JRZFM100 said:
The bottom line here is that EMF did overpay for the Class A facility in question. Very clear in light of Merlin's ability to purchase NY & Chicago top-10 market stations at ~ $36 million a piece.
Let's start with the real bottom line: the total price for the three stations was about $190 million. $130 million cash, a $28 million equity position. Emmis retains a 20% interest in the stations, so that's $158 million for 80% or about $198 million as a value for 100%. That would likely be about $90 for NY, and about $50 each for the Chicago stations.
The Class A, with a 60 dbu coverage of about 3 million persons, could be considered well worth $15 million, particularly since entry to New York is likely important to EMF.
The Class A in question (at $15.5 million) is NOT a NYC station, and never will be.
It's well inside the New York MSA, and, for an A, covers a looooot of people.
Of course, prices were higher then, but 600 watt WCAA was purchased for over $110 million... and a pair of A's in LA went for $75 million. So, even today, a metro A like WFAS is worth that price. If more financing were readily available, the price would have been higher, I think.
Finally, EMF knew that there is rampant pirate activity in the vicinity. The pirate they are complaining about is notorious. So, EMF should have anticipated this interference.
But, until they owned a station being interfered with by a pirate, they had far less weight in complaining. Now they have their own ox being gored and can proceed with much more weight.
[/quote] And, ask yourself did this pirate interfere with the revenue generating activity of the Class A when it was owned and operated LOCALLY by Cox? Did Cox need FCC assistance? NO. Cox did not have a dream about serving the entire NY TSA with the 3kw station.[/quote]
Cox had not been running the station from the CP site... they were not affected.
In PPM, NY has no TSA. Just MSA, and WFAS is well inside the MSA.
As for paying off the pirate, EMF has plenty of cash on hand and has a long history of paying off other operators to move around or downgrade to effect EMF's desired signal expansion plan. This is EMF's normal M/O. So, if you want to serve the entire NY TSA with a little class A, then paying other operators fits the bill. Perhaps they will payoff co-channel stations to go away.
EMF does not pay off criminals, and the operators of the pirate are criminals. One thing is to juggle, legally, allocations for everyone's benefit, but another is to reward a bunch of thugs for committing a crime.
Lastly, EMF wants to be interference free down to a 30 dBu contour because they believe that people in the 30 can and will tune in. This is a fantasy.
It does not matter what EMF thinks about needed signal strength... the FCC establishes protected contours. But the main point is that a pirate is illegal.
Don't think you can serve the NY TSA with a little 3kw pea shooter!
A station that puts a 60 dbu over 3 million people is just as useful as a 100 kw Class C that covers Seattle...