CRAM DOWN TIME? Unscrupulos Big Billboard sinks to new low!

Febuary 18, 2010

Some major outdoor advertising billboard firms in  have sunk to a new low!

Out-of-the-blue they want, and even demand to greatly reduce contract outdoor advertsing payments to property owners  across the country  It's called a "cram down

In the commercial real estate biz  many national and regional retail firms have successfully negotiated their prime space payments downward because of buisiness condtions. But shopping center and mall owners having  many other tenant  an and did make some "concessions."

Unscrupulous "Big Billboard" appears to be attempting to take unfair and unjustied advantage of the overall state of the economy at the expense of individual property owners.

Don't accept a "cram down!"

Big billboard  fat-cat, over-paid empoloyees and stockholders will benefit  at your loss!

Don't panic or cave-in  should your outdoor billboard firm communciate with you asking or demanding you to agree to  their unwarrent and often times arbitrary demands.

Yes, at some times and under some "rare" conditions  "temporary relief" in the form of some "minor concessions"  might be justified.   

I can help.  Keep in mind that each billboard matter must be analyzed on its own unique merits.
But much more to follow on this subject.

Bill McInerney
Outdoor Advertising Consultant
617-816-3933

PORN ON BILLBOARD !! NIMBY"S DELIGHT!

The global Outdoor Advertsing Billboard Business just got shocked out of it's mighty complancy!

The mighty digital billboard revolution has hit a major bump in the road of progess.  And it happened in a city  well known fpr "revolutions,"  namely Moskow, Russia!

Yes, Porn on a Billboard.    How would that fly in Peroria, St Louis, or even Boston? 

This was reported on 1-18/2010 by the Internet blog, The Hackers News Network."  and has been verified by several other sites including, OneIndia.

According to published reports, " An outdoor electronic or television billboard in Moskow was recently rigged to show porn duing rush hour. A massive trraffic jam occured. The porn was displaved for about 20 mniytes even thogu the operatin realized what happened after 3 minutes  The opetrator could nbot locate the "off swich or botton!"

Another source reported, "It was eitherr an act of holliganism o were from a rival company.(sic) " 
The incident occured on Friday, January 15, 2010.  Heads to roll in Moscow!!

I have not seen anyting thus far reported on US main media ineither  print or internet sites.

Tthe  rapidly growning number of NIMBY's who oppose Digital Billboards  anywhere will probably use this incident at public hearings  across the US for years to come.  Just thinbk of the public safety traffic issues??



Bill McInerney
Outdoor Advertising Billboard Consultant

PS.  I have numerous clients actively seeking viable billboard sites, anywhere,  on major highway, properly zoned, and with  high traffic counts and affluent demographics.  Callme now 617-816-3933   






Comprehenvise Outdoor-Billboard Consulting Services for Proprty Owners.

Citadel Broadcasting files for Chapter 11

Citadel Broadcasting Corp, The natrion's third-largest radio broadcasting firm, filed for Chapter 11 bankruptcy protection on Sunday (12-19-09) in an effort to restructure its hefty debt load as it continues to face declining advertising revenue.

The firm owns 224 radio stations & is home to several syndicated hosts including: Don Imus, Rush Limbaugh, Joe Scarborough and Mark Levin.

Much of its debt burden comes from its $ 2.7 billion purchase of ABC  radio from Walt Disney Co in 2007.

The entire radio industry faces many major  advertising problems and this is not good news for Clear Channel.

A Wild TIme For Outdoor

The great Outdoor Advertising Industry and business is under siege from all sides.

The new emerging DANGER for property owners leasing to big and small billboard firms is that they will try to take advantage  of present conditions and will attempt to pass along their mis management losses by paying less and less for better and better locations.  Don't even listen to them!

NEWS OF NOTE:
 #1. Media Life on 12-15-09 announed that billboard advertsing revenue is down 17.2% for the the Third Quarter of 2009. This is on top of an 18% slid inthe first and 2rd Quarter of 2009. A drop of 35.2% has to hurt especially those firms with big debt and poor management and a lack of the outdoor business.

#2. Toronto paaeed a new Billboard tax! This first ever muncipal tax is based on advertising revenue! It's now sending shock waves across the advertising world and every City Hall in the US which is desperate for tax revenue.  Proeprty Owners review your leases NOW!

#3. The US Supreme Court decined to hear a challenge to the L.A. billboard ban. Thisis very bad news for digital boards   The growing "anti-digital billboard movement"  is gathering support fromlaw enforcement relative to traffic safety issues.

# 4. Big Billboard FInancial Distress.  On 12-18-09 Moody's dropped the bond rating on Clear Channell. Thisis not good news for C.C. who has $22 billion in debt and now wants an additional $750 million debt.

Good News:
Many cash- mega-rich International Outdoor firms have expressed interest in buying all or parts of some billboard firms in the U.S. Expect changes of ownership in 2010!

Some outdoor firms in 2010 willhave to divest itself of assets to stay afloat.  Do  you have a Right of First Refusal to buy the Billboard Assets ( Structure and all permits) in your lease? 

Property owners who lease to billboard or outdoor advertising firms  have  a great asset!  They just don't make good locations anymore.   

If you have any questions concerning the outdoor billboard business, the  "true" value of your location call me at anytime.  Remember, with my billboard outdoor advertsing insider experience,  I know what the billboard firems don't  want you to know!  I work only for proeprty Owners.

Sincerely,

Bill McInerney

Do you want to turn your existing outdoor billboard lease into cash?   I have serious investors.
WANTED: Prime, high traffic billboard locations anywhere!






Comprehenvise Outdoor-Billboard COnsulting Services for Proprty Owners.

L.A. Billboard News

Recently a judge invalidated a 2006 agreement between the city of L.A. and two giant billboard players; CBS Outdoor and Clear Channell.

 The ruling indicates caution before converting from conventional billboards to the more modern, cheaper to operate, digital format. 

Property Owners and Property Managers: Does your billboard advertising  contract  or agreement allow billboard firms to convert, alter or change, any  billboard strucutre with, or without, your permission and full agreement?

Up in the air, in L.A.  is the fate of 101 billboards already converted.  The decision  will be up to the L.A. City Council.

Property owners  and property managers in L.A, who own and lease space, land or buildings,  to any billboard firm, and  especially those owners with a lease  renewal coming due soon, need to be extra alert and on their toes!  Another 800+ L.A.  billboards  are now in legal limbo.

Allow Bill McInerney assist you in your billboard-outdoor advertsing matters! As a  former big billboard insider he knows how to best assist proerty owners. Call him now at (617) 816-3933 or e mail: billboardmac@gmail.com










Comprehenvise Outdoor-Billboard COnsulting Services for Proprty Owners.

Milwaukee TO Assess Billboards

The fight is on! 

City of Milwaudkee wants to  assess billboards in a different manner costing outdoor firms
$1.26 increase under new assessment plan. Clear Channel Outdoor a nd Lamar Outdoor fighting back. .

Clear Channells's tax bill was $110,000 per year and could be raised to $1.13 million.!  Assessors want bigger bite of the income pie.

Clear Channell is clealy unhappy as it now need every peeny in revenue to stay alive. Wall Street willbe watching this closely as shareholders are going to become very upset if CC's revenues drop even more than they have.

Proeprty owners everywhere  who lease locations to outboor-billboard firms now must be alert that outdoors firms don't   try to flip assessment tax to property owners.

Bill McInerney
617 816 3933

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RECENT OUTDOOR BLLBOARD ADVERTISING NEWS for Property Owners

'tis not a jolly season for outdoor advertising firms anywhere.

Expect some major Big Billboard firms to probably "burst" in 2010 or expect them to slowly sell off assets. 

Two major isues: declining demand for all advertising and a major, widening outdoor billboard "price-war " everywhere. It is global!

Rather that cut excessve managment operations such as excessively high office rents  or   fire incompetenent " family and buddy" connected  high-salary , do nothing,   executive employees,

Big Billboard   now wants propertyowners to  take the hit and "lower" land and building lease deals?   No way. 

Outdoor revenues may be down but this is a short term flu like illness, miserable but not fatal.

The good news is that global, well managed and very well financed outdoor-billboard firms  are ready to buy out some US firms.  They know value of prime locations.

NEWS

11-25-09  Toronto, Canada. New proposed "Tax" on billboard advertising has  Out-of-Home Marketing Association of Canada fighting  back,  saying new tax will cost outdoor industry $8.8 million.

Property owners need to NOW make sure all leases make it clear ALL taxes to be paid by outdoor-billboard firms and not property owners.  Anticipate this concept, tax on outdoor advertising ,to go global soon.

Tax revenues are down everywhere & officials need new sources of quick income.
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11-25-09 Washington D.C.  Clear Channell takes on city regulators and may have to take down illegal boards.  Who needs a fight like this? CC must be desperate for loot.
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11-26-09 Swiss Outdoor Advertising group Afficharge selling Hungarian operation because of " lower demand and widing price war" in outdoor sector.  The factors of lower demand and the widing price war everywhere will make for major casulaties in 2010.
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11-26-09. Social media  vs Outdoor. Zawya reports from Dubai : some firms do better with outdoor advertising  vs social media.   Facebook, Twitter etc are low, low cost and have pin-point one-to-one
audiance; outdoor is king of reaching the masses.
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11-09. In case you haven't heard, NY judge may order removal of 600 "illegal billboards" from highways leading to and from the Big Apple.  Major financial hit for billboard firms and property owners.

Property owners: Keep a close watch on this case. Your site may have even more value down the road.

Big Billboard firms such as Clear Channell, CBS grossly overpaid for many of these "billboards"  just a few years ago and now may have to just throw them away. Stockholders will go wild.  Banks not happy will projected  loss of revenue as some billboard firms now deep in financial troubles.
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11.26.09 Pakistan.   The outdoor industry is now  emerging strongly in Parkistan.

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Is your outdoor-billboard agreement coming up for renewal soon?

Is your outdoor billboard tenant paying you enough rent for your prime real estate location?

Are you sure?  Does your land, building  lease or contact seem a bit one sided? 

I know what the ourdoor billboard firms don't want YOU to know!!

 Let me help you NOW with Big Billboard. BIll McInerney (617) 816 3933.
e mail billboardmac@gmail.com