Miss USA & Live Media Franchise Solvency Workbench

Liquidity Runway 17.8 mos Min Covenant Breached

Debt-Service Coverage (DSCR) -0.97x Target: ≥ 1.25x

Net Operating Cash Flow -$2,365,000 Annual Operating Deficit

Monthly Cash Burn $197,083 / mo Cash Zero-Horizon Alert

Turnaround Scenarios & Assumptions

Broadcast Rights (Base: $2.5M) $2.50M (-35%)

Sponsor Revenue Churn (Base: $1.8M) $1.80M (-40%)

State Franchise License Dues $1.10M

Broadcast Production Cost $4.20M

Overhead & Crisis Legal Retainers $1.90M

Senior Debt Service (Annual) $1.20M

Liquidity Burn & Waterfall Model Reserves: $3.50M

Breach Alert: Minimum Liquidity Deficit Projected in Month 18

Projected cash falls below lender threshold. Accelerated restructuring or immediate capital call required.

Turnaround Countermeasures

Downsize Host City Venue & Production (-$1.2M)

Relocate finals from tier-1 arena to studio ballroom configuration.

Direct-to-Consumer PPV & App Syndication (+$850k)

Bypass linear blackout zones with global digital pass model.

State Director Dues Restructure (+20% Rev)

Institute higher minimum entry commitments across 50 state pageants.