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Message: [QUOTE="J187Money, post: 5065481, member: 718"] An LMA is an agreement where someone "rents" the signal from the broadcaster. As an example - ESPN Radio generally doesn't "own" radio stations (they might not own any) but operate under LMA agreements. ESPN was paying 98.7FM (which is owned by Emmis) under an LMA for 12 years - which just expired. Given what they were paying for it - since they signed it 12 years ago when radio was in better shape - it was probably pretty expensive. In the arrangement, the broadcaster still has expenses - FCC license, costs to run the stick, etc - but all revenue and talent / operating expenses accrue to the renter (ESPN). So if you are 880 - you get ad revenue but you are paying talent/programming/salespeople/operating expenses. Let's just say that 880 made $5M net a year. If you can lease the station to ESPN and make more than $5M a year net - the math works, and you don't have to do all of the "brain damage" associated with running a station. As to the particulars of the Audacy deal - because they went bankrupt, the debt holders take over the equity. That's complicated enough in most bankruptcy situations, but in broadcasting you also have to deal with FCC approval, because the debt holders need to be "approved" as owners of the equity. Soros bought a lead position in the debt stack during bankruptcy so they are the lead equity holder upon emergence. But they can't take over the board / make real operating decisions until the FCC approval happens. [/QUOTE]

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