SBS has been known to pull multiple rabbits out of the hat. This would not surprise me at all.
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SBS Buys KROI for $7.5 million
- Thread starter davideduardo
- Start date
Astros2023
Banned
Going right now! Just for shits and giggles! Lol
You do realize that there are many ways to finance deals? If Emmis wants to maximize its return it might be worth holding a note. The easiest way to make money is to allow a buyer to get in there and start generating revenue.
Astros2023
Banned
I understand your viewpoint. They are seeking an annual income of 12 million. Do you believe that the current economic conditions permit any company or individual to deliver a $50 million promissory note to SBS after seeing that in Houston they been unable to pay a $7 million debt for over a year?
Emmis no doubt understands that SBS was shafted by the buyer of it TV operations. They made commitments against that money, and were even able to close on Tampa and Orlando without it! They are nearly complete in the payment for Houston.
As Lance says, there are many sources of money.
One possibility is that SBS does a lease to own, where the rental is applied to the purchase when the whole amount is paid. With SBS's huge and lengthy success in NYC, I believe that they can do a deal in that market in "a New York minute".
This is sort of like struggling to obtain a mortgage for a modest three bedroom house in the suburbs, but then getting ridiculously easy financing for a ten thousand square foot estate in a gated community.
Why didn’t the Urban One divestiture trust do that with SBS in Houston? They could have LMA’d KROI to allow SBS to generate income to pay for the purchase.
SBS made the mistake of trying to sell to an entity that didn’t actually have money for the purchase. Urban One made the same mistake with the KROI sale. They should have done a better job of vetting the potential buyers. Don’t deal with anyone unless they have the ability to pay, not “I’ll pay you Tuesday for a hamburger today.”
SBS has never defaulted, although they have balanced pretty skillfully on the edge of that abyss a number of times. They are a big operator, and there are few of those that are buying. If Smulyan wants the best price, he may also consider some unusual conditions.
Astros2023
Banned
David, the amount of money that ESPN was paying for the lease was 12 million per year, which constitutes a significant sum of money. What is the annual billing of WSKQ and WXNY?
WSKQ and WPAT together bill a bit over $30 million. About two-thirds goes to WSKQ. WXNY, nolt owned by SBS, bills around $12 million.
Things have changed since that lease was signed, which is whey Good Karma neither wants to continue no desires to buy the station. So we can't use that amount to judge the "today value" of the station in question.
La Mera Mera was a flop that was axed after less than two years. No one outside this board remembers it. Why bring it back?
Due to it being ran by the wrong people. I was just bringing back an old name as a suggestion. If they’re really going to have a Regional Mexican station what would be a good name? LA RAZA is taken, UNIVISION still has owns the rights for QUE BUENA.
They have a station in Chicago where "La Raza" was taken at the time, La Ley 107.9, which means "the law" or "the police". They also used the name in San Antonio when they had a station there.
What was the name of the Station in Chicago when the name was taken?
Oh yeah, La Ley is a good option for a station here.
I lived in Chicago when WYSY-FM became "La Ley". July 4, 1997. (The WLEY call letters came later.) I don't believe any other station in or near Chicago at the time was using the "La Raza" slogan.
The KLEY call is taken, but KLLH (La Ley Houston) is available.
WRZA 99.9, before it became nine-fm and later WYHI.
That wasn't a full-market signal, though. In 1997, 99.9's city of license was Kankakee.
It's definitely not gonna be La Mera Mera. SBS has three names used for R/M programming so far, La Raza (KRZZ/KLAX), La Ley (WLEY), La Privada (KLAX-HD2).
Of course La Raza is out, so it would seem La Ley is the most likely name. Been curious about the La Privada format in LA; supposedly an edgier version of Regional Mexican? Is “Alternative RM” a thing?
If it was La Privada the KLPH call (La Privada Houston) is taken by an LPFM in Kansas, but KHLP (Houston La Privada) is available.🤣🤣
Yeah, we’re into total speculation here, but with more than five months to go until the new closing date, I guess we’re getting bored…🥱😴