Nelson and Nelson pick up DeKalb IL AM


WLBK-AM DeKalb IL is going into a cluster with two AM stations, all in the western fringe of Chicago. Larry and Pam Nelson’s DeKalb County Broadcasters Inc. is the buyer, getting the station from Don Davis’ WPW Broadcasting Inc.

The price will be $575K, with $100K plunked down as earnest money and the remainder due in cash at closing. The buyer began operating the station under terms of an LMA f that was scheduled to kick in 10/1/10.

The station shares signal contour areas with WSQR-AM Sycamore IL and WSPY-AM Geneva IL. DCB has an additional two AMs and three FMs in the general area, but without any shared coverage with WLBK.

The contract has an unusual non-compete clause. Generally, these contract planks prevent the seller from competing with the buyer for a certain amount of time. In this case, the plank obligates the seller to make available to the buyer information about any non-competes it has in place with employees of the station.

RBR-TVBR note: If you read this article, chances are you have more than a casual interest in the buying and selling of media properties. Much of what goes into a deal goes into the contract, and knowing what kinds of things should go into the contract can help you make a better deal. RBR-TVBR has just the book for you: a guide to deal-craft that will pay for itself.

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