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Thread: Teams Buying Their Own Stations Continues

  1. #1
    You're soaking in it! MartyFan's Avatar
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    Teams Buying Their Own Stations Continues

    In the article it says Pohlad is just putting together a "little media group" but frankly, this increases revenues for a team. It would be horribly naive for a team not to consider owning a media group if for no other reason than branding and of course off season ad revenue that can be generated for a relatively low investment.

    I think the Reds will be on this train before long.

    Twins Owner Carl Pohlad Money Behind Northern Lights
    Yesterday's shocker (NET NEWS 6/13) that RADIO ONE had sold KTTB (B96)/MINNEAPOLIS to NORTHERN LIGHTS BROADCASTING LLC, a new company headed by longtime TWIN CITIES radio broadcaster STEVE WOODBURY, who has been the station's VP/GM but is now elevated to Pres./CEO, has more details TODAY. Some of the financing behind the deal came from MINNESOTA TWINS owner CARL POHLAD, who is contemplating buying more broadcast outlets.

    POHLAD bought KTTB "just to get into the industry," said WOODBURY. "My charge is to find other radio stations and possibly TV and build a little media group." WOODBURY said he began searching for local investors in late 2005 after RADIO ONE executives told him they wanted to sell the station. He said the old owners felt that the TWIN CITIES area did not have a large enough black population to support the format.

    WOODBURY said he pitched the station to POHLAD, who spent the better part of the last year analyzing the business. WOODBURY wouldn't disclose specifics but said the station is "very profitable." KTTB will retain its format and staff, including its on-air personalities, he said. "I've grown up in the radio business and I believe local broadcast ownership is important," WOODBURY said.

    Besides the TWINS, POHLAD and his three sons also have holdings in financial services, soft drinks and jewelry. WOODBURY said the station purchase is part of the continuing diversification of their holdings.
    "Sometimes, it's not the sexiest moves that put you over the top," Krivsky said. "It's a series of transactions that help you get there."

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  3. #2
    This one's for you Edd Heath's Avatar
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    Re: Teams Buying Their Own Stations Continues

    I wonder if the days of radio conglomerations are fading and the cycle of new, independent stations are returning?

    Redleg Broadcasting. I like it.
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    Rally Onion! Chip R's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by Heath View Post
    Redleg Broadcasting. I like it.

    Be careful what you wish for. You might get it. I think I can imagine what an all Reds all the time station would be like and it won't be pretty to a lot of folks here.
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    This one's for you Edd Heath's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by Chip R View Post
    Be careful what you wish for. You might get it. I think I can imagine what an all Reds all the time station would be like and it won't be pretty to a lot of folks here.
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    Seriously, if the Reds had some type of Broadcasting network, it probably would involve ESPN Radio. I'd like it to broadcast old Reds games and stuff like that.
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    Member 15fan's Avatar
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    Re: Teams Buying Their Own Stations Continues

    The Bengals already have their own channel.

    Court TV.

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    Yay! dabvu2498's Avatar
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    Re: Teams Buying Their Own Stations Continues

    KTTB is a hip-hop station.
    When all is said and done more is said than done.

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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by 15fan View Post
    The Bengals already have their own channel.

    Court TV.

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    You're soaking in it! MartyFan's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by dabvu2498 View Post
    KTTB is a hip-hop station.
    For now...
    "Sometimes, it's not the sexiest moves that put you over the top," Krivsky said. "It's a series of transactions that help you get there."

  10. #9
    Making sense of it all Matt700wlw's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by 15fan View Post
    The Bengals already have their own channel.

    Court TV.

    Last edited by Matt700wlw; 06-18-2007 at 11:41 PM.

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    Pitching is the thing WVRedsFan's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by MartyFan View Post
    In the article it says Pohlad is just putting together a "little media group" but frankly, this increases revenues for a team. It would be horribly naive for a team not to consider owning a media group if for no other reason than branding and of course off season ad revenue that can be generated for a relatively low investment.

    I think the Reds will be on this train before long.
    The only problem with this is the Reds are a *regional* team. It's just not Cincinnati, but southern Ohio, Eastern Indiana, Northern Kentucky, most of West Virginia and parts of southwest Virginia follow the Reds. Put it on a local station and not a 50,000-watt station and you lose more than half your fan base. Of course, i don't know how aware of this, Bob Castellini is. The fact that Suddenlink Communications picked up the entire Reds package here in WV should be a clue.

    One of the few joys of this season has been the fact that XM subscribers (of which I am one) can get all the pre-game and post-game stuff from WLW on XM as well as the games. Nice. Now we get all the TV games locally. Super nice. Now if we just had a front office and field management to field a team worthy of this coverage...

    Throw that show onto a local AM station and fans lose all of that who don't happen to live within 20 miles of Cincinnati.

    Of courwse, I expect this to happen. With all the great <choke> moves this leadership has given us, this would be one more thing that would turn off fans--something they've proven that they are pretty good at. Remember all the talk about bringing the Reds back to contention? Whatever happened to that?

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    You're soaking in it! MartyFan's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by WVRedsFan View Post
    The only problem with this is the Reds are a *regional* team. It's just not Cincinnati, but southern Ohio, Eastern Indiana, Northern Kentucky, most of West Virginia and parts of southwest Virginia follow the Reds. Put it on a local station and not a 50,000-watt station and you lose more than half your fan base. Of course, i don't know how aware of this, Bob Castellini is. The fact that Suddenlink Communications picked up the entire Reds package here in WV should be a clue.

    One of the few joys of this season has been the fact that XM subscribers (of which I am one) can get all the pre-game and post-game stuff from WLW on XM as well as the games. Nice. Now we get all the TV games locally. Super nice. Now if we just had a front office and field management to field a team worthy of this coverage...

    Throw that show onto a local AM station and fans lose all of that who don't happen to live within 20 miles of Cincinnati.

    Of courwse, I expect this to happen. With all the great <choke> moves this leadership has given us, this would be one more thing that would turn off fans--something they've proven that they are pretty good at. Remember all the talk about bringing the Reds back to contention? Whatever happened to that?
    Well, I think that you have an interesting observation but I am not sure I agree with it...I mean I can totally see what you are talking about but it actually may benefit the Reds to jump from the 50,000 W giant they are on currently to move to a lower powered station that covers ONLY Cincinnati...what this does is allows the regional stations who wanted to broadcast the reds on their sticks to do so...because of the revenues generated through local programming on their own station and the ability to add to the number of stations in their network they could demand even more money for their ad rates...not to mention the absolute PLUS it would be for the organization in Cincinnati who all but forgets they are around after the All Star Break...thing is this could help them in all areas of their fan base, revenue and marketing efforts.

    Additionally I think there is sufficient proof that the moves this leadership have made have made this organization stronger than it has been in years if for no other reason than the players discarded under-perform the players brought in.

    I drink the Kool Aide and LOVE Special K and Mr. C...this leadership will build a contending team...possibly as early as next year.
    Last edited by MartyFan; 06-19-2007 at 03:14 PM.
    "Sometimes, it's not the sexiest moves that put you over the top," Krivsky said. "It's a series of transactions that help you get there."

  13. #12
    Rally Onion! Chip R's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by MartyFan View Post
    Well, I think that you have an interesting observation but I am not sure I agree with it...I mean I can totally see what you are talking about but it actually may benefit the Reds to jump from the 50,000 W giant they are on currently to move to a lower powered station that covers ONLY Cincinnati...what this does is allows the regional stations who wanted to broadcast the reds on their sticks to do so...because of the revenues generated through local programming on their own station and the ability to add to the number of stations in their network they could demand even more money for their ad rates...not to mention the absolute PLUS it would be for the organization in Cincinnati who all but forgets they are around after the All Star Break...thing is this could help them in all areas of their fan base, revenue and marketing efforts.

    I'm not so sure I'd agree with that. The big advantage with 700 is its signal which can be heard in 30 some states. I can't tell you how much that meant to me back when I lived in Iowa and had no other access to the Reds. There's also the tradition factor.

    However, while WLW can be heard in 30 some states, it can only be heard at night for the most part and even then, the signal fades in and out and it can have a lot of static. It can be quite maddening when you hear Marty say, "Here's the 3-2 to Pujols" and then all you hear is static. That was adequete when it was the only game in town. But it isn't any more. With the internet and XM, even people halfway across the world can hear ball games now. I'm guessing owning your own station makes things a little easier as far as advertising goes. It can also be another place to hide losses or revenues. I'm also not so sure the smaller affiliates really want anything to do with baseball games. Why do that when other programming can make more money?

    It doesn't really matter to me but if the Reds do switch stations, I hope it's not some crappy station you can't hear outside the 275 loop.
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    You're soaking in it! MartyFan's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Chip:

    The big signal doesn't really do anything for the Reds...The Reds are not THE Team in Iowa and the big signal doesn't do anything for the team when it comes to revenue because you only count revenue in a logical area of impact.

    With that in mind, small market radio stations like in Olive Hill, KY...Belpre, OH...Hillsboro, OH all program sports programs because they are a low cost, high profit product...some don't even need to use board ops at the station on game days as they can be automated...it is an easy sell for the sales force because the tradition of the product is again a low investment way to get businesses that would not usually advertise on radio to do just that.

    IN several small market radio stations I worked in over the years the biggest money makers we had were Pro baseball, high school football and auto sports. The reason they were so profitable was because of the number of commercial spot availabilities...so, the people that were buying on these programs were getting a real high frequency of spots to a very concentrated audience that would be interested in their product because they supported the team that the listener is a fan of.

    Clear Channel is breaking off some of their properties and with that in mind some staff will be shifting from here to there and back again...new ownership groups known product to sell to generate revenue....and at the end of the day, it's all about revenue.

    The only format I ever worked in that made more of a ROI than sports programming was Christian Teaching-Talk...not the most popular format but it has a very loyal audience who support the advertisers who underwrite their favorite programming...in addition to the commercials, pretty much every teaching program pays a fee to the radio station for the air time...the station I programmed in particular broadcast from sun up to sun down...on average we were on air for 14 hours a day because the sun up and sun down time change year round. On average we only had a 5&#37; under sell...meaning of all the available inventory (commercial slots) only 5% of them were unused..so, out of 14 hours a day of broadcasting...13.3 hours were delivering a commercial message and producing income.

    Just saying regardless of the station signal size...with the right product every station is a cash cow and if they are not it is because the ownership, management or programming department are programming to hunches, personal preferences or just not very good at what they do.

    For a team to buy a station they open up a year round source of revenue and marketing...some day I may get back in radio and if I buy a station it will either be Sports or Christian talk/teaching...those two stations offer the best scenario for financial success.
    "Sometimes, it's not the sexiest moves that put you over the top," Krivsky said. "It's a series of transactions that help you get there."

  15. #14
    Rally Onion! Chip R's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by MartyFan View Post
    Chip:

    The big signal doesn't really do anything for the Reds...The Reds are not THE Team in Iowa and the big signal doesn't do anything for the team when it comes to revenue because you only count revenue in a logical area of impact.

    With that in mind, small market radio stations like in Olive Hill, KY...Belpre, OH...Hillsboro, OH all program sports programs because they are a low cost, high profit product...some don't even need to use board ops at the station on game days as they can be automated...it is an easy sell for the sales force because the tradition of the product is again a low investment way to get businesses that would not usually advertise on radio to do just that.

    IN several small market radio stations I worked in over the years the biggest money makers we had were Pro baseball, high school football and auto sports. The reason they were so profitable was because of the number of commercial spot availabilities...so, the people that were buying on these programs were getting a real high frequency of spots to a very concentrated audience that would be interested in their product because they supported the team that the listener is a fan of.

    Clear Channel is breaking off some of their properties and with that in mind some staff will be shifting from here to there and back again...new ownership groups known product to sell to generate revenue....and at the end of the day, it's all about revenue.

    The only format I ever worked in that made more of a ROI than sports programming was Christian Teaching-Talk...not the most popular format but it has a very loyal audience who support the advertisers who underwrite their favorite programming...in addition to the commercials, pretty much every teaching program pays a fee to the radio station for the air time...the station I programmed in particular broadcast from sun up to sun down...on average we were on air for 14 hours a day because the sun up and sun down time change year round. On average we only had a 5% under sell...meaning of all the available inventory (commercial slots) only 5% of them were unused..so, out of 14 hours a day of broadcasting...13.3 hours were delivering a commercial message and producing income.

    Just saying regardless of the station signal size...with the right product every station is a cash cow and if they are not it is because the ownership, management or programming department are programming to hunches, personal preferences or just not very good at what they do.

    For a team to buy a station they open up a year round source of revenue and marketing...some day I may get back in radio and if I buy a station it will either be Sports or Christian talk/teaching...those two stations offer the best scenario for financial success.

    I'm only saying the signal strength is an asset for those who live far away or over a 150 mile radius away and don't have XM and/or internet access. If I still lived in Iowa, I would probably have Extra Innings or MLB Radio or even XM to listen to the Reds. It's nice if I'm in northern Ohio, southern KY, Indiana or eastern Illinois during the day and I may be able to listen to the Reds. Otherwise, it doesn't make a whole hell of a lot of difference.

    Since MLB is in bed with XM and they have their own radio service over the web, I would think it would behoove them to not have a lot of small stations carry the games. If a lower powered station than WLW locally carried the games and I lived in Athens and WATH didn't carry the games any more, I'd be forced to either go without or get Extra Innings, XM or MLB Radio.
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    You're soaking in it! MartyFan's Avatar
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    Re: Teams Buying Their Own Stations Continues

    Quote Originally Posted by Chip R View Post
    I'm only saying the signal strength is an asset for those who live far away or over a 150 mile radius away and don't have XM and/or internet access. If I still lived in Iowa, I would probably have Extra Innings or MLB Radio or even XM to listen to the Reds. It's nice if I'm in northern Ohio, southern KY, Indiana or eastern Illinois during the day and I may be able to listen to the Reds. Otherwise, it doesn't make a whole hell of a lot of difference.

    Since MLB is in bed with XM and they have their own radio service over the web, I would think it would behoove them to not have a lot of small stations carry the games. If a lower powered station than WLW locally carried the games and I lived in Athens and WATH didn't carry the games any more, I'd be forced to either go without or get Extra Innings, XM or MLB Radio.
    Chip:

    I get what you are saying and I guess I am of the thought that the BIG SIGNAL is less of an asset to them than several small stations because of the exact same reasons you mention as well as the ability to open up more revenue.

    I get that people in Iowa may be forced to check out XM, MLB Radio and/or Extra Innings...I don't know how old you are but when I was a kid in the 70's those options were not heard of and I can remember checking out the Columbus Citizens-Journal for the box scores from the night before..I know, it wasn't fast, instant or sexy but...that's just how we did it.

    Hey, also, one reason for the benefits of the Reds owning their own station and increasing their affiliates...Clear Channel is realizing they cannot successfully operate the vast number of properties they have and they are unloading strategic properties that will more than likely serve only in fringe markets or small markets that do not deliver a high dollar commercial benefit.
    "Sometimes, it's not the sexiest moves that put you over the top," Krivsky said. "It's a series of transactions that help you get there."


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