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Now That We're Speculatin'

E

Element9

Good number of answers to the question regarding the value of WKBW-TV and WWKB. So here's another "evaluation challenge." What do you think the value of the
WJJL 1440 (in receivership, assets approximately $87 thousand.)

Keep in mind that WSPQ 1330 went for $110 large. You can read more about it at Radio & Records
 
Make an Offer, or Wait for the Auction?

> Keep in mind that WSPQ 1330 went for $110 large. You can
> read more about it at Radio & Records

WSPQ barely fringes into the Buffalo/Niagara Falls market, so WJJL should be worth more. On the other hand, WJJL is in receivership, which means it can't be making money. They were just fined $10 grand by the FCC for multiple violations, so there's some pressure for them to come up with some cash.

Also adding to the mix is their Construction Permit for a move to West Seneca, and an increase in daytime power to 5KW. Their nightime coverage under the CP will cover the eastern suburbs of Buffalo, but not likely penetrate their old service area in Niagara Falls. In effect, they'll become a West Seneca-Cheektowaga-Amherst station.

Depending on the status of their equipment and progress on the CP, I'm thinking $250,000 is the upper end of value. Low end would be $150,000.

You know, it would be kind of close to home if Danny decided he wasn't ready to retire...
 
Re: Make an Offer, or Wait for the Auction?

Geez..

Had I known about WSPQ.....$110,000 is a very good price. The rule of thumb when buying a business is to multiply its annual earnings by 10 to get a reasonable selling price. I would find it hard to believe that station only makes $11,000 a year. Maybe it needs major tech improvements. These little hometown stations can be cash cows if managed right. WLVL does a good job, for example. WJJL would be better station to get because of their signal....its being run on a shoestring...they trade time for studio space at Southgate Plaza. Your right...Danny outta buy it! He could the studios into house.
 
Re: Make an Offer, or Wait for the Auction?

I'm aware of an offer to buy WJJL a while back.
This was when it was on Main, but then they re located in effort to increase value instead (or something like that)
 
> Good number of answers to the question regarding the value
> of WKBW-TV and WWKB. So here's another "evaluation
> challenge." What do you think the value of the
> WJJL 1440 (in receivership, assets approximately $87
> thousand.)
>
> Keep in mind that WSPQ 1330 went for $110 large. You can
> read more about it at Radio & Records
>

This is an easy one, grab it do not wait for the auction, especially if it can be upgraded to a decent 5KW (not too directional). Then put on the displaced WECK format, make it live and local maybe doing some VT at night to save money. It would probably be enough income to keep a local operator happy.

Either keep it WJJL or change it to WNIA.

As for Danny being involved he certainly has enough relitives to staff the place!

There is a web page that talks about where he went to school, etc...etc. Based on when he graduated high school he must be around 68 years old. He is amazing!

MikeM
 
Re: Make an Offer, or Wait for the Auction?

> Geez..
>
> Had I known about WSPQ.....$110,000 is a very good price.
> The rule of thumb when buying a business is to multiply its
> annual earnings by 10 to get a reasonable selling price. I
> would find it hard to believe that station only makes
> $11,000 a year. Maybe it needs major tech improvements.
> These little hometown stations can be cash cows if managed
> right. WLVL does a good job, for example. WJJL would be
> better station to get because of their signal....its being
> run on a shoestring...they trade time for studio space at
> Southgate Plaza. Your right...Danny outta buy it! He could
> the studios into house.
>
<font face="times new roman" size="3" color="660033">
The multiples for broadcast properties are up to 16 to 18 times annual cash flow. Some major market deals are based on "leading" (projected) cash flow. "Trailing" (past 12 to 18 months) cash flow has been the standard of measurement for medium and small market deals. Billing and cash flow are the primary factors that determine a station's sale price. But as we know, the real numbers show up only after due diligence.

Some (small market) companies are paying their sales reps' commissions on collections rather than sales, which helps get the money into the station's account before commission checks are cut, thereby eliminating charge-backs, which are a pain in the ash not only for the reps but the station as well, especially in the smaller markets. Paying commissions on collections theoretically motivates the AE to pick up the check from the client ASAP, so the "outstanding" doesn't get into the 90-120 day range.

As to WJJL. If the assets of the radio station as determined by the bankruptcy court are $87 thousand, why offer $100 thousand? Make the deal asset-based ("assets for cash") assumming no previous/prior debt or obligations of the seller and be done with it. No soup for you! The new corporation, dba or partnership starts with a clean slate. The seller would love to convince the buyer of a station's potential (e.g., "you could make a killing with this facility") but if that were truly the case, the seller should have done exactly that. Like buying a used car, you pay for what you get NOW, not what the car might become in ten or 15 years (e.g., "when it becomes a collectible and its value increases.")

And as always, beware the "greater fool" theory. If you're not hip to this, it goes something like "(no matter what I pay,) there's always somebody who will pay more than the real value paid by the previous owner." Somethin' like that -Andy Sipowicz

Speculation Department Regarding WSPQ: Here's your new oldies station. "Danny Neaverth In The Morning, Good times, Great Oldies All Day!" Too bad anybody who lives north of Orchard Park won't be able to hear it on the radio... and that's where streaming your audio comes in.

BTW, How do you think Danny would feel about paying the salaries rather than getting a salary?

Topsound?</font>
 
Re: Make an Offer, or Wait for the Auction?

Mike wrote:
> BTW, How do you think Danny would feel about paying the
> salaries rather than getting a salary?

He could hire someone with a good business sense to run the administrative side of things, while he would run the programming and creative ends.
 
To Buy, or Not to Buy

Heck, if he hired Darren, Jr. & PJ, he'd just be giving them their inheritance a little early.

If the station made money, he'd be building them a future.

On the other hand, he can probably invest the money and get a better return with less effort.
 
Re: Make an Offer, or Wait for the Auction?

> BTW, How do you think Danny would feel about paying the
> salaries rather than getting a salary?
>
> Topsound?
>

Hey Mike, welcome back!

I think Dan & Co. could do a pretty good job in an ownership capacity. The last thing I want to do is speak for him, but I doubt he has much interest.

If I recall, there have been numerous offers made to the current owners for WJJL. It does not seem as if they are interested in selling, regardless of price or circumstances.

If anyone knows or thinks differently about either of the above, fire away!

BTW, the "Danny" of Cincinnati, Dusty Rhodes, heads up a group that just leased an AM channel from a religious broadcaster to return Oldies to the Queen City of Ohio. Cincy has rivalled Buffalo in terms of passion for (and volatility of) the "real" oldies format. You can bet there will be many interested parties around here (yours truly included) watching to see what happens.
 
WJJL FCC FINES

> > Keep in mind that WSPQ 1330 went for $110 large. You can
> > read more about it at Radio & Records
>
> WSPQ barely fringes into the Buffalo/Niagara Falls market,
> so WJJL should be worth more. On the other hand, WJJL is in
> receivership, which means it can't be making money. They
> were just fined $10 grand by the FCC for multiple
> violations, so there's some pressure for them to come up
> with some cash.
>
>

DOES ANYONE KNOW ANY DETAILS OF THE REASONS FOR WJJL $10K FINES?
 
Re: WJJL FCC FINES

> DOES ANYONE KNOW ANY DETAILS OF THE REASONS FOR WJJL $10K
> FINES?

Everybody knows the details if they go to the FCC site and type "WJJL" into the search requester.

It's all a matter of public record:

The noted violations involve M.J. Phillips' use of excessive power; its failure to have fully operational Emergency Alert System (``EAS'') equipment; its failure to monitor, test and log the tests of its EAS equipment on a regular basis; and its failure to register its antenna structure.

Incidently, the fines have been reduced to $7,000 because of "economic hardship".
 
Re: Return to Oldies?

WJJL would be the logical place in Buffalo for a return to Oldies. I think Real Oldies is a very viable format, but not in the current world of corporate media. Here in Rochester the chances of hearing Oldies on the radio are pretty slim. The only possibility might be nostalgia WLGZ in time evolving into Oldies. According to their website, they currently run the syndicated Beatle Brunch on the weekends. Though being born again Christians, I'm not sure they would want to run The Rollling Stones :)

> > BTW, How do you think Danny would feel about paying the
> > salaries rather than getting a salary?
> >
> > Topsound?
> >
>
> Hey Mike, welcome back!
>
> I think Dan & Co. could do a pretty good job in an ownership
> capacity. The last thing I want to do is speak for him, but
> I doubt he has much interest.
>
> If I recall, there have been numerous offers made to the
> current owners for WJJL. It does not seem as if they are
> interested in selling, regardless of price or circumstances.
>
>
> If anyone knows or thinks differently about either of the
> above, fire away!
>
> BTW, the "Danny" of Cincinnati, Dusty Rhodes, heads up a
> group that just leased an AM channel from a religious
> broadcaster to return Oldies to the Queen City of Ohio.
> Cincy has rivalled Buffalo in terms of passion for (and
> volatility of) the "real" oldies format. You can bet there
> will be many interested parties around here (yours truly
> included) watching to see what happens.
>
 
Casting the First Stone

> Though being born again Christians, I'm not sure
> they would want to run The Rollling Stones :)

C'mon now, "good" Christians would have "Sympathy for the Devil". They just wouldn't be "Under (his) Thumb".
 
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