[BC] Clear Channel planning to sell off

[Mike McCarthy]

Last I heard, CC is planning to sell certain under performing stations or 
clusters in markets which there is no possible way to make the kinds of 
margins needed to sustain their operation under CC's corporate 
structure.  Much like CBS is selling stations in 10 markets which they call 
"non-core" markets.  IE---can't make the gross numbers work for them.  It's 
really hard to compare Buffalo with NYC, LA, and Chicago where Buffalo's 
total cluster revenue might equal that of one highly rated station in LA or 
NYC.

They've done something to that effect with their expanded band moved-in 
station with a local minority operator who is going to LMA the stick for 5 
years, an option to buy, and has right of first refusal after the LMA deal 
is done.  If they sell the other AM here, I would be really surprised.

When CC went on it's buying binge, they bought a pile of encumbered chafe 
along with the desired sticks. It seems they feel the time is right to 
start disposing of less desirable sticks or markets to those people who 
don't mind a 20% trailing cash flow as opposed to a 40% or more for well 
performing stations/clusters.  For those stations/clusters, there is simply 
too much corporate overhead resulting in a net loss when all the corporate 
stuff is allocated to each station.

Now...having said that, they have taken many sow's ears and turned the 
stations into decent plants. To that end, John Warner and crew have done a 
bang-up job.  So it might be possible for them to spin those old run-down 
AM's they bought much easier since they've been fixed up and operating more 
reliably.

MM