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New CP in Newcastle, sold

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From RadioInsight's sale report:
Brazos TV sells their CP for 100.5 Newcastle TX to Stacey and Timothy Walker’s Two Way Communications for $11,510.
 
Interesting. I find such CPs for stations in small dots on a map perplexing. Newcastle is about 300 people. There's not many people around there. In fact the population is not on the increase and retail sales so low it cannot even support a newspaper. How can anyone justify the build out and then monthly operation costs based on the reach of such a station? I guess if a Church or other such group grabbed it, maybe, if membership was substantial enough, they could pay the bills but for how long until the board says enough is enough. I have to question if it will ever be built.

Then again, the buyers must know something I don't and I'd love to learn what that is. Maybe they know it can be moved or get a power increase. Maybe it's a block to a station doing an increase and they hope to get some cash for going away.

On a related note, I am familiar with Sanderson, Texas. Today the nearly 2,500 square mile county only has about 1,000 people. Sanderson and Terrell County have suffered the loss of the railroad crew and mohair subsidies. At least the Border Patrol opened a station there. But, still, as the only town in the county, with 850 people, at a spot where the AM and FM dial is blank, how can a station justify a build out and month to month operation on $3 million in retail sales? Even the newspapers that have tried have closed up shop. The last I heard was a volunteer group was trying to start a paper for the county.

Look at Guthrie, Texas. The whole county is under 300 people. There is 1 retail business. Someone bid on a frequency there.

There are several other places around the country there is no way to financially support even a class A FM from its coverage area. In fact, even if you could upgrade to a full C that coverage area would be so lacking in population and retail sales I see no way to even cover the electric bill much less anything else.

I did not the guy that bought the Big Wells, Texas station tried moving it (I think he was granted).

Someone on another post commented on a tiny station in Sabinal, Texas, a small town, maybe 1,200 with enough retail sales to perhaps fund a weekly paper. The poster was shocked by the tiny audience and revenue potential. Surely, the average person would say there;s nothing there, just a wide spot in the road. By comparison, if you added Big Wells, Guthrie, Sanderson and Newcastle, you would not eclipse the retail sales of Sabinal nor the population covered by the city grade signal. So, if Sabinal has a STA, what makes folks think they can do something in smaller spots.
 
Looking at Newcastle, it seems the population is about 575, not 300. It seems to be about 10 miles from Graham as the crow flies. In this instance, the station will likely locate as near to Graham as possible. They're likely going to base out of Graham, about 8,900 people. Positioned properly the CP could serve both Graham and Olney with about 3,200 people. Perhaps they might cover the entire county of over 18,000.
 
It's non-directional actually.
They are probably just going to target the small towns around Newcastle, Graham, and Olney. It will be interesting to see what happens with this station.
http://fccdata.org/?facid=198777
 
I can see a pattern here. Two of these three covered nearby 'ground' to the Newcastle station with the Annona application being the odd man out. I suspect they were shooting for a simulcast on all 3 frequencies as a regional sort of station. There would be enough population among the three to make something out of the communities to support a staff.
 
Usually once you are assigned a city of license you are stuck with it especially if you are the only station assigned to a specific community. That does not mean the station would not be able, likely to move to Graham and actually have an office there. Graham is not that far away.
 
On a related note, I am familiar with Sanderson, Texas. Today the nearly 2,500 square mile county only has about 1,000 people. Sanderson and Terrell County have suffered the loss of the railroad crew and mohair subsidies. At least the Border Patrol opened a station there. But, still, as the only town in the county, with 850 people, at a spot where the AM and FM dial is blank, how can a station justify a build out and month to month operation on $3 million in retail sales? Even the newspapers that have tried have closed up shop. The last I heard was a volunteer group was trying to start a paper for the county.

This is the station you're referring to? http://licensing.fcc.gov/cgi-bin/ws.exe/prod/cdbs/pubacc/prod/app_det.pl?Application_id=1713380
It's a new CP for 102.7 in Sanderson. It's 100 KW, so probably would cover a much larger area.
 
I doubt 102.7 in Sanderson will ever be built to be 100,000 watts unless it moves. The beauty of a 100,000 watt FM is the big city grade signal. You have to put a city grade signal over your city of license. Moving north toward Fort Stockton or west toward Alpine might work but even then, you are not talking big cities. You could not move close enough to reach any other community. Fort Stockton is, I think, about 60 miles from Sanderson. Alpine is about 90 miles, I think (about an hour to Marathon and another half hour to Alpine by car). Del Rio is 120 miles away.

Each community has longtime successful local stations that have decades-long relationships with local advertisers.

A 100,000 watt FM requires a nice outlay of cash and then much more of a monthly operating cost to make it.

Terrell County, of which Sanderson is the county seat, is almost 2,400 square miles and per the 2015 population figure, there are 837 people in the county, almost 90% in Sanderson alone. The only other town is Dryden, perhaps 10 people. Sanderson has always been pretty 'newspaper' strong. The longtime publisher quit publishing after a rival paper started. (at one point there was a shopper and two weekly papers when the population was about 50% more than today). The rival paper sold a couple of times and went under after a few years. Today a non-profit 4 page weekly newspaper fills the void, coming about a year after the last for profit paper shut down.

In my opinion a Low Power FM, 100 watt station, could work in Sanderson. Even a Class A, 6,000 watter, would likely run at a loss. To imagine the investment in a full Class C 100,000 watt station and monthly operating costs would be akin to opening a WalMart size store and the only inventory is in a small mall size kiosk. That is a pretty accurate picture of the investment versus return off of Terrell County.

If it is a religious broadcaster that is well funded, maybe they can have the support from elsewhere to build and sustain it. I see one of the TWO Construction Permits for Sanderson involves a religious broadcaster that has been red flagged by the FCC. You can bet they'll feed the station via internet and will request a waiver on local presence.

There's a 'game' played in primarily religious that usually involves non-commercial stations. The game goes like this: Get every CP you can no matter where it is. As time goes by, you can trade and negotiate with other entities to get the stations good for one group but not the other into the right hands. I have seem stations in areas with zero Spanish speakers go to a Spanish language religious broadcaster and then get traded by an English speaking religious broadcaster for a station in a 90% plus Hispanic community where Spanish is more widely spoken than English. So, you might say the game is sorting out portfolios to get stations in the hands of those that are better entities to run a station in a given community.

The second station assigned to Sanderson belongs to an applicant that has experience in Spanish Language radio and has other stations on the air. So, lets ponder this. If the other station will build, he could likely move the station from Sanderson to a much better location where it can easily be economically viable. With commercial stations being auctioned to the highest bidder, that might be the plan. You can bet the bidding for Sanderson was not very intense. I gather this guy has more than his arm up his sleeve. For example one owner I worked for opted to sign on at a lower power (making me say the poor guy would lose his shirt) but all along he had done the engineering to increase the power 6 fold to create a viable station. Those of us on the outside had no clue of his plan. I suspect this guy is building a network of stations to create a nice venue for ad agency dollars by creating a better mousetrap. Simply put, in some areas there is so little on the dial, hitting a 50 share would be pretty easy, so number of listeners versus total population makes an attractive station.

Not too long ago, there was an AM Construction Permit for Langtry, Texas. It was granted 250 watts. Langtry has about 30 people. I am not underestimating that at 250 watts, a station there would be hard pressed to reach 150 people. The ranches are huge out there, many calculated by number of square miles. It was always thought they'd move to Del Rio, but the CP has long since expired. A non-commercial FM KDKY, went in at Marathon, a bit over 400 people. They asked the FCC to downgrade to 100 watts. After sustaining a loss, they donated it to Radio Marfa, that owns it today. While the radio dial is essentially blank in these areas, there's not enough people in any given spot to generate the income for a station. It would almost always have to be a labor of love or you'd work like crazy going to distant towns to sell anything you could.

A really nice guy I worked with was in such a situation, driving up to 90 miles to sell in distant towns every day. He took an attitude of 'try to get something, anything, from each business he visited. If that was $20 for 50 cent spots, fine. If it was $100 at $2 a spot, great. He had to generate at least $5,000 a month and it wasn't going to come to him locally. He always came close...his worst $4,500 a month. He'd hit the road early and sell all day. Once back at the station, he'd write spots, produce them, tend to station business, do the program logs and try to be home by 10 pm. His take home was about $1,500 to $2,000 a month but he wasn't reimbursed for mileage or any other expenses he had selling out of town. He said his taxes always had itemized deductions higher than his income. He joked he was in a town so small, they were big enough to have local news. After a few years he was worn out and he felt his wife could use a break from being the major breadwinner.
 
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Maybe they could change the Sanderson 102.7 to a class a with 401 or even 802 watts. could that also make it? That's much less powerful than 6,000. You definitely don't need 100,000 watts from 145 meters to cover 1000 people that's way too expensive to keep going I would think. The Guthrie station's only 1000 watts from 46 meters for example. I think that makes a little more sense.

No comments on the other app there.
 
Literally putting up a 50 foot antenna on the hill by the athletic field in Sanderson as a Low Power FM at 50 watts of power would cover a nice area, maybe 85% of the population of the county and considering there are only 7 out of the 200 frequencies on the FM dial where you could cause any interference to anyone means except for the allocated frequencies for the community, it could be almost anywhere on the dial.

Guthrie is a real brain bender. Guthrie is the only real community in King County, population 282. Guthrie alone is 160 people. There are dots on the map for Grow, Dumont and Finney but they are tiny. Although the estimated populations are estimated at 70, 85 and 70 respectively, these are old figures. I have been through Guthrie several times. The only retail outlet is a store. I'd call it an over glorified convenience store, not quite a General Store or a Grocery Store. Most of the county is a ranch and even most of the housing (if not all) is actually owned by the ranch that leases the homes.

For fun, I did the street view on Google maps for Grow, Dumont and Finney. Grow has 6 homes. Dumont has 5. Finney is, well, nothing but fields now, a couple of houses within a couple of miles. None of these towns have any businesses. Combined population estimate, based on 3 per home: 39 between the three 'communities'.

The surrounding counties are sparsely populated as well. Although 1,000 watts at 46 meters is a pretty cheap build out, the number you'd reach almost makes Sanderson and Terrell County look like a major city.

Granted, I place more emphasis on the business community over the total population, but while Sanderson might work as a low power facility without producing a salary, Guthrie and the surrounding area could not. To get to any area with businesses and more than a handful of homes is 30-40 or more miles in each direction and mostly those towns are not much more than 1,000 in population although most have enough commerce to support a weekly newspaper.

Also consider these businesses as small, the sort where spending $100 to $150 a month might be their total advertising budget per month. So, it is probable most of those dollars would be spent in the local paper. At 1,000 watts at 46 feet, a reliable signal in any of those towns is very iffy at best. Of all the towns, Knox City would be the best bet at a few dollars. Jayton is another, although only around 500 people, it is a county seat with a business community and no media at all to buy advertising from. The real question is if King County is a factor in their business (do enough people spend with them to make it worth it).

You can bet the profit margins the newspapers in these towns enjoy is slim. If you got $500 a month out of a town it might be enough to push the local paper in to red ink. For example, the Matador, Silverton and one other town paper combined to create one publication a couple of years back due to low profits...it took all three papers to get enough money to pay a salary for the publisher.

To be honest, places like Guthrie, especially, are places where I wonder why anybody would want to put up a licensed station. A part 15 could cover the town. It costs so much to build and keep running versus the potential return, I really don't get it.

I can see Newcastle since it can be moved to hit a larger town that has radio and produces an income to fund a radio station. Sure Sanderson could be between cities at the high power levels but even those larger communities do not have such high cost, high monthly expense stations. Guthrie has nothing but itself to support a station.
 
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