94.1 WIP parent company Audacy reportedly will file for bankruptcy. What does that mean for its Philly radio stations?
Former 94.1 WIP co-host Jon Marks cited the company's impending bankruptcy as one reason for leaving his popular show.
Audacy, the parent company of 94.1 WIP, KYW NewsRadio 1060, and several other Philly radio stations, is preparing to file for bankruptcy within weeks, the Wall Street Journal reported.
The Philadelphia-based radio company, which owns hundreds of stations nationwide, is grappling with $1.9 billion in debt while navigating an advertising slump. The company, which has a podcast partnership with The Inquirer, reported a $234.3 million loss in the third quarter of this year and skipped a debt payment in September. It also delayed a debt repayment of $18.9 million that had been due in December, according to a Securities and Exchange Commission filing.
Audacy did not immediately respond to a request for comment, but CEO David Field issued a statement in October about the company engaging “in discussions with our lenders.”
“We continue to drive progress across our key performance metrics, meaningfully advance our ad tech and product road map and enter new partnerships to enhance content, distribution and monetization opportunities,” Field said.
What does Audacy’s bankruptcy mean for WIP and other radio stations?
Audacy has already negotiated a bankruptcy plan with its lenders, who are expected to assume ownership of the company following the restructuring, according to the Wall Street Journal. As a result, the bankruptcy filing isn’t expected to have much day-to-day impact on WIP, which recently agreed to a six-year deal that will extend the broadcast rights for Eagles games through the 2028 season, according to industry sources.
Listeners probably won’t notice immediate changes at KYW or the company’s four other Philly stations: the New 96.5, 1210-AM WPHT, B101, and 98.1 WOGL.
What’s unclear is how much Audacy’s impending bankruptcy and poor financial situation will impact talent.
Last week, former WIP afternoon cohost Jon Marks cited the company’s financial situation as one reason he opted to depart the station, despite the ratings success he’s had with former Eagles defender Ike Reese. Marks told Crossing Broad that during contract negotiations, WIP made it clear it wasn’t going to offer him a contract that paid as much as retired morning show host Angelo Cataldi or longtime sports talker Howard Eskin.
“After Angelo was gone, they said, ‘Hey we’re not paying people Angelo money anymore, we’re not paying people Howard money, we’re not paying people Anthony Gargano money.’ … They had, ‘This is what we’re willing to offer you,’ ” Marks said, adding, “I knew this was over a year ago. They knew they were only going to go a certain amount, and I knew that wasn’t going to be enough.”
Despite that, WIP is adding talent. Last week, NBC Sports Philadelphia Flyers host Ashlyn Sullivan was added as a part-time host, and former 97.5 The Fanatic afternoon cohost Hunter Brody has been filling in over the last month.