Air America was shut down in its LA and Chicago markets yesterday.
Arthur Liu, owner of Multicultural Radio Broadcasting, which owns Air America affiliates WNTD-950 AM in Chicago and KBLA-1580 AM in Los Angeles, said Air America bounced a check and owes him more than $1 million.
Air America and Multicultural had entered into a time brokerage agreement in which the network was essentially renting Multicultural's airtime, Liu said.
"They bounced a check today," Liu said. "It's a default. They have paid only a very small portion of what they owe us." Liu declined to say how much Multicultural is owed, but did say he is holding $1 million in checks that Air America has asked the company not to cash.One the basic rules of capitalism: no rubber checks. I found that out early. And why aren’t all those rich leftists helping out their ideological brethren?
"They've been saying, 'We're going to get you the money' for the past two months," Liu said, referring to a security deposit that he said Air America was supposed to have prepaid in advance of its launch. "They're not honoring our agreement."Sounds like my old tenants.
Oh and don’t you just love this title?
Liberal radio stations silenced
…as if Multicultural Radio Broadcasting were violating Air America’s rights by expecting to get paid.
In fairness, however, the chairman of Air America says that Mr. Liu's allegation is false:
"That is an outright lie," said Evan Cohen, Air America's chairman, in a statement. "Multicultural Radio Broadcasting's conduct in this matter has been disgraceful.... [I]t is a clear violation of their contractual obligations."
Air America filed a complaint today in New York state Supreme Court charging Multicultural with breaching their contract and seeking an injunction to force Multicultural to restore the Air America broadcast on both stations.
Hints for Air America: the drama is happening a little early and you haven't even nailed your format. Try ground up, not top down. Making it entertaining helps also; obnoxious plus dumb do not equal entertaining. And no, I'm not laughing with the proverbial Schadenfreude, not yet. Having all views represented in a medium is a Good Thing.™
So is getting paid. In cash.
(Thanks to Dale Franks)