Clear Channel goes into swap mode

Clear Channel (NCCU) is trading away three stations to finally get a duopoly going in the Bismarck market. For its trouble, CC's swap partner, James Ingstad's Radio Bismarck Mandan LLC will get an AM and two FMs in southern Minnesota. The three-for-one station deal is not a straight swap, however - - Ingstad will also fork over $250K to balance things out.

The deal gives Clear Channel KXMR-AM in North Dakota's capital city. It will combine with its currently-owned AM-FM combo. Ingstad will still have a presence in Bismarck, retaining an AM and two FMs.

It's getting KNUJ AM & FM and KNSG-FM from Clear Channel. KNUJ-AM is licensed to New Ulm MN, part of the Mankato-New Ulm-St. Peter Arbitron market. KNUJ-FM is licensed to Sleepy Eye, a town a bit further to the west, and even further in that direction is KNSG-FM's hometown of Springfield MN.

Just as Ingstad will still have a presence in Bismarck, Clear Channel will still have a trio of stations in the Mankato market.

RBR observation:

Mankato is south of Mineapolis, and Ingstad already has other stations in the area - - they're south of Minneapolis but still north and a bit east of Mankato. KNUJ AM & FM combined for a total 12+ Arbitron rating of 6.0 (evenly divided between the two). Clear Channel's retained properties will leave it in first place in the market, ahead of three other companies (Linder, Johnson and Three Eagles); Ingstad will place 5th. With Clear Channel's superduopoly reduced to a mere duop, Linder will have the onluy super-cluster in town (and at that, one of its FMs is listed below-the-line).

In Bismarck, there will be a three-way battle which, in addition to the two companies involved in this deal, includes Cumulus (O:CMLS). In fact, Ingstad's stations were originally supposed to be sold to Cumulus by the Anderson family, before the deal was delayed by the FCC and eventually abandoned.

Using on Spring 2002 Arbitron numbers, Instad will remain in first place even after spinning off KXMR. Its remaining 1-AM, 2-FM cluster was good for a combined 32.1 12+ rating. Clear Channel, with a 2-AM, 1 FM cluster, would be right on Ingstad's heels with a 31.4. Cumulus, with a 1-AM, 3-FM cluster, would be at 23.9.

Cumulus would have been the clear leader in this market a couple of years ago with these same lineups - - however, it has somehow lost 20 points combined at two stations. From Spring 2000 to Spring 2002, KKCT-FM went from 15.4 to 5.2. KBYZ-FM went from 18.8 to 9.0 -- - and the 9.0 actually marks a recovery from a low of 6.8 in Fall 2001.