Minority Radio Stations Seek Gov't Bailout

From the NY Daily News:

A dozen of the country's largest minority broadcasters warn they may become "an extinct species" if they don't get some federal bailout dollars - or at least a helping hand with bank loans.

In a letter to Treasury Secretary Timothy Geithner, dated Sunday, the broadcasters say a credit crunch from "plummeting ad revenue" and other factors has led to an "unprecedented crisis."

The letter does not address the sticky topic of whether government should provide financial assistance to media, but does warn that a loss of these stations could "roll back decades of work by the federal government to encourage more minority voices."

The letter asks for either the direct aid provided to the auto and financial services industry, or government pressure on banks to free up money for loans.

Signers of the letter include Pierre Sutton, chairman of Inner City Broadcasting Co., which owns radio stations WBLS, Wendy's flagship station, and WLIB.

It is also signed by Sydney Small, owner of WWRL, and by Raul Alarcon, president of Spanish Broadcasting Systems. His company owns New York's two largest Spanish radio stations, WSKQ and WPAT-FM.

WSKQ, which a few years ago was the city's No. 1 station, says revenues have plummeted 40% or more in the last year. WBLS says its revenues are down by more than half, compared to an industry-wide average of 20% to 30%.

Treasury Department spokeswoman Meg Reilly did not return calls asking when and if the request would be considered. A broadcasters' spokesman said no response had yet been received.

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