Wayne County Broadcasting Company’s David H. Land is selling a one-AM two-FM cluster in Fairfield IL to The Original Company – but that doesn’t mean he won’t have an ongoing interest in the stations.
The buyer, headed by Mark and Saundra Lange, will not only be making payments to Land for some time, they will also be paying him as an employee of their company.
The stations are WFIW-AM, WFIW-FM and WOKZ-FM. All are relatively low-powered outlets that must be considered local to Fairfield, a community to the northwest of Evansville IN.
Land will stay on as GM of the stations, and will receive an annual salary of $70,560 plus a performance-based bonus. For his part, he is expected to bring in a minimum of $1M in revenue annually.
The Original Company has been operating the trio under terms of a TBA since 2/1/12.
Now, on to the payment package for the trio:
* The buyer has put down $5K.
* The buyer will pay 4445K in cash at closing.
* The buyer will strike a note for $512,766.67.
* The buyer will execute a consulting contract with Land, on top of his employment contract, valued at $246K and payable with 72 monthly payments of $3,416.67.
* The buyer will also execute a non-compete with Land that commences when he no longer is employed by The Original Company, also valued at $246K and payable with 72 monthly payments of $3,416.67.
* Not counting his the salary and bonuses paid to Land under the employment contract, that puts the total value of the deal at $1,454,766.67.
