• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

Total start up costs

R

rufus

Okay..this will get interesting, but will be fun as well!

Connections with money are looking at a freq that owner is willing to give up for 900k, originally slated for a move-in, with a dial move included. The original owner pulled the plug on the movein, and are looking to let the freq go.

What I'm looking for is a general idea, as I'm assisting them in this project.

I'm looking to give them an idea on total start up costs, including freq costs, all legal, all FCC costs, all engineering costs, including mid-level studio build (not including real estate), plus a corresponding purchase of a translator freq (that is currently in market with licensee, but not on-air), all xmitter costs (rental, etc), music licensing, and misc costs. I believe I've covered all avenues here, but I'm looking for guidance in this.

Potential in the particular broadcasts market is good, with multiple holes to be filled, and revenue potential is solid as well.

I'm looking to give them a rough idea as to what a general total will be, and all help and ideas are appreciated!
 
Well Rufus, anyone wanting to build a station in this economic environment is one brick shy of a load.WAIT for the shakeout,it will be coming soon.Then maybe the party can steal an existing station.Besides we don;t have enough info to work with,like class of station,etc.Will the signal not be good enough in the community you're seeking to avoid a translator purchaseCan you lease space on an existing tower?music license fees are market based so we don;t have that info either.But it will cost a bunch.i would find a safe place to hide that 900k,maybe the backyard with lots of coffee cans.
 
There is no answer to your question as there are just too many variables.
:eek:

If someone where to throw out a number I wouldn't believe it!

Divide it up into smaller pieces and you can get some input for at least some of this stuff. Other stuff will require engineering up front.

Good luck :-\
 
Good points so far.

I'd love to be able to say what market, freq, etc., but it would give various aspects of the situation away.

But you do bring up good points; how bout this..as a starting point, mid-level studio build costs, STL link, an idea of what tower rental could be (I'd lay odds there's various ranges there), cost of transmitter as well..

Thanks!
 
You might want to check out the pdfs on this site:

http://www.christianradiohome.com/start_station.asp

They offer sample costs for equipment, engineering services and FCC filings. It might help to give you a starting point.

Tower leasing costs are, of course, all over the map. I have a CP to build an AM station and saw a tower site that I could diplex my signal from. The site owner wanted $1350.00 per month which is about average for the market. In my case their would be additional engineering costs for the diplexer, matching network and other ancillary equipment, including installation.

I've had this CP a while but, truth to tell, if I were to do it over, I'd buy an existing station.

C5
 
Built my Class A from scratch. Did my own engineering to find the channel, and application. Had $25K in with Washington attorney to fight off a rival. Started with a 100 foot tower (on a high ridge--300' above average) 25 X 35 block building which served as combined studio site and transmitter building. Mix of new (console, xmtr, antenna, processor) and used (automation system) equipment plus the usual desks, chairs etc. We did most of the interior work and wiring--electrical and audio once the basic building shell was finished. Partner's father--retired, did most of the finish carpentry. Apart from legal costs, entire project was just over $100K.

In 1983....
 
Well, how big is a fish?
After you catch it, you know.
Where you build this thing will matter as a multiple of the cost.
I remember ol' Dwight (currently deceased) manufacturered a class A FM in his garage for less than twenty thou all up. Frequency only cost him filing fees tho'. Price from there is very UP. Depends where you are, what you are building, and how much of it you build yourself.
How close is the CP to expiring? How much money are you prepared to throw at it to get it broadcasting during the CP and possible extension time? Would it be cheeper - it would take longer - to let the CP expire unused, and then re file for it?
Have you asked yourself, "Why didn't the guy holding the paper build the station? Is it worth less to him than 900K bux?"
 
As a former owner, lessons to be learned when making any major purchase.

Check your ego at the door and leave your heart out of the decision.

Question EVERYTHING!

Start with, why hasn't HE built it?
Justify the close to a million dollars for blue sky potential.
Can you hold on until the economy rebounds?
Honest potential future of the industry?
Before I turn the switch, how much in the hole will I be?
Have I really researched the market for potential listeners and advertisers?
Is there a "need" for another radio station in the market?

Tough questions but good luck!
 
Re-reading your original post--if this is an existing station which can be moved, presumably your purchase will include studio and transmission equipment, such as it is, for the 900K.

OK, first question: Is there a construction permit for the new location, and, as pointed out, how much time is left on it? If there is a construction permit, does the seller have all the permits needed for the new tower at the new tower site? Are there any state time limits on the build-out?

Assuming there is a CP with enough time to build, and all the ducks are in a row at the new site, you will have the costs to build the tower (this is an FM not an AM?) and find a suitable studio location that can "see" the tower. Since the studio can be up to 25 miles from the new city of license, this gives some flexibility. You will need STL equipment and antennas to send you signal from studio to transmitter site. Presumably you can re-use the existing studio and office equipment at the new studio site.

If there is no CP, is the station cash-flowing at the present location? You will need this to pay the bank while you wait for the FCC to act on a permit. First step, however, is to hire FCC counsel to determine if the move can be done at all. Some moves are "minor changes," and can be applied for at any time; some changes are "major changes" which require that you wait for a window, as well as take other, expensive, steps.

Once you find that this is a minor change, you still need to nail down the transmitter site, pay various groups of extortionists for permission to build a tower (there are "people" who do this type of siting work for 3 or 4 thousand dollars) and get a consulting engineering firm to prepare the FCC application. Then you wait.
 
Sounds like something close to me........

You have stated way too many variables on the subject to even get close to a cost estimate. You need to assume way to many items to start in order to come up with the numbers you want. When saying 900K for a station what is the condition of the station, what equipment do you get, do you get the tower site(s) or just a license? Do you get a properly maintained newer transmitter or one from the 1940's that is limping along? Is the CP transferable or will you be locked into where you are now? WHy did the owner never to follow through the freq change? Do they know something that you don't??? What license deficiencies are there that you would be assuming once you do the purchase? Are those deficiencies worth the risk and are you able to bring the license up to legal standards without breaking the bank?

Those are only some things you need to go over with someone technical at the other end BEFORE you even start to crunch numbers. Sorry, past experience makes me paranoid.
 
Just because you are paranoid doesn't mean someone isn't out to get you! ;)

Looks like the first step is to hire a consulting engineer to look over the engineering for this move/proposed move. Then FCC attorney and local counsel as well. Before you sink any real money into the project.
 
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.


Back
Top Bottom