A brief recap. KDHX, the local “community radio station”, that has been around for decades has hit a few snags over the past couple of years. The board (a not for profit incorporated in the state of Missouri as Double Helix Corporation) and the volunteers didn’t see eye to eye. The volunteers. who had previously been given voting rights for the station’s direction but those rights were rescinded, were fired (Yes, if you don’t get paid you can still be nuked!) Long story made short, the board ran the station into the ground over the past few years and now claimed the station was broke. In March, they filed for Chapter 11 under the US Bankruptcy code. Then the real story unfolds.
It’s been reported that board member(s) had been secretly negotiating with Educational Media Fund (AKA K-Love, a BILLION dollar religious broadcaster with hundreds of stations across the US of A) to acquire the KDHX license as well as the tower site. Then it came out that K-Love had lent KDHX bankruptcy financing and made an offer to purchase the station for $4.5 million with a clause that stated if the sale were closed quickly the purchase price would be $4.8 million. But keep in mind that according to the bankruptcy filing creditors were owed around $2 million. Hmmmm,
The Grand Poopah is not an attorney and doesn’t play one on the radio. But unfortunately the Grand Poopah has been on the receiving end of my clients going bankrupt (or as my aviation buddies would say, Tango Uniform). I’ve never received ONE PENNY from any of my clients who entered “chapters”. So, the deal was going to be that KLove would buy the station out of bankruptcy and ALL of the KDHX creditors would receive 100% of what they are owed. And the kicker? The Double Helix board would pocket about $2 million. If you have a friend who is a bankruptcy attorney ask them how many times the creditors get 100% of what they were owed and the debtor, in this case the KDHX board, get’s a 7 figure pay day. Your answer from your barrister friend will probably be “NEVER!!!” So, in the Grand Poopah’s opinion, the fix was in. Think about it. The current board of KDHX gets rewarded with a golden handshake for doing a horrible job with the station and financially trashing it and then putting it into Chapter 11? I say again, the fix is in.
But then it got even weirder. Our local CCM Broadcaster, Gateway Creative Broadcasting, another Non Comm religious broadcaster AKA Joy 99, jumped in and said “we will pay more than KLove.” The bankruptcy judge then said “let the bidding begin” and scheduled an auction for May 30th, 2025. When the smoke cleared (bad capacitors usually but not in this case) our local CCM GCA won the biding wars at $8.75 million! Let that sink in for a moment. This is a NON COMM. You can’t run any ads. But who cares when you have listeners sending you money (insert Dire Straits song here) and you don’t have to schmooze any clients or kiss any advertiser’s gluteus maximus. Hey my fellow commercial broadcasters, maybe we should take a lesson from the KLove and Joy 99 dudes and dudettes?!?!
Here’s where it gets interesting. If the $8.75 million is approved the creditors will be taken care of 100% and the KDHX board will get $6.75 million!!!!!!!! (is that enough ! marks ???) I’m not a CPA and I don’t play one on the radio but since KDHX is a not for profit there won’t be any capital gains or any other taxes assessed on that golden goose egg. And keep in mind that that the NON COMM’s already don’t pay any FCC fees like us commercial dudes pay nor do they pay real estate taxes nor personal property taxes. WHAT A DEAL!
If you go to the KDHX website and read their Strategic Plan you’ll find out what they’re going to do with their $6.75 million. Well, actually you won’t because it’s gobeldy goop. I would call it crap but that would impugn my station KRAP.
Nothing against Joy 99 and Boost 95.5. They’re local broadcasters who employ local yocals and are a good group of folks executing their formats extremely well. I’ve known Sandy Brown for years and she’s a great broadcaster and wonderful person. But do we need more religious radio? And what would be the new format? Christian Polka? Maybe Heavy Metal Christian?
KDHX is (was?) a true LOCAL community radio station. Yeah, it is (was?) weird and quirky at times. But it was never McRadio (what….a station that doesn’t have Ryan Seacrest?) KDHX supports (supported?) local business, local bands, and has (had?) a unique flavor on the FM dial that was truly STL through and through. Maybe like Imos? IMHO, it also created radio “fans” who learned our craft and got to love (no K) transmitting their unique programming to the local listeners. And several of them have crossed over into our commercial ranks and toiled behind RE20s. (A personal aside…the Grand Poopah used to listen to KDHX on Sunday mornings for “Acapella Only”. It was great!)
It’s not a done deal. The Love of KDHX folks are still trying to see if they can get a win in the courts. But to me it seems like its the bottom of the 9th and the home team, AKA Love of KDHX folks, is behind by a run with two outs. Is there a David Freese at bat? I certainly hope so.
The Grand Poopah is out! Peace Want to discuss this? My cell is 314-280-8880 (yes, actual phone number….you can even text me)
PS. University of Missouri Curators please take note. The word is out that the University is going to transfer ownership of KWMU, KMST and WQUB to the Friends of KWMU (read the article here). You’ll notice there’s no mention of how this transaction will occur. In other words, will the U of M Curators be GIVING these stations to the Friends of KWMU? The Grand Poopah put his two useless journalism degrees to use and asked the official KWMO spokesperson if the stations would be gifted to the Friends of KWMU or sold? I got a “we’re not sure yet” response. Huh? I’m going to get rid of my house but I haven’t decided if I’m gonna give it to you for free or have you pay me bazillions. WHO DOES THIS? I say the U of M Curators should put the stations up for auction. Keep in mind that KWMU is a full class C FM with 100,000 watts and transmitter located in St. Louis County. KDHX is only 42,000 watts with the transmitter located in Jefferson County. If someone is willing to pay $8.75 million for KDHX doesn’t that make KWMU worth much more? The Grand Poopah says “YES”!