KUSP AT A CROSSROAD: WILL THEY SELL THE LICENSE?

Last week we reported about the battle between WBUR and WGBH for NPR News superiority in Boston [LINK].  It appears a somewhat similar battle in the Monterey Bay (Santa Cruz) may be reaching its final chapter. 

Right now there are two public radio stations competing for the NPR News crown: KUSP and KAZU.

THE CONTENDERS: KUSP

KUSP is licensed to Pataphysical Broadcasting Foundation, a 501c3 community organization. KUSP has been broadcasting since 1972.  They have excellent coverage of this beautiful area:

BACKGROUND NOTE: WHAT IS PATAPHYSICS?

According to Wikipedia: French writer Alfred Jarry (1873–1907), who defined 'pataphysics as "the science of imaginary solutions, which symbolically attributes the properties of objects, described by their virtuality, to their lineaments".^[

THE CONTENDERS: KAZU

KAZU is located in Pacific Grove just west of Monterey.  They are licensed to CSU-Monterey Bay. This means KAZU is backed by deep pockets, an advantage in a competing situation. In 2000 KAZU switched it to full-time NPR News. They have excellent local reporting and also cover a nice slice of heaven:

IS KUSP ABOUT TO BE SOLD?

According to published reports, KUSP’s board has approved a letter-of-intent to sell the license to Classical Public Radio Network, the owners of KUSC, Los Angeles, and KDFC, San Francisco. The sale price is thought to be $1,000,000 – a bargain in such a desirable market.

But Terry Green, KUSP’s General Manager, says press reports have prematurely jumped to conclusions. Here is how Green describes the situation:

We have not even begun a serious negotiation of any kind with Classical Public Radio Network (the Northern California operating unit of USC Radio).

A few days ago we received an expression of interest from them about acquiring some (not all) of our broadcasting assets. Our governing board believed it would be wise to get the advice of our key volunteers and employees as to whether we should even consider going into such a negotiation.

Under our bylaws and California law that group of people (key volunteers and employees) would need to approve any organizational merger or assignment of substantial assets of our licensee. If it was clear that the group would not consider any proposal involving CPRN, there'd be no point in opening a discussion with them.

On Monday we had a meeting of the group and they supported the idea of finding out what CPRN has in mind. That clears the way for a discussion to begin -- and that's the key concept, begin a discussion.

So: as of now, no sale of the station, no approval of a sale by our governing board or the larger group that would ratify such a board decision, not even a negotiation having happened yet that might produce a firm offer, and no prediction from us that any of these things will happen, let alone when it will be resolved.

Terry Green has a solid reputation with pubradio folks.  So I take what he says to be the real deal.  I’ve always found Terry to be a very creative pro – maybe he can pull a rabbit out of the hat.

WHY KUSP MAY BE SELLING THE LICENSE

KUSP needs the money – now. According to articles in the Santa Cruz Sentinel, the community foundation that owns KUSP is on the verge of bankruptcy.  KUSP owes almost $700,000 to various creditors and is loosing $150,000 - $200,000 a year.

KUSP apparently doesn’t have enough cash to exist until the Fall pledge drive. In the Sentinel, KUSP board treasurer John Morrison summed up the situation this way:

“We’re just about at the point where our debt becomes the value of our license.”

WHAT HAPPENED AT KUSP?

Both KUSP and KAZU air NPR’s Morning Edition and ATC, as well as the most popular NPR and PRX programs  weekend programs.  These programs are expensive for stations, hence KAZU’s deep pockets gives them an advantage.

KUSP tried to distinguish itself with a mix of community radio warhorses like Democracy Now, a daily talk show of questionable value from KALW and lots of eclectic music.  It appears what KUSP is doing is apparently not sustainable.

According the Fall Nielsen Audio report, KAZU has nearly twice the listening and weekly listeners as KUSP:

	METRO AQH SHARE	WEEKLY CUMULATIVE LISTENERS
KAZU	4.5	55,400
KUSP	2.9	35,800

KEN’S ADVICE: DO NOT SELL THE LICENSE

One sentence in Terry Green’s note caught my eye:

A few days ago we received an expression of interest from them about acquiring some (not all) of our broadcasting assets.

Terry – The license is the ONLY asset that matters. The call letters, equipment and aura are PATAPHYSICAL dreams without a license to broadcast. (See the definition of pataphysical above.)  You are in a great market for Triple A. There are people who can help make it happen.  But, KUSP MUST THINK BIG.

I know you have diehard community radio elders who think it is still 1978.  These critics have two things in common: They don’t have to pay the station’s bills, and, they only know how to think small.  I saw this published advice from one of your critics: 

Downsize. localize, and thrive. This means possibly losing staff, finding a cheaper studio to rent, and losing some beloved NPR programming (it can still be heard on KAZU or online). But it could also mean the return of locally-produced shows

In other words, think small and maybe people will leave us alone in our pataphysical dream. This how you got to where you are now.

Do the opposite – Keep the license and create KUSP 2.0: THE ROCK OF MONTEREY BAY.