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Hey! Let's buy a radio station!

A

AbsoluteTruth

Guest
And then we can all have jobs!

I found this while going through the job listings on "Inside Radio"

--------------------------------------
Auction - KFCD-AM and KSHE-AM - Dallas

The assets of KFCD-AM (990 khz) and KHSE-AM (700 khz) will be auctioned to the highest bidder at 2:00 p.m. on October 13, 2005 at the offices of Vinson & Elkins, L.L.P., Suite 3800, 2001 Ross Ave., Dallas, Texas under the terms
of a court order. For details on the stations and the bidding procedures, please contact the broker for this transaction:

Larry Patrick
Patrick Communications
410-740-0250
[email protected]

Anybody got $20.00?
 
>
> Anybody got $20.00?
>


pfff... for that much, I'd expect to get a REAL station...

I'm in for a nickel, though...<P ID="signature">______________
"Is all that we see or seem
But a dream within a dream?"
Edgar Allen Poe</P>
 
> >
> > Anybody got $20.00?
> >
>
>
> pfff... for that much, I'd expect to get a REAL station...
>
> I'm in for a nickel, though...
>
*Throws 10 bucks into the pot*
 
> > >
> > > Anybody got $20.00?
> > >
> >
> >
> > pfff... for that much, I'd expect to get a REAL station...
>
> >
> > I'm in for a nickel, though...
> >
> *Throws 10 bucks into the pot*
>
I'll toss in 2 boxtops from Kellogg's Sugar Frosted Flakes in the memory of Thor Ravenscroft, because he was "ggggrrrrr--EEEEAAAATTTT!
 
All jokes aside, do any of ya'll have any idea how much these stations (individually) are worth? Any guess who's going to end up getting them?
 
> All jokes aside, do any of ya'll have any idea how much
> these stations (individually) are worth? Any guess who's
> going to end up getting them?
>
Don't be surprised if the same owner bids for them and wins.
 
Re: I wouldn't doubt that....

>
> Don't be surprised if the same owner bids for them and wins.
>


Why should they quit now? They are obviously great at starting radio stations...


... just not letting them run for very long...


;)<P ID="signature">______________
"Is all that we see or seem
But a dream within a dream?"
Edgar Allen Poe</P>
 
Re: I wouldn't doubt that....

I would guess stick value for the pair could reach 2 million, but from what I've read, the previous owners had 990 leveraged for about 10.
In a distress auction, the price could be as low as 250K.
The economics of the am band don't really lend to profitable operation, but if a christian or ethnic operator wants them, the bidding could go higher.
 
Re: Hey! Let's buy a radio station! Good Luck

Good luck getting this Motley Crue of posters to agree on anything long enough for that to be successful! HA! That would be funny...for about 10 seconds.


> And then we can all have jobs!
 
Re: I wouldn't doubt that....

> I would guess stick value for the pair could reach 2
> million, but from what I've read, the previous owners had
> 990 leveraged for about 10.
> In a distress auction, the price could be as low as 250K.
> The economics of the am band don't really lend to profitable
> operation, but if a christian or ethnic operator wants them,
> the bidding could go higher.
>

An appraisal a couple years ago by the lender stated the value of 990 & 700 AM was 12 mil. There is no frigging way these will go for as low as 250K. There ARE profitable AM's in this market. I'd expect something in the range of 8 to 10 mil for the duo.
 
Re: I wouldn't doubt that....

> > I would guess stick value for the pair could reach 2
> > million, but from what I've read, the previous owners had
> > 990 leveraged for about 10.
> > In a distress auction, the price could be as low as 250K.
> > The economics of the am band don't really lend to
> profitable
> > operation, but if a christian or ethnic operator wants
> them,
> > the bidding could go higher.
> >
>
> An appraisal a couple years ago by the lender stated the
> value of 990 & 700 AM was 12 mil. There is no frigging way
> these will go for as low as 250K. There ARE profitable AM's
> in this market. I'd expect something in the range of 8 to 10
> mil for the duo.
>
I would have to agree with you EYE...no way they go as low as 250K...Schum needs at least 8 mil to pay off investors...and hopefully they will bring more so we can all get our freaking back pay!!!! Probably wishful thinking though. Should be interesting...I thought about just showing up at the bidding to see what happens<P ID="signature">______________
Just dance to that Rock and Roll Music</P>
 
Re: I wouldn't doubt that....

> > > I would guess stick value for the pair could reach 2
> > > million, but from what I've read, the previous owners
> had
> > > 990 leveraged for about 10.
> > > In a distress auction, the price could be as low as
> 250K.
> > > The economics of the am band don't really lend to
> > profitable
> > > operation, but if a christian or ethnic operator wants
> > them,
> > > the bidding could go higher.
> > >
> >
> > An appraisal a couple years ago by the lender stated the
>
> > value of 990 & 700 AM was 12 mil. There is no frigging
> way
> > these will go for as low as 250K. There ARE profitable
> AM's
> > in this market. I'd expect something in the range of 8 to
> 10
> > mil for the duo.
> >
> I would have to agree with you EYE...no way they go as low
> as 250K...Schum needs at least 8 mil to pay off
> investors...and hopefully they will bring more so we can all
> get our freaking back pay!!!! Probably wishful thinking
> though. Should be interesting...I thought about just
> showing up at the bidding to see what happens
>
You folks who tried to keep the station afloat and then got screwed on pay and other considerations exemplifies the "mind over matter" approach that many businesses apply to their employees nowadays. The owner doesn't mind that he put you in a bind and your well being doesn't matter.

Gold in the mine to ownership and management, the shaft to the working people.
 
Re: I wouldn't doubt that....

> You folks who tried to keep the station afloat and then got
> screwed on pay and other considerations exemplifies the
> "mind over matter" approach that many businesses apply to
> their employees nowadays. The owner doesn't mind that he
> put you in a bind and your well being doesn't matter.
>
> Gold in the mine to ownership and management, the shaft to
> the working people.
>


But in this case Mr. Schum will get nothing. Everything raised by the auction will go to the creditors. Too bad - a few years ago he could have sold his frequencies for many millions.

After the lenders are paid I doubt there'll be anything left for the employees either.
 
Re: I wouldn't doubt that....

> > You folks who tried to keep the station afloat and then
> got
> > screwed on pay and other considerations exemplifies the
> > "mind over matter" approach that many businesses apply to
> > their employees nowadays. The owner doesn't mind that he
> > put you in a bind and your well being doesn't matter.
> >
> > Gold in the mine to ownership and management, the shaft to
>
> > the working people.
> >
>
>
> But in this case Mr. Schum will get nothing. Everything
> raised by the auction will go to the creditors. Too bad - a
> few years ago he could have sold his frequencies for many
> millions.
>
> After the lenders are paid I doubt there'll be anything
> left for the employees either.
>
I want to file a suit so bad to get the $10k they owe me but I think the only way I could do that is to sue Mr. Schum and I'm not sure if I would end up paying way over that in legal expenses...really sucks for all of us that put time money and effort and hard work into that station<P ID="signature">______________
Just dance to that Rock and Roll Music</P>
 
Re: I wouldn't doubt that....

> > > You folks who tried to keep the station afloat and then
> > got
> > > screwed on pay and other considerations exemplifies the
> > > "mind over matter" approach that many businesses apply
> to
> > > their employees nowadays. The owner doesn't mind that
> he
> > > put you in a bind and your well being doesn't matter.
> > >
> > > Gold in the mine to ownership and management, the shaft
> to
> >
> > > the working people.
> > >
> >
> >
> > But in this case Mr. Schum will get nothing. Everything
>
> > raised by the auction will go to the creditors. Too bad -
> a
> > few years ago he could have sold his frequencies for many
> > millions.
> >
> > After the lenders are paid I doubt there'll be anything
> > left for the employees either.
> >
> I want to file a suit so bad to get the $10k they owe me but
> I think the only way I could do that is to sue Mr. Schum and
> I'm not sure if I would end up paying way over that in legal
> expenses...really sucks for all of us that put time money
> and effort and hard work into that station
>

Sorry for the people who invested their time, pay and sweat into their dream. Generally, creative people don't make good businesspeople, and vice-versa. I don't know the owner, I never worked for him, but I imagine he didn't set out to fail and cause people to lose their jobs. As opposed to some major CEOs who have golden parachutes, I would think he stands to lose a lot more than a job and a few $K.

I think the answer to the question of what the station is worth is, <u>whatever somebody will pay.</U> But back to the original question, why would you want to buy a job for $20,000?
 
Re: HANG ON THERE...are we missing something?

The listing says the ASSETS of the stations. So would one be bidding on the LICENSES to them, or just the remaining office furniture, boards, mics (if any left) and such? Surely the FCC would be the one handling the LICENSE auction. This is probably just the junk that Schum and the former staffers and Schum himself haven't ripped off (or "obtained" in lieu of wages) and taken home to hide. You'd think the building manager at the N Dallas Bank would have already overlocked the place and sold off the junk to recoup some of the months of unpaid rent.

Far as I knew, the FCC was rescinding both licenses, so that takes away any possibility of them being sold. Serves Schum right, since he already filed bankruptcy twice over mismanagement.

So does this really affect the on-air status of KFCD? Can the Overton kids run this out of their backyard treehouse until the FCC comes in and strips the license away? Will Scott Savage and his investor finally get the reins of the station they tried once already to steal under the Cafe name?

Two other thoughts:

Schum apparently told someone a few months back that he was considering forming a dummy corporation to buy the stations at auction so he could keep ownership. Any updates on that?

And remember that Schum picked up both stations at AUCTION himself, way back when!!

> And then we can all have jobs!
>
> I found this while going through the job listings on "Inside
> Radio"
>
> --------------------------------------
> Auction - KFCD-AM and KSHE-AM - Dallas
>
> The assets of KFCD-AM (990 khz) and KHSE-AM (700 khz) will
> be auctioned to the highest bidder at 2:00 p.m. on October
> 13, 2005 at the offices of Vinson & Elkins, L.L.P., Suite
> 3800, 2001 Ross Ave., Dallas, Texas under the terms
> of a court order. For details on the stations and the
> bidding procedures, please contact the broker for this
> transaction:
>
> Larry Patrick
> Patrick Communications
> 410-740-0250
> [email protected]
>
> Anybody got $20.00?
>
 
MORE ON 990...

Dave Schum never should have had a station. He was given 10mil to pout 990 and 700 on the air. He squandered that away in a little less than two years. Gross mismanagement was the quote in the Dallas Business Journal.

News out of the control room is that the last day-one board op has been laid-off with the excuse that they could no longer afford to pay them. In his place, you might ask? An intern with little board experience. At this point, it seems that Schum has all but thrown in the towel.

I’m not owed as much as promovet, but I’m owed enough. I’d like to find an attorney that would talk about a possible class action suit.<P ID="signature">______________
If you wanna know what's going on...e-mail someone else...</P>
 
Re: MORON 990...

I heard that Schum is not even on the premises anymore. It's Overton's kids that swap off running the board, gratis. Fish is only there to hawk his own spots, and that's the only "payment" he's getting.

I understand that Schum did make good on the Cafe's employee contracts, but no doubt were all settled for pennies on the dollar after he filed bankruptcy. If he files again, you could probably expect the same.

Someone mentioned in another post that creative people shouldn't be managers. There might be some confusion over what Schum's roots are. I believe he sold insurance before, and owned a Greenville Ave bar (which he sold to DFW radio vet Barb Flores, and it has since folded.) Hardly a "creative" background, and obviously not much was learned about managing a business, let alone a radio station.

And can anyone shed light on a story I heard that Schum had been deducting payroll money for health insurance benefits, and never even bought a policy?

He's had 2 chances at something most of us will never even get ONE chance at. That's two more than he deserved, although he wasn't fully to blame on the first failure. And I've been told as well that the "forth-coming 700 am" station that was supposedly just awaiting tower adjustments for its 2004 sign-on, well, actually, doesn't even have a tower! (unless the cows have wrapped wire around their tails and stacked themselves into a pyramid or something.)

> Dave Schum never should have had a station. He was given
> 10mil to pout 990 and 700 on the air. He squandered that
> away in a little less than two years. Gross mismanagement
> was the quote in the Dallas Business Journal.
>
> News out of the control room is that the last day-one board
> op has been laid-off with the excuse that they could no
> longer afford to pay them. In his place, you might ask? An
> intern with little board experience. At this point, it
> seems that Schum has all but thrown in the towel.
>
> I’m not owed as much as promovet, but I’m owed enough. I’d
> like to find an attorney that would talk about a possible
> class action suit.
>
 
Re: MORON 990...

>
> I understand that Schum did make good on the Cafe's employee
> contracts, but no doubt were all settled for pennies on the
> dollar after he filed bankruptcy. If he files again, you
> could probably expect the same.


As far as I know, all the Cafe employees who filed claims in bankruptcy court were paid. There was some negotiation with Schum's attorneys, but people were paid completely for their work and a large portion of their contracts.

However, some employees decided to not file a claim (don't know why) and were not included in the settlements.

Eye Lipson
ex-Cafe programming consultant
 
Re: MORON 990...

A little clarifacation...

On the board op situation. Up until earlier in the week, there was only one Overton working at the sation and he was, in fact, getting paid...sometimes from the pastor of churches. He was let go on Tuesday due to the lack of funds

As far as the insurance situation, that is a little different. Premiums for the insurance were paid by the company...or so we were told. About two months prior to the bankruptcy, the company changed insurance plans. According the the insurance company, there would have to be 30 people in the plan in order for 990 to keep the plan. When Schum squanderd the money away, in an all staff meeting, we were told that the premiums were getting paid and had been getting paid. That was a lie. After further investigation (which was a single call to the insurance company) I fouond out that there was a span of two months were insurance was cut off to the 990 staff...and the was never told when funding was cut off. Apparently, it was the day he filed bankruptcy.

What WAS taken out of paychecks that was not paid was the taxes. Taxes were removed from the paychecks, but they never arrived in the IRS's mailbox. He built up over $300,000 in back taxes.

Fish is, in fact doing his show for free, but I don't know anything about him getting any money from sponsors. Most are friends of his.

Now, I just need to figure out how to file with the court.<P ID="signature">______________
If you wanna know what's going on...e-mail someone else...</P>
 
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