I'd like to own a group of stations in my hometown, however "equity" seems to be a blocking point right now so how do you become a station owner if it's so expensive and you can't get funding? Maybe i'm just looking in the wrong places for help to do this?
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Ownership
- Thread starter aguyinradio
- Start date
K
kyscott
Guest
Find people to put up money and partner with you.
Trails to ownership are like fingerprints: everyone is different. Your questions sounds a little bit like the old cliche about "I'm working on getting a second million dollars. They tell me the second million is easier than the first, so I'm skipping the first.
1. The classic route has been to get your first station. Owning a group typically comes later. Times are changing so maybe you announced goal isn't all that far out.
2. Coming from a family with money never hurts. You don't apparently or you wouldn't be asking the question... you would be running your station group.
3. In the old days, you worked for radio stations and hoped that some owner that you worked for would take an interest in your future and help you open doors. That might mean the boss would buy an additional station and you would be the manager and part owner. That route does not seem to be in vogue today.
4. You work in radio and blaze a trail in which your performance is obvious and documented. A person looking to put investment money to work sizes you up and becomes your backer, your source of finance. Today the stock market has become very retail compared to 50 years ago. It is so much easier today for people who are growing wealth to stick the money in a brokerage account. 50 years ago they were buying rental houses, small apartment buildings, store fronts around the square, etc. along with owning a piece of home town start-up businesses including radio statons. By the way, blazing a trail in broadcasting normally means you proved you were one hell of a salesman. Good announcers, good newsmen, good office workers do not necessarily become candidates to be profitable station owners. Great salesmen were the one who could get the backing. That part is not obsolete and is part of what has shaped radio to become what it is today: a great sales machine that forgot what it's soul is all about.
5. Win the lottery.
6. When you get old and still haven't "matched your fingerprints" with ownership, you look at your retirement money and ask: how much of that am I willing to put at risk at this point in life?
1. The classic route has been to get your first station. Owning a group typically comes later. Times are changing so maybe you announced goal isn't all that far out.
2. Coming from a family with money never hurts. You don't apparently or you wouldn't be asking the question... you would be running your station group.
3. In the old days, you worked for radio stations and hoped that some owner that you worked for would take an interest in your future and help you open doors. That might mean the boss would buy an additional station and you would be the manager and part owner. That route does not seem to be in vogue today.
4. You work in radio and blaze a trail in which your performance is obvious and documented. A person looking to put investment money to work sizes you up and becomes your backer, your source of finance. Today the stock market has become very retail compared to 50 years ago. It is so much easier today for people who are growing wealth to stick the money in a brokerage account. 50 years ago they were buying rental houses, small apartment buildings, store fronts around the square, etc. along with owning a piece of home town start-up businesses including radio statons. By the way, blazing a trail in broadcasting normally means you proved you were one hell of a salesman. Good announcers, good newsmen, good office workers do not necessarily become candidates to be profitable station owners. Great salesmen were the one who could get the backing. That part is not obsolete and is part of what has shaped radio to become what it is today: a great sales machine that forgot what it's soul is all about.
5. Win the lottery.
6. When you get old and still haven't "matched your fingerprints" with ownership, you look at your retirement money and ask: how much of that am I willing to put at risk at this point in life?
Right on target.
Owning a station is 24/7.
It owes YOU, you don't own it.
If you are still interested, find a station with real estate, and apply for a conventional bank business loan.
Plan to put down 10-20 per cent, just like buying a home.
Banks will only talk to you if you have something more than a piece of paper and a leased tower.
It was so much easier 10 years ago, but the industry is now loaded with uncertainties and lots more competition.
I found going the "local" route is not the magic bullet.
Sure, you'll get your small buys from a few local merchants, and you will get support from any local school sports programming,
but plan on no regional or national buys.
Best pieces of advise are:
1. Don't get your money from either family/friends or financial backers.
In no time, backers will be looking for their money and NEVER borrow from family or friends.
2. Sell-sell-sell
Owning a station is 24/7.
It owes YOU, you don't own it.
If you are still interested, find a station with real estate, and apply for a conventional bank business loan.
Plan to put down 10-20 per cent, just like buying a home.
Banks will only talk to you if you have something more than a piece of paper and a leased tower.
It was so much easier 10 years ago, but the industry is now loaded with uncertainties and lots more competition.
I found going the "local" route is not the magic bullet.
Sure, you'll get your small buys from a few local merchants, and you will get support from any local school sports programming,
but plan on no regional or national buys.
Best pieces of advise are:
1. Don't get your money from either family/friends or financial backers.
In no time, backers will be looking for their money and NEVER borrow from family or friends.
2. Sell-sell-sell
Very Good points! Thanks for the advice! it is really helpful! I have just been doing a lot of reasearch and now getting into reasearching the stations that interest me. Is there anywhere on the internet or is there a book i can get to look up a station's revenue? I'd like to get a station that is making some money rather than none i figured that would help out a lot if it was already making money granted the price for the station maybe a bit more. Thanks again for the advice!
aguyinradio said:
The only source for revenue data would be the BIA quarterly book, but it only covers rated markets...
http://www.bia.com/publications_reference_radio.asp#radio1
It's $1,125 per copy.
A broker will present a "book" on any listed stations to a prequalified buyer with the signing of an NDA.
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