How much will 97.5 KFNC bring?

[jd]

About the same as 103.7 would probably be a good guess, but who really knows? For that matter, will the buyer really be Gow as reported? The tale of the sale of these two stations has been a strange one and believe it or not, at last report there's still nothing about either transaction on the FCC site.

There is one thing about KFNC that appeared in FCC records last week, though. They applied for a license to cover a change on a long delayed construction permit, the one to switch their community of license from Beaumont to Mont Belvieu. Cumulus drug their feet on that deal for several years and AR Licensing finally got it done. Just in time, too, since the CP was set to expire next month.

 

[stan]

But the transmitter stays where it is, so the change is irrelevant as far as coverage is concerned.

 

[metroneck]

5.5 mill

 

[Ryan Williams]

103.7, both on paper and in real world reception, is a notably better signal than 97.5. However, 97.5 has the ESPN franchise and massively better billings (and likely cash flow too). It would not be surprising to me if 97.5 went for more than the 5 million EMF is paying for 103.7.

 

[socalguy]

Why is the KFNC deal taking so long??? It's been, what, 75 days since the "30 day letter of intent" was signed....And did Gow "win" the bidding by offering to move national sales respresentation (think: commissions) and affiliate relations responsibilities for Yahoo Sports Radio to Cumulus' Network division??? Did the subsequent CBS sales and distribution deal with Cumulus "queer" the deal?

 

[johndavis]

Why is the KFNC deal taking so long??? It's been, what, 75 days since the "30 day letter of intent" was signed....And did Gow "win" the bidding by offering to move national sales respresentation (think: commissions) and affiliate relations responsibilities for Yahoo Sports Radio to Cumulus' Network division??? Did the subsequent CBS sales and distribution deal with Cumulus "queer" the deal?

Considering that Cumulus doesn't own 97.5 anymore - it's owned by a media broker who is selling it to recover the value of the assets for the lenders (and thus his motivation is to get the most $$$ as possible so he gets his payday) and considering that YSR just signed up a different national rep, then no.

If there's anything we learned about the EMF transaction, the Cumulus LMA will end whenever Larry Patrick says it will end, and he's not telling anybody who doesn't need to know what's going on. That's how media brokers operate.

Gow probably needs to build another couple of studios over on West Alabama, which takes time. Some offhanded remarks from Granato on air make it sound like it's happening this month, but unless Granato blurts it out inadvertently on 1560, the only way you'll know Gow has taken over is when they quit plugging Sweet Jack on 97.5 and the legal ID no longer says "a Cumulus station."

 

[socalguy]

Actually Larry Patrick owns 76% and the lenders 24% so Larry is out for Larry, and whoever backed Larry in the deal. But thanks for the lecture on how brokers work. And if I have to rely on Granato's slip ups for info on the "deal" we're all in trouble. But then again he leaks like a sieve...just like his ratings.

 

[Rad10]

Why is the KFNC deal taking so long??? It's been, what, 75 days since the "30 day letter of intent" was signed....And did Gow "win" the bidding by offering to move national sales respresentation (think: commissions) and affiliate relations responsibilities for Yahoo Sports Radio to Cumulus' Network division??? Did the subsequent CBS sales and distribution deal with Cumulus "queer" the deal?

Considering that Cumulus doesn't own 97.5 anymore - it's owned by a media broker who is selling it to recover the value of the assets for the lenders (and thus his motivation is to get the most $$$ as possible so he gets his payday) and considering that YSR just signed up a different national rep, then no.

If there's anything we learned about the EMF transaction, the Cumulus LMA will end whenever Larry Patrick says it will end, and he's not telling anybody who doesn't need to know what's going on. That's how media brokers operate.

Gow probably needs to build another couple of studios over on West Alabama, which takes time. Some offhanded remarks from Granato on air make it sound like it's happening this month, but unless Granato blurts it out inadvertently on 1560, the only way you'll know Gow has taken over is when they quit plugging Sweet Jack on 97.5 and the legal ID no longer says "a Cumulus station."

Listen to this guy, he is not far off. Things have to take place first in order to make it happen.

 

[clouseau]

The KML file for KFNC is corrupt on the FCC website, but as I look at a close approximation on Radio-Locator.com I have to ask.

Does the 60dbu of KFNC actually reach to Alabama St. Lots of stations can do a lot of funny business based on other stations and their coverage with regard to main studio, butdoes "The Gow building" really work for KFNC?

Clouseau

 

[johndavis]

The KML file for KFNC is corrupt on the FCC website, but as I look at a close approximation on Radio-Locator.com I have to ask.

Does the 60dbu of KFNC actually reach to Alabama St. Lots of stations can do a lot of funny business based on other stations and their coverage with regard to main studio, butdoes "The Gow building" really work for KFNC?

Clouseau

Does it reach the current studio at Westheimer & Gessner?

Did it reach the old KRWP studio in the Galleria about three blocks from Gow?

 

[Ryan Williams]

Does it reach the current studio at Westheimer & Gessner?

Did it reach the old KRWP studio in the Galleria about three blocks from Gow?

Not even close. 97.5 doesn't even put a 60 over downtown, much less the Galleria.

At Westheimer and Gessner it is in the low 50s. Hope they have a good studio feed to pipe into the lobby.

 

[clouseau]

The KML file for KFNC is corrupt on the FCC website, but as I look at a close approximation on Radio-Locator.com I have to ask.

Does the 60dbu of KFNC actually reach to Alabama St. Lots of stations can do a lot of funny business based on other stations and their coverage with regard to main studio, butdoes "The Gow building" really work for KFNC?

Clouseau

Does it reach the current studio at Westheimer & Gessner?

Did it reach the old KRWP studio in the Galleria about three blocks from Gow?

Interesting point. When they were in Beaumont they coupd get by claiming they are in a legal location for the same city by claiming KLVI which would appear to qualify. I suspect they might be able to get a waiver to remain qualified by merely changing the col and not the facilities. However there isn't a nother station in Mt Belvieu. I wonder if they have to follow the main studio rules and can'r get a waiver yet.

 

[Ryan Williams]

It's about the 37 miles from the city of Mont Belvieu to the studios on West Alabama. The rule is either inside your city-grade contour, inside the city-grade contour of another station licensed to the same community or within 25 miles of your community-of-license.

It is worth pointing out that Mont Belvieu is mostly in Chambers county which is considered by Arbitron to be part of the Houston radio market.

Perhaps Chuck can give us a little more color considering that 100.7's community-of-license is even further east.

 

[Rad10]

Does it reach the current studio at Westheimer & Gessner?

Did it reach the old KRWP studio in the Galleria about three blocks from Gow?

Not even close. 97.5 doesn't even put a 60 over downtown, much less the Galleria.

At Westheimer and Gessner it is in the low 50s. Hope they have a good studio feed to pipe into the lobby.

That is why we have to maintain a studio in beaumont. Beaumont is the col.

 

[clouseau]

That is why we have to maintain a studio in beaumont. Beaumont is the col.

And that begs the question is Gow going to have to put some type of facility besides Alabama to be legal.

 

[johndavis]

That is why we have to maintain a studio in beaumont. Beaumont is the col.

And that begs the question is Gow going to have to put some type of facility besides Alabama to be legal.

Sure sounds like it to me.

They'll probably do what KTHT does and put a main studio and public file in a storefront with a staff of no less than two. As long as there's someone always in the office from 9 to 5 and one person is considered a manager, then you're legal. On the plus side, you can use that staff to sell direct in the area and make a few bucks.

The license to cover for Mont Belvieu was granted this week, BTW.

 

[smartestguyintheroom]

Interesting how David Gow spends premium dollars for inferior signals. Either he has no engineering consultant, has chosen to ignore their advise or clearly doesn't get it. Reviewing the Yahoo Sports Network, the latter is true when it comes to programming and product.

 

[Ryan Williams]

Interesting how David Gow spends premium dollars for inferior signals. Either he has no engineering consultant, has chosen to ignore their advise or clearly doesn't get it. Reviewing the Yahoo Sports Network, the latter is true when it comes to programming and product.

To be fair, none of the Missouri City signals were being shopped around like 97.5 was and even if they were, David might not be able to come up with the 25-30 million it would likely take to pull it off. This way he is probably spending 1/5 of that to take over an established competitor who has a valuable affiliation, good cash flow and is the only sports game on FM. It might end up being a very shrewd deal.

 

[smartestguyintheroom]

It might be a shrewd deal. Then again, he's zero for two already. 1-Bad signal AM with sub-standard programming on a local level. 2- a third rate sports network which added absolutely no relative product quality to his station as proven by the lack of ratings growth as KGOW remains at a consistent .1 share with a very sad cume for its 5+ year history.

I don't know him, but it sounds like you do. It also sounds like he's a person with lots of money who wants to be in the radio business without the benefit of professional advice. Or he gets awful advice. Or maybe he gets correct, professional advice (I've been told he does) and he listens and ignores it. Either way, the shrewdness of the 97.5 signal deal will play itself out. As have his aquisitions of KGOW and the sports network. Hopefully he got Dave Tepper as part of the KFNC deal. If so, he has an excellent PD that can benefit the entire organization. Time will tell.

And those Missouri City signals at the Senior Road facility would never go for the $25-30 million range. More like $100 million and up.

 

[Ryan Williams]

And those Missouri City signals at the Senior Road facility would never go for the $25-30 million range. More like $100 million and up.

Maybe back in the heyday, but no one would pay 100 million for any radio station in Houston today. Obviously, there are a lot of factors in valuations, but the closest recent market comp is Merlin buying WKDN in Philadelphia at the end of last year for $22.5. Houston and Philadelphia are closer in size and market revenue than Houston and Los Angeles and even in LA, KXOS's current price tag is $110 (it was $85.5 before the option expired). I'm skeptical they can get the full $110 retail price and that is for a Mount Wilson signal.

Zero percent chance the Senior Road stations are even in the same ballpark.