RBR+TVBR has confirmed that a breach of contract suit filed August 16 in a California federal district court by a creator of “viral hit shows” and podcasts against Audacy Inc. has been resolved.
It concludes potential litigation against Tenderfoot TV at a time when Audacy must concentrate its focus on emerging from a Houston federal bankruptcy court.
As RBR+TVBR first reported on August 31, 2023, Tenderfoot TV, known for series such as “Dear Alana,” and “High Strange,” hosted by Tenderfoot founder Payne Lindsey, sought upward of $500,000 from Audacy after it ceased paying Tenderfoot “the minimum guarantee owed” by podcast unit Cadence13 under a “Podcast Partnership Agreement” between the two parties.
Among the podcasts involved are “Culpable,” the “Radio Rental” series, “Up and Vanished,” and “To Live and Die in L.A.”
Attorney Tiffany Rose Caterina, of Century City, Calif.-based law firm Frankfurt Kurnit Klein and Selz P.C. represented Tenderfoot TV. As part of the court docket, Caterina offered details regarding “a long-term sales agency relationship” effective October 8, 2022, that she said required Cadence13 to pay to Tenderfoot a minimum guarantee of $14 million over two years, with the term commencing on January 1, 2023.
Terms also allowed Tenderfoot to unilaterally exercise a third-year option, a move that would hike the minimum guarantee to $21 million across the three-year period concluding on December 31, 2025.
To make the deal happen, 24 equal monthly installment payments of $520,833.33 for the first two years were agreed to after an initial payment of $1.5 million. Payments were made by Audacy-owned Cadence13 through July 31, 2023, before ceasing. On August 4, 2023, Audacy informed Tenderfoot that Cadence13 “is suspending further performance” of its payment obligations.
At the very minimum, Audacy wanted the $520,833.33 owed for August 2023.
At the time, a source close to the matter who requested anonymity described the matter as a contract dispute and should not be construed as a sign Audacy Corp. was unable to fulfill its payment obligations to other partners. The source also noted that it should not be any indication that Audacy’s financial situation was directly tied to its decision to not pay Tenderfoot its August 2023 installment.
Now, just two days after filing for Chapter 11 bankruptcy protection, Tenderfoot and Audacy have reached an agreement to resolve their differences. In a joint statement, the companies said, “Their work together on some of the biggest podcast franchises in the space continued uninterrupted throughout the litigation period, and the companies look forward to continuing their successful partnership on future projects.”
Financial terms of the deal are undisclosed.
With the litigation over, Tenderfoot TV’s relationship with Audacy will continue at least into 2026.
