View Full Version : Why the Reds SHOULD buy their very own station

08-06-2007, 05:46 AM
I was reading Inside Radio a little while ago and skimmed across this article about the BoSox radio rights being sold for $14mil per year...well, that is great for the BoSox and it makes sense for them to take that deal.

For teams like the Cardinals and even our own Reds they will NEVER see that sort of deal put on the table...not even close...so, the Reds should seriously look at buying their own radio station and creating a flagship which they can then gain revenues from year round.

Here is the article...and it shows you a glimpse of what sort of revenue the radio stations make off of the games.

WHAT STATIONS ARE DOING: Entercom finds a way to help offset its big ticket Red Sox contract.
by Inside Radio, 07/25/07

WHAT STATIONS ARE DOING: Entercom finds a way to help offset its big ticket Red Sox contract.

The Boston market was shocked when David Field agreed to pay an estimated $14 million a year to air the games on WRKO (680) and WEEI (850) for the next ten years. Entercom says it’s looking at several ways to make the numbers work including a naming rights deal. It’s first is an agreement with Shaw’s Supermarket making it “the official supermarket of the Red Sox Radio Network.” Financial details aren’t being released, but it’s believed to be worth several million dollars for each of the next five years. The supermarket chain will get at least 21 mentions a game and three the day before. Shaw’s will also get promotion tie-ins with the radio broadcasts. Entercom is looking at broadening its 66 station radio network to reach Red Sox Nation far and wide — with affiliates in states like Florida, Arizona, and California. Source: Inside Radio, 07/25/07

21 mentions in a game is a HUGE amount of mentions...but other than that the only inventory the supermarket gets is the three mentions the day prior to the game...also the tie ins which will be nice but again do not take inventory...games are a cash cow for radio...I don't care if it is high school, college, pro...games are a cash cow and the teams record does not matter because there will always be a fan base that follows that team.

The Red should start looking or inquiring about a property of their own in the Cincinnati market...something 10KW or more would cover the market just fine...they could then build a stronger network of more affiliates in more markets which would increase their revenues even more.

08-06-2007, 08:28 AM
It's a technicality, but...

the Reds shouldn't buy their own station.

The people who own the Reds, however, should.

Transfer pricing, asset appreciation, and taxes. That's what it's all about.

08-06-2007, 10:28 AM
I'm all for the Reds maximizing the revenue they get out of their product. I just fear that owning a radio station would be too far afield of the Reds' ownership group's core competency. They may know about baseball (posters here daily questioning of that notwithstanding ;) ), but the radio business is a very different thing from the baseball business.

Granted, selling radio audiences to advertisers is not much different from selling ads in a program or ads on the stadium wall. Putting on compelling programming that will inspire audiences to tune in 365 days a year at all times of the day or night is truly the hard part. Especially when your competition in doing that are the Clear Channels and Entercoms of the world. Those big players get first dibs on the proven syndicated fare and the one-off owner, like the Reds would be, gets table scraps.

08-06-2007, 12:12 PM
The problem for the Reds is finding a radio station that has a decent signal to cover the Greater Cincinnati area and than trying to wrestle it away from the giants like Clear Channel. Since deregulation of ownership of airwaves, Clear Channel has grabbed most of the AM Radio dial. Clear Channel is not going to sell a decent "stick" to the Reds, so the Reds could take their games off WLW 700, a CC station.

08-06-2007, 10:23 PM
15fan: Point taken...you are right.

Unassisted: I doubt the guys and gals currently in the FO would be the ones calling the shots and being in cahrge of the format, programming and personalities (if they have any)...I imagine it would be another division like the Reds HOF, MLB and Business branches.

RBA: this is a perfect time to approach a group like Clear Channel, Entercom, Cumulus, Radio One and even Salem...the signal does not have to be anything more than city coverage...6KW would get that done...if a 3KW stick was located in the center of the city that would also do it...Clear Channel has been selling off their properties left and right...I know they want to consolidate in top markets and I am certain Cincy is one of those markets...but this is by no means a time when buyers are beggars...CC and the other properties are in a sale mode.

I seriously think that the best partner for a sale would be Radio One, Entercom or First...of the three, I would say First offers the best opportunity because they have three frequencies broadcasting one format...one property is 25KW the other two are lower power but on the same freq so they cover the metro just fine.

I am certain the Reds owners could sweetin the deal with co-promotions, tie ins and some sort of LMA hybrid and still accomplish a really great move for a team like the Reds.

Just my thoughts out loud.


08-13-2007, 07:50 PM
Another club looking into the options for their broadcasting future.

The MILWAUKEE BREWERS have hired a consultant to review the team's options in the radio market. The MILWAUKEE JOURNAL-SENTINEL's BOB WOLFLEY reports that the BREWERS have hired LHB SPORTS, ENTERTAINMENT AND MEDIA's LEE H. BERKE to look at the options for radio contracts in the MILWAUKEE market. The BREWERS have aired on JOURNAL Talk WTMJ-A since 1983 and are under contract through 2008.

Stations are out there...the Reds DO NOT need WLW, in fact they would be better off to not be on that strong of a signal...I HOPE they take advantage of this opportunity when the contract with WLW is up.

08-14-2007, 02:10 AM
WLW isn't the promotional tool it used to be, it's a critical and mouthy bunch that irritate me to no end. It used to be somethng you always turned on while cooking out after mowing the grass when the game came on. I always took the transister radio with me to the games to get Joe's commentary...., no more! WLW is a station I avoid.

The Reds could get their own but the arguments still remain. Getting a good place on the dial will be tough, starting out will take some smart promotional effort and it would help if the Reds were winning. How do you get on Serious (sp)? That seems to be the up and coming place to be but then you wouldn't be available to the general public and that would suck.

Johnny Footstool
08-14-2007, 10:17 AM
I'd like the Reds to have an XM station, or to set up their own AM station and sign some kind of rebroadcast deal with XM.