From Bankrupt Licensee To Big Talker: A Class B AM

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SCOTTSDALE, ARIZ. — Once upon a time, a Class B AM with a 50kw daytime signal and 1kw nighttime signal blanketing nearly all of the market was the envy of radio broadcasters.


Today in Phoenix, it’s a property being plucked for under $1 million from a licensee in the midst of a Chapter 7 bankruptcy proceeding.

The broker? Kalil & Co.

Getting transferred to a new owner is KFNX-AM 1100, a News/Talk station with a three-tower array alongside Carefree Highway in the town of Cave Creek, Ariz., on the northern border of Scottsdale.

It’s the home in the Phoenix market for such conservative talk hosts as Michael Savage and Brian Kilmeade, among other hosts.

Will that remain the case once this transaction is complete?

That’s not immediately known but highly likely, as Premier Radio Stations LLC is selling KFNX to Futures & Options Inc. for $800,000.

A 10% escrow deposit is being held with Arizona Escrow & Financial Corp. The remainder is due at closing.

The sale is part of a Chapter 7 liquidation of assets held by Lyle P. Campbell.

Futures & Options is a Jupiter, Fla.-based entity led by President Bill Brady.

Brady is a name familiar to readers of Talkers magazine, and in September 2014 wrote, “There is nothing fundamentally wrong with AM radio. AM stations that offer quality programming that effectively serve listener’s needs are doing just fine … There is a problem at the many stations which have ‘run up the white flag’ and surrendered to paid programming, wall-to-wall syndication, religion, or my personal favorite … drumroll please …the irresistible opportunity to become the fifth sports station in their market. The two biggest issues for AM radio today are the commitment level of corporate owners, and the congealed nature of the syndication marketplace.”


FROM THE RBR+TVBR ARCHIVES:

Phoenix AM Falls Victim To Majority Owner’s Chapter 7 Move

The future of an AM in the Valley of the Sun will not include a successful banker who made headlines in 2001 for his participation as an aviator in the London to Sydney Air Race. That’s because this individual, and his wife, have lost ownership of this facility some 5 1/2 years after filing for Chapter 7 bankruptcy protection.
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