According to the court filing that has lead to the public dispute between NBN and Sheridan Broadcasting, NBN claims Sheridan has used, and is using, its control of AURN to siphon funds from the partnership to subsidize and prop up Sheridan’s operations. NBN claims Sheridan improperly extracted more than $6 million from AURN.
NBN says Sheridan is looting AURN, causing AURN to withhold and defer payments of affiliate compensation owed to radio station affiliates around the country. “In the simplest terms, Sheridan abused its control of AURN to pay itself ahead of affiliate compensation payments to these affiliate radio stations. As a result of these unilateral and self-interested actions Sheridan has caused damage to AURN’s business reputation and affiliate relations that have negatively affected the financial condition, profitability, goodwill, and value of AURN’s ongoing business.”