FALL 2019 CONTENTS CBD: A ‘Crazy Big Deal’ 16 For Radio? CBD is cannabidiol, as in cannabis oil. And it’s one of the most asked- about topics by radio industry leaders who have spoken in recent weeks to Wiley Rein attorney Ari Meltzer. Here’s what you need to know today on tomorrow’s hottest potential revenue generator. Folly Or Futurist? 17 An AM radio station in Frederick, Md., that some thought was nothing more than a play toy for Hubbard Broadcasting Senior Broadcast Engineer Dave Kolesar may actually be one of the keys to the ultimate survival of kHz-band stations in North America. The Deal Flow: 19 Deregulation, Or Else? Many believe loosening – or eliminating – the local ownership caps for radio will be a boon for radio deals. Others, including iHeartMedia, say no. What’s the take from D.C., and two big communications law firms? A VSiN-ary Opportunity 22 Former CBS Radio executive Dan Mason is now Chairman of Vegas Stats & Information Network America’s (VSiN). He speaks exclusively with RBR+TVBR on the ways state- by-state legalization of sports gaming could open important new revenue channels for America’s radio broadcasting companies. Radio + Television Business Report STREAMLINE PUBLISHING Chairman: Eric Rhoads Top Brokers Publisher: Deborah Parenti Editor-in-Chief: Adam R Jacobson Director of Operations: April McLynn 331 SE Mizner Blvd. Boca Raton, FL, 33432 Phone: 561-655-8778 www.rbr.com and Attorneys Twitter: @rbrtvbr FALL 2019 · RBR.COM FREE DAILY Sign Up Today! For more information, go to podcastbusinessjournal.com 2 · RBR.COM · FALL 2019 America’s Top Brokers and Attorneys RBR+TVBR, the publication dedicated to the business of broadcast media, is pleased to introduce an inaugural look at America’s Top Brokers and Attorneys — a reader-generated Honor Roll saluting the individuals shaping the future of broadcast media. This alphabetical Honor Roll is determined by an RBR+TVBR reader poll and evaluated by the Radio + Television Business Report editorial board to ensure all are qualified and meet our criteria. An overwhelming response was seen, with hundreds of industry leaders and legal professionals sending in their nominations. This inaugural list salutes the individuals shaping the future of broadcast media. For this first-ever Honor Roll, the list is not ranked, as we wish to honor each nominee equally in 2019. FALL 2019 · RBR.COM · 3 THE TOP 10 BROKERS As we review the top brokers in the U.S. as determined by the readers of RBR+TVBR, each broker was asked to answer one question: What is the one thing that is most vital to the future success of the radio broadcasting industry, as you see it? Their responses, where given, appear with their brief biographies below. “What the radio industry needs most now is top-line revenue growth,” says Evers. “Whether this comes from NTR, digital, bet- ter pricing due to deregulation and consolidation, or podcasting and other ancillary services, the industry needs to show the investment community forward motion in order to attract fresh MICHAEL J. BERGNER capital and boost trading multiples.” President, Bergner & Co. To say he’s a fan of “modernization” of the FCC’s local media Boca Raton, Fla.-based Michael J. Bergner has been ownership rules would be an understatement. “Hopefully, the providing his deal-making expertise to media since 1987. FCC will adopt the NAB’s deregulatory proposals and rid the Formerly a practicing corporate tax attorney, Bergner became industry of antiquated regulations that prevent radio from hav- a media broker two weeks after the stock market crashed in ing a level playing field when competing with other services in 1987. In the nearly 32 years since the days of Wall Street and the audio marketplace,” Evers says. famed film character Gordon Gekko, Bergner has handled more than $1 billion in transactions. These transactions have included radio and TV stations, broadcast towers, print media and digital BETH GRIFFIN businesses. Principal Owner, Griffin Media Partners For Bergner, the one thing that is most vital to the future From 1990 to 1992, Beth Griffin was an account executive success of the radio industry is “the focus on being local.” He in the Los Angeles headquarters of Radio & Records. She would says, “Radio gets great results for local advertisers, as stream- ing services cannot compete with the local service that radio provides. Developing a strong local sales team will have a big advantage in any economic environment.” ELLIOT EVERS Managing Director, MVP Capital LLC If there’s one thing Elliot Evers may have in common with Michael J. Bergner, it is the date he co-founded his media bro- kerage, today known as MVP Capital: the San Francisco-based firm dates to 1987. Under Evers’ leadership, MVP has managed deal volume in excess of $3.5 billion — including former CBS Radio properties. His most recent engagement is serving as the divestiture trustee for the Cox Media Group/Apollo Global Management radio deal. The firm today has 30 employees spread across five offices. 4 · RBR.COM · FALL 2019 later hold sales positions at Billboard and at iHeartMedia-owned be successful,” he says when asked what is most vital to radio’s Inside Radio. Today, she’s celebrating her 13th year overseeing long-term success. “With new companies delivering on-demand Griffin Media Brokers — an endeavor she says made her firm a music, playlists and long-form audio directly to consumers, top media broker in the nation based on the number of financial radio must adapt to these changes while maintaining the con- transactions, as determined by SNL Kagan. nection with the listeners. For many broadcasters this means Griffin says it’s her first-name-basis knowledge of key continuing to invest heavily in local content. Broadcasters are decision makers and her knowledge about their companies, uniquely positioned to serve as content companies that touch combined with her professional people skills, that have their listeners in a variety of ways, maximizing engagement and made Griffin Media Brokers a successful anomaly in a male- expanding revenue opportunities. In an era of increased com- dominated industry. In fact, she is the lone solo female petition, cost savings are attractive in the short term, but those nominee among the Top 10 Brokers. who are able to invest in differentiating their content are the So, what is the one thing that is most vital to the future suc- ones who will thrive going forward.” cess of the radio broadcasting industry, as Beth Griffin sees it? “Keeping radio local — bring back DJs, the only entertain- ment that is free!” BOB HEYMANN Director, Media Services Group Remember “FM GREG GUY 99, The Quake” — a Managing Partner, Patrick Communications San Francisco modern Before 1999, Greg Guy rock station of the was a research analyst at the early 1980s featuring NAB. That knowledge has Alex Bennett and Joe certainly paid off for Guy, Regelski in morning who took the role of Director drive? If you do, you of Research and Marketing know who managed at Patrick Communications. the station still remem- Today, he’s a Managing bered by many in the Partner who has personally Bay Area: Bob Heymann. brokered over 300 radio and Today, Heymann television transactions, val- serves as a Chicago- ued well in excess of $1 bil- based broker for Media lion, over the past 20 years. Services Group, a role “In an exploding world he’s held since 2008. Heymann has bought or sold dozens of of audio content options, radio stations, TV stations and towers for clients of the firm, broadcasters must continue highlighted by co-brokering the radio portion of the $415 mil- to differentiate themselves to lion Gray Television acquisition of Schurz Communications in FALL 2019 · RBR.COM · 5 2016 and the sale of the Poole Tower Complex at Mt. Wilson in Los Angeles. MARK JORGENSON Before joining Media Services Group, Heymann spent 24 Partner, Jorgenson Broadcast Brokerage years in the media brokerage business in Chicago. Some of the In 1976, after two years deals he was involved in: the $165 million sale of WNIB-FM (now as a Peace Corps volunteer, WDRV-FM) in Chicago and the $54 million sale of KOMA-AM & FM Mark Jorgenson took his first in Oklahoma City. professional post-college Heymann is also one of the youngest persons in history to job, becoming a local AE be awarded a First Class Radio Telephone Operator License by for WXII-TV, the NBC affili- the FCC, having become interested in broadcasting at the age of ate serving Winston Salem 14. When not working, Heymann is an avid golfer and a Chicago and Greensboro, N.C. He’d Bears fan, and he bleeds Carolina Blue, as he is a graduate of go on to TV station roles in the University of North Carolina at Chapel Hill. Cincinnati, Miami and Tampa What does he see as the one thing that is most vital to the before becoming a part- future success of the radio broadcasting industry? owner, in 1987, of the first “Growth of radio industry revenue,” he says. “Somehow, Hispanic radio station serv- either through regulatory relief, new technologies or some other ing Tampa-St. Petersburg. means, radio has to grow its overall revenue despite the enor- From this experi- mous competition it now faces from all the new sources of audio.” ence, a broker was born, as Jorgenson in 1990 — while serving as COO of the former ZGS Broadcast Holdings — FRANK HIGNEY launched his broadcast media brokerage. During that time, he’s VP, Kalil & Co. also been a station owner, including with the Concord Media Of the media broker- Group.