RBR+TVBR Fall 2019 Special Report

CONTENTS

16 CBD: A ‘Crazy Big Deal’ For Radio?

CBD is cannabidiol, as in cannabis oil. And it’s one of the most askedabout topics by radio industry leaders who have spoken in recent weeks to Wiley Rein attorney Ari Meltzer. Here’s what you need to know today on tomorrow’s hottest potential revenue generator.

17 Folly Or Futurist?

An AM radio station in Frederick, Md., that some thought was nothing more than a play toy for Hubbard Broadcasting Senior Broadcast Engineer Dave Kolesar may actually be one of the keys to the ultimate survival of kHz-band stations in North America.

19 The Deal Flow: Deregulation, Or Else? Many believe loosening – or eliminating – the local ownership caps for radio will be a boon for radio deals. Others, including iHeartMedia, say no. What’s the take from D.C., and two big communications law firms?

22 A VSiN-ary Opportunity

Former CBS Radio executive Dan Mason is now Chairman of Vegas Stats & Information Network (VSiN). He speaks exclusively with RBR+TVBR on the ways stateby-state legalization of sports gaming could open important new revenue channels for America’s radio broadcasting companies.

Radio + Television Business Report

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America’s Top Brokers and Attorneys

America’s Top Brokers and Attorneys

RBR+TVBR, the publication dedicated to the business of broadcast media, is pleased to introduce an inaugural look at America’s Top Brokers and Attorneys — a reader-generated Honor Roll saluting the individuals shaping the future of broadcast media.

This alphabetical Honor Roll is determined by an RBR+TVBR reader poll and evaluated by the Radio + Television Business Report editorial board to ensure all are qualified and meet our criteria. An overwhelming response was seen, with hundreds of industry leaders and legal professionals sending in their nominations.

This inaugural list salutes the individuals shaping the future of broadcast media. For this first-ever Honor Roll, the list is not ranked, as we wish to honor each nominee equally in 2019.

THE TOP 10 BROKERS

As we review the top brokers in the U.S. as determined by the readers of RBR+TVBR, each broker was asked to answer one question: What is the one thing that is most vital to the future success of the radio broadcasting industry, as you see it? Their responses, where given, appear with their brief biographies below.

MICHAEL J. BERGNER President, Bergner & Co.

Boca Raton, Fla.-based Michael J. Bergner has been providing his deal-making expertise to media since 1987. Formerly a practicing corporate tax attorney, Bergner became a media broker two weeks after the stock market crashed in 1987. In the nearly 32 years since the days of Wall Street and famed film character Gordon Gekko, Bergner has handled more than $1 billion in transactions. These transactions have included radio and TV stations, broadcast towers, print media and digital businesses.

For Bergner, the one thing that is most vital to the future success of the radio industry is “the focus on being local.” He says, “Radio gets great results for local advertisers, as streaming services cannot compete with the local service that radio provides. Developing a strong local sales team will have a big advantage in any economic environment.”

ELLIOT EVERS Managing Director, MVP Capital LLC

If there’s one thing Elliot Evers may have in common with Michael J. Bergner, it is the date he co-founded his media brokerage, today known as MVP Capital: the San Francisco-based firm dates to 1987. Under Evers’ leadership, MVP has managed deal volume in excess of $3.5 billion — including former CBS Radio properties. His most recent engagement is serving as the divestiture trustee for the Cox Media Group/Apollo Global Management radio deal. The firm today has 30 employees spread across five offices.

“What the radio industry needs most now is top-line revenue growth,” says Evers. “Whether this comes from NTR, digital, better pricing due to deregulation and consolidation, or podcasting and other ancillary services, the industry needs to show the investment community forward motion in order to attract fresh capital and boost trading multiples.”

To say he’s a fan of “modernization” of the FCC’s local media ownership rules would be an understatement. “Hopefully, the FCC will adopt the NAB’s deregulatory proposals and rid the industry of antiquated regulations that prevent radio from having a level playing field when competing with other services in the audio marketplace,” Evers says.

BETH GRIFFIN Principal Owner, Griffin Media Partners

From 1990 to 1992, Beth Griffin was an account executive in the Los Angeles headquarters of Radio & Records. She would

later hold sales positions at Billboard and at iHeartMedia-owned Inside Radio. Today, she’s celebrating her 13th year overseeing Griffin Media Brokers — an endeavor she says made her firm a top media broker in the nation based on the number of financial transactions, as determined by SNL Kagan.

Griffin says it’s her first-name-basis knowledge of key decision makers and her knowledge about their companies, combined with her professional people skills, that have made Griffin Media Brokers a successful anomaly in a maledominated industry. In fact, she is the lone solo female nominee among the Top 10 Brokers.

So, what is the one thing that is most vital to the future success of the radio broadcasting industry, as Beth Griffin sees it?

“Keeping radio local — bring back DJs, the only entertainment that is free!”

GREG GUY Managing Partner, Patrick Communications

Before 1999, Greg Guy was a research analyst at the NAB. That knowledge has certainly paid off for Guy, who took the role of Director of Research and Marketing at Patrick Communications. Today, he’s a Managing Partner who has personally brokered over 300 radio and television transactions, valued well in excess of $1 billion, over the past 20 years.

“In an exploding world of audio content options, broadcasters must continue to differentiate themselves to

be successful,” he says when asked what is most vital to radio’s long-term success. “With new companies delivering on-demand music, playlists and long-form audio directly to consumers, radio must adapt to these changes while maintaining the connection with the listeners. For many broadcasters this means continuing to invest heavily in local content. Broadcasters are uniquely positioned to serve as content companies that touch their listeners in a variety of ways, maximizing engagement and expanding revenue opportunities. In an era of increased competition, cost savings are attractive in the short term, but those who are able to invest in differentiating their content are the ones who will thrive going forward.”

BOB HEYMANN Director, Media Services Group

Remember “FM

99, The Quake” — a San Francisco modern rock station of the early 1980s featuring Alex Bennett and Joe Regelski in morning drive? If you do, you know who managed the station still remembered by many in the Bay Area: Bob Heymann.

Today, Heymann serves as a Chicagobased broker for Media Services Group, a role he’s held since 2008. Heymann has bought or sold dozens of radio stations, TV stations and towers for clients of the firm, highlighted by co-brokering the radio portion of the $415 million Gray Television acquisition of Schurz Communications in

2016 and the sale of the Poole Tower Complex at Mt. Wilson in Los Angeles.

Before joining Media Services Group, Heymann spent 24 years in the media brokerage business in Chicago. Some of the deals he was involved in: the $165 million sale of WNIB-FM (now WDRV-FM) in Chicago and the $54 million sale of KOMA-AM & FM in Oklahoma City.

Heymann is also one of the youngest persons in history to be awarded a First Class Radio Telephone Operator License by the FCC, having become interested in broadcasting at the age of 14. When not working, Heymann is an avid golfer and a Chicago Bears fan, and he bleeds Carolina Blue, as he is a graduate of the University of North Carolina at Chapel Hill.

What does he see as the one thing that is most vital to the future success of the radio broadcasting industry?

“Growth of radio industry revenue,” he says. “Somehow, either through regulatory relief, new technologies or some other means, radio has to grow its overall revenue despite the enormous competition it now faces from all the new sources of audio.”

FRANK HIGNEY VP, Kalil & Co.

Of the media brokerages active in the U.S., Kalil & Co. has emerged as one of the biggest in terms of dollars and volume. Several of its brokers received nominations from RBR+TVBR readers, including Todd Hartman, Frank Kalil, Fred Kalil and Lou McDermott. While all have excelled in their roles, it is Kalil VP Frank Higney — a 27-year media brokerage veteran — who got the largest nod from the radio and television broadcasting industry.

Over his time at Tucson-based Kalil & Co., Higney has participated in negotiations and sales for thousands of radio and television stations, worth billions of dollars. He’s also made his mark as an expert witness before the Federal Communications Commission, as well as Federal Bankruptcy and state courts.

Prior to joining Kalil & Co., Higney served as COO at BIA Consulting, the largest appraisal firm serving the broadcast industry.

“It appears to me that it is critical the radio industry embrace and develop the digital side of the business,” Higney says. “This is now where the bulk and future growth of advertising dollars exist. Radio sales executives must have the skills and ability to add a digital component to their mix to satisfy any and all clients.”

MARK JORGENSON Partner, Jorgenson Broadcast Brokerage

In 1976, after two years as a Peace Corps volunteer, Mark Jorgenson took his first professional post-college job, becoming a local AE for WXII-TV, the NBC affiliate serving Winston Salem and Greensboro, N.C. He’d go on to TV station roles in Cincinnati, Miami and Tampa before becoming a partowner, in 1987, of the first Hispanic radio station serving Tampa-St. Petersburg.

From this experience, a broker was born, as Jorgenson in 1990 — while serving as COO of the former ZGS Broadcast Holdings — launched his broadcast media brokerage. During that time, he’s also been a station owner, including with the Concord Media Group. His Synchronous Media Group owns and manages broadcast tower sites, and he was VP of the National Association of Media Brokers from 2009-2015.

With such a strong background in media and his recent involvement as the broker of record in Salem Media Group’s August 2019 sale of nine AMs and four FM translators to Relevant Radio parent Immaculate Heart Media, Jorgenson believes it is vital for radio to provide compelling and meaningful content that engages the audience.

This, he says, will ensure its long-term success.

LARRY AND SUSAN PATRICK Managing Partners, Patrick Communications

While this first-ever reader-driven Honor Roll is not ranked, RBR+TVBR received an unprecedented level of nominations for two individuals who are among the most beloved and respected in the media brokerage community.

While Larry Patrick is one of the most ubiquitous figures in

the world of buying and selling of radio and TV stations, his wife, Susan Patrick, has been equally integral in building a brokerage that has a track record of 600 radio and 165 TV transactions worth more than $8 billion. Patrick Communications also specializes in station valuations, tower sales and expert testimony.

In addition to their brokerage activity, the couple operate 23 radio stations in Wyoming and a digital marketing company and hold a minority interest in 11 large-market television stations. Furthermore, both have been very active in industry associations, with Susan serving six years on the NAB Radio Board and Larry serving as Director and Chairman of the NAB’s Leadership Foundation. Larry also served as President of the National Association of Media Brokers. Both are very active with a number of orphanages, schools and medical charities in the United States and in several African countries.

What is the one thing that is most vital to the future success of the radio broadcasting industry, as Larry and Susan Patrick see it?

“We believe it is local innovation,” they respond. “Whether that means podcasts by your staff, aggressively providing digital marketing solutions for your clients or finding new ways to become the entertainment and information center for your market, all are important. It takes trying new things, keeping what works and constantly trying to reinvent your stations. Your stations are so much more than radio. But they still need that local focus and connection.”

ROGER RAFSON President, CMS Station Brokerage

“What a thrill to be honored by people in our industry!”

Pittsburgh-based Roger Rafson was delighted to learn of his honor from the readers of RBR+TVBR.

Not bad for an industry veteran who began his career in radio when he was 11 years old, as a studio engineer for high school football games on WEEF-AM & FM in Highland Park, Ill. When his voice changed, they let him go on the air as a disc jockey.

Rafson first got involved in advertising sales in 1975, selling for Classical WEFM-FM in Chicago. After graduation from the University of Illinois in 1980, Rafson sold television advertising in his native Chicago for TeleRep, a national rep firm. Before establishing Commercial Media Sales (CMS), he worked in advertising sales for KDKA-TV in Pittsburgh.

That was a long time ago. Since 2013, CMS has expanded beyond ad services by offering radio station brokerage services. Then, in 2013, Gen Media Partners bought Rafson’s

Commercial Media Sales unit and brought him on board as SVP of Political/Issue Advocacy, helping foster political advertising growth. Today, CMS Station Brokerage continues working with broadcasters in small and medium-sized markets across the U.S.

When he’s not at GMP or brokering a deal, Rafson can be found as the PA announcer for Carnegie Mellon University football, men’s and women’s basketball and track and field.

“Broadcasters need to stay focused on their top-line revenue,” Rafson says in response to our question about what will make radio thrive in the years ahead. “Broadcasting is a business. Every station needs to nurture a professionally managed sales team.”

GEORGE REED Director, Media Services Group

“Radio is in trouble,” warns George Reed, who co-founded Media Services Group in 1989 and has had an active role in radio broadcasting since 1972. “Google, Facebook and the rest are devouring local radio budgets.”

That is why he believes the one thing that is most vital to the future success of the radio broadcasting industry is deregulation.

“Our local competitors, TV and newspaper, have already been deregulated by the FCC,” he says. “Yet radio ownership rules are the same today as in 1996, when neither Google, Facebook or the iPhone had been invented. The world has changed. We now face competition from Spotify, Pandora and SiriusXM Satellite Radio.

“There is hope. The FCC recognized the problem and is considering action (thank you, Chairman Pai). I believe that our long-term survival hangs on their decision. I encourage all broadcasters to let your voices be heard.”

Strong words from an individual who entered the brokerage business in 1987, with Chapman Associates. Reed has completed over $1 billion in transactions and served as Managing Director of MSG from 2004 through 2017.

Reed’s practice includes radio and TV station and tower brokerage, valuations, investment banking, and workout restructuring consulting. He also owns and operates six radio stations in Charlottesville, Va., and five in Blacksburg, Va., through his Monticello Media, as well as cell tower company USAntenna, with towers in Alabama, Georgia and South Carolina.

THE TOP 10 ATTORNEYS

DAN J. ALPERT Attorney

When one’s personalized license plate reads “COMMLAW,” talking regulatory policy for radio and television broadcasting is serious business. That’s likely a key reason Dan J. Alpert has been selected as one of the nation’s top attorneys by RBR+TVBR readers.

Alpert’s enthusiasm for the broadcasting field began as he followed the career of his brother, former ABC Radio Correspondent David R. Alpert. It continued at Northwestern University, where he was part of the on-air newscast staff at campus radio station WNUR. At the George Washington University National Law Center, Alpert first became exposed to coursework in broadcast regulation.

He moved into the field of communications law in 1983 at communications law firm Fletcher, Heald & Hildreth. Alpert then practiced law at two fullservice corporate law firms before establishing his own legal practice in 1992, focusing entirely on communications law.

Well-known as a workaholic by his clients and friends, he works literally day and night to get his clients’ applications filed and granted and their FCC problems solved. His other big “claim to fame” is that he is a former 20-plus-year member of the Washington Redskins Marching Band.

And what does he see as the one thing that is most vital to the future success of the radio broadcasting industry?

“Radio must actively embrace new technologies,” says Alpert. “Nothing prevents broadcasters from doing things such as supplementing their advertising dollar with a well-run website (which also can generate advertising dollars), podcasts, active involvement in interactive social media, and live video internet feeds, all of which can add an element of excitement and a sense of ‘community’ to stations’ broadcasts.

“The radio broadcasting industry must continue to embrace its roots, but also evolve and react to changing times and new public preferences. I proudly represent predominantly local, community-based broadcasters. Local radio can be a strong part of multi-media buying strategies, while emphasizing the particular aspirations and ideals of the local community.”

SALLY BUCKMAN

Member/Manager, Lerman Senter

Sally Buckman particularly enjoys helping clients structure complex transactions to ensure compliance with FCC ownership restrictions and navigating the intricacies of complex operational agreements.

That’s a big reason she’s been selected as one of the Top 10 Attorneys by RBR+TVBR readers.

Buckman specializes in regulatory and business issues facing companies in the media industry and has represented clients involved in all facets of media, including large publicly traded broadcast companies, group owners, large and small familyowned media companies, a national radio network, investment companies, lenders and on-air talent.

Buckman has extensive experience in handling transactions and complex agreements for media companies and also drafts and negotiates syndication and programming agreements, retransmission consent agreements, sports rights agreements, tower leases and other business documents for media companies.

What’s the one thing she thinks is most important to securing radio’s long-term success? “Because the radio broadcast industry has changed dramatically in the past several years, with Google, Facebook, Pandora, Spotify and other large, unregulated companies competing directly and successfully for ad dollars and listeners, it is critical that the ownership restrictions faced by radio broadcasters be relaxed, particularly in smaller markets, so that radio broadcasters have the resources necessary to continue to provide exemplary local service to their communities.”

The nation’s best attorneys, as voted on by RBR+TVBR readers, were also asked about the one thing they believe is most vital to the future success of radio broadcasting. Their answers appear below, in our alphabetical Honor Roll.

JOSEPH CHAUTIN III Member, Hardy Carey Chautin & Balkin

Joseph C. Chautin III represents radio and television broadcasters in regulatory and compliance matters as well as transactions and sophisticated private placement and bank financing. Unlike many communications law attorneys, he’s based far from Washington — in Mandeville, La., to be precise.

Before attending law school, Chautin served in the U.S. Air Force; he retired as a Lieutenant Colonel from the U.S. Air Force Reserve after 21 total years of service to the United States.

When this veteran isn’t at work, he’s a Ragin’ Cajun who professes to be a humorist and “swim dad.”

JOHN GARZIGLIA Partner, Womble Bond Dickinson

John F. Garziglia got his start in the industry, as did many other radio professionals, by spending more time at his St. Louis University college radio station than in classes. Between college and his first job as an FCC lawyer, Garziglia’s love for radio translated to on-air roles at stations in St. Louis and in Washington, D.C., where he also served as a program director.

This provided a foundation for helping broadcasters with legal advice and acting as a conduit between the FCC and the AM and FM stations it regulates. Garziglia’s legal career began

in early 1983, with the processing of radio station assignment and transfer applications in the FCC’s former AM branch. He later moved to the FCC’s Hearing Branch with responsibility for license renewal and revocation proceedings.

Garziglia was lured out of the FCC in late 1984 to join a boutique firm in D.C., Pepper and Corazzini, which in 2002 merged with the firm now known as Womble Bond Dickinson. Some 35 years later, Garziglia continues to devote his practice to representing broadcasters and broadcast stations of all sizes and in many different markets.

Of those receiving nominations, Garziglia was an overwhelming favorite. Much of this industry recognition is tied to his work on, among other things, spearheading AM revitalization by enabling numerous AM stations to acquire FM translators and, most recently, assisting a group of 82 broadcasters in seeking to reduce burdensome FCC EEO paperwork. He also guides stations in mergers and acquisitions, license renewals, FCC auctions, and licensing and regulatory compliance matters.

What is the one thing that is most vital to the future success of the radio broadcasting industry, as he sees it?

“Our industry’s future success depends upon radio continuing to be everywhere,” says Garziglia. “Radio must not lose its ubiquity. In the home, in the workplace, in the car and everywhere else, radio must remain available and accessible. Radio’s unique franchise used to be based upon its transmitters and receivers. Radio’s future now depends upon being able to listen, no matter where or when, to my local radio stations.”

KATHLEEN KIRBY Partner, Wiley Rein LLP

Kathy Kirby is a partner and co-chair of the Telecom, Media, and Technology group at Wiley Rein LLP, where she also sits on the firm’s Executive Committee. Since graduating from law school in 1991, Kirby has represented media clients including major radio and television group owners and programming networks as a trusted adviser on myriad business and transactional issues, as

CONGRATULATIONS

TO OUR FRIEND AND COLLEAGUE

SALLY A. BUCKMAN

ON YOUR SELECTION AS ONE OF RBR+TVBR’S TOP TEN COMMUNICATIONS ATTORNEYS FOR 2019. YOUR RECOGNITION IS WELL DESERVED. WE SALUTE YOUR HARD WORK, DEDICATION, AND THE IMPORTANT CONTRIBUTIONS YOU MAKE TO OUR CLIENTS AND THE MEDIA INDUSTRY.

well as regulatory matters before the FCC.

Kirby has been proud to advise a host of radio and television broadcasters over the years, including Emmis Communications, Alpha Media, iHeartMedia, Salem Media Group and Liberman Broadcasting.

Since she’d grown up as a junkie for the New York media market, it was only natural that Kirby’s main extracurricular activity at the University of Virginia was the radio station. After graduating, she honed her broadcast business skills with a number of companies in New York and Connecticut, including positions in news, programming and sales, and eventually married them to a law degree and a scholarship from Catholic University’s Communications Law Institute.

Kirby also serves as counsel to the Radio Television Digital News Association, through which she is involved in First Amendment policy and access decisions that impact the media every day.

Commenting on the present and future of broadcast radio, Kirby remarks, “I’ve been around the radio industry for many years, and have been amazed, but not surprised, at its resilience. There is something so unique and compelling about an audio service. The industry will need to address how to hold on to longtime listeners and advertisers while appealing to new ones, whether through digital offerings or otherwise.

“At the same time, the government should carefully consider allowing companies to reach the scale necessary to achieve a higher growth profile and foster an entrepreneurial culture, while maintaining the unique local community service that has been the hallmark of radio since I fell in love with it while listening on my AM transistor decades ago.”

ERWIN KRASNOW Of Counsel, Foster Garvey P.C.

On Sept. 1, Garvey Schubert Barer merged with Foster Pepper, becoming Foster Garvey. That hasn’t impacted one of Washington’s senior communications law experts and attorneys, Erwin Krasnow.

Krasnow counsels and represents radio and television broadcasters, tower owners, financial institutions and trade associations in administrative, legislative and transactional matters. He advises clients on a wide array of issues, ranging from new technologies to lobbying strategies. Krasnow concentrates on transactional matters and has represented sellers and buyers of broadcasting, cable, tower and telecommunications properties in transactions totaling in excess of $21 billion.

Krasnow formerly served as SVP and General Counsel of the NAB and as administrative assistant to the late Rep. Torbert H. Macdonald, a former chairman of the House Communications and Power Subcommittee.

The author of 23 books, Krasnow is a frequent contributor to RBR+TVBR. He was inducted into the Minority Media and Telecommunications Council’s Hall of Fame for “extraordinary service to the cause of diversity and inclusion in the media and telecommunications industries.” Additionally, the Broadcasters Foundation of America has named him the recipient of the Ward L. Quaal Pioneer Award for “excellence in broadcasting.”

“That’s a great question — and I do not have a succinct, convincing answer,” Krasnow responds when asked what one thing is most vital to the future success of radio. “Part of the reason is that the radio broadcast industry cannot be painted with a broad brush. Talk radio’s challenges and future are different than mainstream CHR’s or Country’s or Rock’s ... and ethnic formats (African American and Latino) have their own sets of bullet points.

“The one thing I do know is that audio has to be compelling and personal, but by definition broadcasting cannot target as narrowly as internet radio’s on-demand and specialty podcast content. Therein lies the rub.”

FRANCISCO MONTERO

Managing Partner, Fletcher, Heald & Hildreth

“Wow! This is a huge honor. Thank you so much.”

Among the readers of RBR+TVBR, a big ¡Gracias! has been given to Frank Montero for his work in Washington, D.C., on behalf of radio and television companies across the mainland U.S. and in Puerto Rico.

Montero is a partner with respected communications law firm Fletcher, Heald & Hildreth, specializing in telecommunications, broadcasting, media and technology. His practice includes FCC regulatory counseling, corporate finance, asset and securities acquisitions, intellectual property, and real estate and commercial transactions.

Montero is an appointed member of the Federal Advisory Committee on Diversity for Communications in the Digital Age and served as Director of the FCC’s Office of Communications Business Opportunities during the Clinton Administration. While at the FCC, Montero worked extensively with industry, trade associations, financial institutions and governmental agencies to create business opportunities for

entrepreneurs and technology and telecommunications start-ups. He was even recognized by the then-Chairman of the FCC for “dedication to bridging the digital divide.”

Montero is a regular presence at the annual Hispanic Radio Conference. That’s fitting, as among his many roles for the benefit of Spanish-language radio is as the Washington, D.C., legal representative for the Puerto Rico Broadcasters Association. Montero has been inducted into the Minority Media and Telecommunications Council’s Hall of Fame, too.

What is the one thing Montero believes is most vital to the future success of the radio broadcasting industry?

“The success of radio will hinge on a willingness to accept and adapt new technologies,” he says. “Audio entertainment is growing rapidly through podcasts, streaming services, mobile apps and satellitedelivered content. Traditional terrestrial radio should not feel threatened by these but should embrace them and diversify their delivery platforms. One radio executive I recently spoke to said to me, ‘We are not in the radio industry, we’re in the audio content business.’ I think that nailed it for me.”

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DAVID OXENFORD Partner, Wilkinson Barker Knauer

In a time when social and digital media presence matters more than ever before, David Oxenford is a thought leader and influencer with few peers. With a blog that’s read by many and public speaking appearances that regularly draw crowds, Oxenford’s place among The Top 10 Attorneys is hardly a surprise.

Oxenford has represented clients in Washington, D.C., for more than 35 years, advising them on regulatory matters and on transactions. He also works with digital media companies navigating music licensing, copyright and other content issues.

Oxenford’s interest in broadcasting began in college, where he managed The College of William and Mary’s student-run radio station and helped shepherd its application for a significant power increase through the FCC. After graduation, when many of his college friends went on to own and operate radio and TV stations, he became their lawyer.

Today, Oxenford works with everyone from mom-and-pop broadcasters to public companies, trade associations, financial institutions and other broadcasting and digital media organizations and individuals. Among his biggest clients of late is Educational Media Foundation, owner of the Christian Contemporary Music networks KLOVE and Air1.

implement new technology and innovations that become available in order to best position broadcasters with respect to their listeners, advertisers, vendors and the financial markets.”

That’s the quick take from Jessica Rosenthal on the biggest thing needed to secure the future success of radio broadcasting in the U.S. In her time at Wiley Rein, she’s served as the lead transactional counsel for a non-commercial broadcaster combining operations with another noncommercial broadcaster to establish a multi-platform public media organization. She has also been the lead transactional counsel representing various non-commercial broadcasters in their acquisitions and divestitures of radio stations, as well as in strategic combinations to enhance operations.

Rosenthal assists clients in asset acquisitions, dispositions and exchanges, debt and equity financing transactions, and other corporate matters, specializing in mass media/broadcast transactions. She has negotiated, drafted and closed hundreds of radio and television transactions, ranging in price and complexity. In addition, Rosenthal has broad experience in tower sales and leasing matters for a variety of clients. She has also drafted and negotiated a variety of agreements for noncommercial broadcasters to implement strategic combinations to better serve their communities.

Rosenthal has been with Wiley Rein since October 1999, joining the firm upon earning her Juris Doctor from the George Washington University Law School.

JESSICA ROSENTHAL Partner, Wiley Rein

“I think the industry’s future success will depend in large part on an ability to quickly adapt to and successfully utilize and

PETER TANNENWALD

Of Counsel, Fletcher, Heald & Hildreth

Peter Tannenwald became hooked on broadcasting as a fifth-grader after a year of on-air participation in a live instructional TV show broadcast by WRC-TV in Washington, D.C. After earning degrees from Brown University and Harvard Law School, he joined the U.S. Coast Guard Reserve and then moved on to a law career that has continued for 52 years.

Tannenwald joined Fletcher, Heald & Hildreth in 2008, after 27 years with one of one of Washington’s 10 largest law firms and 12 years as a named principal of Irwin, Campbell &

Tannenwald. In addition to a broad range of radio and television broadcast station groups and individual station owners and common carrier and wireless clients in both regulatory and transactional matters, he has represented inventors and developers of new technologies and has helped implement several such technologies, including wireless auditory assistance devices for persons with hearing loss, the use of AM broadcast stations for power utility load management, visual captions on television broadcasts, construction of the first public television satellite distribution system and compatibility of cellphones.

Tannenwald also served for 44 years on the Board of Directors of a non-profit corporation that owned WBRU-FM in Providence, a former commercially licensed radio station managed by students at Brown University.

What does he see as the one thing that is most vital to the future success of the radio broadcasting industry?

“The continuation and preservation of intensely local service, relevant to the lives of listeners, provided by real people,” says Tannenwald. “Real people, who understand and know how to respond to the hopes, desires and needs of their audience, should be able to provide rewarding content that the online computers with which they now have to compete won’t be able to match.”

ABOUT RBR+TVBR’s TOP BROKERS AND ATTORNEYS: This inaugural Honor Roll is produced exclusively from RBR+TVBR reader nominations, which were gathered in July and early August 2019. Individuals are represented equally, in alphabetical order, rather than by ranking, to demonstrate each honoree’s contributions to the industry. © 2019 Streamline Publishing.

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CBD: A ‘Crazy Big Deal’ for Radio?

CBD. No, it’s not a Canadian Talk radio station. Rather, CBD is cannabidiol, as in cannabis oil. And it’s one of the most asked-about topics among radio industry leaders. What you need to know today on tomorrow’s hottest revenue generator could put you a step ahead of your competitor.

Drive over the Columbia River from Portland, Ore., to Clark County, Wash., and within 20 minutes one can reach Main Street in the small city of Vancouver. The most prominent business on a street in need of some revitalization? Main Street Marijuana, a recreational vendor of all things cannabis.

Main Street Marijuana, like all other businesses of its kind in Washington, is a cash-only affair, with a complex method of allowing customers to enter and purchase everything from edibles to the finest smokable green bud.

What if Main Street Marijuana wanted to advertise on a local radio station?

Whoa…

The very idea is a controversial one, but one that has been widely discussed. The bigger topic isn’t “pot” or “grass,” however. It’s CBD.

Radio broadcasters are inquiring about what sort of advertising they can accept, and what they must decline, with respect to CBD vendors. Many have spoken in recent weeks to Wiley Rein attorney Ari Meltzer.

What are the issues regarding CBD ad acceptance? Will it take regulatory policy changes to get a CBD ad on a radio station, even in a locale where state law makes the recreational use of marijuana legal?

Meltzer says, “We are getting a lot of questions these days regarding CBD, which makes sense. It is a new and up-andcoming ad stream, and radio represents an attractive platform to do that — and also potentially legitimize their business.”

In fact, Meltzer says, radio is a much more effective medium for CBD vendors than television. “Radio provides an opportunity for better targeting and perhaps more attractive rates or packaging. But, looking at broadcast more broadly, it still remains the gold standard in terms of advertising. When someone hears a radio spot, it creates a strong impression that this a real, legit business. There is still a general distrust that anybody can put anything online.”

It also explains why auto dealer associations, political candidates and other businesses remain big users of radio.

WANTED: A WAY TO MONETIZE

For Meltzer, radio station owners have usually approached him with two questions:

• Can I take the CBD ad?

• If not … how could I take the CBD ad?

How does Meltzer respond? First, he notes that Wiley Rein’s advice is continually being refined. Why? “It is still an area where broadcasters can tread very carefully,” he says.

The most important thing for a broadcaster to understand today is that state legislatures have been taking the lead on marijuana-related legislation. Scott Flick, a partner at Pillsbury Winthrop Shaw Pittman LLP, says some may be confused by this simple fact.

“The short answer is that it requires the cooperation of State and Federal

governments,” he says. “The challenge is that under the Farm Bill, you can have CBD legally on the market, but there is a pre-condition that it needs to be produced from hemp product.

“Thus, there is a regulatory process that needs to be put in place to ensure it is hemp CBD from a legally recognized farm. That is a challenge, as the Federal government has not moved forward on this.”

And, Flick adds, it is a complex matter in that it is both a Federal and state issue, and broadcasters “live or die by a federally authorized license.”

Flick points to some stations that took money from CBD vendors at a time when auto dollars fell, but later stopped out of fear. In a way, he sees CBD advertising as similar to that for weight-loss products. “You don’t turn down all of them,” he says. “But if someone says to stop because of false claims, you do.”

As the debate over the legality of CBD ads on radio stations using federally administered airwaves won’t likely abate, some crafty GSMs may decide that a radio station’s digital home is “safer.”

That’s not exactly the case. “Whether or not that is through a website or through a radio station, you could still be accused of aiding and abetting the sale of an illegal product,” Flick says.

ARI MELTZER

SCOTT FLICK

Folly or Futurist?

A top Hubbard Broadcasting engineer places his bets on HD Radio for an AM lifeline.

For many across the radio broadcasting industry, the concept of “AM revitalization” — as championed by FCC Chairman Ajit Pai — has little to do with any enhancement, improvement or upgrade of an existing kHz-based facility. Rather, the focus has been on that 250-watt FM translator designed to bring a bigger audience to a station on what many consider to be a dying broadcast band.

In some countries, where AM was defined as “Medium Wave,” all radio stations were permanently silenced and their programming shifted to DAB.

The U.S. failed to make that happen years ago, preferring in-band, on-channel HD Radio implementation, which until recently was hardly as successful as what transpired in Western Europe.

Now, HD Radio could be seen as a savior for AM radio — but not for those stations’ transition to FM radio multicast channels or anything like a DAB band as seen in Germany or the United Kingdom.

HD Radio technology in the form of digital-only AM broadcasts is being explored as the technical salvation for a broadcast band many younger audio consumers don’t even know exists.

Championing this possibility are two companies. One is based in Texas. The other is headquartered in Minneapolis and has a formidable presence in the nation’s capital.

It is at the latter company, Hubbard Broadcasting, where its Senior Broadcast Engineer, Dave Kolesar, just may be bringing to life the biggest technical advance to AM radio ever seen.

FROM HOBBY TO LOBBY

At the center of Hubbard’s grand experiment, overseen by the Washington, D.C.based Kolesar, is “The Gamut.”

That’s the branding associated with the most eclectic Adult Album Alternative radio station you’ve likely ever heard, based at Class B WWFD-AM 820 in Frederick, Md. WWFD’s signal covers nearby Hagerstown and stretches to Montgomery County, Md., and much of Fairfax County, Va., during daylight hours.

It has an FM translator at 94.3 MHz in Frederick, and can be heard closer to the White House at 98.3 MHz — a second translator using a feed off of an HD multicast signal tied to top-rated all-News WTOP-FM 103.5.

The genesis of Hubbard’s AM digital experiment is a 10,000-song-plus internet-only radio station created by Kolesar several years ago as a hobby.

When Bonneville International Corp. sold its Washington, D.C., properties to Hubbard in January 2011, it opened a hole on WTOP’s HD3 channel, which had been home to The Mormon Channel. By December 2011, with Hubbard in control, that programming disappeared.

What to put in its place? “[WTOP SVP/ GM] Joel Oxley thought it would be fun to put what had been on a web station on the signal,” Kolesar tells RBR+TVBR. Thus, “The Gamut” was born.

Fast-forward roughly 15 months, to March 2013, and Oxley and the local Hubbard team started to rethink what to do with WWFD. By then, it wasn’t really targeting Frederick and had been a

forlorn simulcast of programming based at the 1500 kHz signal that had once been the home of WTOP and then the home of The Washington Post Radio Network and Talk “3WT,” and eventually became what is today Federal News Network.

With Kolesar’s “hobby” gaining traction — meaning people were actually finding The Gamut, and listening — Hubbard placed it on WWFD.

It ran as an analog station through July 16, 2018.

Then, a most interesting development unfolded.

STATIC-FREE, SONICALLY

Around Christmas 2016, Kolesar started pondering what to truly do with WWFD.

It had a decent daytime signal; it covers a highly affluent portion of the National Capital Area, as well as many a Federal government employee either driving down I-270 to Washington or taking MARC or the Metro Red Line from Gaithersburg, Damascus, Clarksburg, and surrounding communities.

“I started asking what can we do with 820 to make it a player, and how could we just get it so that people could actually want to listen to it,” Kolesar says.

The pending arrival, in July 2017, of a Frederick translator helped immensely.

“The listeners were there and dedicated, but it was just not growing in number,” he notes. “I just could not get people

to try this Triple A music format on an analog AM.”

But what if it were broadcasting in HD Radio?

Kolesar says, “Knowing that this translator was coming, I thought to myself that the AM was going to be useless.”

A thought occurred to him. “That facility was di-plexed, and on that facility was the iBiquity experimental station on 1670 kHz, where they were conducting field tests for all-digital AM mode.”

This early trial of HD Radio on AM got Kolesar excited about the possibilities for WWFD and “The Gamut.” He says, “I knew what all-digital AM HD could sound like, and the thought occurred to me, ‘Why don’t we just do that on 820?’”

A few weeks later, Kolesar headed to Las Vegas, and the 2017 CES. Spotting the booth for Xperi, now the purveyor of HD Radio, he walked up, introduced himself, and noted that he wanted to take one of his stations all-digital — WWFD. He asked for help.

“After the stunned reaction, a lot of planning and coordination, engineering and antenna system modifications were done over the next year,” Kolesar says with a laugh. Yes, they were willing to help. They just couldn’t believe that Kolesar was serious about, and committed to, his plan.

All that was needed was experimental authority added to WWFD’s license. This came, and has been renewed once, after a progress report was submitted to the FCC.

“This is an engineering STA for one year, where you ask the FCC for permission to operate using the MA-3 mode, under the condition that interference isn’t caused,” Kolesar explains.

What did Kolesar and Hubbard learn after one year of HD Radio’s presence on WWFD?

“Our daytime coverage is pretty incredible … especially in digital,” Kolesar says. “The full digital mode, which is the core and enhanced mode, is receivable on an average car radio, out to the 0.5 mv contour.”

For novices, this is purple circle one can see when calling up a station’s reach on popular website Radio-Locator.com.

“This is stereo audio with 15khz frequency response,” Kolesar explains.

The outermost circle is about the range of the “core-only signal,” he adds. Under ideal circumstances, you’ll still hear WWFD out to the signal contour, with mono audio with 15khz frequency response.

This, he found, is better than being in analog.

It could be a game-changer for hundreds of AM radio stations, in particular those in Florida, where static from thunderstorms can wreak havoc on reception.

Where it was in use, audio quality was extraordinary. This included the nowdefunct CJSB-AM “54 Rock” in Ottawa, which had a nighttime signal reaching much of Upstate New York. Alas, financial troubles led the owners to move the station to the FM band in 1994.

Four competing standards for AM Stereo prevented it from getting it off the ground. Today, the AM noise floor would never allow AM Stereo to happen. But with HD Radio, error correction in alldigital broadcasts counteracts the noise prevalent on AM band broadcasts. At

“Even in the worst of thunderstorms, reception is still robust enough for the average listener out to the 2mv contour, which is the core defined listening area,” Kolesar says, referring to the red circle one can see on a Radio-Locator.com contour map.

Among those who have heard WWFD in HD Radio is Ari Meltzer, a Partner with Wiley Rein. “It makes listening to music on AM a really viable and almost indistinguishable experience,” he says.

INTO THE GROOVE

As far as Kolesar and Hubbard are concerned, if you’re going to demonstrate a technology, you should shatter the expectation for what type of programming you’re going to put on it.

For the eclectic music found on “The Gamut,” the choice was near perfect.

“It sounds just as good, if not better, than analog FM,” Kolesar swears.

Similar claims were made some 30 years ago for a technology many industry veterans chuckle at: AM Stereo.

WWFD, an Omnia 7am processor with HD option is in use.

For the listener, tuning to AM 820 in Frederick won’t be any different than tuning to any FM station with HD Radio. After a second or two, the HD signal will lock, and the audio will become instantly enhanced. “This was something we got working just in time for the spring 2019 Nielsen Audio ratings book,” Kolesar says.

As soon as fast acquisition was working, the station’s listening reached new heights. For the first time ever, WWFD appeared in the Frederick, Md., Nielsen Audio ratings.

As WWFD is still an experiment, where is improvement needed?

“I am having trouble coming up with areas where there is trouble, because the coverage has exceeded my expectations,” Kolesar says.

Where improvements may come are with things that listeners won’t notice –such as refining the spectral mask of the

FUTURIST Continued on 23

The Deal Flow: Deregulation, or Else?

Many believe loosening — or eliminating — the local ownership caps for radio will be a boon for radio deals. Others, including iHeartMedia, say no. What’s the take from D.C., and two big communications law firms?

If you’ve been an astute reader of the Radio + Television Business Report, you might notice that there aren’t so many radio industry deals these days. Or if there are any deals of significance, they may involve a broadcast ministry.

If you never read RBR+TVBR’s daily news updates, you still may notice a dearth of deals in the radio broadcasting industry.

Are there deals in the works? Where is the deal-making market going … or is it not going anywhere?

For Greg Guy, Managing Partner of Patrick Communications, everything is “normal” — barring any regulatory changes. “It’s not what we’re used to,” he says, “but the overarching theme is ‘I’m not surprised.’ It is not much different than it has been in the last five years.”

At Patrick, the transaction flow is

slow, but that’s relative to historical trends. In Guy’s view, it’s the “new normal.”

The why behind radio’s glacial dealmaking environment, highlighted by collapsing station valuations triggered by bargain-basement sales of Cumulus Media stations in Los Angeles and New York, is not so cut and dried.

Given Patrick Communications’ proximity to the nation’s capital, what are Guy and his associates hearing and discussing with respect to what could trigger the next wave of radio industry deals?

“We have a good finger on the pulse of the brokerage community,” Guy says. “And there’s a lot of uncertainty. There will likely be no dramatic regulatory changes ahead of the 2020 presidential election. At the same time, the FCC is looking at its local ownership rules and we are in the midst of the comment cycle.”

Could a dramatic shift be coming soon? As noted above, Guy isn’t optimistic that any change will occur ahead of November 2020. However, he says, “Eventually they will come to fruition. The

rules will eventually change. It’s just a matter of politics and where that fits into election cycles.”

What rules change will spark the deal-making? The AM rule change proposed by the Commission? “It will not have a dramatic effect on brokers,” Guy believes. “There is no groundswell of transactional flow.”

For FM station deals, how the rules change — a big question for many — will determine what happens.

“Will there be companies swapping clusters?” Guy asks, suggesting

outright sales may not result from the Commission’s possible local ownership rule rewrite. “The transactional impact on larger markets will be minimal. The smaller-market transactional flow will be based on capitalization out there as an industry.”

This is perhaps the No. 1 reason why stations such as WABC-AM in New York and KXOS-FM in Los Angeles were sold by Cumulus for dollar amounts that would have seemed unfathomable even a decade ago.

“What happens is that the buyer pool in radio is shallower than it used to be,” Guy says. “If you move past the first two or three aggressive, strategic buyers, the rest of the buyers are opportunistic. We’re seeing that in the deals we are representing.”

Some of the individual transactions Patrick Communications has been involved with in the last several months have made headlines, including the purchase by Fletcher Ford’s Virden Broadcasting of three Illinois stations owned by Withers Broadcasting Co.

But, Guy laments, “It’s a pretty thin market in terms of the depth of buyers. In Los Angeles and New York, it is a

matter of available capital, rather than stick value. The issue is the number of potential buyers with the available capital to make a deal.”

Meanwhile, the future of AM radio is now largely dependent on whether a station has an FM translator attached to it, with the exception of big News/ Talk and Sports Talk properties with an abundance of listeners. “We don’t see a tremendous amount of optimism in AM values,” Guy says.

Also chiming in on deregulation, and what it could bring for attorneys, is Scott Flick, a partner at Pillsbury Winthrop Shaw Pittman LLP.

Flick looks to Hubbard Broadcasting and its test of all-digital HD Radio on WWFD-AM in Frederick, Md., as a “chicken and egg” problem that depends on auto manufacturers to act in unison for any true benefit to occur.

“HD Radio on AM is about delivering a better audio signal, but the problem is that we already have 300 million-plus radios out there today,” Flick says. “It will take a long time for old radios to filter out and new radios to filter in. We saw that years ago with expanded-band AM.”

But if new cars come with digital AM radio available, there’s a path to a more positive future for radio, Flick says.

Otherwise, Flick — like Guy — is looking ahead to the 2020 presidential election. If there is no movement on local ownership rule changes as the election approaches, it won’t likely happen until after the election. And, should Democrats take back the White House, any prospect of deregulation could be scrubbed for the foreseeable future.

“We are at an interesting point in time because the prospect of radio deregulation will drop over time as we get closer to the election,” Flick says. “But enough talk about it means owners are hanging tight a little bit.

“Unfortunately, we could be in a period of reduced deal-making even if the message is, ‘No, we are not changing our rules.’ People on the fence will know what the environment will be for the next several years, with uncertainty depressing the deal market.”

CAPITAL STEPS: THE KEY TO MORE DEALS

Since 1985, Brevard County, Fla.-based broker Doyle Hadden has been actively involved in the buying and selling of radio stations in markets across the U.S. What’s his take on where the deal-making market is heading? The President of Hadden & Associates shares his thoughts in a Q&A conducted by RBR+TVBR.

RBR+TVBR: The deal-making market seems tepid. Is this the “new normal” until the U.S. government — or the FCC, to be precise — makes rule changes?

DOYLE HADDEN: The market will ebb and flow based on rule changes by the FCC, supply and demand, and in some cases, entrepreneurial resources. I wouldn’t necessarily say that this is the new normal, considering we have seen a healthy mix of seasoned broadcasters, group owners and first-time buyers actively contacting our office for potential deals and divesting assets to invest in other areas.

RBR+TVBR: Where will we see the next round of deals — mainly in smaller markets, or does that not matter?

DH: The next round of deals could be going on now, since we have found more interest directed our way from many Top 10 radio groups regarding interest in consolidation.

RBR+TVBR: Is the biggest issue facing the deal-making market access to capital? Who are the buyers, and can they step in where big-pocketed religious broadcasters can’t?

DH: Access to capital is always key for any industry — and one of our top buyers is using bank funding, so it is available.

Defining a specific buyer to represent the entirety of the market isn’t fair to say either. In-market owners

who need expansion are obvious targets for buying stations, and they usually have access to capital to further expand and grow their company if the rules will allow.

RBR+TVBR: Who wants an AM radio station anyway?

DH: Despite the reputation of AM radio around the broadcasting industry, many stations have a valuable place in the market for religious, ethnic and other types of buyers. News/Talk will always be a recognized format on the band.

Obviously, FM translators can help add reach and value to all AM stations, but they aren’t the only prerequisite for all buyers. There are several AM stations that are doing quite well in their markets. AM is not dead in America just yet.

RBR+TVBR: What are your thoughts on FM translators?

DH: FM translators have certainly helped out many Class D stations around the country, considering they will be granted a 24-hour signal. Chairman Pai has made an effort to bring growth to AM, which has been greatly appreciated by many broadcasters.

My advice for anyone looking to add translators to their station is to speak with an engineer first and make sure the FCC window is open to apply and if there is spectrum available on the 45 dbu contour. It makes our job a lot easier when an owner has an on-air translator that is producing an income stream.

A VSiN-ary Radio Opportunity

Veteran radio-industry executive Dan Mason swears the Vegas Stats & Information Network isn’t a gaming business. Rather, it provides all the info one needs to participate in legal gaming. Radio may wish to wager big on its predicted ROI.

In April 2015, Dan Mason retired from the radio broadcasting business, completing a 20-year run as President/ CEO of CBS Radio. Mason’s resume includes prior stints as President of Group W Radio, and a similar role for a company known as Cook Inlet Radio Partners.

Mason, however, hardly retired from everything having to do with radio broadcasting. This Eastern Kentucky University graduate would go on to be Chairman of the Board of the industry’s largest philanthropic organization, the Broadcasters Foundation of America.

But it is his May 2019 move that has redefined Mason, and perhaps brings new promise to an AM radio station that goes beyond HD Radio, and the possibility of all-digital broadcasts, as featured in this issue.

Mason is the face and voice of Vegas Stats & Information Network (VSiN), a company founded by the Musberger family. Yes, sports fans, that Musberger.

It’s the first media company devoted to stats, analysis and the information that many a sports bettor can count on for making a well-informed wager. Or not, Mason believes. In fact, he’s certain the content is strong enough on its own that programming could easily win over listeners in locales where legalized gaming will likely never become possible.

For Mason and VSiN, numerous business advantages exist, thanks to recent legislation leaving it to the states to decide if sports wagering is

permissible or not. And he’s confident it can fuel advertising for a laggard radio station in need of a bit of revitalization.

“Right now there are 19 states where legal gaming exists, or states that are close to allowing it,” Mason said on a recent August afternoon en route to, of all things, a Barry Manilow concert at Madison Square Garden, with his wife along for the Uber ride.

“There is no reason why any station wouldn’t want to be attacking that ad category,” Mason continues.

In his mind, with radio being a perfect “call to action” medium, VSiN’s programming is a “natural fit.”

But it is important for all to understand that VSiN isn’t a radio network — nor does it see radio as the brand’s growth driver. Rather, VSiN’s big revenue driver as of today is its large publishing operation.

Its 306-page full-color College

Football Betting Guide is perhaps one of its more popular publications, and it’s chock full of conference and BCS predictions. It retails for $19.99 and features no advertisements.

Then there are televised VSiN programs on two of the nation’s largest regional sports networks, New Yorkbased MSG and Boston-based NESN.

There’s also a daily e-mail full of articles and one “featured product of the week.” Again, there’s no advertising otherwise.

Oh, there’s also a dedicated channel on SiriusXM Satellite Radio. But that’s not what VSiN is about.

“The radio network is certainly something with big growth potential, but we are not dependent on it for immediate growth,” Mason says.

INFORMATIONAL ADDITIVE

On August 5, the radio network officially debuted, using the name The BetR Network. It is distributed by Houston-based Gow Media and features programming from Gow’s SB Nation Radio Network in addition to VSiN.

“It’s informational, yet entertaining — and not blue at all,” Mason says, taking a swipe at some of the betterknown sports radio programs and networks found across the U.S.

transmitter and working with the manufacturer to make sure all is operating at full tilt.

“This is viewed within Hubbard as a proof of concept,” he says.

While Kolesar is not privy to what stations could be next, conversations are happening.

“This has definitely launched some discussions within Hubbard,” he acknowledges. Meanwhile, other broadcasters have approached him and have toured WWFD. They are considering a move to go digital themselves.

What’s needed from the FCC is experimental authority — at least for now.

That’s because a petition filed by Bryan Broadcasting to broadcast in digital, minus analog, is presently in the hands of the Commission. Hubbard filed comments in support of it.

The petition from Bryan involved the assistance of David Oxenford, a partner at Wilkinson Barker Knauer. It was filed in March, and presents a solution for AM radio stations in danger of losing even the car radio as a place to tune in. Already, Tesla has removed the AM radio due to noise created by the electric vehicle’s operation.

Oxenford explains that the pleading “does not suggest that any AM be forced

to convert to an all-digital operation — instead it proposes that stations be given the option to make that conversion whenever they want.”

It’s an idea that first came to fruition four years ago.

“An all-digital signal can overcome this noise, and an all-digital signal is much more robust than the digital operation allowed by the hybrid digital-analog system currently permitted by the FCC,” Oxenford notes.

Perhaps more important to the concept of “AM revitalization” is the realization that FM translators have done nothing — except perhaps devalue — the AM stations they are simulcasting.

“While FM translators have provided relief to some AM stations, they have not solved any reception issues with the AM signal — they have just given the stations that were fortunate enough to get a translator a lifeline until a real solution comes along,” Oxenford says. “Plus, not all AM stations, particularly those in large markets, were able to be awarded a translator license. For those AM stations that did not get a translator, or for those whose AM signal reaches farther than a translator can, other solutions are needed. Bryan Broadcasting argues that this market-based approach — a voluntary transition to AM digital — may provide the answer for AM stations.”

The NAB agrees. In May, its EVP/ Legal and Regulatory Affairs and General Counsel, Rick Kaplan, asked the FCC to “promptly advance” the Bryan petition.

ON PAR, NEAR AND FAR

While the prospect of crystal-clear AM radio is serious business, one important question remains: How will radio broadcasters convince consumers to try it — as it is still AM radio, the stuff of “93KHJ,” Wolfman Jack and American Graffiti ?

Future designs of HD Radios are trending toward station presets. This was seen in fall 2005 by RBR+TVBR while driving a 3-series BMW on the autobahns of Germany and Austria.

Instead of a radio dial, the user will have a choice of stations via logos, with song or program information appearing underneath.

“At that point — it doesn’t matter if it is AM or FM,” says Kolesar. “It’s just buttons on a screen. That is the equalizer. In a day and age where people tune in or know what stations they want to listen to by name and not by frequency, why would they tune by frequency anymore? This is AM’s hope. You can bring AM up to par and bring parity to all of these signals.”

While most of the 168 affiliate stations are airing select VSiN programs, The BetR Network launched with two 24/7 radio partners: KBAD-AM 920 in Las Vegas, a Lotus Communications-owned Sports Talker, and WBSS-AM 1490 in Atlantic City, N.J., owned by Longport Media.

Then there are stations such as Beasley Media Group’s Sports WBZ-FM 98.5 in Boston and WPEN-FM 97.5 “The Fanatic” in Philadelphia, and Cumulus Media’s Sports KNBR-AM 680 in San Francisco and Talk WLS-AM 890 in Chicago, which are airing “VSiN Action Updates” covering how the sports betting markets are reacting to the market’s sports teams.

At KNBR, a report at 9am and a report at 5pm are presently airing.

The first terrestrial partner for VSiN? That came in May 2018, with WSCR-AM in Chicago.

What’s the advertising potential for this programming?

“The gaming category is certainly there for the taking, and the casinos need help there,” Mason says. “I am sure they would welcome radio with open arms. I think we caught lightning in a bottle.”

Among the early believers in VSiN programming is Indeed, the online job placement portal. Wine brands have also warmed to VSiN.

Then there are the remote possibilities, with a station able to

benefit from creating “a carnival-like atmosphere” at events ranging from tailgate parties to Super Bowl watch-andwin extravaganzas.

Casino remotes are also in the cards. A radio broadcaster simply needs to understand that VSiN conducts no wagering, nor does it intend to do so.

“There’s absolutely nothing that would get anyone in trouble when it comes to our content,” Mason says. “There is no betting. It is up to the station’s advertising team to decide how many gaming-oriented sponsors it wants. We offer data on the games, point spreads, wind velocities — things people care about when they are going to wager on a game. It’s all part of one big package.”