Witkovski currently owns 96.1 KZRC Bennington, OK and 99.7 KETE Sulpher Bluff, TX. His group previously owned Dallas area move-ins 93.7 KNOR and 98.3 KBOC before selling them in the early 2000′s. The petition for reconsideration is not available in the FCC’s online database.
INSTANT INSIGHT: For Whitley and Witkovski to file a petition for reconsideration, they have likely come to agreement on a license transfer to take the station out of Cumulus’ hands. Even if the FCC rejects it, the cost of lawyers would be less than waiting for the allocation to come up down the road when put up for auction.
Update 10/20: With the FCC reopening, it can be confirmed that Cumulus has surrendered the license of KTDK back to the FCC on October 7.
Cumulus needed to divest a station in the Dallas market in order to begin its LMA of 103.3 KESN. With the FCC rejecting the proposed sale to Whitley Media it had no time to wait for an additional deal to go through the FCC process. Cumulus will transition 96.7 WBAP-FM on Monday to KTCK-FM to replace the coverage lost by the departure of 104.1.
The station’s call letters have been deleted and the allocation will likely become available in a future spectrum auction.
Update 10/4: 104.1 KTDK will drop its simulcast of “The Ticket” 1310 KTCK this weekend.
Update 9/20: The FCC has rejected the sale of 104.1 KTDK Sanger to Whitley Media.
Stating that the license transfer is not a true sale in that all economic risk would remain with Cumulus as Whitley would get the same brokerage fee regardless of the price he sells the station for, Cumulus would remain the defacto owner of the station.
The APA, by providing for Whitley to be reimbursed out of the sale proceeds for any losses and expenses he incurs in operating the Station, makes it clear that all of the economic risk of operating the Station would remain with Cumulus. Likewise, because Whitley is required to remit to Cumulus all of the proceeds from the sale of the Station, less his expenses and his brokerage fee, Cumulus would retain all of the risk of loss and potential for profit from the sale of the Station to a third party. Whitley will receive his brokerage fee and no more, whether the Station is sold for $1 million or $10 million. Given these “economic realities,” we conclude that the agreement between Cumulus and Whitley cannot be reasonably characterized as a proposed $100 sale of the Station to Whitley and that Cumulus would remain the owner of the Station.
Cumulus spun-off KTDK to Whitley in order to LMA 103.3 KESN from ESPN. That LMA was set to begin as soon as the KTDK spinoff to Whitley closed. Now both are on-hold indefinitely.
Original Report 7/3: Cumulus Media has sold 104.1 KTDK Sanger, TX to Whitley Media.
The station currently rebroadcasts Sports “1310 The Ticket” KTCK to the northern suburbs of the Dallas/Fort Worth market.
The sale price will come in two parts. At closing of this sale, Cumulus will receive $100. Whitley will then turn around and resell the station at which point Cumulus will receive all proceeds from that sale minus all expenses incurred in the operation of the station and from marketing and reselling the station.
William Whitley, the owner of Whitley Media, is a broker with Media Services Group. KTDK is a Class C3 operating with 6.2kW at 192 meters.
INSTANT INSIGHT: With Cumulus being at the ownership limit in Dallas and the way this sale is being structured it makes us wonder if they needed to quickly divest their worst signal in the market in order to make room for the acquisition of another.