Anatomy of a noncom radio deal


The frequency of WWCD-FM is well into the commercial portion of the FM band, but the buyer – Ohio State University – is firmly ensconced in the non-profit world. Details of the transaction filed with the FCC reveal some unique aspects to the deal.

To recap, OSU’s broadcasting arm, WOSU Public Media, is getting the station from 101.1 MHz FM station from Roger A. Vaughan’s Fun With Radio. The intent is to allow WOSU-FM to devote itself entirely to news/talk/NPR fare, and provide an outlet in Columbus OH for the classical music currently sharing time on WOSU.

Meanwhile, Fun With Radio will move its calls and format up the dial to the 102.5 MHz digs of WCVZ under terms of an agreement with its licensee.

The price for the station detailed in the contract filed 7/2/10 with the FCC is $5.7M. Of that, $2.25M will be paid in cash and $3.45 will be paid pursuant to terms of a promissory note.

But there’s more to the deal. The buying and selling parties have agreed that $5.7M constitutes a “bargain” price. They will work together to get a fair market appraisal, and Fun With Radio will be able to claim the difference between the price and the fair value as a charitable contribution for tax purposes.

RBR-TVBR note: Now available RBR-TVBR’s ‘2010’ new guide to help chart a course through the treacherous waters of buying, owning and selling radio or television stations.

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