91.7

[jmtillery]

There is no doubt that some NCE-FMs are quite valuable. Same as with commercial FM stick value, NCE-FM stick FMV is determined by location and total population count within the primary service contour. Considering all of Family Radio's stations are listener supported, stick value is the only acceptable method in determining FMV as there is technically no positive cash flow.

However, as stated in my previous post, the absolute MOST valuable Family Radio properties are WFME-FM Newark, New Jersey / New York City, New York; WKDN-FM Camden, New Jersey / Philadelphia, Pennsylvania; and, WFSI-FM Annapolis - Baltimore, Maryland / Washington, D. C. WFTI Tampa Bay has tremendous stick FMV; However, I seriously doubt WFTI will garner anywhere near the $45 million + stick FMV that WFME has.

hmmm, let's see a short spaced "A" 3kw non-comm in St. Petersburg compared to a class "B" 37kw at 94.7 in New York? I can't argue that.

Jeff in Sa-ra-so-ta!

Even if WFTI were a commercially licensed full class C, it’s stick FMV would still be considerably less than 94.7 NYC. The one exception is the $35 million price tag Paxson Communications paid to acquire WKES-FM 101.5 + WCIE-FM 91.1 (which Paxson paid another $5 million to acquire, so $40 million total to acquire the 101.5 C facilities) in 1997. And that was due to the consolidation frenzy following the 1996 Telecom Bill which drove up the prices of virtually every radio station in the country. In today’s economy the FMV is more realistic and much lower than it was at its peak. Cash flow multiples have also dropped from an average 8X cash flow to a average 5.5X +/- cash flow in most cases.

 

[badjef]

There is no doubt that some NCE-FMs are quite valuable. Same as with commercial FM stick value, NCE-FM stick FMV is determined by location and total population count within the primary service contour. Considering all of Family Radio's stations are listener supported, stick value is the only acceptable method in determining FMV as there is technically no positive cash flow.

However, as stated in my previous post, the absolute MOST valuable Family Radio properties are WFME-FM Newark, New Jersey / New York City, New York; WKDN-FM Camden, New Jersey / Philadelphia, Pennsylvania; and, WFSI-FM Annapolis - Baltimore, Maryland / Washington, D. C. WFTI Tampa Bay has tremendous stick FMV; However, I seriously doubt WFTI will garner anywhere near the $45 million + stick FMV that WFME has.

hmmm, let's see a short spaced "A" 3kw non-comm in St. Petersburg compared to a class "B" 37kw at 94.7 in New York? I can't argue that.

Jeff in Sa-ra-so-ta!

Even if WFTI were a commercially licensed full class C, it’s stick FMV would still be considerably less than 94.7 NYC. The one exception is the $35 million price tag Paxson Communications paid to acquire WKES-FM 101.5 + WCIE-FM 91.1 (which Paxson paid another $5 million to acquire, so $40 million total to acquire the 101.5 C facilities) in 1997. And that was due to the consolidation frenzy following the 1996 Telecom Bill which drove up the prices of virtually every radio station in the country. In today’s economy the FMV is more realistic and much lower than it was at its peak. Cash flow multiples have also dropped from an average 8X cash flow to a average 5.5X +/- cash flow in most cases.

WFTI is not a full market signal. WFME has the potential of an Empire full signal.

At the time you are referring with WKES, there were stations trading at 18x value.

At any rate, WFTI should still be in the 7 figures by itself.

Jeff in Sa-ra-so-ta!

 

[fybush]

WFTI is not a full market signal. WFME has the potential of an Empire full signal.

It does not, actually. It's short-spaced to 94.7B in Springfield, Massachusetts, and would have to be deeply directionalized to go to Empire...which it can't do, since the Empire master antennas are non-directional. Even if space were available on the Empire mast for a directional antenna (and it's not), the rental cost for a standalone antenna up there would be wildly prohibitive.

 

[badjef]

WFTI is not a full market signal. WFME has the potential of an Empire full signal.

It does not, actually. It's short-spaced to 94.7B in Springfield, Massachusetts, and would have to be deeply directionalized to go to Empire...which it can't do, since the Empire master antennas are non-directional. Even if space were available on the Empire mast for a directional antenna (and it's not), the rental cost for a standalone antenna up there would be wildly prohibitive.

True, Scott. But as we all know, politics and money will trump the current technical restrictions.

We be talkin' NYC!

As was the case with WPRB and 103.5.

Jeff in Sa-ra-so-ta!

 

[jmtillery]

WFTI is not a full market signal. WFME has the potential of an Empire full signal.

At the time you are referring with WKES, there were stations trading at 18x value.

At any rate, WFTI should still be in the 7 figures by itself.

Jeff in Sa-ra-so-ta!

I am well aware that WFTI does not have full market coverage; However, we were discussing comparables. I gave an example supposing “what if” WFTI were a full market commercially licensed class C, the absolute best FMV in a Top 25 radio market, WFTI’s FMV would still be considerably less than the WFME’s FMV for obvious reasons. Low seven figures for WFTI, assuming WFTI will fetch that kind of FMV, although good, is a far cry from 8-figues for WFME‘s FMV; a vast difference and a very wide margin.

On a side note regarding WDUV; When Jacor Communications acquired the former WGUL-FM which became WTBT, Jacor acquired WYMR-FM 105.5 A (now WWLL) with the intent of moving it to its current 105.7 C3 frequency, so there was no “pay-off” to another broadcaster regarding the affected Sebring FM. Jacor owned the station ensuring the desired move. Jacor also acquired WJCM-AM 960 5kw-D; 1kw-N; DA2 Sebring with the intent of moving it to its present 1050kHz with 1kw NDD to clear the way for WFLA to upgrade its day signal from 5kw to 25kw. Once all the chess moves were completed, Jacor sold the Sebring stations. And, as far as I know, WKZM Sarasota was the only non-owned Jacor station within the 105.5 daisy chain that Jacor paid to have moved in order to clear the way for 105.5 A New Port Richey to upgrade to 105.5 C1.

 

[jmtillery]

At the time you are referring with WKES, there were stations trading at 18x value.

Jeff in Sa-ra-so-ta!

At the time Paxson Communications acquired WKES ($35 million cash) and WCIE ($5 million cash), no cash flow multiple was used as there was, technically speaking, no cash flow. Both stations were operated as listener supported non-commercial stations. What was used was an over-inflated stick value to ensure that the Moody Bible Institute and the Evangel Christian School, respectively, would, indeed, agree to sell their respective stations. Paxson "sweetened the pot" by offereing 100kw WCIE to Moody in addition to $35 million cash. Essentially Moody wasn't selling anything, but, rather, trading 100kw facilities and gaining enormous cash in the process.

Clear Channel Communications used a similar valuation method to acquire the majority of its stations since CC wanted to be the biggest radio operator in the U. S. and around the globe. Short-term this strategy worked fine in ensuring a mega-group creation. Long term it created excessive debt since Clear Channel overpaid, same as Paxson, for the majority of its stations. In fact Paxson eventually sold its radio group to CC for $693 million.