Larry Woods has been running two of the three California radio stations he is selling for over 30 years, and as a result, his buyer is keenly interested in not having to compete with Woods any time in the near future. And the buyer is paying to make sure Woods stays on the sidelines of the local radio game.
The stations are KJUG AM-FM Tulare CA and KCRZ-FM Tipton CA, in the Visalia-Tulare-Hanford market. Woods’ Westcoast Broadcasting Inc. is the seller, and the buyer is Momentum Broadcasting LP, headed by Don and Shelly Groppetti.
The value of the transaction is $2.4M all told. $125K will go into escrow, another $875K in cash will be paid at closing and Momentum will hand over a promissory note for $800K.
The rest is tied to the non-compete. For a period of five years, Woods and his company must not hire any of the station’s employees, and Woods and his company must refrain from participating in the radio business in four counties: Tulare, Kings, Kern and Fresno.
In return, Woods will receive $600K, paid without interest at the rate of $10K monthly for the duration of the non-compete period.
KJUG-FM plays Country on 106.7; KJUG-AM is a 1270 Classic Country outlet and 104.9 KCRZ-FM brings hits from the 80s and 90s into the market.