Byron Allen's media empire, Allen Media Group, has come under scrutiny for its consistent tardiness in making payments to network owners, creating rifts with media allies and potential deal partners, according to sources familiar with the matter. The payments, which total tens of millions of dollars annually, are owed to major networks including ABC, CBS, and NBC. The extent of the lateness has reportedly escalated over time, causing frustration among the network owners.

Sources reveal that Allen Media Group's broadcast stations, operating in over 20 markets as affiliates of ABC, CBS, and NBC, have been as much as 90 days late in making payments to the networks. These payments are vital, as they contribute to the hefty fees that local broadcasters pay to carry the brand and content of larger network owners, including live sports events like the NFL and postseason games.

The consistent late payments by Allen's media stations have sparked frustration and disappointment among ABC, CBS, and NBC. The networks have even agreed to payment plans at Allen's request, but the tardiness has continued to persist. The situation has raised eyebrows within the industry, as it is uncommon for local broadcasters to pay late. The reasons behind Allen Media Group's repeated late payments remain unclear.

In response to CNBC's inquiry, Allen Media Group made a recent payment on the outstanding fees, although the specific amount was undisclosed. Normally, networks collect fees from local affiliates every one to three months, with a significant portion of these funds coming from the retransmission fees paid by cable TV operators to the stations. The complex financial arrangements can create a scenario where payments need to be made before revenue is received.

Alongside the late payment issue, Allen's media company has reportedly seen divisions within its operations go through recent layoffs. It is anticipated that further job cuts will occur by the end of August. However, Allen Media Group declined to comment on these details.

Allen's track record of late payments starkly contrasts with his ambitious multibillion-dollar bids for media assets. In recent years, Allen has pursued several high-profile acquisitions, including bids for Paramount Global, ABC and other Disney networks, and Paramount's BET Media Group. However, these attempts have largely been unsuccessful, leading some investment bankers and financial institutions to question Allen's credibility as a serious buyer.

Allen Media Group, which Allen founded in 1993 as Entertainment Studios and later expanded with the formation of Allen Media Group Broadcasting in 2019, has been actively reposting reports of its interest in bidding on various media properties on its website. The company owns a range of broadcast TV stations, as well as smaller networks like Pets.tv and Comedy.tv, and the Black news and entertainment network, TheGrio.

The late payment issue and failed acquisition attempts come amidst a changing media landscape, with a shift towards streaming platforms and cord-cutting. As broadcast station groups face challenges in generating revenue from advertising and retransmission fees, Allen Media Group's financial and operational hurdles signal a turbulent period for the company.

Representatives from ABC, CBS, and NBC declined to provide comments on the matter.