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NJN Radio & TV Fire Sale is up on the web....You won't believe your eyes ~~

http://www.state.nj.us./treasury/
(bottom left hand side(blue link)

The man who did the study on how much non-com Radio and TV is worth
today must have bumped his head on his way to his office.

He is stating that WNJN 89.7 Atlantic City is $563 Thousand if you were to buy just that license alone.

I have been part of the buying and selling and turning on of many stations now. I have never witnessed any so "way off" on what something is worth like the guy did this report for the State Of NJ!

You have your choice right now of buying chimerical stations right now for really cheap. I don't think he understands the ongoing economic problems in radio in New Jersey. Feast your eyes. What do you think?
 
You have your choice right now of buying chimerical stations right now for really cheap. I don't think he understands the ongoing economic problems in radio in New Jersey. Feast your eyes. What do you think?

Lets make it easier -http://www.state.nj.us/treasury/administration/pba/radio-market-value.pdf

I'd buy the Ocean county or Northern NJ sticks...the others? Nah - wouldn't be able to recoup the money.
 
I Believe It

BIA/Kelsey is a highly respected and authoritative source. Their methodology appears sound. I'd take their analysis over the unsubstantiated opinion from an anonymous poster on a message board. And I do not see BIA saying their estimated prices are for the license only (excluding real estate and facilities).

Total market value is estimated at $4.2 million for the entire network. About the same as a weak stick AM in Wilmington.
 
Hmmm. So they're probably spending more on salaries, maintenance, and operations per year than the entire thing is worth. What would you do with that kind of business?
 
You would sell them to a broadcaster who is willing to pay $6 per person and delivers programming via satellite with no local programming or management expenses. If anything, this estimate is on the low side.

One flaw to their methodolgy is it treats all people in the United States inside a contour as being equally valuable. New Jersey has the second highest median income in the country.
 
SRGuide said:
One flaw to their methodolgy is it treats all people in the United States inside a contour as being equally valuable. New Jersey has the second highest median income in the country.

That's skewed by people in Bedminster. The majority of people in earshot of these stations hardly help NJ's median income statistics.
 
SRGuide said:
One flaw to their methodolgy is it treats all people in the United States inside a contour as being equally valuable. New Jersey has the second highest median income in the country.

I think their methodology is actually pretty sound in that respect, since they're averaging the per-pop recent sale price of stations in markets all over the country, both wealthy and not, to arrive at their $2.98-per-head figure.
 
Let's think outside the box

What if ... a commercial broadcaster bought the stations. Non-commercial stations can't run commercials but there's nothing to stop a for-profit enterprise from holding those licenses. What if Millennium bought the stations. They already have an outstanding state news operation. They could combine that with NPR/APM/PRI programming. And they could combine the public radio audience with the audience for NJ 101.5 and create a very attractive sales/development package. Of course, on the NJN stations they'd have to leave off the "call to action" but that's a pretty fine point. Look at what WHYY-FM gets away with on the spots they run. Non-commercial and non-profit are not the same.
 
MattParker said:
Non-commercial and non-profit are not the same.

I believe the rules say only a non-profit can own NCE licenses.

But this still ignores the fact that the cost of running them exceeds their value. So they can air their programming, but not sell their audience? What's the point?

KKGO in LA has a similar sales arrangement with KLON in Long Beach. It's not working out too well for either party.

Didn't Millenium used to run a station in Cape May that was a satellite for NJ101.5?
 
I love that they're in the middle of their winter fund raiser right now. Like I'm going to part with a dime to give to a sinking ship that's been widely publicized to be for sale. And those membership numbers are horrendous!!! When I was at WNTI, we had over 2,000 members and raised $115k plus (not counting underwriting) from members. I'm sure that number is the same or greater there now. And that's one station located in NW NJ doing that. This covers good portion of the state airing NPR programming and they can't get more than $77,000 per YEAR from the audience?! What a waste, just shut it off now and wait for the sale. Why bother?

Yes I know, people are employed by the network and that's jobs on the line etc. I understand that and feel for anyone who knows their days are numbered at NJN radio. It ain't fun.

Come to think of it, what a dumb use of our tax dollars to put those stations on in the first place. That money could have been better spent, or better yet, not collected from our pockets in the first place. If a university or community group had gotten those licenses in the first place, and not the state, everyone would have been better off.
 
WNTIRadio said:
If a university or community group had gotten those licenses in the first place, and not the state, everyone would have been better off.

Ultimately, the money comes from the same place.
 
After reading through most of the .pdf files, there were some things that were surprising and some things I would like to have seen that were not there.

Among the surprises were the low cume and Average Quarter Hour listenership numbers for these stations and the network as a whole. The report touted them as large. I would have apologetically said something else.

I also wish that there was a revenue and expense breakout for the radio operation alone. Aside from whatever it has to pay for the NPR and PRI programs, this is one dirt cheap operation.

The numbers are there: the equipment, with the exception of microwave relays was not that expensive to begin with.

The transmitters are mostly on state-owned land, and a number of them share towers with NJN-TV. Accountants can come up with numbers, but even on an annual basis how much extra does it cost to have an FM antenna on a tower you already own for another reason? And that land would be state owned and not private anyway, so no tax revenue is lost.

Almost all of these stations have low power costs. How much does it cost for electricity for a 500-watt transmitter? A few bucks a 24-hour day, at most? Maintenance has to be minimal too, these are probably all, work fine - last a long time units. Does a contract engineer need to visit more than a few times a year, if that ?

The studios are mixed in with the TV operation, but if they were stand alone what would you need? One small studio for production and one small studio with one board for on-air, and a satellite receiver on the roof.

As I have said before, they have, likely cheap, and could in the future be volunteer, board operators. But with computer automation, and programming coming from networks and other stations, do you really need an operator at all?

As to the rest of the staff for just radio, what do you need? You might need one person to oversee everything, and every once in a while make programming decisions, put together a budget, and handle grant requests, and organize membership drives.

The data I saw listed income from corporate grants, a small amount from listener membership, and there was a mention of eligibility for funds from the Corporation for Public Broadcasting.

It is possible that the entire radio operation needed a boost in fund raising and attention, that it didn't get being the very poor stepchild of TV, but the whole thing is so cheap to run that it probably wouldn't take much in additional corporate grants and listener memberships to keep the books in the black, if the aren't there already thanks to the CPB funding.

It was encouraging to see that the stations are for sale only to non-profit organizations, and that the state wants to see entire plans for operating the stations, building studio's, staff structure, program content etc. along with the bids.

If they follow the schedule, on July 1 we should be hearing whatever comes next, let's hope it is better.
 
As someone once said, a dollar here and a dollar there, and sooner or later, it adds up to real money.

The state doesn't want to pay anything. So nominal money doesn't matter. Unless the figure is zero, they don't care.

Yes, it needed a boost in fund raising and attention. They got fat and lazy. They should never have diverted money from the TV to radio, because it ensured that everything would be done on a shoestring, and not very well. But now the state is broke, and has a huge pension bill to pay. Something's gotta go, and this is a place to start.
 
There very little mention in the .pdf's about what the FCC requires or does not "after the sale". Do you really have to do as The State Of NJ requested with the programming of some or all of the radio stations after the sale goes through for the owner?

Can the state dictate programming after they sell any or all of the radio stations??
 
I have given this allot of thought. Once The State Of New Jersey sells Radio or TV they do not have the power to supersede Federal. Look it up : title 47 usc section 326..No Censorship! Also look up: cfr section 73:1150.

They do not have a leggy to stand on as far as programming.

Question what about a LMA situation. Does that State have the right to dictate programming or who they lease to? What do you think?
 
Does that State have the right to dictate programming or who they lease to? What do you think?

There are two pieces of paper: The license and the sales contract. The previous owner doesn't have any rights when they sell the license, but if they put a stipulation in the sales contract, then you have to follow it.
 
It's my understanding these properties would have to go to a non-profit. That being the case, I suspect religious groups are going to gobble them up.
 
Can the state dictate programming after they sell any or all of the radio stations??

I would say yes... not under any FCC regulation but as a part of a sales convenant - i.e. a condition of sale. There are real estate covenants all the time and buyers must abide by them. The state can further ensure its wishes are carried out by being picky about who it sells the network to. But unless the sale occurs fairly quickly - say, by July - I imagine the state will lift that condition and dump the network on the first non-profit religious or ethnic broadcaster that makes an offer.
 
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