Ad Agency Titan Outdoor Holdings owes the MTA $18,000,000
February 9, 2010
It appears that ad agency Titan Outdoor Holdings is 2 inches from bankruptcy. The company is in the hole $18,000,000 owed to the MTA (Mass Transit Authority). The MTA is holding off forcing the agency to deliver the money for fear that it will bankrupt the advertising agency.
Nice Client. Too nice.
The fact is that this advertising agency shouldn’t be in business.
In order to avoid far-reaching subway cuts that would eliminate the M and W lines and cause trains to become less frequent and more crowded, the MTA needs about $18 million—the same amount a deadbeat advertising company owes the transit agency. An MTA audit revealed that Titan Outdoor Holdings has come up short on its monthly payments for almost a year, but the MTA is afraid that recouping the money might bankrupt the company, causing the agency to net even less revenue. Full Story from the Gothamist
The article noted that the Advertising Agency paid the MTA a flat commission rate, and evidently the ad agency didn’t report a whole mountain of income.
So how will the Mass Transit Authority punish Titan Outdoor Holdings? By rewarding them with a new “lower paying” contract rather than sending out an RFP to the 20000 other ad agencies starving for business.
Good Grief.
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Titan Outdoor Holdings has the rights of posting ads in subways and on the platform around train stations. It is not a traditional ad agency. So a media company that wants to place poster ads on behalf of their clients will go to Titan, pay them and they will post.
Titan is a media company, not an ad agency. They do not have the subways, just the NYC Transit buses and commuter rail. CBS Outdoor has the subways, and they are not having difficultly paying their bills.
[...] More than 1,000 layoffs are expected as the MTA is trying to cope with dwindling revenue and an advertising agency that refuses to pay the bills. WCBTV is reporting Even though Titan outdoor owes the MTA $18,000,000 [...]
Ummmm………Titan isn't a Ad Agency, Bozo !! Do your homework !!