Inside Air America's Troubles: Optimism and Shaky Finances

The Wall Street Journal ^ | June 21, 2004 | JULIA ANGWIN and SARAH MCBRIDE

[visagoth]

On March 30, the night before Air America went on the air, the liberal radio network threw itself a $70,000 party at Manhattan's hip Maritime Hotel. More than 1,000 guests, including Yoko Ono and Tim Robbins, drank red, white and blue vodka cocktails as they toasted the network's bid to challenge the dominance of conservative talk radio.

But behind the scenes, Air America was running out of money. Today several employees say they still haven't been reimbursed for the costs of attending the New York launch. "It was a fun party, until I knew I was paying for it," says Bob Visotcky, Air America's former Los Angeles market manager, who hasn't been reimbursed for his hotel room and flight.

Mr. Visotcky wasn't the only insider in the dark about the company's problems. Many of Air America's investors and executives say they thought the network had raised more than $30 million, based on assurances from its owners, Guam-based entrepreneurs Evan M. Cohen and Rex Sorensen. In fact, Air America had raised only $6 million, Mr. Cohen concedes. Within six weeks of the launch, those funds had been spent and the company owed creditors more than $2 million. When the problems came to light, "we realized that we had all been duped," says David Goodfriend, the company's acting chief operating officer. Messrs. Cohen and Sorensen say they didn't mislead anyone about the company's finances. They say they planned to invest more over time but didn't because of cultural differences with other managers. Both resigned in early May.

[visagoth]

This is from the front page of the WSJ, and is excerpted here. It continues for about another 30 paragraphs in the print and online edition.... basically, they are out of money. Piquant LLC, bought the assets of the old company, named a new CEO and simplified its business plan. Rather than buying stations or leasing time, Air America is following a more conventional route, allowing local stations to pick up portions of the lineup. It's on the air in New York and 14 other markets including Portland, Ore., and Chapel Hill, N.C.

[alnitak]

Does anybody have a picture of Al Franken? I was watching the movie "Trading Places" last night, and there is an Al Franken in there, playing a dopey baggage handler. Jus' wunnered if it is the same person.

http://www.imdb.com/title/tt0086465/

http://www.imdb.com/name/nm0291253/

[Huntress]

I don't have picture, but I think it's the same guy. Isn't Trading Places a great movie, despite Al's presence?

[agitator]

fraud ping

[Jhensy]

Yeah, that's Al. You know it's him because, the moment he appears, he drags to a halt an otherwise funny movie.

[Uncle Miltie]

"The liberal radio network threw itself a $70,000 party at Manhattan's hip Maritime Hotel.... But behind the scenes, Air America was running out of money."

Can you say "Liberal?" I knew you could.

[ChadGore]

Re: "It was a fun party, until I knew I was paying for it,"

Isn't this the very essence of an evolution from a liberal to a conservative ?

[CatoRenasci]

Indeed, modern liberalism could be defined as the notion that we the good people should all party, and someone else should pay for it.

[Red Dog #1]

"When you believe you're doing work for the greater good, you don't question as much," says Javier Saade, a former Air America executive vice president. "People never questioned the curves and obstacles on the road. People just said, 'We're on the road.' "

I thought this pretty much sums up the whole leftist philosophy, not just their latest radio misadventure.

[CoolChange]

Two things jump out at me that define liberals to a "T". The part about the man from LA saying it was a great party until he found out he was paying for it and the Guam based entrepeneurs. Why is it that they are not US based? Could it be for the same tax breaks that they want to take away?

[alnitak]

Yeah, one of my favourite pieces of American comedy. Has me laughing now, very well written.

[hellinahandcart]

the liberal radio network threw itself a $70,000 party at Manhattan's hip Maritime Hotel

This place must be ultra-hip, since I've never heard of it.

But seventy bucks a head isn't bad.

[abc1]

This is an interesting parallel to the Clinton's.
Eight years of a dot-com party.
It went bust in 2000.
Now, Bush dealing with the mess
and is being blamed for it at the same time.

[Exeter]

"They say they planned to invest more over time but didn't because of cultural differences with other managers."

Yeh, right. In some cultures its members will blindly give their money away and sign their names to blank checks as long as they're told it's for "the greater good", while in other cultures its members ask questions about where and how their money is being spent. Mr. Cohen and Mr. Sorenson thought that they were gathering funds in the former culture when in reality they were in the latter...

[Sofa King]

Hey, finally a thread to promt the posting of my Air America cartoon!

[CarolTX]

Very typical Liberal thinking: something is defined by them as "worthy" and so, naturally, money will just appear to pay for it.
Ooops..usually that is taken care of by voting for more taxes. Guess they'll have to rethink the AA business plan. (smirk!)

[franklog]

It's windbag Al. The person listed on IMdB as handler #2 - Tom Davis - is his longtime comedy partner (Franken and Davis).

[MizSterious]

"...New York's Durst family of real-estate developers."

Would this be the same Durst who is believed to have killed at least two wives and one neighbor, and who is also a cross-dresser? Well, if so, that makes sense...just the kind of people one would expect Err America to attract.

[thoughtomator]

"It was a fun party, until I knew I was paying for it," says Bob Visotcky, Air America's former Los Angeles market manager, who hasn't been reimbursed for his hotel room and flight.

That is the most succinct characterization of the essence of Left wing philosophy I have ever seen.

[NYC GOP Chick]

Me neither. I don't think it exists. :)