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Greensboro Win 08 P2

The legal costs have got to be astronomical at this point. And for what? You can't expect to make big money when your salespeople bring in contracts from local Lexington retail businesses like the army/navy store on main street!
 
When I mentioned sales, I was referring to advertising sales - revenue. Again, I suspect, even with huge legal bills trying to relocate to Charlotte, the station is still profitable because of lower than average debt service. Unless Gig has done a Bernie and financed the property to the max!
 
At this time with all the mega station market clutter, they should chill and wait a while. Someone sooner or later will come after it.
 
::) Believe Me! None of the above is true! BIG APE!
 
XTalker said:
Ape, are you saying 94.1 is not making any money, and has high debt service?
Click to expand...


Nope!, I'm saying the opposite..Making money and no high debt service!
 
BIG APE said:
XTalker said:
Ape, are you saying 94.1 is not making any money, and has high debt service?
Click to expand...


Nope!, I'm saying the opposite..Making money and no high debt service!
Click to expand...

Thanks for clearing that up. So some things above ARE true.
 
XTalker said:
When I mentioned sales, I was referring to advertising sales - revenue. Again, I suspect, even with huge legal bills trying to relocate to Charlotte, the station is still profitable because of lower than average debt service. Unless Gig has done a Bernie and financed the property to the max!
Click to expand...

Yes some things are true..Ther station has been in the family since it came on the air, so there is no debt service except the cost of a tower here and there.. Gig hasn't financed anything to the MAX, he can't, unless it was his Soul...Hmmmm.
 
So, just for grins, let's say 94.1 bills 1 million. Meanwhile, WMAG bills 3 million. Which to any of you think is the more profitable?
 
:eek: Mike, I don't understand this back and forth on this..You very well know the answer to that and the other questions.. Go See Bruce Springsteen tomorrow night in GSO! Oh...answer..94.1, hands down.
 
Ape, you understand this, but many who read this board haven't a clue about profitability! I am sure Gig and the family live very nicely off the money 94.1 brings in. Is it for sale? People always say everything is for sale, but truth is Gig has turned down some mighty nice offers over the years!
 
WMAG probably has more profitability for several reasons; 1) It's heritage as a winning radio station, 2) It is part of a cluster which is a much easier sell than a stand-alone station, 3) Clear Channel has a larger sales force that sells to the big dollar retail clients, 4) Clear Channel has far more national business, 5) Clear Channels rate card is, and should be, higher than 94.1's based on longevity as a winning property.

Magic 94.1 has a history of format flips and certainly one of bad management. Agency folks know that these guys aren't consistant and that another format could happen at any moment! Stay tuned!
 
;D I'm hoping for Polkas and Waltzs myself!!!
 
mediawatch22 said:
WMAG probably has more profitability for several reasons; 1) It's heritage as a winning radio station, 2) It is part of a cluster which is a much easier sell than a stand-alone station, 3) Clear Channel has a larger sales force that sells to the big dollar retail clients, 4) Clear Channel has far more national business, 5) Clear Channels rate card is, and should be, higher than 94.1's based on longevity as a winning property.

Magic 94.1 has a history of format flips and certainly one of bad management. Agency folks know that these guys aren't consistant and that another format could happen at any moment! Stay tuned!
Click to expand...

Mediawatch22, you have addresses only the revenue side of things. My question was about profit!

Do a side by side comparison of operating costs. My guess is WMAG's programming payroll is likely double that of 94.1. And Clear Channel has a great deal of debt service because of the high price paid for WMAG. 94.1 has little or no debt service.

I submit the same comparison would hold with the Dick stations - very low debt service there as well.

All of the stations that have undergone ownership changes in the last ten years are more than likely saddled with higher debt service and, thus have to generate way more revenue to make the profit number work than those stations that have been "family owned" during the same period.

Curtis got a deal when they purchased WSJS and I suspect that is a profitable operation today. CBS sold that station far below what it actually paid for it (when purchased from CC).
 
Do a side by side comparison of operating costs. My guess is WMAG's programming payroll is likely double that of 94.1. And Clear Channel has a great deal of debt service because of the high price paid for WMAG. 94.1 has little or no debt service.


Again, 94.1's rates are below that of WMAG. 94.1 has a lot of barter on the air (listen and see). And, we don't know about debt or mortgages on 94.1 so that's an unknown.

Payroll? CC trims it to the absolute bare minimum! The PD has to control TWO markets! VT'ing is the norm. How could you say that their programming payroll is double over 94.1?
 
mediawatch22 said:
Do a side by side comparison of operating costs. My guess is WMAG's programming payroll is likely double that of 94.1. And Clear Channel has a great deal of debt service because of the high price paid for WMAG. 94.1 has little or no debt service.


Again, 94.1's rates are below that of WMAG. 94.1 has a lot of barter on the air (listen and see). And, we don't know about debt or mortgages on 94.1 so that's an unknown.

Payroll? CC trims it to the absolute bare minimum! The PD has to control TWO markets! VT'ing is the norm. How could you say that their programming payroll is double over 94.1?
Click to expand...


Bill Flynn
 
mediawatch22 said:
Do a side by side comparison of operating costs. My guess is WMAG's programming payroll is likely double that of 94.1. And Clear Channel has a great deal of debt service because of the high price paid for WMAG. 94.1 has little or no debt service.


Again, 94.1's rates are below that of WMAG. 94.1 has a lot of barter on the air (listen and see). And, we don't know about debt or mortgages on 94.1 so that's an unknown.

Payroll? CC trims it to the absolute bare minimum! The PD has to control TWO markets! VT'ing is the norm. How could you say that their programming payroll is double over 94.1?
Click to expand...

Ok, Bill Flynn alone probably makes more than the whole 94.1 staff. WMAG has a number of local personalities who have been there quite some time and are obviously at the top of the pay scale. Even though CC PDs wear multiple hats, the individual stations still have to pay their share of the salary.

Trade, by the way, counts just like cash in the corporate world of radio these days.

We do know from a fairly credible source that there is little or no debt for 94.1. Remember, the station has been in the Hilton family for years and has never been sold at the multiples that were encountered in the late 80s, 90s, and even today.

This is really not about rates or even total revenue. It is about what is left after all of the bills are paid and I will stand by my initial comment that 94.1 is likely more profitable than WMAG.
 
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