IHR Educational Broadcasting, headed by Douglas M. Sherman, is getting an AM in the San Diego market which will provide a Southern California home for its non-profit Catholic programming. The seller will benefit from a multi-faceted compensation package.
The station is KCEO-AM Vista CA and the seller is North County Broadcasting Corporation, headed by radio veteran Art Astor.
The station is a Class B on 1000 kHz. It has 2.5 kW-D and 250 W-N using a directional antenna array. It also has room to improve – it holds a CP to go up to 5 kW-D and 900 W-N.
Here’s how the price breaks down:
* IHR will pay $1.25M for real estate and assets associated with the station’s transmitter site
* The price of the actual station is pegged at $2.75M, with $137,500 going into escrow to be paid to the license company NCBC along with an additional $1,362,500; and with the remaining $1.25M going straight to Astor in cash.
* Astor is also the beneficiary of a Personal Services and Non-Competition Agreement which will pay him $500K, divided into 25 monthly payments of $20K each.
* Finally, if the CP is completed very soon ahead of its expiration date, or if it is successfully renewed or extended, the sellers will get an additional bonus of $250K from IHR.