His LinkedIn profile explains that they are waiting on decision whether they will make a "go" of the format or sell it off.
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104.5 KMCQ & SOME OBSERVATIONS WHILE LISTENING IN SEATTLE THIS WEEKEND....
This situation is rediculous. There is no financing available right now without a huge downpayment! Your private equity players are still nursing their wounds from this recession/depression and have been FORCED to re-finance their equities with the various broadcasting firms. Had they not done this, you'd have seen some major broadcasters file bankruptcy. A few already have.
No, there's no 20 whatever million dollars out there for 104.5. Now right now. I would strongly suggest getting some cashflow going and make something of the station, like normal broadcasters do.
That means:
1. Sign the agreement with Arbitron and (make it assignable), and, darn it, hook up the encoders into the airchain and get some ratings!
This way you'll develop a track record for a future purchase.
2. You don't need to LMA this thing, just sign a Sales Agreement with somebody that would a be a great fit, Like KIRO-FM. They'll show
that the 35+ demo can work. There's money in them there hills, you just have to go get it!
In short, time to man up and run a station.
No, there's no 20 whatever million dollars out there for 104.5. Now right now. I would strongly suggest getting some cashflow going and make something of the station, like normal broadcasters do.
That means:
1. Sign the agreement with Arbitron and (make it assignable), and, darn it, hook up the encoders into the airchain and get some ratings!
This way you'll develop a track record for a future purchase.
2. You don't need to LMA this thing, just sign a Sales Agreement with somebody that would a be a great fit, Like KIRO-FM. They'll show
that the 35+ demo can work. There's money in them there hills, you just have to go get it!
In short, time to man up and run a station.
My two cents on your comments..
First of all, because of the recession; the valuation of all broadcast properties have dipped 30% or greater over their peak. Depending on how much First has invested to make this (one of many) move-in's, they may not have the wiggle-room with their PE money to sell on the cheap. Their business model appears to be a lot like 'house flippers' in the real estate game, not as an operator. To that point, there in fact may be strict provisions that prevent them from being operators beyond what it takes to spin a property. Now I know some of you hobbyists and unemployed airstaff find that concept distasteful, but the practice goes on for all busineses.
To me, to do as you suggest and put that station on with a probably non-permanent format such as the current mixed-up oldies, would be a huge mistake. If the new owner wished to get into the 45+ male demo market in an attempt to compete with other full-market classic hits, classic rock and classic whatever market, then they do so on their nickel and at their own peril. If I were in the station spinning game, which in a way I have been, in order to keep the station on an meet the FCC requirements, I'd be driving hobbyists like you folks even more insane by doing rock one hour, followed by classical, then urban, bluegrass, then various tones just to get a buzz in the market and allow suitors a chance to sample the coverage. Building up and operating the format with studios and support staff would be adding a HUGE additional expense and years to hit ROI. Keeping expenses low until you find an adequate buyer or LMA parter is much more short term.
First of all, because of the recession; the valuation of all broadcast properties have dipped 30% or greater over their peak. Depending on how much First has invested to make this (one of many) move-in's, they may not have the wiggle-room with their PE money to sell on the cheap. Their business model appears to be a lot like 'house flippers' in the real estate game, not as an operator. To that point, there in fact may be strict provisions that prevent them from being operators beyond what it takes to spin a property. Now I know some of you hobbyists and unemployed airstaff find that concept distasteful, but the practice goes on for all busineses.
To me, to do as you suggest and put that station on with a probably non-permanent format such as the current mixed-up oldies, would be a huge mistake. If the new owner wished to get into the 45+ male demo market in an attempt to compete with other full-market classic hits, classic rock and classic whatever market, then they do so on their nickel and at their own peril. If I were in the station spinning game, which in a way I have been, in order to keep the station on an meet the FCC requirements, I'd be driving hobbyists like you folks even more insane by doing rock one hour, followed by classical, then urban, bluegrass, then various tones just to get a buzz in the market and allow suitors a chance to sample the coverage. Building up and operating the format with studios and support staff would be adding a HUGE additional expense and years to hit ROI. Keeping expenses low until you find an adequate buyer or LMA parter is much more short term.
One alternative would be to simulcast the Mercer Island kids during this transition window -- the players who got bumped in the first place when this whole fiasco began! If all they need is "ANY" content....!!!?
I
IndigoCoyote
Guest
KMIH "only" got bumped down the dial...our poor little LPFM got bumped clear out of the area!
TVradioguru said:
House flippers is a perfect comparison -- that's exactly what First Broadcasting's business model can be compared to. And, unfortunately for them, turnarounds and other "stick value" sales have seen the biggest drop in valuations versus the peak, which means that they're in the worst part of the market when it comes to trying to sell KMCQ.
When (and if) they see valuations recovering is likely to be more of a determinant for whether they're willing to sell at a loss -- after all, it might make sense to take a loss now if they don't see a lot of upside in hanging around for a recovery in values that they don't see happening. Conversely, if they think that "stick values" are likely to rise substantially in the next couple years, than what they're doing now makes sense -- if they spend $500k keeping the station on the air for a couple years and the potential sale value increases from (say) $10 million to $15 million, then it is obviously smart to hang on...
The problem is that I don't think that the market place is very uncertain right now. While some sort of recovery in valuations is likely, it's hard to say whether it will be a weak or strong recovery. While I think it is unlikely that the values will stay as low as they are now, it is equally unlikely that we'll see the previous peaks anytime in the next decade -- but there's a lot of room between those extremes.
FMSteve said:
So why don't you and Steve put your money where your mouth is and man-up by writing a couple of nice big checks to First so they can rent and build out studios and offices, hire staff, and do everything it takes to operate a radio station? Obviously you two know so much more about getting their return on investment, time to pony up!
TVradioguru said:
Lighten up Guru, I was simply suggesting that they at the least get encoded with Arbitron to establish a starting point in determining what the listener-ship level resembles, which in return would have a large impact on establishing who has leverage between potential buyer and seller.
And I'm saying that isn't the game for them. It would be like painting your house bright pink right before putting it on the market. Once that first coat of paint goes on, you may like the color, but you've just limited the chances of finding an interested buyer. Keeping the lights on with generic-unresearched music while gathering potential buyers is enough.
But for the sake of this discussion, let's say they went ahead and did an LSA with another station.. What staffing would be required? Accounts receivable and traffic departments, you can't farm that out; probably a general manager, programming director or at least a music director to make an attempt at picking the appropriate music, studios and offices..you get the idea.
Again, First are not operators they are 'flippers'. To become an operator just because a few amateurs on a discussion board get all excited about some generic oldies being played on a new signal in the market is not adequate motivation.
TVRadioguru, always pleased to spread knowledge of the business realities of broadcasting to amateurs!
But for the sake of this discussion, let's say they went ahead and did an LSA with another station.. What staffing would be required? Accounts receivable and traffic departments, you can't farm that out; probably a general manager, programming director or at least a music director to make an attempt at picking the appropriate music, studios and offices..you get the idea.
Again, First are not operators they are 'flippers'. To become an operator just because a few amateurs on a discussion board get all excited about some generic oldies being played on a new signal in the market is not adequate motivation.
TVRadioguru, always pleased to spread knowledge of the business realities of broadcasting to amateurs!
S
SeattleRadioPro
Guest
TVradioguru said:
Guru raises an interesting point. There's been so much fuss on this board over KMCQ's "temporary" format, but virtually no one except those who've had to sign the checks understand the oldies are nothing but filler, and that's it.
"But for the sake of this discussion, let's say they went ahead and did an LSA with another station.. What staffing would be required? Accounts receivable and traffic departments, you can't farm that out; probably a general manager, programming director or at least a music director to make an attempt at picking the appropriate music, studios and offices..you get the idea. "
Let's see; BELO's accounting department is in Dallas even though KING TV is here, I upload spots to Comcast Portland so that they can play in Seattle and Washington DC, traffic for NWCN in Portland is done out of Seattle, to get a spot on Fox Sports NW (located about 10 minutes from my office) I have to work with their head end in Atlanta, from what I know most program directors appear to cover multiple stations and music 'consultants' who are usually out of market provide most of the direction anyway.
Have I changed your mind, Guru? (and thanks for 'educating' us).
PS. I've contacted KMCQ on no less than four occasions about buying spots and how my clients might work with them. I did this because one of my client's found the station and wanted to know and I hear the station in lots of public places so apparently someone is listening/interested. Never heard a word back.
Let's see; BELO's accounting department is in Dallas even though KING TV is here, I upload spots to Comcast Portland so that they can play in Seattle and Washington DC, traffic for NWCN in Portland is done out of Seattle, to get a spot on Fox Sports NW (located about 10 minutes from my office) I have to work with their head end in Atlanta, from what I know most program directors appear to cover multiple stations and music 'consultants' who are usually out of market provide most of the direction anyway.
Have I changed your mind, Guru? (and thanks for 'educating' us).
PS. I've contacted KMCQ on no less than four occasions about buying spots and how my clients might work with them. I did this because one of my client's found the station and wanted to know and I hear the station in lots of public places so apparently someone is listening/interested. Never heard a word back.
Steenman said:
Uh, newsflash for you..KING TV is owned by Belo. My point is since First doesn't operate stations except to 'flip' them, they have no operating infrastucture, thus they would need to HIRE THEM to perform operational functions. In the world of broadcasting, one doesn't farm out accounting nor traffic.
Steenman said:
Are you really that thick? They are not operators. Hello! Read my, and other's threads then get back to us.
My point was, and is, that the support operations don't HAVE TO be anywhere, they might as well be contracted in India. And of course you can farm out traffic and accounting and any other function. You can essentially lease the entire station to another organization, it would a akin to what a number of stations have done when they've had the Sonics, or Cougars or whatever sports team sell the advertising time and manage the inventory I'm sure that's only one way to do here in the 'modern age'.
My second point was only to state that, from my perspective, that there IS some DEMAND for the format. IF my (very real and paying) clients are asking about it. And since KMCQ has started doing contents giving away things like trips on Alaska Air or other stuff I've heard, why not see if they want to do something with one of my clients, and anyway if an advertiser asks me as their agency to contact a station I damn well do it just so I can say I followed up and not find out later I missed an opportunity.
I admit I was having a little fun with you with my last comment, definately no real harm intended, it's just that even thought I've been in this business probably longer than you've been ALIVE (unless you're really, really old - uh- like me)and if I've learned ANYTHING it's that you 'never say never' to any idea and the guy who thinks he knows it all and 'that's the only way we've always done it', is usually the one that's quickly left in the dust so consider that only as a good natured reminder from one seasoned pro to another. Fair enough?
My second point was only to state that, from my perspective, that there IS some DEMAND for the format. IF my (very real and paying) clients are asking about it. And since KMCQ has started doing contents giving away things like trips on Alaska Air or other stuff I've heard, why not see if they want to do something with one of my clients, and anyway if an advertiser asks me as their agency to contact a station I damn well do it just so I can say I followed up and not find out later I missed an opportunity.
I admit I was having a little fun with you with my last comment, definately no real harm intended, it's just that even thought I've been in this business probably longer than you've been ALIVE (unless you're really, really old - uh- like me)and if I've learned ANYTHING it's that you 'never say never' to any idea and the guy who thinks he knows it all and 'that's the only way we've always done it', is usually the one that's quickly left in the dust so consider that only as a good natured reminder from one seasoned pro to another. Fair enough?
B
BurntOutRadio
Guest
TVRadioGuru aka Kelly Alford has been around a long time. He used to be on here as Kelly. Worked for many years as the Chief Engineer for Clear Channel here in Seattle. He does know a bunch about radio.
You're not the first one who's claimed my identity as this Kelley person. Honestly I have no idea who he or she is, nor what his or her knowledge of the industry is. Since I'm frequently being accused of being him or her, care to fill me in on who they are or what they did, or do? I assure you once again, my name isn't Kelly.
B
BurntOutRadio
Guest
Ok, your name isn't Kelly. Enough said then, sorry.
S
SeattleRadioPro
Guest
BurntOutRadio said:
I believe Mr. Alford now resides in the "other" Washington doing some TV stuff.
Fair enough. I'm still unsure whether being named as this person is a good thing or bad. I guess it depends on what those claiming I am him, or her, thought about this person I suppose.
Just for the record, I've never been an engineer nor had any aspirations to do so. I hire engineers to do, well whatever they do. Usually costing me money!
Currently I live in the Los Angeles area. You're wondering the reason I hang out on this particular board? A. I have ties to the area with friends, colleagues and family. B. This board is one of the most active with, shall we say, interesting posts from sometimes colorful and interesting people. C. Many of the other boards get stuck discussing talk radio political topics and music genres, not radio.
The reason I don't post on boards where I have stations in other markets? Simple, there's an old adage; 'don't sh*t where you eat.'
Just for the record, I've never been an engineer nor had any aspirations to do so. I hire engineers to do, well whatever they do. Usually costing me money!
Currently I live in the Los Angeles area. You're wondering the reason I hang out on this particular board? A. I have ties to the area with friends, colleagues and family. B. This board is one of the most active with, shall we say, interesting posts from sometimes colorful and interesting people. C. Many of the other boards get stuck discussing talk radio political topics and music genres, not radio.
The reason I don't post on boards where I have stations in other markets? Simple, there's an old adage; 'don't sh*t where you eat.'
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