[BC] Why an older transmitter may be a good choice

[Mike Schillhahn]

 From a business office perspective, running an old box may be the only 
alternative due to financing covenants.

If the purchase price of the station is financed, the loan is secured by 
specified physical assets, usually including the transmitter and studio 
chain.  Changing out the transmitter, regardless of the cost savings, 
would require opening up the master financing document and doing a 
complete rewrite of the loan. And chances are, if the purchaser paid on 
the high end of the multipliers for the property, there's no wiggle room 
on the asset side to justify the new secured package, even if it does 
make operational sense. Keeping the old box on as a backup, so it 
remains a secured asset may not make financial sense, either (from the 
banker's perspective) if adding the newer box requires even moderate 
expansion/remodeling of the transmitter shack to accommodate both 
physically -- and that cost sometimes exceeds the price of the transmitter.

The best solution would be to include provision for new/updated physical 
plant in the original loan, but there are very few small to medium 
operators who have either the foresight or the expertise available to 
figure that out in advance of the purchase.