clusters in one market

[Radio_bored-Op]

okay, with the PowerBall - being
over a Quarter of a BILLION dollars,
and after taxes a take home check of
146.million (according to the p'ball website) lol
-
what would be the best investments one
could do for

(1) acquiring a cluster ( and what size market)
[what would the price market range]

(2) ? buy a number of stand alone stations,
in medium to large markets,

(3) establishing a radio network (from
a central studio) in a busy metro...
and contacting each station (each market,respectively)
to carry the program....

thoughts?

 

[TomT]

A cluster of stations. Agencies want to place buys based on the total of gross ratings points (i.e.--the sum of what the cluster stations are doing). Makes life difficult for a stand-alone station in most rated markets.

Networks are probably at the saturation point & you would end up trying to sell avails on a motley collection of small market stations to national agencies.

 

[SaltyDog]

A cluster of stations. Agencies want to place buys based on the total of gross ratings points (i.e.--the sum of what the cluster stations are doing). Makes life difficult for a stand-alone station in most rated markets.

Since we're fantasizing about what we could do with a billion dollars... I'd go with a single large market station, hire expensive air talent and give away a car day. Our "sales department" would consist of one surly account executive with no budget to hit. He would be expected to golf with our direct clients on Friday afternoons. I'd let agency clients on the air but we wouldn't cut them a commission and they'd have to pay in advance. Since I'd pay cash for the station I'd have no debt service. The way I'd run it, we'd have high ratings and would no doubt be cash flow positive but if we didn't, I'd shave off a slice of my fortune each month to fund it. It would just be a hobby.

 

[Goat Rodeo Cowboy]

I offer a radical response to your question: There is NO correct answer to your question!

If an individual (or a corporation) is going to be successful in radio, the stations owned, the markets selected MUST match the temperament, the skill-sets of the buyer. Not everybody has the same goals for profitability-vs-enjoyment-vs-long term gains-vs-short time frame profits.

If you and I both had winning tickets in that lottery and we shared the jackpot, the markets you would choose would different than the markets I would choose... and if we took our time and thought our way through it, we would both be doing the right thing.

I have been contemplating the dynamics of the word "genius". Many of us grew up thinking the word meant super intelligent. The kid who made the best grades in school was The Genius. No, genius is a work more closely linked to creativity. I have worked for some people who were not super intelligent, but they had genius when it came to the things they chose to do. A genius of a car dealer. A genius of a developer/contractor. Some radio operators who were geniuses.

If you are a genius at programming music, but stations in markets where you can dominate the music ratings. If you are a genius at designing the style and format for news and talk, make sure you are buying the right stations in the right market where news and talk will not be smothered. If you are a genius in the area of sports broadcasting, .... you get the picture.

A lot of businesses today are the pits to work for, do not have loyal customers, do not cause the employees to be excited about getting to work everyday because the owners or top corporate managers are not geniuses at the line of business. They are simply geniuses and managing capital and tax advantages. They are venture capitalists that will be in fast food today, office supply superstores five years later and in bicycle manufacturing ten years later... with no great passion for any of those businesses. And when they buy into radio markets... the results suck.

When you win the lottery, do get some get investment people on your support team... but buy in a market where your genius has a chance of working. I will probably select some different markets than you do.

 

[RadioStarOne]

If you had $146 million or more in a lump sum why on earth would you want to invest in a radio business anywhere? Just enjoy the cash and stay home!

 

[Goat Rodeo Cowboy]

If you had $146 million or more in a lump sum why on earth would you want to invest in a radio business anywhere? Just enjoy the cash and stay home!

That could get very boring after awhile. Most people would want a serious hobby or a "hobby business" at the least to give them some reason to get up every morning.

 

[borderblaster]

Think I'd produce content for the internet or let radio or TV stations purchase them.

 

[SaltyDog]

That could get very boring after awhile. Most people would want a serious hobby or a "hobby business" at the least to give them some reason to get up every morning.

Exactly. A few years ago, Michael Dell (Dell Computers founder) was asked at a high school Q&A why he still worked since he was a billionaire. His reply was: "Retirement is boring. Do you have any idea how much fun it is to run billion dollar company?"

 

[Radio_bored-Op]

also ::: remember why u enjoyed the college radio -
if THAT station was on the aire in a market w/ a BOOK
(how would u score) ??? .000001 lol - -just kiddding, but
how much *FUN* was it - I would LOVE to OWN a 2 stations
in a market - one CHR, one ROCK ( and if possible) one AM
for sports, and just call it channel- ## ( channel 14) say if its, 1450
(channel 11) if its 1160, etc
-
BUT
after careful consideration, would NOT want it in my home market...
simply for the reason, "too close" Too many "friends" wanting jobs;
and knowing too much here, would actually hinder not help my mini cluster...

 

[TheBigA]

after careful consideration, would NOT want it in my home market...
simply for the reason, "too close" Too many "friends" wanting jobs;
and knowing too much here, would actually hinder not help my mini cluster...

There's that responsibility part kicking in. If you're really a millionaire, you don't care. You do what M.C. Hammer did and hire all your friends as bodyguards. A couple years later, after they foreclose on the mansion, that's when you get responsible.

 

[Radio_bored-Op]

no - i mean being in my own market,
may be *tough* to do what would
be best for the stations;

OR,
being sooo close (HERE)/or in your
"home" market - may work to your advantage!!!

 

[Open Source]

I had this discussion with my brother today. I'd buy one station in a Northeastern or California medium to large market. Run edgy hot talk, give myself a good airshift, probably afternoon drive, hire a couple of well known out of work "shock jock" types and run the place into the ground. I'd budget maybe 20% of the money to this idea, and run the station as long as it would be in business. I honestly think after a year or two it would make money. If it didn't I'd have a hell of a run either way.

 

[SaltyDog]

Run edgy hot talk, give myself a good airshift, probably afternoon drive, hire a couple of well known out of work "shock jock" types and run the place into the ground.

That's what I'm talkin' about! Have some fun with it!

 

[TheBigA]

Keep in mind that everything you do will become fodder for the critics. Sure you're rich. But that doesn't stop everyone else from feeling you ruined their favorite radio station. Lots of rich guys are getting that criticism right now. Just because you like the station doesn't mean anyone else will.

 

[SaltyDog]

Keep in mind that everything you do will become fodder for the critics. Sure you're rich. But that doesn't stop everyone else from feeling you ruined their favorite radio station. Lots of rich guys are getting that criticism right now. Just because you like the station doesn't mean anyone else will.

I realize that some people are cursed with the need for approval and money doesn't insulate them from the pain of disapproval. I've always been blessed with the ability to not care too much what other people think. I had a career once where I programmed stations I hated that other people liked and did it to eat, not for approval. Naturally, my fantasy would be to do the opposite and have enough money to program for me and my friends only. Hey, it's just a daydream.

 

[Goat Rodeo Cowboy]

I realize that some people are cursed with the need for approval and money doesn't insulate them from the pain of disapproval. I've always been blessed with the ability to not care too much what other people think. I had a career once where I programmed stations I hated that other people liked and did it to eat, not for approval. Naturally, my fantasy would be to do the opposite and have enough money to program for me and my friends only. Hey, it's just a daydream.

I used to work with a guy who had some old back-country philosophical sayings. Seldom did a day go by but what he found some opportunity to drop in this little gem of wisdom from the gentle hills of Southern Indiana: "Every one is entitled to his own taste... said the farmer and he kissed his cow."

I'm curious to know if there is an "ism", a philosophical school of thought, a spiritual gathering point, or a religion that would give you encouragement to pursue such a daydream for the long term?

When you grow old and frail, when you grow bored, would you have an enterprise that would live on under new management... new guidance... new ownership?

If 30 to 50% of the broadcast stations in this country were operated based on your daydream... would the industry be better off or worse off than what we see (hear) today?

 

[SaltyDog]

If 30 to 50% of the broadcast stations in this country were operated based on your daydream... would the industry be better off or worse off than what we see (hear) today?

Daydream killer. How could it be better when the joke is I wouldn't give a rip about the community at large but only me and my friends?

Seriously, if I had any significant ideas about how to further radio as a business, I'd still be in there swinging. I don't, so I left.

 

[Radio_bored-Op]

1-Point:

Friends working there,
would def. be a serious
consideration - on one hand,
it would be a BLAST! and total awesome
-
BUT,
if they did some thing, "every shift" and u
finally had to say some thing - - - would be
uncomfy and may lead to a friendship ending result...

(countless examples)
if dj-ing: and constantly missing breaks,
doing poor talkovers, (etc)
-
if sports/talk: covering a "controversial" subject
on their show any thing political comes to mind
-or even if not controversial, just some thing you
dont want on your station (( just saying even
nuetral topics like questioning the local sports team))
. . . or using terms on your show, saying
drug references, (etc) that while is cool by the FCC
as a "station owner" you dont like
-
sooo hiring friends be tuff -

also:
thought of the comment, what station u "take"
(not acquire) cause, mind you if YOU Earn the $$$
you acquire if u WIN the money, u just take what u want
...but yea, some one who has put 10 years into a format
u just come in and make it some thing the talent said
they wont work in ( say a senior country guy, says he
wont, cant or shouldnt) work in a chr environment
lol

but
my vision would be this:
be "billed" (no pun) as the sales guy,
and just pop in on various shows, and have
the talent hold me above water/and carry the
program if i got into no mans land - lol -

i always loved ( even on CHR), when the talent
is doin a break and says, "heey, hey tim - get in here,
okay many of u wont know tim, but he is the man, he
is the ONE guy who got the summer concert show together,
tell us ...we got about :30 seconds, what was like, or what
did u have to do - to get this to happen ... "

its always a day dream - but would be soo sweet!

to the above, that is why I would probably want to
start in a market, Im not familiar with soo much,
because It wont sting as much - when I make any
changes -

 

[Open Source]

Run edgy hot talk, give myself a good airshift, probably afternoon drive, hire a couple of well known out of work "shock jock" types and run the place into the ground.

That's what I'm talkin' about! Have some fun with it!

Exactly! I honestly think that the fun is sorely missing from all formats of radio these days. There is a definite market need to be filled there. People want to have FUN listening to the radio. I'd even do the old CKLW news gimmick. Then the station is filling a serious need and still having fun doing it.