I wonder if losing 1040 could affect future negotiations for ESPN with the New York teams?
ESPN wouldn't be switching the station to Spanish if that lack of FM "out of market" fan coverage was a potential problem.
Unfortunately, 1040 has a substantially different night coverage area than days, and it may have been that little bit of Somerset County that it covers at night that originally made the station attractive to ESPN, and that area is now covered by 98.7. And ESPN probably switched 1040 to Spanish already, so that any regular ESPN listeners in that area would be forced to switch to FM where the ratings will count.
Who knows how long the ESPN contract with the station still has to run, and if it continues when the station officially changes hands soon? It's just a guess, but ESPN probably wants out as soon is it can. The station just doesn't have that many potential Spanish speaking listeners, and by switching to Spanish, it is apparent ESPN doesn't care about its English language audience.
The low power AM ESPN affiliates in Easton/Allentown were also part of the bankruptcy auction and Goldman Sachs will now own them too. Perhaps, Goldman can put together some kind of regional sports network using the national ESPN feed, and using the 1040, 920-AM in Trenton and the two Lehigh Valley AMs together most of the time, but allowing the Trenton station to carry the Thunder baseball games, and Titan hockey, while 1040 could carry the Somerset Patriots and the Lehigh Valley teams could carry their usual teams. ESPN could then make a deal with that group if it needed NYC team game coverage in those areas to please a particular team.
But, it's more likely that the Lehigh Valley stations will ultimately become part of some local cluster, very cheaply.
920-AM will keep running paid religion in Trenton, and 1040 will then do same. One outside option, is that Goldman Sachs make some kind of deal with non-commercial WDVR-FM for 1040. There may be tax benefits for Goldman, and DVR might be able to use the studios on Rt-12 at the 1040 transmitter site. It has a nice building and parking lot. DVR could fill the AM air time with more of its community programming. That might actually be the best win-win solution for what to do with 1040, but who knows if the parties are even interested?