Injecting cash into an LPFM deal


According to the rules and regulations, low power FMs must be noncommercial, and they cannot be bought and sold in the same way as other radio stations. However, as the transfer of KXRN-LP Laguna Niguel CA demonstrates, it is possible to attach a check to an agreement.

The station elements that cannot be sold can be termed the FCC assets; essentially, the license. In the case of KXRN-LP, that part of the station is being transferred for no cost. But the equipment – that’s another matter.

The seller of the station is Shepherd of the Hills Church of Laguna Niguel, headed by Beth A. Laurinitis, and the buyer is Laguna Radio Inc., headed by Fletcher McCusker.

The price is characterized as the depreciated value of the stations equipment, faithfully detailed in an inventory attached to the transaction contract.

The value is placed at $37,255, to be paid via a $5K deposit with the remainder coming in cash at closing.

The bulk of the equipment is valued at $37,367, plus $3,176 in taxes, less $15,201 in depreciation, for a total of $25,342. The console and transmitter are valued at $12,297 less $384 in depreciation, for a total of $11,913, which combined with the other equipment produces the final transaction price.

The station in on 93.5 MHz with 100 W @ -114’. It serves the coastal area south of Los Angeles and near Laguna Beach.