KXTO 1550 AM / RENO

[Power107]

Does anyone know what's going on with KXTO in Reno? I hear the church that had the LMA defaulted and they are moving their Spanish Religious programming to KXEQ 1340. If true, I guess those low powered AMs in Reno are dropping like flies. First KQLO and now KXTO.

 

[newsperson]

Newsperson responds:

They are not low-power, they are medium power, at least 1590 Khz. was 5.0 KW and 1550 was 2.5 KW.

The lowest power AM stations in Reno are: 1230, 850 watts, 1340 990 watts, 1400 with about 1000 watts and a poor ground conductivity site, and 1450 with 1000 watts.

KIHM on 920 Khz. is 4,600 watts and far from low-power. The original KOH 630 Khz (not the fake one on 780) is 5,000 watts.

The situation has nothing to do with power. KQLO had financial problems only related to business and KXTO has it's own problems as the owner is 80 plus and in a rest home.

The church has been running KXTO for many years except now they decided to throw in the towel and return the station to its owners. It does make sense for Carlos to have just one station now and not strech himself so thin.

Are they dropping the curent format on 1400?

As i said 1400 has terrible ground conductivity at its site, however the signal is acceptable in Reno.

Any other news about these or other AMs in Reno?

Newsperson

 

[Rockin Rob]

KXTO has been advertised for sale for quite some time on broadcaststations4sale.com. I narrowed it down due to the night power (listed as 94w). Ad does mention the LMA. Asking price = $500k. So, along with KQLO 1590, someone with a mill could wind up with 2 stations in the Reno market. Not bad, I'd say.

 

[Power107]

That listing for KXTO needs some serious updating. It has been up for probably two years, and in the current market the station is not worth anything near $500k. In 2008/2009 they will be lucky to get $150k. Maybe $200k from someone who knows nothing about radio. It could be a nice little station if they can upgrade the equipment and the signal, but right now it's way overpriced.

 

[newsperson]

Newsperson responds:

Even with lower prices for AMs it's just like houses. You find a lower price except you still need financing. If someone comes from a different region yes they would see more value in Reno than a broadcaster from Northern California.

There are also a couple fo new stations going on the air in Reno during 2009.

A new FM on 104.1 licensed to Fallon as a Class C will provide some signal over Reno.

A new 15KW AM licensed to Sparks with 15KW on 1060 Khz. will penetrate Reno well.

These two seperate companies regardless of what they paid to the FCC and for legal and engineering costs, they have already paid for their permits. In other words they don't need to buy a license now, they just need to build the stations.

Hmmm I wounder what kind of music format 104.1 will have?

For 1060 Khz. some kind of talk?

Your thoughts?

Newsperson

 

[Rockin Rob]

Newsperson responds:

Even with lower prices for AMs it's just like houses. You find a lower price except you still need financing. If someone comes from a different region yes they would see more value in Reno than a broadcaster from Northern California.

Also, you put out a price that is way over what you want, knowing the buyer will negotiate the price down to where the buyer will either A) pull the trigger and sell, plus B) hope the actual amount sold for is anywhere near what the original asking price is.

The sginal limitations and equipment conditions will be taken into consideration. Add in upgrading, and throw in another AM property on top of 1550AM, plus operating expenses, and you'll still wind up with having to eventually needing a million for the properties, making the changes to create TWO serviceable signals AND to get a staff on-board for sales, engineering, etc. Still, compared with what CC and CBS were overpaying not that long ago, and a mill gets one off quite light.

 

[maximumradio]

A word from the consultant for the licensee of KXTO: We have recently received two separate offers for the purchase of the station. Both of the offers are in the $500,000 price range and are all cash deals. The only difference is in some of the small print. At this time the station is being operated by the licensee. The station licensee is "owned" through court appointment by a gentleman who is the conservator for the 100% shareholder of First Broadcasting of Nevada, Inc. The creation of the conservatorship was due to Stanley Klein's severe health issues and nothing more. A sale of the station is being undertaken as it is felt to be in Stanley's best interest.

There are a number of other Reno stations on the market. There is a permit going for just under $300,000 and that is a firm price by the corporate seller. There are some other stations in the market going for $600k and up.

It is true that the market is flat and that there are some deals to be had. Reno is not one of the markets with deals. Small markets in the South East have deals. Some associates and I just signed am asset purchase agreement to buy a small daytimer in a Southern state for $30,000. If one is looking for a deal all I can advise is: Go East..I have seen some AM permits going for $10,000 in decent eastern areas. There are even some deals on FM permits and stations. Reno, much like other resort markets, may have more stations than it should based on market share and available dollars for advertising but bargains on stations simply do not exhist because of market uniqueness and desireability.

 

[Rockin Rob]

A word from the consultant for the licensee of KXTO: We have recently received two separate offers for the purchase of the station. Both of the offers are in the $500,000 price range and are all cash deals. The only difference is in some of the small print. At this time the station is being operated by the licensee. The station licensee is "owned" through court appointment by a gentleman who is the conservator for the 100% shareholder of First Broadcasting of Nevada, Inc. The creation of the conservatorship was due to Stanley Klein's severe health issues and nothing more. A sale of the station is being undertaken as it is felt to be in Stanley's best interest.

There are a number of other Reno stations on the market. There is a permit going for just under $300,000 and that is a firm price by the corporate seller. There are some other stations in the market going for $600k and up.

It is true that the market is flat and that there are some deals to be had. Reno is not one of the markets with deals. Small markets in the South East have deals. Some associates and I just signed am asset purchase agreement to buy a small daytimer in a Southern state for $30,000. If one is looking for a deal all I can advise is: Go East..I have seen some AM permits going for $10,000 in decent eastern areas. There are even some deals on FM permits and stations. Reno, much like other resort markets, may have more stations than it should based on market share and available dollars for advertising but bargains on stations simply do not exhist because of market uniqueness and desireability.

WOW! Max, Most would consider $30K as a steal, LOL! Congratulations and best of luck with it. Might you have links to brokerages where one could check out some pricing? I already know of the one listed above and some others: (broadcaststations4sale.com, buysellradio - which hasn't been updated in over a year, radiostationsforsale.net).

 

[Power107]

A word from the consultant for the licensee of KXTO: We have recently received two separate offers for the purchase of the station. Both of the offers are in the $500,000 price range and are all cash deals. The only difference is in some of the small print. At this time the station is being operated by the licensee. The station licensee is "owned" through court appointment by a gentleman who is the conservator for the 100% shareholder of First Broadcasting of Nevada, Inc. The creation of the conservatorship was due to Stanley Klein's severe health issues and nothing more. A sale of the station is being undertaken as it is felt to be in Stanley's best interest.

There are a number of other Reno stations on the market. There is a permit going for just under $300,000 and that is a firm price by the corporate seller. There are some other stations in the market going for $600k and up.

It is true that the market is flat and that there are some deals to be had. Reno is not one of the markets with deals. Small markets in the South East have deals. Some associates and I just signed am asset purchase agreement to buy a small daytimer in a Southern state for $30,000. If one is looking for a deal all I can advise is: Go East..I have seen some AM permits going for $10,000 in decent eastern areas. There are even some deals on FM permits and stations. Reno, much like other resort markets, may have more stations than it should based on market share and available dollars for advertising but bargains on stations simply do not exhist because of market uniqueness and desireability.

Spoken like a true consultant who has nothing to gain (but a commission and a clue).

 

[radioguybroadcasting]

A word from the consultant for the licensee of KXTO: We have recently received two separate offers for the purchase of the station. Both of the offers are in the $500,000 price range and are all cash deals. The only difference is in some of the small print. At this time the station is being operated by the licensee. The station licensee is "owned" through court appointment by a gentleman who is the conservator for the 100% shareholder of First Broadcasting of Nevada, Inc. The creation of the conservatorship was due to Stanley Klein's severe health issues and nothing more. A sale of the station is being undertaken as it is felt to be in Stanley's best interest.

There are a number of other Reno stations on the market. There is a permit going for just under $300,000 and that is a firm price by the corporate seller. There are some other stations in the market going for $600k and up.

It is true that the market is flat and that there are some deals to be had. Reno is not one of the markets with deals. Small markets in the South East have deals. Some associates and I just signed am asset purchase agreement to buy a small daytimer in a Southern state for $30,000. If one is looking for a deal all I can advise is: Go East..I have seen some AM permits going for $10,000 in decent eastern areas. There are even some deals on FM permits and stations. Reno, much like other resort markets, may have more stations than it should based on market share and available dollars for advertising but bargains on stations simply do not exhist because of market uniqueness and desireability.

WOW! Max, Most would consider $30K as a steal, LOL! Congratulations and best of luck with it. Might you have links to brokerages where one could check out some pricing? I already know of the one listed above and some others: (broadcaststations4sale.com, buysellradio - which hasn't been updated in over a year, radiostationsforsale.net).

Buysellradio.com has been updated in less then a year, but not very recently.

broadcaststations4sale.com is another one.

$30K IS a good deal.. but you gotta remember there are some very important factors as to why the station went for so cheap. I am privvy to the situation and know whats going on, but can't reveal anything.

 

[radioguybroadcasting]

A word from the consultant for the licensee of KXTO: We have recently received two separate offers for the purchase of the station. Both of the offers are in the $500,000 price range and are all cash deals. The only difference is in some of the small print. At this time the station is being operated by the licensee. The station licensee is "owned" through court appointment by a gentleman who is the conservator for the 100% shareholder of First Broadcasting of Nevada, Inc. The creation of the conservatorship was due to Stanley Klein's severe health issues and nothing more. A sale of the station is being undertaken as it is felt to be in Stanley's best interest.

There are a number of other Reno stations on the market. There is a permit going for just under $300,000 and that is a firm price by the corporate seller. There are some other stations in the market going for $600k and up.

It is true that the market is flat and that there are some deals to be had. Reno is not one of the markets with deals. Small markets in the South East have deals. Some associates and I just signed am asset purchase agreement to buy a small daytimer in a Southern state for $30,000. If one is looking for a deal all I can advise is: Go East..I have seen some AM permits going for $10,000 in decent eastern areas. There are even some deals on FM permits and stations. Reno, much like other resort markets, may have more stations than it should based on market share and available dollars for advertising but bargains on stations simply do not exhist because of market uniqueness and desireability.

Spoken like a true consultant who has nothing to gain (but a commission and a clue).

And your one liner was spoken like someone whos angry and bitter, with an ax to grind.

"Maximumradio" has been in this business several DECADES.

I think he is being truthful, honest and factual..... and telling it exactly like it is.. makes alot of sense.

AND FYI, as far as I know, said consultant doesnt stand to make much of a commission of the sale of KXTO, if at all.. and he has plenty of a clue.. he could teach you a thing or two.

 

[radioguybroadcasting]

A word from the consultant for the licensee of KXTO: We have recently received two separate offers for the purchase of the station. Both of the offers are in the $500,000 price range and are all cash deals. The only difference is in some of the small print. At this time the station is being operated by the licensee. The station licensee is "owned" through court appointment by a gentleman who is the conservator for the 100% shareholder of First Broadcasting of Nevada, Inc. The creation of the conservatorship was due to Stanley Klein's severe health issues and nothing more. A sale of the station is being undertaken as it is felt to be in Stanley's best interest.

There are a number of other Reno stations on the market. There is a permit going for just under $300,000 and that is a firm price by the corporate seller. There are some other stations in the market going for $600k and up.

It is true that the market is flat and that there are some deals to be had. Reno is not one of the markets with deals. Small markets in the South East have deals. Some associates and I just signed am asset purchase agreement to buy a small daytimer in a Southern state for $30,000. If one is looking for a deal all I can advise is: Go East..I have seen some AM permits going for $10,000 in decent eastern areas. There are even some deals on FM permits and stations. Reno, much like other resort markets, may have more stations than it should based on market share and available dollars for advertising but bargains on stations simply do not exhist because of market uniqueness and desireability.

WOW! Max, Most would consider $30K as a steal, LOL! Congratulations and best of luck with it. Might you have links to brokerages where one could check out some pricing? I already know of the one listed above and some others: (broadcaststations4sale.com, buysellradio - which hasn't been updated in over a year, radiostationsforsale.net).

Buysellradio.com has been updated in less then a year, but not very recently.

broadcaststations4sale.com is another one.

$30K IS a good deal.. but you gotta remember there are some very important factors as to why the station went for so cheap. And those factors, while somewhat major, arent anything that can't easily taken care of by an expierienced, seasoned broadcaster who knows what they're doing.

 

[maximumradio]

I am not going to get too off topic here but will clarify that there are a lot of very inexpensive station and permit sales around the Country and that they are almost totally not listed by brokers because the prices for these facilities fall below the minimum commission that many brokers charge sellers. I can only think of three brokers who have listings in the $25,000 area for what is the same AM construction permit in a rural coastal beach resort area. All of the other ones that I am aware of are not listed by any broker. Usually locating these oportunities comes through networking with broadcasters in markets where you might be interested or by doing research using a combination of sources and then by making lots of calls and sending lots of emails.

 

[Rockin Rob]

I am not going to get too off topic here but will clarify that there are a lot of very inexpensive station and permit sales around the Country and that they are almost totally not listed by brokers because the prices for these facilities fall below the minimum commission that many brokers charge sellers. I can only think of three brokers who have listings in the $25,000 area for what is the same AM construction permit in a rural coastal beach resort area. All of the other ones that I am aware of are not listed by any broker. Usually locating these oportunities comes through networking with broadcasters in markets where you might be interested or by doing research using a combination of sources and then by making lots of calls and sending lots of emails.

Max, if you don't mind me asking, I would be interested in knowing the timeframe between your first contact with the previous owner of the property you will soon acquire, to the studies needed for facility upgrade (if any were needed), to offer, to approval by the FCC. Thanks, and I respect if you feel I'm digging too deep and wish to decline answer. I thought it might give some insight to some as to how long the process would take. Personally, I have done radio in the Northeast for 10 years and one day plan to own a couple properties.

 

[radioguybroadcasting]

I am not going to get too off topic here but will clarify that there are a lot of very inexpensive station and permit sales around the Country and that they are almost totally not listed by brokers because the prices for these facilities fall below the minimum commission that many brokers charge sellers. I can only think of three brokers who have listings in the $25,000 area for what is the same AM construction permit in a rural coastal beach resort area. All of the other ones that I am aware of are not listed by any broker. Usually locating these oportunities comes through networking with broadcasters in markets where you might be interested or by doing research using a combination of sources and then by making lots of calls and sending lots of emails.

Max, if you don't mind me asking, I would be interested in knowing the timeframe between your first contact with the previous owner of the property you will soon acquire, to the studies needed for facility upgrade (if any were needed), to offer, to approval by the FCC. Thanks, and I respect if you feel I'm digging too deep and wish to decline answer. I thought it might give some insight to some as to how long the process would take. Personally, I have done radio in the Northeast for 10 years and one day plan to own a couple properties.

It all depends on several factors as to how long it takes.....

Between talking with the owner (which could take several days or a few weeks) to filing and approval with the FCC(90 days) to take over after comment period (30 days) to filing for an upgrade and getting approval (60 to 120 days)........ thats about how long.. on average, as long as there are no hitches.

I'm sure max will back me up on this..

 

[Rockin Rob]

So, it would seem about 6-7 months. Not bad at all, especially considering the government jumps in at some point. I suppose that extra time can help one decide if they want to keep the current format or go in a different direction.

 

[newsperson]

Newsperson responds:

The longer you wait to close on a transaction the more weary the staff gets. If you want to keep any of the existing momentum it's best to close as soon as possible after the FCC approval. Dragging you feet can be missed opportunites.

As far as cheap stations to buy in the West, there alway seems to be some in Oregon. Plus what about Tonopah or Beatty, Nevada? There are a couple of CPs in those towns of 1000 watt AMs.

Newsperson

 

[radioguybroadcasting]

Newsperson responds:

The longer you wait to close on a transaction the more weary the staff gets. If you want to keep any of the existing momentum it's best to close as soon as possible after the FCC approval. Dragging you feet can be missed opportunites.

As far as cheap stations to buy in the West, there alway seems to be some in Oregon. Plus what about Tonopah or Beatty, Nevada? There are a couple of CPs in those towns of 1000 watt AMs.

Newsperson

I've contacted the folks who have permits in that town with an offer to buy, I was particularly interested on Tonopah due to certain situations going on.. but never got a single response.

 

[XRQKFM]

KXTO 1550, only has stick value, the station is definitely a fixer upper with some potential; Technically it can be upgraded to 10kw days; as it was originally licensed for. Even with 2,500 watts it has decent signal down south past Minden to the California boarder,and will hit Truckee on 250 watts with a fair signal. Where the antenna is now; much of the signal is wasted, moving it south towards Carson City, could provide a better signal to that city while still covering Reno.

I wish I knew it was still on the market, I thought Stanley sold it long ago; otherwise I would made an offer, as my rich uncle had money wasting away in the stock market & bank and was willing to invest. 1550 would be grate for a well to do hobbyist who wants to play radio station owner and does not care if they make a dime, and is willing to put up with signal problems like the mixing of 630 & 920 that takes place around town on car radios, or the station getting clobbered at night from adjacent channel 1560 KNZR Bakersfield.

From a business point of view, you have to consider the stations horrible reputation around town, that for some reason is still around. Apparently people in the business community don't like to get burned anymore than former staff, and tend not to forget. Those call letters would have to go! If you planned on making a dime.

Looks like Stanley, is finely facing his karma!
His daughter is a real prize too!

Steve
www.radiobrandy.com

 

[radioguybroadcasting]

KXTO 1550, only has stick value, the station is definitely a fixer upper with some potential; Technically it can be upgraded to 10kw days; as it was originally licensed for. Even with 2,500 watts it has decent signal down south past Minden to the California boarder,and will hit Truckee on 250 watts with a fair signal. Where the antenna is now; much of the signal is wasted, moving it south towards Carson City, could provide a better signal to that city while still covering Reno.

I wish I knew it was still on the market, I thought Stanley sold it long ago; otherwise I would made an offer, as my rich uncle had money wasting away in the stock market & bank and was willing to invest. 1550 would be grate for a well to do hobbyist who wants to play radio station owner and does not care if they make a dime, and is willing to put up with signal problems like the mixing of 630 & 920 that takes place around town on car radios, or the station getting clobbered at night from adjacent channel 1560 KNZR Bakersfield.

From a business point of view, you have to consider the stations horrible reputation around town, that for some reason is still around. Apparently people in the business community don't like to get burned anymore than former staff, and tend not to forget. Those call letters would have to go! If you planned on making a dime.

Looks like Stanley, is finely facing his karma!
His daughter is a real prize too!

Steve
www.radiobrandy.com

Steve,

Alot of what you say is quite valid, however the equipment and studio side and audio processing is current model start of the area stuff.

The only thing that's lacking is an update of the transmitters. However, the contract engineer comes in on a regular basis and the transmitters (all 3 of them) meet or exceed all technical requirements. They would make a collector tear up when observing their age and excellent condition.

Yes, with 2 towers, it could go to 10KW. Perhaps, what you were unaware of is that Clarence Beverage did a study for Stanley when he originally filled that allowed for 500W with 3 towers.

A study showing the station that if it moved south, and added a few towers, it could go to 50,000 Watts Day and several Kilowatts at night.

For your information, there is a different radio station operating from the old KXTO studios, above the glass business.

The station is doing rather well with it's current format and is working on steadily improving it's reputation in the area.