Boston Globe Item on WERS LMA Proposal

[Dan Strassberg]

I could have read too hastily, but I thought I read that Smyth was offering
Emerson $10 million PER YEAR to LMA WERS. Now if that's what I really read
and that's what he offered the college, he's really got some 'splainin' to
do. WCRB's revenues in 2004 were reported to be only about $8 million (maybe
$8.5). Especially if he got the students involved, WERS could be run for a
fraction of what it had cost to run WCRB. And he certainly could bring in
some decent revenues from underwriting on WERS. But he was still proposing
to take more than $5 million per year out of GM's pockets to make its $100
million investment in WCRB work out. What are the chances that he could find
a format for 102.5 that would yield more than $5 million/year in net profit?
How many of GM's Boston stations net more than $5 million/year? WMJX almost
certainly does. I'd be surprised if WBOS and WTKK do. I suspect that if 99.5
and 105.7 each net $5 million per year, GM is quite happy with their
performance. It seems to me that Smyth would have proposed a $10 million per
year lease of a non-commercial station only if the deal for WCRB had been in
jeopardy--most likely from somebody challenging the arrangements for
breaking Ted Jones's trust. Then there's the issue of the acquisition
putting GM at least temporarily over the ownership cap. I'm beginning to
think we shouldn't view this sale as a done deal until the FCC has approved
it and the ink is dry on all of the papers that govern the transfer of
control.

--
Dan Strassberg, dan.strassberg@att.net
eFax 707-215-6367

----- Original Message -----
From: "Laurence Glavin" <lglavin@lycos.com>
To: "Brian Vita" <brian_vita@cssinc.com>; "R Trovato" <xtrovato@yahoo.com>
Cc: <boston-radio-interest@rolinin.bostonradio.org>
Sent: Saturday, April 08, 2006 3:22 PM
Subject: Re: Boston Globe Item on WERS LMA Proposal


> > ----- Original Message -----
> > From: "Brian Vita" <brian_vita@cssinc.com>
> > To: "R Trovato" <xtrovato@yahoo.com>
> > Subject: Re: Boston Globe Item on WERS LMA Proposal
> > Date: Sat, 08 Apr 2006 15:04:00 -0400
> >
> >
> > R Trovato wrote:
> >
> > >> If anything,
> > >> I'm somewhat surprised that Greater Media approached them with the
> > >> offer in the first place.  Or the
> > >> fact that Smyth is on Emerson's Board of Trustees made him feel
> > >> that he had an edge with his fellow board members.
> > >>
> > >>
> > >
> > > The real question.....
> > >
> > > What's the benefit to Gr Media in LMA-ing a non-comm clasical station?
> > >
> > > What could/could they possibly get out of it?
> > >
> > > Besides some good will?
> > >
> > >
> > Just a speculation - perhaps its a way of squelching defenders of the
Trust?
> >
> > How about flipping chronic underperformer WBOS to classical.
> > Wasn't it classical a zillion years ago?  Anyone know the revenues
> > of WBOS vs WCRB?  What about footprints?
> >
> > -- Brian T. Vita, President
> > Cinema Service & Supply, Inc.
> > 77 Walnut St - Ste 4
> > Peabody, MA  01960-5691 USA
> > Sales:  (800)231-8849
> > Office:  (978)538-7575
> > Fax:     (978)538-7550
> > www.cssinc.com
>
> To the best of my knowledge, WBOS-FM has NEVER been classical at
> any point from its sign-on as an adjunct to WUNR-AM 1600
> and broadcasting with 15,000 watts on one of the 1600 am sticks.
> (that 15k on FM must have done a job on FM reception in those days
> and maybe even television reception...the FM antenna they used was
> probably just above roof-level of Oak Hill Park housing).
>
>
>
> --
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