Local Media Of America/San Diego Ends Services Deal With BCA
October 26, 2010 at 6:23 PM (PT)
The services agreement by which BROADCAST COMPANY OF THE AMERICAS operated three Mexican-licensed SAN DIEGO stations with LOCAL MEDIA OF AMERICA has been ended. LMA, backed by private equity firm THOMA BRAVO, operates Top 40/Rhythmic XHTZ (Z90), Alternative XETRA (91X), and Urban AC XHRM (MAGIC 92.5); BCA, until recently headed by its founder (and LMA founder-CEO) JOHN LYNCH, operates Sports XEPRS-A (XX 1090), Sports XEPE-A (1700 ESPN), and Classic Hits XHPRS (105.7 THE WALRUS).
GREGG WOLFSON has been named GM of the LMA cluster, with CFO NORM MCKEE adding COO duties. BCA staffers assigned to operate the three LMA stations will become LMA employees, and programming and sales operations for the LMA stations will continue as usual at their present office location.
"All of the LMA stations have experienced a very successful 2010, and we anticipate further growth in 2011 as the SAN DIEGO and national markets continue to improve," said THOMA BRAVO managing partner CARL THOMA. "We will continue to pursue an organic and strategic growth strategy for LMA that hopefully will include additional acquisitions on both a local and national scale."
LARRY PATRICK, named CEO of BCA after LYNCH's ouster, said, "The joint operating arrangement has worked well for both of the companies and helped all the stations to have a very strong 2010. Now, each company is ready to build off that success independently in 2011. The services agreement was never intended to be permanent and the decision to operate independently was reached amicably."
THOMA added, "The ownership and staff of LMA are grateful to BCA for the services it provided this year and, at the same time, are enormously excited at the prospect of taking on the operation of our stations ourselves."
LYNCH recently sued his former BCA partners for his firing and that of his daughter, VP of Sales KARA GUTHRIE, after an aborted effort by LMA to buy out the VIEJAS TRIBE, a BCA partner.