With my apologies if this too is considered repetitive (the goal and duty of the bankruptcy trustee is to give wide notice of the auction of the stations), yesterday I posted details of the bankruptcy auction of several stations here and in the subforums for their respective local markets, which was deleted as being repetitive; for anyone that may be interested in radio stations for sale in these markets, the details remain posted in the San Francisco CA subforum.
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Radio Stations Being Sold in San Francisco CA, Palm Springs CA, and Las Vegas NV Markets
- Thread starter GAattorney
- Start date
This is the place to post the information. Only here.
Thanks,
Frank Berry
Thanks,
Frank Berry
Ok, I'll post the information here now, then (interestingly, that the other subforums all have their own threads with speculation about the bankruptcy auction, but won't allow the official information from the bankruptcy trustee and his counsel; but, of course I will follow your rules for the board). So here are the details (since it has been deleted elsewhere, and I won't post anything else on any other subforum about it, going forward):
Chapter 11 Bankruptcy Trustee Michael Carmel is auctioning seven radio stations located in three markets throughout Nevada and California. Please see the Sales Marketing Brochures and Press Release for more information. The Trustee will be conducting a true auction, in person, at the U.S. Bankruptcy Court under Court-approved bidding procedures (Notice of Bid Procedures, Auction Date, & Sale Hearing). Under these procedures, bidders must qualify beforehand to participate at the auction, although you are invited to bid on any station or group of stations. The sale of the stations and their related station assets is as-is, where-is. The auction takes place on October 26, 2023.
Market | Stations |
| Las Vegas | KFRH(FM) 104.3 MHz (FID# 19062) |
| Las Vegas | KBET(AM) 790 kHz (FID# 136292) and affiliated FM translator K276GX 103.1 MHz (FID# 203222) |
| Greater Palm Springs | KRCK-FM 97.7 MHz (FID# 52808) and affiliated FM translators K238AK 95.5 MHz (FID# 147714) and K251BX 98.1 MHz (FID# 150925) |
| San Francisco | KREV(FM) 92.7 MHz (FID# 36029) |
If you are interested in bidding on any or all of these stations: Please contact Michele Pori ([email protected] ; 725.777.3000) for access to the Trustee’s Due Diligence Room. Please also pay close attention to the deadlines in the Notice of Bid Procedures, Auction Date, & Sale Hearing. If you have questions about the auction or sale process, please contact the Trustee Michael Carmel at [email protected] (602.264.4965) or his counsel Talitha Gray Kozlowski, Esq. at [email protected] (725.777.3000).
We don't want duplicate posts since each original post will often generate responses and, besides redundancy, a lot of interesting data that will be missed by those who don't visit the other sections.
Source:
Deal Digest - December 14, 2023
A bankruptcy judge has already signed off on the sale of Royce International Broadcasting stations in San Francisco, Las Vegas and Palm Springs, now buyers VCY America and the Friends
6.25 Million _
San Francisco & Las Vegas
and palm Springs... but to me that's just the gravy on the fries.
If you screen shot this and posted it in
the 90s / early 2000s - the entire forum would say posts like that will get you banned from this amazing discussion website. 10 million won't even you get you into the conversation....
Remarkable to think, if a 401k cash in barely makes you a millionaire, and you want it - you can get a radio station in the roaring 20s....
Last edited by a moderator:
And stations today are worth in the vicinity of 25% of their early 20's value, maybe even less.View attachment 6218
Source:
Deal Digest - December 14, 2023
A bankruptcy judge has already signed off on the sale of Royce International Broadcasting stations in San Francisco, Las Vegas and Palm Springs, now buyers VCY America and the Friendswww.insideradio.com
6.25 Million _
San Francisco & Las Vegas
and palm Springs... but to me that's just the gravy on the fries.
If you screen shot this and posted it in
the 90s / early 2000s - the entire forum would say posts like that will get you banned from this amazing discussion website. 10 million won't even you get you into the conversation....
A $60 million suburban FM bought about 20 years ago went for $9 million about 20 months ago.
The estimated $300 million purchase of what is now KKLQ in LA in 2000 by Radio One went for just under $58 million 5 years ago.
And so on.
With little or no future. First, due to the decline in listening (AQH Persons) of 75% since 2000. Second, the decline in radio revenues in inflation adjusted dollars of perhaps 60%. Third, the loss of most of the two youngest generations to streaming.
And you are surprised by the decline in station values?
Of course, the two stations you mention are defective facilities without, in the case of SF, coverage of 2/3 of the market and in the case of Las Vegas, the loss of a decent (keyword: half) site for one that is not as good in a very over-radioed market. Those two stations are not worth much and were not worth much more 10 years or so ago.
Great points !!
I'm turning 50 this weekend - and was doing a back in my day routine.
I'm turning 50 this weekend - and was doing a back in my day routine.
As far as I know, KFRH is still a full C on Mount Potosi. Same very full market signal (and then some) as 92.3, 93.1 and 107.5.
They haven’t been operating from the Potosi site because Ed Stolz hasn’t been paying for it, surprise surprise
But as @fybush was stating, they are still licensed to operate there and if VCY resolves the lease issues they can resume operations. It's not like KREV, where they're moving because of no chance of being able to return.
Understood. I was under the impression that there were economic factors with the new owner making a return to that site unlikely... but that is somewhat of a "rumor" heard by one of the area engineers I know.
VCY filed the modification of KFRH's license today to take it non-commercial at closing. It keeps Potosi as the main tower site.
Potosi is really the only place that makes sense for that signal. If it went over to the Black Mountain sites in Henderson, I believe it would run into spacing issues with KJUL on 104.7.
I can't imagine anyone spending the $$$ to buy KFRH and not solving the lease issues (which were basically just unpaid rent) at Potosi.
Who owns that Potosi tower site? I could envision them, even with a new licensee, requiring a large security deposit until a good payment history is established.
(What I heard from an engineer in the market is that the tower management had such horrible experiences with the prior licensee that they just don't want to deal with the station... but that sort of feeling disappears after the first check clears)
It's a local owner, not one of the big tower consolidators.
I can't imagine them saying no to a solid new owner like VCY with a track record of paying their bills.
There's going to be a capital expense up there fixing the Stolz-era transmitter setup, though, from what I hear.
Shouldn’t the unpaid rent come out of the bankruptcy estate?
Assuming the landlord is registered as an authorized creditor, then they would be paid a certain percentage of back rent out of the sale proceeds. Either way, the new owner likely gets to pay back rent.
I've been involved with station purchases where the prior owner created a whole lot of bad blood with local businesses and landlords. If you want to do business with any of these folks, as the new owner you just need to step up and prove you don't do business like the prior owner. Unfortunately, that may include getting rent caught up and having to eat previously bad trade deals from the prior owner. Buying a station is just a portion of the cash you'll need on hand to set up shop with a clean slate.
And this means, sometimes, paying things you are not legally required to settle. If you are trying to become a member of the business community, you need to be "at peace" with them. Local retailers, particularly in medium and small markets, form a community that is surprisingly aware, like Santa Claus, of "who has been nice".
Often the best solution may be to say to some suppliers and vendors "while I did not assume the debts of that S.O.B. I bought the business from, I want to start a good relationship with you and was thinking of talking about a lump sum to at least cover your costs or an ad credit for the total amoung... I'm trying to do this with all the people they didn't deal fairly with because I want to be a part of this community!"
When I have done that, I often ended up with an ad buy almost immediately that more than covered the settlement... and a businessperson who immediately trusted me and my station. In one case, the owner of a business was so impressed that she mentioned me at the local Chamber of Commerce meeting as an example of a trustworthy enterprise and they called to invite me to join the CoC!
And that's a huge point that gets missed by some who haven't owned radio or TV stations within a community. As bturner has mentioned several times here; being embedded into the community is probably 75% of the work and 50% of the cost in running a station. That means more than just sales calls, worrying about what music to play, or whatever is being said behind a mic. It means showing up and being seen at community meetings and the various lodges, joining and being an active member of the chamber of commerce, and even sending well wishes in the form of cards or sympathy to family businesses who may not even be a client yet. If you want to succeed in the radio biz, relationships with your community are everything. Maintaining those relationships, especially when just starting out after purchasing an existing station, can be exhausting.
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