How to attach cash to an LPFM transfer

By on Sep, 29 2014 with Comment 1

Broadcast TowerDid you know that not only are LPFM stations required to be noncommercial, on top of that the licenses cannot be sold. But it is possible for some money to change hands when an LPFM license is transferred.

A case in point is the sale of WJJP-LP East Bernstadt KY.

It is being transferred from Appalachian Media Outreach, headed by Joseph Kesler.

The entity receiving the stations is Southeast Kentucky ECO Research. Kesler is also signed off for the receiving entity.

There is no value attached to the license transfer, which legally is going from one non-profit to another for no consideration.

However, Southeast Kentucky ECO Research will pay a small price, Southeast Kentucky ECO Research, to acquire the station’s EAS system, transmitter and tower.

And that is how you can legally attach a price tag to an LPFM transaction.

About The Author: RBR+TVBR has been reporting on the business of broadcasting for nearly three decades. Beholden to no one, it is independently owned.

  1. Our consulting service, Christian Community Broadcasters, has probably handled more LPFM Form 314 License Assignments than anyone else in the industry. Mr. Kesler should not be bragging yet. Requests such as these are routinely “Accepted for Filing” the first business day after filing. It will be weeks – possibly months – before it is Granted. The FCC will probably ask questions.

    The FCC allows only “depreciated value of equipment”. LPFM transfers are only allowed after three or more years of operation. CCB’s clients typically have stated – truthfully – “no compensation has been received or promised for the license or any equipment.”

    In the filing by WJJA-LP, the “price” is listed as $2,598.98 The FCC might require a CPA statement of the depreciated value. Certainly the life of the tower is far more than the ten years the station has been on the air. If I were the seller, I would have retained ownership of the tower and leased to the new owner under mutually agreeable terms.