By Garrison C. Cavell and Erwin G. Krasnow, Esq.
In their “not-too-technical, not-too-basic” guide to due-diligence, Cavell, Mertz & Associates President Garrison Cavell and Garvey Schubert Barer attorney Erwin Krasnow in 2016 made suggestions on assessing station potential from the technical side and deciphering station coverage maps, and then explored treasures that might be found in cyberspace and by poking through the stacks of station paperwork.
Here, they take a look at on-site tire kicking.
Since a lot of money is at stake in buying a radio or television station, you may be tempted to “save a few dollars” and forego a formal pre-purchase facility inspection by an experienced engineer. Don’t do it.
Walk around the station and speak with the staff.
Look for roof leaks, evidence of rodent and snake infestation, lightning or fire damage. Do you see equipment manuals, and are they kept in an orderly fashion? Do the sniff and (where it is safe to do so) the touch test. If you can safely look inside the transmitting equipment, does anything look burned or discolored? Does anything seem odd or give you a sense that something is not right? Pay attention to that feeling. Gut instinct pays off.
How is the building heated and cooled? Is there a dust and insect issue? Are the equipment filters clean?
Try to determine the relative age of the transmitters. If they are more than 25 years old, they may have oil-filled components (transformers and capacitors) that contain PCBs. If they do, is the equipment properly tagged, and does the fire department know about it? (If so, any fire will likely not be promptly extinguished since burning PCBs liberate carcinogens.) Try to get the owner of the station to arrange for proper disposal of these items BEFORE you take control (and make sure that you have a copy of the “certificate of proper disposal” in your transaction papers at closing.
If an emergency power generator is on the property, determine what kind of fuel it uses, if it is on a service contract, and how often it is tested and exercised. If diesel fuel is used, what is the status of the tank, and is it well contained? Was there ever a buried fuel tank? Do you see evidence of fuel spills? If so, be sure to get an environmental consultant involved to determine the extent of spillage and ground contamination before you take ownership and end up with the responsibility. It doesn’t take a lot of spillage over the years to create a significant issue, and particularly of something has seeped into ground water regions.
Look behind the building – check for discarded components that may contain PCBs or other evidence of a lack of care. Look at the building exterior and how the power and telephone/cable circuit are fed to, and into, the building. Look for evidence of vandalism or past break-ins.
Look at the tower – does it seem straight or twisted? If it uses guy wires, look at the wires for rust, excessive sag, obviously broken insulators, rusted guy anchors, and unsecured turnbuckles. Guy wires should not sag or look floppy. Stand underneath a guy wire and look up. If the tower is straight/not twisted, the guy wires should all fall in line and appear to the single eye as though they were one line going to the tower – not a clump of lines.
Look for obvious rust on the tower, and if painted, does the paint look to be in good condition? (There is actually a set of “official” paint chips you can buy to check for proper color.)
Any transmission lines going to the tower can either be buried or supported above ground. If you are dealing with the latter, all lines and cables should be well supported and not allowed to sag between support posts or trestles. The lines will eventually fail if they do not have adequate support. If the lines are pressurized (to keep water from entering the lines), do they seem to hold pressure – or are the nitrogen bottles empty (or is the dehydrator running constantly)? Transmission lines going up the tower should be securely attached and not flop around. They should also have “grounding kits” installed at the point where they initially touch the tower, and also before they enter the transmitter building for, among other reasons, lightning protection. In the case of AM stations, ask your engineering consultant to brief you on the special considerations that may be involved.
Look at the tower lighting – does it seem to work properly and look normal, or are the red lenses shot out? If the tower is supposed to be registered, check for a tower registration number to be prominently placed on the tower or on its enclosure. AM towers are required by the FCC to be fenced, and it is a good idea to also fence the base of an FM/TV tower to prevent vandalism or climbing. All fences should be in good condition and locked. Look for RF Exposure warning signs – they should be there.
Finally, look at the condition of the grounds. Grass should be kept reasonably mowed. Trees and vines should not be allowed to entangle the tower, guy wires or guy anchors. Look for evidence of trespassing, especially with four by four vehicles, which have the potential to topple a tower or tear up an AM station’s expensive radial ground system.
Bottom line: There is quite a lot that a non-engineer can spot, and having your own walk-around can help you better understand your consulting engineer’s report as it provides you with a better frame of reference. Armed with your own impressions, and your professional’s report, you are in a much stronger position to open the conversation with the seller about downward adjustments to the purchase price.
Garrison C. Cavell, the President of the Cavell, Mertz & Associates, Inc. consulting firm, has worked in management and technology positions in communications and broadcast systems for over 40 years. Gary is a former President of the Broadcast Technology Society of the IEEE and is presently the Editor-in-Chief of the 11th Edition of the NAB Engineering Handbook. He and his staff provide professional services to a wide array of facilities and organizations across the country and are regularly engaged to speak at industry functions on engineering and executive management topics. He can be reached at [email protected] and (703) 392-9090.
Erwin G. Krasnow, the co-chair of the Communications Group of Garvey Schubert Barer, is a former General Counsel of the National Association of Broadcasters, Washington counsel to the Media Financial Management Association, coauthor of Profitably Buying and Selling Broadcast Stations and Washington counsel to the Media Financial Management Association. He can be reached at [email protected] and (202) 298-2161.
This Media Information Bureau column originally appeared on July 19, 2016.
