABC, KNX to name a few. Sponsors like the Sit 'N' Sleep chain, Dodge, Nextel, Mike Diamond, Auto Insurance Specialists and Saddleback Eye Centers - while I'm certain they got great deals as charter advertisers - were heard extensively on KBLA. So someone was doing their job in KBLA's sales department.

Finally, the problem is obviously with this one broadcaster, who apparently wants to have it all ways. If he has checks from AAR, and is strapped for cash, why didn't he just - y'know, DEPOSIT THEM?

Why? Because religious concerns pay premium prices for radio airtime, that's why. When the day was over, he weighed the cash bags and they tilted toward Spanish-language religion. That's why he sat on AAR's checks.

Could Arthur Liu be so naive as to not deposit checks because "they asked the company not to cash" them? What is this, some used car transaction between two hillbillies? Hell, no. It's Liu trying to make as much money as he can by not honoring contracts.

If you're not convinced, check out the AP stories coming out right now. Liu is suddenly incommunicado.

Your witness. You may question him at info@mrbi.net.