Philly Radio: How Would Bankruptcy Affect Audacy Talent?

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 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.

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.”

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.