Can Citadel Broadcasting survive?

[David Tomm]

The major market stations Citadel acquired from ABC/Disney are the  
ones that are the least profitable.  Many of the people let go are  
longtime employees with larger salaries.  Those are cuts Citadel made  
in their smaller markets long ago.  Besides, local business isn't  
down as badly as national, so smaller markets aren't in as bad of  
shape as the majors are.  Some stations like WPLJ, WLS and WJZW in DC  
have languished with mediocre to poor ratings for quite some time.   
Why Citadel didn't make more changes right after they bought these  
properties is beyond me.  They're long overdue.

If the red ink continues, they'll make cuts in the smaller markets as  
well, although there really isn't much left to cut.  Look at Citadel/ 
Worcester.  WXLO has live talent throughout most dayparts, but that  
station is their cash cow, and the jocks probably don't make all that  
much.  WWFX is automated outside of mornings and they just hired a  
new morning guy who probably isn't costing them a lot.  WORC-FM is  
automated as well.  I'm sure they have a bare bones support staff by  
now and a small sales staff.  Cutting a couple of small market  
salaries isn't going to help Citadel's bottom line.

Providence could feel some pain.  They've got Buddy Cianci on WPRO  
and he hasn't moved the ratings needle all that much since he got  
there.  I'm sure he's not working cheap.  You have several staffers  
at 790/99.7 the Score, which gets trounced in the ratings by the WEEI  
simulcast on 103.7.  You have morning guy Giovanni at PRO-FM who has  
been with the station for over 30 years along with longtime PD Tony  
Bristol.  Both of those guys must be making toward the top of the  
scale for that market.  Even WWLI has several longtimers on their  
staff.  That cluster could get whacked pretty badly.

-Dave Tomm
"Mike Thomas"


On Mar 1, 2008, at 12:07 PM, kvahey@comcast.net wrote:

> Citadel is in big trouble. Their stock is down to $1.03 this morning
> and yesterday they virtually eliminated the newsroom at WLS Chicago
> and fired John Gambling at WABC. Revenue at WPLJ is reported to be
> down 50% from a year ago.
>
> The morning show at WLS is rumored to be the next to go at it appears
> WLS will be forced to carry Imus who never did well in Chicago.
>
> If they are making these kind of drastic cuts at the top it doesn't
> bode well for their clusters in smaller markets.
>
> I guess in retrospect Disney saw it coming and bailed out.