MESA, ARIZ. — The owner of the regional Mexican “La Campesina” network geared to first-generation Latino farmworkers and recent immigrants has acquired a Class B AM in the Valley of the Sun, in a deal that saw Kalil & Co. serve as the exclusive broker in this transaction. The purchase was necessary for the network to air paid advertisements, as it has been airing on an NCE facility – and earning high ratings. But, is another purchase for a Phoenix station still to come?
RBR + TVBR OBSERVATION: Though he knows this sounds a bit alarming, Streamline Publishing Chairman Eric Rhoads sincerely believes there is reason for alarm— there is something going on right now that could impact Hispanic radio so badly that stations could be forced to change formats or have difficulty surviving. “I’m hearing from broadcasters who are telling me the stores became empty from the moment the rumors started flying about ICE raids,” he says. “ I believe it’s our job to address these issues head on and use the brainpower of the experts we’re providing to help you cope with these issues and address the coming impact on your market.”
In Eric’s view, “whatever your politics are is not relevant at this moment. There are facts that are impacting every community, every economy, and many local businesses, and that impact could affect your business. We want to prepare you in the best way possible, and I hope you’ll consider attending the 2017 Hispanic Radio Conference.” For full details and to attend, please click here.
In a transaction announced late Thursday, Bonneville International Corp. is selling KMVP-AM “Gospel 860” in Phoenix to the Cesar Chavez Foundation’s Farmworker Educational Radio Network.
The sale price is $800,000, and Bonneville has made it clear that “La Campesina” can go on KMVP at any time. That’s because the LMA with Henri-Delta Company LLC, which leases KMVP and oversees “Gospel 860,” has expired and can be immediately terminated by Bonneville. A newly crafted LMA agreement between FERN and Bonneville for operation of KMVP prior to closing is being finalized; an April execution date appears on paperwork filed Friday with the FCC.
A $100,000 escrow deposit has been made by FERN to Kalil & Co., representing Bonneville. The remainder is due at closing.
Terms of the deal include a call letter change for KMVP, a unique Class B that has 940 watts during daylight hours and 1kw at night, with full-market coverage.
The purchase of KMVP comes after La Campesina Network owner Cesar Chavez Foundation in July 2016 was handed a $12,500 civil penalty from the FCC for airing advertisements on a noncommercial FM in the Visalia-Tulare-Hanford, Calif., market. That station, noncommercial KUFW-FM 90.5 in Woodlake, Calif., was traded in August 2016 to Educational Media Foundation in exchange of KUPW-FM 106.3, in Kingsburg, Calif., thus erasing any issues over underwriting opportunities that stepped over the line into paid advertising.
A similar concern was seen in Phoenix, where KNAI was the lone noncommercial property within the La Campesina network.
KNAI is the No. 2 Spanish-language radio station in Phoenix, closely trailing Univision Radio’s regional Mexican KHOT-FM 105.9 “Qué Buena.”
While the acquisition of KMVP solves any potential illegal border crossings from the land of underwriting to the world of commercial advertising, market observers wonder if this is Part One of a two-part deal. Adding an FM translator or full-market signal to replace Class C1 KNAI is still believed to be in the works; a facility with a CP for Spring Valley, Ariz., is rumored to be in the mix.
FERN was represented legally by Brad Deutsch of Garvey Schubert Barer of Washington, D.C.
In other TRANSACTIONS TODAY:
- Two amendments have been made to a November 2016 deal that sees WECK-AM 1230 in Cheektowaga, N.Y. and FM translator W275BB at 102.9 MHz shift from Culver Broadcasting to William Ostrander. The deal, originally struck at $525,000, was amended to $500,000 on Jan. 18, 2017. Then, on Jan. 26, a second amendment was filed with the FCC, restating the purchase price at $655,000. Now, a third amendment is being made so that a non-compete agreement reflects the signal contour of both WECK and W275BB.
