Byron Allen draws ABC, CBS and NBC ire with late payments

Broadcast stations owned by Byron Allen — the media mogul who has expressed public interest in buying various media assets for billions of dollars — have been consistently late in making payments to network owners, angering media allies and creating distance between Allen and his would-be deal partners, CNBC has learned.

The stations owned by Allen Media Group have been as much as 90 days past due on the payments to networks including ABC, CBS and NBC, according to people familiar with the matter. The payments total tens of millions of dollars throughout the year, and the extent of the lateness has grown worse over time, said the people, who asked not to be named because the financial transactions are private.

Allen Media Group owns broadcast stations in more than 20 markets between ABC, CBS and NBC affiliates, according to the group’s website.

ABC, CBS and NBC have all grown increasingly frustrated after what feels like a perpetual chase for the fees — even after agreeing to payment plans at Allen’s request, the people familiar said. Paying consistently late is uncommon among local broadcasters, which pay hefty sums to the larger network owners to carry the brand and some content, particularly live sports like the NFL and many postseason games across leagues, the people said.

It’s unclear why Allen Media Group has been repeatedly late with payments.

After CNBC reached Allen Media for comment this week, the group made a payment on the outstanding fees, according to people familiar with the matter. The amount of the payment couldn’t immediately be determined.

Networks often collect fees from local affiliates every one to three months, depending on the contract. The funds to pay come in large part from so-called retransmission fees that cable TV operators pay to the stations, which can create a situation where money may need to go out before it comes in. Recently, broadcast station group executives have argued this structure should change as cord cutting accelerates and networks move more of their content over to streaming platforms.

Various divisions of Allen’s company, including stations located across markets in the Midwest, Southeast, West Coast and Hawaii, have also reportedly undergone layoffs in recent months. Another round of job cuts is expected at the end of August, one of the people familiar with the matter said.

Representatives for Allen Media Group declined to address the details of this story but said in a statement: “Mr. Allen started Allen Media Group 31 years ago from his dining room table. Allen Media Group is now one of the largest and fastest growing privately-held media companies in the world and is 100 percent Black-owned.

“Like most media companies and private equity firms, we evaluate many acquisition…