Why do Christian ministries and churches think that they are exempt from the biblical teaching on debt? I guess I want to know how and why Salem Communications got itself $320 million in debt in the first place? Now with all this debt Salem Communications is expanding into Spanish language radio and conservative talk radio? I have news, isn’t business expansion kind of risky in a depression especially when you are already in deep trouble? I do not think that Spanish broadcasting is going to be any great source of revenue for them. They also say they will expand into conservative talk radio. What happens to your revenue when the demoncrates take action to muzzle conservative talk radio? You can bet your ministry that they will attempt to do that. Then all radio stations will be forced to broadcast some liberal preachers, watch your cash flow then!
I like the websites that Salem communications runs and the radio ministries on OnePlace.com. The radio stations they own also seem to be good. I pray they will get out of the money pit because now that they dug this hole it is going to take an act of God’s people to help them out. If that miracle happens I hope they and all Christians will learn to stay out of debt.
Money woes slam top Christian broadcaster
Salem Communications, a Christian publishing and radio giant that owns nearly 100 radio stations nationwide and calls itself the No. 1 Internet provider of Christian content, has been branded a “bottom rung” company by Moody’s Investors Service for struggling under the weight of $320 million in debt.
Salem, which operates well-known websites OnePlace.com, Crosswalk.com and Christianity.com, boasts 3 million unique users hitting their websites with 40 million page views per month.
But neither the company’s strong web presence nor its publishing branch could overcome heavy losses affecting the radio industry nationwide.
According to the Radio Advertising Bureau, broadcast revenue was down about 10 percent across the board in 2008. And even though Salem was able to hold its drop to only about 6 percent, its balance sheet plunged from an $8.2 million profit in 2007 to a $30 million net loss in 2008, reports the Business Times. Salem’s stock dropped from trading above $4 to around 50 cents per share.
Now, according to the Radio Business Report, Salem may have difficulty paying off $320 million of debt that matures in 2010, prompting a downgrade in the company’s credit rating
and a “negative outlook” assessment from Moody’s.
Salem also owns and operates nearly 100 radio stations in 23 of the nation’s top 25 markets and syndicates talk, news and music programming to approximately 2,000 affiliates in more than 300 markets in the U.S.
Don Koenig founded www.thepropheticyears.com website in 1999 after almost thirty years of independent study on the Bible and learning from many astute teachers within Christendom. Don created his website to write about Bible prophecy, biblical discernment and his Christian worldviews. Don wrote a free Revelation commentary ebook in 2004 named "The Revelation of Jesus Christ Through The Ages". The World and Church and Bible Prophecy section of this website was started in 2007.