From p. 20-21 of this report:

Pacifica Foundation Report to the California

Registry of Charitable Trusts

 

Pacifica Financial Recovery and Stabilization Plan

March 30, 2017

 

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Contingency Plans:


IF and ONLY IF, we do not see significant improvements in the finances of WBAI (New
York) and WPFW (Washington, DC) in the next 4-6 months, Pacifica's executive team is
committed and determined to take additional measures to restore Pacifica network finances to
financial health. As other stations are doing relatively well or stable and/or only incremental
improvements are necessary, no contingency plans are being considered for those. The
contingency plans may include the following:

1. WPFW – Washington, DC
a. Much of the programming of this station could be temporarily replaced with
programs produced at other Pacifica stations, at least for a few months. Only a
skeleton staff would be needed to maintain the operations while plans are made to
restore the station to sustainable operations.
b. A new management team / advisor may be brought in to turn around the finances
with or without the help of existing management, as needed.
c. If other measures are unsuccessful, bids / proposals might be invited from interested
third parties for licensing agreements where the operations may be turned over to
them for a fee, provided that they agree to serve the needs of WPFW listeners. This
will save Pacifica the amount of losses that are being incurred by the station at this
time or for any future losses. Because the station does not have any significant
external debts, there will be less hurdles in making future arrangements.

2. WBAI – New York City

a. Much of the programming of this station could be temporarily replaced with
programs produced at other Pacifica stations, at least for a few months, and may
need only a skeleton crew to operate in such a case, as described above for WPFW.
This would reduce expenses and save Pacifica from further liabilities.

b. Proposals will be considered from third parties who show interest in a frequency
swap with another station. This could generate substantial cash for the station but
depending on the specifics (such as the power and location of the transmitter), could
also significantly downgrade its coverage area and revenue. Such proposals have not
been entertained so far, as Pacifica wants to maintain and grow its New York station.
However, this shows the potential value of the WBAI radio license and demonstrates
that, in the worst case scenario, Pacifica can pull itself out. Pacifica has substantial
assets but they are not reflected in the books. This is an extreme measure and will be
Pacifica Financial Recovery and Stabilization Plan, March 30, 2017 Page 20 of 21
taken only when all the options to save Pacifica are exhausted, especially if such a
swap would result in substantial loss of listeners.

c. All the other options as described under WPFW contingency plans will also be
applicable for New York. A new management team could be hired and would turn
around the operations with or without the help of the existing management. Advisory
services will also be sought to provide insight into programming to make them more
attractive.

Pacifica Financial Recovery and Stabilization Plan, March 30, 2017 Page 21 of 21