In April of 2012, ESPN began leasing an FM station in New York from Emmis. The station, 98.7 FM would start out with a price tag of $8.5 million dollars per year – for a LEASE! The agreement also reportedly had a 3.5% annual increase. At the time, I suppose that all sounded like a great deal. A big FM stick in New York, for the low, low price of somewhere north of $125 million dollars over the 12 years. To lease a radio station, and then simply give it back to its owners.
We all know what ended up happening. Well, first what happened is CBS decided they, too, needed an FM signal for WFAN since they now had competition. And what did they do? They went and bought 101.9 FM for $75 million to counter ESPN. At least their $75 million allowed them to own it.
Good Karma, who ended up with 98.7 in their deal with ESPN, finally said enough is enough and did not renew the lease deal last year and instead worked out a deal with the parent company of their biggest competitor. Such is the strange world of radio these days.
In the end Emmis ended up with 98.7 back and reportedly was asking $50 million dollars for the signal. And that is why we now have ‘New York’s La Exitosa 98.7 FM/1190 AM’, a bilingual adult contemporary format, playing English and Spanish language hits from the 1980s through the 2000s. Try saying that five times fast.
Now, we all know there is more of a chance of $50 million falling out of the sky than Emmis getting anywhere near that amount of money for the station, unless somehow, we all get transported back to 1995. I don’t think they could get half of what they ‘think’ it’s worth, especially considering the two biggest companies aren’t players as they are at the limit in the market.
What is that signal worth? First of all, we know the worth is what someone is willing to pay for it, so all we know now is the value of it is clearly south of $50 million. Secondly, value also ties into what the future value would be. And that is where the real concern comes in.
I started to really think about this recently for two reasons. One is that I was asked by someone to help sell a signal and the lack of response at the price point is astonishing. And worse, the conversations I have had with some local station owners made me depressed. They all just sound so defeated, and most don’t seem to have any ideas as to what to do next.
Then, this morning, I open my email and a regular eblast I have gotten for years from a media broker had almost 50 radio stations listed in it for sale. I remember the days of opening that email and seeing ten stations listed – maybe 20 at most. Today, it was 50 and it struck me. So, I went back to an email from the same person from months before and I saw something scarier. All the same stations were listed. None of them are moving.
Here’s my fear: Is this just the beginning of what is about to happen where stations may be for sale, but nobody wants to buy any of them? Then what’s the value of the radio signals, whether in New York or Wilkes-Barre?
These are indeed scary times. And of all of this, the scariest part were those owners who I sensed had given up. They go in each day and do the same things they have always done but somehow expect things to change. I don’t know much, but I’m certain that will only lead to more and more failure.
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The Best/Worst Thing I’ve Heard/Watched/Read Recently
It was great to read the news about Joe Buck returning to the MLB broadcast booth. The former FOX Sports announcer, now with ESPN, will be calling an Opening Day contest between the New York Yankees and the Milwaukee Brewers.
It was even better to read Joe’s take on why he was doing it:
“Only doing this because I missed the ‘why do you hate the Yankees’ shots on twitter (it was twitter then) and add the Brewers fans who think I don’t like Milwaukee or the Packers or cheese,” he wrote. “Both sides are WRONG. Anyway, it’s gonna be fun. Can’t wait actually. Saddle up!”
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In Case You Missed It
Earlier this week, John Mamola posted a feature on The Paulie & Tony Fusco Show, which was recognized earlier this year for the second year in a row as the ‘Best Sports Comedy’ Podcast
Mamola explained, “What was once an idea in a morning meeting has now turned into a successful passion project for both Samson and Ali. The Paulie & Tony Fusco Show, distributed by iHeartPodcasts and FOX Sports Radio, is a satire of sports talk radio and “hot take” media personalities hailing from the City of Brotherly Love. While the show is not built on any one specific personality from the past or present voices of the market, the building blocks of how the show is written and produced lean on the tools of the trade from both Samson and Ali’s radio beginnings.”
The show is hilarious. If you have not checked it out, make a point to do so.
You can read the full feature by clicking here.
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Dave Greene is a former Editor and Columnist for Barrett Media. His background includes over 25 years in media and content creation. A former sports talk host and play-by-play broadcaster, Dave transitioned to station and sales management, co-founded and created a monthly sports publication and led an ownership group as the operating partner. He has managed stations and sales teams for Townsquare Media, Cumulus Media and Audacy. Upon leaving broadcast media he co-founded Podcast Heat, a sports and entertainment podcasting network specializing in pro wrestling nostalgia. To interact, find him on Twitter @mr_podcasting.
