Not the way they're being run now. Their operating expenses need the cash flow from major markets. The trend for these kinds of companies is to get rid of the small and medium markets, that are better run locally. Unfortunately the money they'd make from selling those stations wouldn't move the meters at all.
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2+3 = A Cluster
- Thread starter DrAkbar
- Start date
Not the way they're being run now. Their operating expenses need the cash flow from major markets. The trend for these kinds of companies is to get rid of the small and medium markets, that are better run locally. Unfortunately the money they'd make from selling those stations wouldn't move the meters at all.
miketheradioguy
Leading Participant
I did read that Entercom could acquire the "GO" stations (95.3 and 96.3) in the Twin Cities.
If Entercom expands their St. Louis cluster, I think they would more likely acquire Emmis' St. Louis stations.
Entercom has already divested stations in Seattle to iHeartMedia, who will in turn divest a pair of rimshot stations. However, I doubt that Bonneville or Hubbard would want those stations.
Why would anyone want to buy those stations from Pohlad? They don't cover the market.
Broadcast fantasy football is boring. The actual business of broadcasting is interesting.
miketheradioguy
Leading Participant
That was something I read off of the Tom Taylor newsletter when Entercom acquired the rights to the Twins. I looked up the coverage map for both stations, and they seem to cover the market pretty well. Even if such a deal happens in the future, I'm not going to speculate any further.
It took them several years, but they finally realized that the combination of baseball and alternative makes nobody happy. The baseball fans don't listen to the music and the music fans don't listen to the baseball.
When a team owns its flagship (see also: KLAA in Anaheim), they're betting that they can make more money if they sell the time for the games + the rest of the day themselves than they could make getting a station to pay them to carry the games.
The Pohlads have said their strategy is to go after millennials with their radio properties. Everyone expected them to just go all sports when they bought a second FM. That went hip hop instead. Baseball, as they say, skews older. Selling off the rights to the games makes more sense.
Every radio station has its price, but the former K-Twin is a crappy signal they bought cheap and they're not worried about debt service. As long as the son wants to run a couple of radio stations, they'll let him.
radioresearcher
Star Participant
Why would Emmis sell their best cluster to anyone? They could still own one more.
Emmis is in a very healthy position right now having sold KPWR.
Do major group broadcasters go after rimshots in large markets? If that was the case, the Sierra H. Stations would have gone to someone else years ago.
Nathan O'Dan
Regular Participant
Moving the Twins flagship back to WCCO is a smart move. It was their home for four decades prior and a 50kw blowtorch covers the upper Midwest quite well.
You don't know how to read a coverage map.
Looking at the 65 dbu signal... the contour that gives minimum strength for indoor (work, home) listening... KQGO hits just 50% of the market population, and KZGO gets about 40%, tops. They are quite inferior signals in a 13-county MSA.
Sometimes to get what you want you have to take a rimshot as part of the deal. That's more of the case where you're trading properties between markets.
Sometimes you try moving a small market property of your own into a major. That did not end well for Cumulus in Houston.
For Sierra H, they spent a lot of time and money turning a couple of Payson signals into something that covers more people today than before they started. If they play the long game, they might find the right price. Since they don't hold other stations, they're not looking for a swap and that's going to preclude a lot of deals right now. They can afford to ride it out.
miketheradioguy
Leading Participant
Entercom could own three more FMs in St. Louis, and Emmis' stations would be a logical choice for Entercom if they want to expand their cluster, although they would have to spin off one station.
As has been stated, this is perhaps Emmis's best performing overall cluster. This is not speculation, it's dreaming.
miketheradioguy
Leading Participant
If Emmis has a well-performing St. Louis cluster, then that's great, they don't need to sell that cluster.
ksradiogeek
Star Participant
Have to ask...WHY do you feel the need to have the last word on every single topic? You're not contributing to the conversation at all.
miketheradioguy
Leading Participant
Sorry, I was only responding to radioresearcher on what he thinks could be in play for Bonneville with the stations they're LMA'ing from Entercom.
miketheradioguy
Leading Participant
The problem with that would be tax consequences. If EMF eventually wants to upgrade in Sacramento, they could either upgrade what they already have, or perhaps bid for the 107.9 license in 3 years.
DrAkbar
Star Participant
As long as the asset has been used for the stated purpose of a non-profit organization, there's no tax consequence on the gain. EMF is non-profit. As far as the 107~Nine frequency in SacTown goes, it's going to take a very long time for that one to play out. Double that timeline if Ed Stolz files for the frequency...which he probably will.
miketheradioguy
Leading Participant
I would think that Bonneville may be happy with what they have in Sacramento, especially since Entercom decided to keep KSFM.
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