Non-cash compensation a part of NJ public radio sale


By the time the intent of the New Jersey Public Broadcasting System Transfer Act is a reality, the state will no longer be the proud owner of the nine FM stations currently in its portfolio. But the state’s relationship with the stations won’t dissolve for some time.

Four of the stations are going to New York Public Radio, licensee of WNYC AM-FM New York NY and WQXR-FM Newark NJ. The stations are WNJT-FM Trenton, WNJY-FM Netcong, WNJP-FM Sussex and WNJQ-FM Toms River.
The value of the deal is $2,802,690, but only $1M of that will be in cash. Here’s what else the State of New Jersey gets in return for the quartet of stations:

* $780K worth of messaging on WQXR for a period of five years, with a minimum 500 messages per year;

* $157,690 worth of presence on, also for five years, with a presence on the site at least 48 weeks annually; and

* $865K worth of “New Jersey-centric” programming on the New Jersey stations, complete with personnel specifically assigned to its creation.

The southern portion of the station package is going to WHYY Inc., which is licensee of WHYY-TV Wilmington DE, WDPB-TV Seaford DE and WHYY-FM Philadelphia PA.

It is acquiring five stations, including WNJN-FM Atlantic City, WNJS-FM Berlin, WNJB-FM Bridgeton, WNJM-FM Manahawkin and WNJZ-FM Cape May Court House.

The value of this deal is $1.538M, and unlike the northern group, the bulk of the compensation — $926K – will be in cash.

But there is a non-cash compensation component to this deal as well, worth $612K. Here’s what the State of New Jersey gets:

* $313,560 worth of underwriting spots on WHYY-TV over the course of three years;

* $178,409 worth of instruction on digital video production for Camden NJ teachers;

* $80K for a media campaign designed to promote WHYY to NJ citizens; and

* $40,251 for staff assigned to operate WNJB-FM and WNJS-FM.