The 12 Days of Depends

Nurse Jeff and I wuz thinking about what's goin' happen when listeners of KAHM tune to their favorite station one day and think it's been hijacked to Hermosillo. The sale to KNAI will probably be approved this month. Imagine the rush on the local Safeway for more Depends...or Prescott paramedics being swamped by resuscitation calls. YIKES!

The transfer to CCF was approved Monday (12/04)...just waiting for the consumation, then the consternation. Nurse Jeff and I predict Depends will soon fly off the shelves in Press-kit. YIKES!!

Looks like CCF has closed on the sale of the 101.9 translator:

http://www.insideradio.com/free/mil...cle_bb225cae-dad0-11e7-96cf-6f4723fa778d.html

miketheradioguy said:

Looks like CCF has closed on the sale of the 101.9 translator:

http://www.insideradio.com/free/mil...cle_bb225cae-dad0-11e7-96cf-6f4723fa778d.html

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I can’t believe the money being exchanged for these translators. $1.1 million by Farmworker Educational Radio for K270BZ 101.9 FM is crazy. It’s also very interesting that the two largest translator transactions in the country are right here in Phoenix with Mother Hubbard’s $1.8 million dollar acquisition of K224CJ 92.7 FM taking the cake. Don’t know if they are actually worth that kind of money considering the coverage limitations of these translators. I also find it interesting that in the article they say how Phoenix is “one of the rare cities surrounded by mountains where actual propagation often exceeds FCC contours—the reverse of most markets.” I would why that is the case? Irregardless, this fact must contribute to the high dollar amount being exchanged for these translators!

asugeorge1 said:

I can’t believe the money being exchanged for these translators. $1.1 million by Farmworker Educational Radio for K270BZ 101.9 FM is crazy. It’s also very interesting that the two largest translator transactions in the country are right here in Phoenix with Mother Hubbard’s $1.8 million dollar acquisition of K224CJ 92.7 FM taking the cake.

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In the case of Farmworker Educational (CCF), they had to get off non-comm 88~Three for two reasons: 1) they were running commercials on a non-comm, and 2) they shared the frequency with a true non-comm who has no incentive to leave. 101~Nine has pretty good coverage in areas where their newest purchase, KAHM 102~One, misses due to its rimshot status. Now they can run as many commercials as they like 24/7 without worrying about some miscreant ratting them out to the FCC. CCF has sunk $4.2m into their Phoenix operation ($.6m for 8~Sixty, $1.1 for 101~Nine, $1.7 for 102~One AND its translator, and $.8 for KYCA 14~Ninety AND its translator. They may get some of that back by spinning KYCA and its translator, and possibly a plate of cookies for leaving 88~Three.

In the case of Mother Hubbard, 92~Seven gives them skin in the game. Monetizing the worn-out oldies format of Lumberyard 14~Forty, or a future format from one of their HD~Too signals. Mom likes to own rock in the Valley, and 92~Seven has pretty good coverage.

I also find it interesting that in the article they say how Phoenix is “one of the rare cities surrounded by mountains where actual propagation often exceeds FCC contours—the reverse of most markets.” I would why that is the case? Irregardless, this fact must contribute to the high dollar amount being exchanged for these translators!

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That can be said about FM's from South Mtn, as most of the Valley is flatter than the right rear on our '76 Gremlin. But it can't be said about other xmttr sites and highly directional translators. The rimshots from Towers Mountain (KAHM, et al) have issues due to the terrain around north and northeast metro Phoenix. If you think about it, CCF's $4.2m purchase is very little compared to the cost of buying a full coverage South Mtn frequency. And good luck finding just one to buy!

DrAkbar said:

That can be said about FM's from South Mtn, as most of the Valley is flatter than the right rear on our '76 Gremlin. But it can't be said about other xmttr sites and highly directional translators. The rimshots from Towers Mountain (KAHM, et al) have issues due to the terrain around north and northeast metro Phoenix. If you think about it, CCF's $4.2m purchase is very little compared to the cost of buying a full coverage South Mtn frequency. And good luck finding just one to buy!

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And that's pretty much what this is in a nutshell. South Mountain is the sweet spot for the Phoenix metro. In other cities things are more like Towers or Shaw Butte: the map looks good, but the signal has issues. 92.7 may be directional, but from South Mountain there are few obstructions that get in its way.

Agreed that CCF is spending wisely.

At some point, somebody is going to write Sierra H a very nice check. Those may not be South Mountain signals, but they're far more valuable now than they were when Jay started.

johndavis said:

And that's pretty much what this is in a nutshell. South Mountain is the sweet spot for the Phoenix metro. In other cities things are more like Towers or Shaw Butte: the map looks good, but the signal has issues. 92.7 may be directional, but from South Mountain there are few obstructions that get in its way.

Agreed that CCF is spending wisely.

At some point, somebody is going to write Sierra H a very nice check. Those may not be South Mountain signals, but they're far more valuable now than they were when Jay started.

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Surprisingly, the Bradshaw rimshots put a good signal into parts of the Far East Valley. It’s along the 51 and south of Camelback Mountain where they have major shielding problems. They’re have more value than a rimshot coming from Globe, as well as most AMs.

When will CCF move the 102.1 signal to Towers Mountain? Given that the weather is awful this time of year, I would place my bets on March. Will the “Beautiful Music” format completely go away? Not with the 101.7 translator in Prescott and an HD2 to feed it.

There's no official word on what will happen with the shared 88.3 frequency yet, although I do agree that it's possible that Family Stations would begin operating KPHF full time once La Campesina ceases broadcasting on 88.3.

EricStein said:

Will the “Beautiful Music” format completely go away? Not with the 101.7 translator in Prescott and an HD2 to feed it.

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This isn't like KHEP-FM where the buyer had to pledge to not change the format for a year. What's in it for Campesina to keep B/EZ alive? You have to be committed to chasing a lot of direct business in Prescott to do that.

DavidEduardo said:

The question is whether there is enough revenue to be had in the small Prescott market for an AM and a limited coverage translator to be able to support a local operation. I'd guess that the local operation might be spun off at some point.

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Either they're going to sell the AM while they work on the KAHM upgrade or they'll just turn on the Campesina feed on KYCA and lock the door until they get the offer they want. With the main studio rule gone, they don't have to go through the charade of caring about Prescott.

johndavis said:

This isn't like KHEP-FM where the buyer had to pledge to not change the format for a year. What's in it for Campesina to keep B/EZ alive? You have to be committed to chasing a lot of direct business in Prescott to do that.

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I thought I read in the article from the Prescott Daily Courier that announced the sale said that current management will continue to run the easy listening format on 101.7 as well as operate KYCA.

DavidEduardo said:

The question is whether there is enough revenue to be had in the small Prescott market for an AM and a limited coverage translator to be able to support a local operation. I'd guess that the local operation might be spun off at some point.

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I’m sure Sanford Cohen is looking for a way to take control of KYCA. I think he’d rather have the stronger conservative lineup of that station instead of just the Salem hosts on KQNA. He could then convert 1130 to sports.

EricStein said:

I thought I read in the article from the Prescott Daily Courier that announced the sale said that current management will continue to run the easy listening format on 101.7 as well as operate KYCA.

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From the Courier:

Nancy Silverstein, widow of Lou Silverstein and president of Southwest Broadcasting announced the buyer is Arizona-based Phoenix Radio Broadcasting, LLC, which will keep the current programming and personnel the same when the transaction closes later this year.

“Since Lou’s death, my goal has been to see his legacy continue, by maintaining the presence of KYCA and KAHM in the community. That goal has been achieved with this venture,” she said. “I am especially pleased that Jason Zinzilieta will remain at his job.”

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Here's how I read this, and I say this as a jaded radio person who has been through this a few times...

The current owner says that the staff and format will remain in place when the new owner takes over. There's no promise of the format moving to the translator, and there's no promise that things won't change after the new owner takes over. All she's said is that everything will remain in place the day the deal closes.

This is very easy to promise. With the exception of EMF, who has a radio station in a rack ready to fire up immediately upon closing, usually the new owner will hire the old staff and keep things going until they are ready to go. So for a week or a month, everything remains the same. Then you're summoned to an all staff meeting and walk into a room with pizza and beer, and you're thanked for your hard work and handed a check.

I would be surprised if this turns out any different.

I will add an anecdote about the sale of KMXX, Mix 101.

We were told that no changes would be made. Straight ahead, kumbya, blah blah blah.

For 3 weeks, we all would go on Friday afternoons to Eddie's Grill and the new owner would hold "brainstorming sessions." How can we make this radio station better? They put a suggestion box in the break room. The only thing someone put in the suggestion box was a slip from a staffer who wrote that the engineer shouldn't spraypaint the suggestion box inside the station.

And we go back into another "brainstorming session." Owner starts going off on all the great suggestions that were in the box (that weren't). So jaded staffer decides to call out the owner on the charade and says, "You didn't buy this place without a plan, so why are you asking us what you want us to do, when you can just tell us what you want to do?"

He was immediately fired. KZON launched a couple of weeks later.

DavidEduardo said:

My assumption is that the Farm Workers would ask Family for payment for their 88.3 station.

The two stations, each separately licensed, share the frequency. The Farm Workers could actually sell their 88.3 operation to a third party.

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Could happen...or couldn't. It all depends on the fine print in the agreement the two signed to put 88~Three on the air. It's not a 50/50 proposition, as KNAI has the frequency for 14 1/2 hours a day, which amounts to 60% of the joint venture. Both parties most likely have an option to buy the other party out if so agreed. And how do you value a non-comm like KNAI which has been generating revenue through commercial announcements on non-comm 88~Three? Those bucks now follow the call letters to their new frequencies, leaving nada. And what third party wants to buy 60% of the frequency to share with Family Radio? Unless, of course the two owners agree to sell the whole shebang to another large outfit looking to upgrade their Phoenix cluster. hmmmmm....WWHCD*?


* What would Harold Camping do?

DavidEduardo said:

My assumption is that the Farm Workers would ask Family for payment for their 88.3 station.

The two stations, each separately licensed, share the frequency. The Farm Workers could actually sell their 88.3 operation to a third party.

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That was the other possibility I've seen about the future of the shared 88.3 frequency, selling the 88.3 frequency to another non-commercial broadcaster.

DrAkbar said:

And how do you value a non-comm like KNAI which has been generating revenue through commercial announcements on non-comm 88~Three?

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Stick value. Whether it transfers to Family Radio or somebody else, there's no value in the programming because it's not staying.

johndavis said:

Stick value. Whether it transfers to Family Radio or somebody else, there's no value in the programming because it's not staying.

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If CCF sells to a third party, chances are pretty good it won't be a Campesina sound a like! This one is hard to comp as you're buying 60% of the hours on a shared frequency. Plus it's Shaw Butte...not as good as SoMo, but certainly better than a rimshot. The only comps we can think of are KKMR, which went for .5m, and KAHM for 1.7m. Not very similar. So maybe the price is what CCF wants and a buyer is willing to pay. Sounds about right to Los Buckeye Boyz.

DrAkbar said:

So maybe the price is what CCF wants and a buyer is willing to pay.

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Truer words have never been spoken here.