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by Tom Taylor | tom@in3media.com | 609.883.3321

Wednesday, September 9th, 2009

Pricing the market

CBS may be getting 8-times cash flow for its cluster in Portland, Oregon.

I’m told that when CBS and buyer Larry Wilson shook hands on the $40 million price for country KUPL (98.7) and its family members, that worked out to an 8-times multiple, based on projected 2009 cash flow. That would peg the cluster’s cash flow at around $5 million. If that multiple's right, it’s very good news for future deals at cash-flowing clusters in good-sized markets like Portland, Arbitron market #23. The CBS regional group is “Rock 101” KUFO, adult alternative KINK (101.9), talk KCMD (970) plus KUPL. Larry Wilson of the new Alpha Broadcasting wants to grow his West coast footprint beyond Portland, where he’ll have perhaps $50 million in cash flow, between the CBS stations and the Paul Allen combo he just closed on. Some folks say he’d love to have a group with cash flow of four or five times that. The brokers were right – the second half of the year is going to be more interesting than the first half. There are at least the stirrings of some real action. As one broker tells me – “Imagine what would happen if the lending market got freed up, even just a little.”

Joe Scarborough – 2012 presidential candidate?

The Citadel Media-syndicated radio host and MSNBC TV “Morning Joe” coffee cup-holder has reportedly received a visit from Republican leaders quietly sounding him out about a run for the GOP nomination in 2012. He first came to Washington as a House member from Florida and he’s raised his profile first with the MSNBC TV show and then with the radio show he does with Mika Brzezinski. Politico.com raises the issue of a potential run. And CNBC’s Donny Deutsch says “I think he does have aspirations. That is half of it. You got to want it.” Donny says “In this day and age, it would almost make sense for [a presidential candidate] to come from media.” Joe wouldn’t have to leave his cable and radio jobs tomorrow – 2012 is a long way off. Speaking of talk radio and TV personalities gaining more prominence –

CNN is “auditioning talent” for a new Crossfire-style show.

Boy, talk about another opportunity (other than running for president) that may keep some talkers up at night. Mediabistro says CNN is screening both conservative and liberal types to host a new show. On the conservative wing, you could have WLS-AM, Chicago’s Roe Conn under consideration, or Steve Malzberg from WOR, New York, or “Joe Pags” Joe Pagliarulo from Texas (he’s on both WOAI, San Antonio and KPRC, Houston). On the liberal wing, the candidates list might include Cenk Uygur of Air America’s Young Turks. No indication when this new point-counterpoint programming might appear on the CNN schedule. Of course it’s not just about getting the right people. It’s about the chemistry they have together.

Yes, L.A.’s KFWB (980) chooses Roger Hedgecock for its 3-6pm slot.

The station’s finishing off its 18-hour Dr. Laura marathon at 6am local time, to dramatize the fact that she’s joining CBS Radio’s formerly all-news KFWB to do noon-3pm, after 20 years at Clear Channel’s KFI (640). Now it confirms what Gary Lycan at the Orange County Register sniffed out last week – that Roger Hedgecock will follow Dr. Laura. CBS says former San Diego mayor and talkshow host Hedgecock will “serve as a frequent contributor to the morning news program." Also confirmed at KFWB – Dave Ramsey for 9pm to midnight. And Todd Schnitt for the three hours after that.

For Keymarket and Forever, “re-structuring” is a sweet word.

The related companies made the headlines here in T-R-I and elsewhere in August by agreeing to sell off their Pittsburgh-area 98.3 Duquesne-licensed signal to K-Love parent Educational Media Foundation. (No price announced yet.) The obvious inference was that they needed the money. They’re getting that from EMF – but much more importantly, they’re now getting breathing room from lenders Bank of Montreal and Wells Fargo. The amended and re-structured $30 million credit facility should be good through December 2013. The principals of Keymarket Communications, Forever Broadcasting and Forever Communications say “in these difficult times, the companies and the banks worked together to ensure the future stability of the stations.” The Pennsylvania-based operation that’s long included principals Kerby Confer and Donald Alt has more than 60 stations in Ohio, Kentucky, Tennessee plus Pennsylvania. Bank of Montreal has been part of its lending group for 15 years.

Pittsburgh's WAMO-AM/FM go silent.

Last night the Jackson 5 were singing "Never Can Say Goodbye", followed (the Pittsburgh Board of Radio-Info.com says) by Boyz II Men crooning "It's So Hard to Say Goodbye to Yesterday." Then two of the three stations being acquired by Saint Joseph Missions went all-static. Those are urban WAMO-FM (106.7) and urban AC WAMO (860). At a guess, if the buyer really has taken over in an LMA with Sheridan, these two frequencies will be dark for a while. Catholic ministry Saint Joseph Missions is paying Sheridan (the Davenport family) $8.9 million, in a deal that essentially removes all the urban-flavored radio from Pittsburgh. More on the Pittsburgh Board of Radio-Info.com - which is home to a lively debate about urban contemporary music and taste.

578 indecency/programming complaints to the FCC in January, 505 in February – but 180,000 in March.

Commission personnel will tell you privately they’re quite aware that an orange-alert online push by an interest group such as the Parents Television Council can flood its system. (It’s also sensitive to an earlier by the PTC that the agency wasn’t adequately keeping count of the comments it generated through its website.) Do the 179,997 complaints received in the “Programming-indecency/obscenity” category for March 2009 mean crushing fines are about to rain down on broadcasters? Probably not. But what the latest quarterly report does do is offer new Chairman Julius Genachowski a clear opportunity to set the tone. Is he going to side with fellow Democrat Michael Copps and carry a big stick re: indecency fines? Or is he aware that the Commission might well lose a Supreme Court case on its 31-year-old indecency “George Carlin” standard? Read the FCC’s quarterly report.

Comments are all filed on the MusicFirst request to investigate radio over alleged censoring of ads and artists.

The Parents Television Council is concerned that radio broadcasters are setting a bad example by allegedly rejecting ads that favor a performance royalty. They note that TV broadcasters had to be massively prodded into running the “TV Boss” ads about parental control of kids’ channel surfing. The PTC comment generally supports the thrust off the MusicFirst petition to the FCC – to have the agency investigate whether radio’s ducking pro-royalty ads from the MusicFirst consortium, and whether some stations have intentionally boycotted the work of musicians who support the royalty. As T-R-I predicted yesterday, the NAB delivered its own filing on the last day, and it’s a 25-pager. Among its arguments – MusicFirst is just trying to score points with its charge about radio rejecting its ads. It says “MusicFirst declined to purchase airtime when offered by a leading station in Washington, D.C.” It’s got a sworn affidavit from Steve Goldstein, the Bonneville sales manager at market-leading WTOP-FM and sister stations. He says he contacted MusicFirst and offered to run their spots at the same rate for which ’TOP had aired the NAB-purchased ads. But MusicFirst declined. NAB also says the MusicFirst allegations of a radio boycott "came as one of their most vocal proponents sat atop the Billboard airplay chart.” That’s the Black Eyed Peas. Also that the “artist intimidation” MusicFirst cites came from a 100-watt high school radio station. Get ready for the reply comments – then presumably a judgment call from new Chairman Julius Genachowski.

Four small broadcasters charge the FCC is “taking sides” in the performance royalty debate.

Their filing says the FCC’s Public Notice means the agency is “implicitly threatening the radio industry for taking an opposite position” from that of the labels and MusicFirst. The filing by attorney John Garziglia even refers to “FCC hooliganism in its use of regulatory powers to quash opposition to a legislative change in the PRA [Performance Rights Act].” The radio groups making this filing include Bill Payne’s K95.5 Inc., Georgia-Carolina Radiocasting (Art Sutton), Guadalupe Media and Robinson Corporation (Jeff Robinson). They also raise the First Amendment issue, saying the FCC is purposely reminding broadcasters of their “lesser and fewer rights.” And they believe the FCC appears to have “pre-judged the issues” brought up by MusicFirst.

At least the FCC won’t try to regulate “BusRadio.”

It wisely concludes a 31-page Report by saying that “the issue of whether BusRadio serves the needs of children should reside at the local level.” That’s a relief. Congress ordered the FCC to investigate commercial services that provide targeted radio services to schoolkids who are captive audiences on buses. There’s only one of those – BusRadio. The Commission huffs and puffs about possible suggestive content and bad language and “disrespect” and racial slurs, and how much commercial time is really airing. (It seems to think that promos and contests should count as “commercials.”) It also investigated whether a service like BusRadio distracts drivers. In fact, it looked into more than a dozen concerns. But it leaves the situation at “local option.” Read the Report.

» Buzzing on the Boards
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Just when will Dallas get its new non-commercial adult alternative FM? And what will it be called? Folks on the Dallas Board of Radio-Info.com and beyond (like the Dallas Observer) are asking when North Texas Public Broadcasting will close on its $18 million purchase of Christian teaching KVTT (91.7) and convert it to AAA. We do know the FCC has approved the transfer, and sometime in early Fall public radio’s news/talk KERA (90.1) will get a musical sister.

Jeff Bullinger is suddenly off the morning show at Cox Radio’s AC “B98.5” WSB-FM, Atlanta, and he tells the Journal Constitution he doesn’t know why. He’d renewed his contract only a few weeks ago. Follow this one on the Atlanta Board of Radio-Info.com.

» Wheeling and Dealing
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Control of Chicago’s “Big Gospel Express 1570” WBGX shifts from one Gallagher to another. Majority control passes from Michael J. Gallagher Sr. to Timothy F. Gallagher, who’s currently a 22% owner. Minority partners Michael Gallagher Jr., Catherine Gallagher and Molly Margosian are also being bought out in this stock deal worth a total of $725,000. WBGX, Harvey, Illinois has 1,100 watts daytime and 500 watts when the stars are out.

Palm Beach County School District needs the $2.3 million it was going to buy WXEL-FM/TV with – so it’s “backing away from the purchase”, says the Palm Beach Post. This could be a real hot potato, putting the Barry University-owned non-commercial stations back on the market. The facilities are news and classical WXEL-FM, a C1 at 90.7, and PBS affiliate WXEL-TV. As the Post says, “the school board seemed poised to approve the purchase” – until it wasn’t. You could almost see this deal as a victim of rising health-care costs. Angry school district employees wonder why they’re being switched to a cheaper and less inclusive health insurance plan at the same time the district’s got the dough to buy a couple of broadcast stations.

West of Cape Girardeau, Missouri, southern gospel/contemporary Christian KAUL, Ellington (106.7) is sold to Fred Dockins for $107,500. Seller is the New Life Evangelistic Center of St. Louis, and it’s getting all-cash at closing – no seller paper involved. KAUL is a Class A licensed to Ellington, MO and it becomes a future sister to other Dockins stations like currently-silent KPWB-AM/FM (1140/104.9) in Piedmont, MO. I say “future sister”, because Dockins is getting those and other stations back from Southern Star Broadcasting in a deal that hasn’t been consummated yet.

The imperiled CHEK-TV in Victoria, British Columbia is saved not by the bell, but by a last-minute employee bid. Owner Canwest originally decreed that an employee-led buyout offer of $2.5 million (Canadian) wasn’t sufficient, given its liabilities before any such unusual bid could close. Now the Times Colonist says a renewed offer has been accepted and will be presented to the CRTC for approval. Canwest president/CEO Leonard Asper says “one week ago, we thought that this station was going to close [go dark], and today we have a result that is beneficial for all parties.” Channel 6 CHEK was the first TV station in British Columbia, and this employee bid, supported by private backers, will save about 45 jobs, and preserve a valuable TV presence in the province’s capital. More on the Seattle Board of Radio-Info.com.

“Well-settled policy” keeps the FCC from interfering in the sale of classical WQXR, New York. The Commission doesn’t consider formats, period. (And what a lot of grief it saves itself.) Several committed listeners to the New York Times-owned WQXR (96.3) filed objections to the two-part sale of the frequency (in a swap with Univision for its lesser-signalled 105.9 and the transfer of the format itself to 105.9 under WNYC Broadcasting Foundation). But they don’t get anywhere, and this combined $45 million deal should go to closing on time.

Classic rock “Fox” KCFX (101.1) in the Kansas City market gets some FM translator help, thanks to Cumulus Media Partners’ $31,500 addition of an FM translator. It’s K225AW at 92.9 licensed to Independence, MO, and the seller is San Diego-based Horizon Christian Fellowship. This looks to be yet another instance of one of today’s farflung religious broadcasting empires trimming back their licenses in faraway states. But before we leave this one – KCFX, Harrisonville doesn’t really need the help to cover Independence. So down the road, is Cumulus planning to use the translator for another station - maybe talk KCMO at 710? With its tight null to the East at night, could really use the help.

Sheboygan, Wisconsin’s AC “Lake 98.1” WLKN closes to Seehafer Broadcasting, as expected. Seller of the Class A FM is Radio K-T Inc. (husband-and-wife Jack Taddeo and Susan Kraus). Taddeo continues his longtime consulting activities. The $600,000 deal was brokered by Dick Kozacko.

» Sound Bites
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Rochester’s Fox Sports and Jim Rome affiliate adds an FM signal in WHTK-AM’s battle against Entercom-owned rival “ESPN 950” WROC. WHTK (1280) is a Clear Channel station that dropped hot talk (thus the lingering WHTK calls) for sports in August 2008. It notched a 0.7 share, total week 12+ AQH share in the Spring Arbitron. Entercom’s WROC did a 0.4. While Clear Channel’s “Country 107.3” WROO, South Bristol Township, NY did a 0.9 share. (The WROO calls roosted in Rochester after Clear Channel blew up a country station in Jacksonville that was once named “Rooster.”) The Buffalo-Rochester Board of Radio-Info.com was listening to Tuesday’s announcement on WHTK about the addition of an FM simulcast at 107.3. There are also schedule changes. John DiTullio will move into the 3-6pm PM drive slot, against Entercom's Schopp & the Bulldog on "ESPN 950.” WHTK's also going to be running Dan Patrick 9am to noon. More talk about Clear Channel’s renewed attack on WROC on the Buffalo Board.

Sports-on-FM happens in Melbourne, Florida. That’s on Cumulus-owned “Pirate 95.9” WSJZ, Sebastian, which had been doing rock since early 2004. (As you can infer from the WSJZ calls, it was previously smooth jazz.) Now WSJZ is “ESPN 95.9” and seems to be full-bore ESPN Radio, plus University of Florida football.

NBC’s using plenty of radio to promote Monday’s critical debut of Jay Leno on primetime TV. Two flights to the buy, says AdWeek, with the initial one running in 12 top markets as a teaser campaign. Then comes the “call to action” during Jay’s first week in the 10pm Eastern timeslot. The buy there goes down into 25 markets, using Horizon Media and Katz Marketing Solutions.

An Australian station is penalized for “being too popular” and is now “being forced to play country music almost non-stop.” That’s the surprising account from Northern Territory News, which says the Australian Communications and Media Authority judged that Territory FM 98.7, Alice Springs was “breaching the terms of its narrowcasting license by broadcasting too much mainstream music and programming.” To compensate, it’s had to load up on what’s deemed to be unpopular stuff – country – and that’s really bugging the listeners.

Talker and attorney NorMan GoldMan – he really spells it that way – syndicates himself with some unique angles. He’s got the support of Bill Figenshu’s Figmedia, and here’s what “Fig” says. “After four years of guest-hosting the national Ed Schultz radio show and providing legal analysis for MSNBC TV, NorMan GoldMan is going live with his own talkshow on his own network.” They’re structuring the business stuff for affiliates so that GoldMan takes only one minute of network inventory for the first six months. Also – he’ll fill in for a local host during his or her vacation at no charge (“first come, first served”). GoldMan will offer legal analysis for the affiliate station’s news/talk cluster mate, free. And he’ll pay his own way to local-market live appearances. NorMan sounds highly motivated, doesn’t he? More here.

Sirius "FM-5" satellite goes into service. It launched on June 30 and has been undergoing testing since then. It's an unusual bird for Sirius - its first geostationary satellite. Sirius hopes the more powerful signal, centered over Texas, enhances coverage on the heavily-populated East and West coasts.

» Faces on the Radio
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Paul Drake, Donovan Short, Brad Weiser and David Drew will be adding to the “travel & entertainment” part of their monthly expenses, as newly-named regional Ops Managers for Erik Hellum-run GAP West Broadcasting. Paul Drake (not the Perry Mason detective) is based in the Tri Cities market in Washington and will also have programming oversight of Yakima. Casper-based Donovan Short will interface with Laramie and Cheyenne. Twin Falls-based Brad Weiser will journey to Idaho Falls and Pocatello. David Drew stays mostly in Duluth, but will work with Hellum on special projects.

Rik Mikals continues the GAP West theme here in “Faces”, resigning his cluster Ops Manager job with New Northwest Broadcasters in the Tri Cities market to move to Yakima to work for GAP West. New Northwest Broadcasters VP/Programming Tom Oakes is hiring for the Tri Cities opening.

Kurt Luchs takes over the VP/general manager position for New Northwest Broadcasters at the self-same Tri Cities cluster that Rik Mikals is leaving as ops manager – just one of those coincidences. The multi-talented Luchs (he’s a contributor to the satirical Onion) most recently was VP/GM for Dial Global. NNB’s President/CEO Trila Bumstead says “Kurt brings with him a creative and fearless management style” for the six-station cluster that includes country “Wolf” KIOK, Richland (94.9).

Mo Bounce makes his predicted debut on Clear Channel’s Z100/WHTZ in New York, handling evenings. This gets the major-market jock (KKHH, Houston, WFLZ, Tampa, WIOQ, Philly, KXXM, San Antonio) into the same building where Elvis Duran originates his syndicated morning show. That’s a good thing, since “Bounce” is the voice for the Elvis Duran show. He also has a voiceover business named MoVO Productions. More on the New York City Board of Radio-Info.com.

Doug Stephan continues to be a workaholic and says he’ll add a second hour to his syndicated “Good Day” “Talk Radio Countdown”, so that it runs from 4am to 6am. He says the Countdown is “a great lead-in to our topical, fun and informative hours, 6-10am Eastern time." Countdown features local and national talkers from radio, cable and Internet, and spices in listener calls.

Jamila Bess Johnson becomes FCC Commissioner Michael Copps’ temporary point person on media issues (such as radio), as Acting Advisor on media issues. She’s a senior attorney advisor in the Industry Analysis Division of the Media Bureau and she worked with Copps when he was the Commission’s Acting Chairman, for most of the first part of 2009.

Mike Picozzi goes back to alarm-clock time on Connecticut radio, to fill the void left when WCCC-FM, Hartford (106.9) cut the cord with morning man Sebastian (Joe Schlosser). The Hartford Courant reports that Marlin Broadcasting will break up the current afternoon team of PD Picozzi, Klonk and Holden, and re-distribute Picozzi and Holden to mornings, with Ms. Klonk holding down 3-7pm by her lonesome. Picozzi and Holden will be joined by former Sebastian cast member Mary Scanlon. The Connecticut Board of Radio-Info.com has some opinions.

Elizabeth “Blitz” Younts just passed away at 89, after contributing to her native North Carolina and to the radio business in a number of ways. During World War II, she was an organist for the Arthur Godfrey Show on the CBS Radio Network, and also performed as both organist and pianist for the ABC and NBC radio networks. (She must’ve been good.) She married Jack Spurgeon Younts during the war and they relocated to Southern Pines, NC and started WEBB when the wartime license application freeze was lifted. They ran it for 35 years before selling it in 1982. “Blitz” also contributed her son Mitt Younts, a longtime media broker, to the business. Her husband Jack passed away in 1987. More from the Southern Pines Pilot here.

Sins of a geographical nature – Yesterday I moved the new “Bob 104.7” KIKX, Ketchum, Idaho from Twin Falls, where it belongs, to Idaho Falls. Let’s move it back to Twin Falls, shall we? Thanks to T-R-I readers such as Anthony Acampora of Radiocrunch (who’s consulting “Bob”) and John Lund for their emails.

August PPMs start arriving today. New York, L.A., Chicago, San Francisco, Dallas, Houston, Philadelphia and more - the PPM ratings will be available on Radio-Info.com after 5pm Eastern. I'll have some analysis of each market in Thursday's T-R-I Newsletter. Be well - Tom Taylor.

»Radio-Info Conference Planner: NAB Radio Show, September 23-25, Philadelphia
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BROKERS

Andy McClure, Erick Steinberg; The Exline Company, Philadelphia Marriott Downtown; Cell: Andy 415-497-3855, Erick 415-209-4890; Office: 415-479-3484; Exline@pacbell.net, ericks@esteinberg.com, www.ExlineCompany.com

Elliot Evers, Brian Pryor, Bill Fanning; Media Venture Partners; Philadelphia Marriott Downtown; Cell: 415-205-7242 Office: 415-391-4877; pch@mediaventurepartners.com; www.mediaventurepartners.com

Richard L. Kozacko, George Kimble; Kozacko Media Services, Philadelphia Marriott Downtown; Cell: Dick 607-738-1219, George 520-465-4302; Office: 607-733-7138; rkozacko@stny.rr.com, GeorgeWKimble@aol.com

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In this issue »

Buzzing on the Boards

Wheeling and Dealing

Sound Bites

Faces on the Radio

Conference Planner : NAB 2009

News Tips »

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