HSA Note: "KKEA general manager Randal Ikeda said the new arrangement involves, "net income sharing" and "promises a broader partnership" between the station and UH. Under the agreement, the station said, it will give a yet-to-be-announced portion of its net income to UH after "recapturing a portion of sales costs and expenses." "
About sharing in the profits and assisting KKEA (AM 1420) with their sales efforts, JD said:
"The upside is if they make money, we make money." (HSA)
HSA Note: "Once, competition in the marketplace assured UH could be hands-off, sitting back and pocketing handsome radio rights fees. But as advertising sales have plummeted 30 percent or so in the local market from their peak and all-sports format outlets have dwindled, bottom lines and rights fees have been impacted to the point that UH might have been guaranteed only $150,000 from the new deal. That would be less than half of some recent contracts."
About how the declining ad revenue market resulted in other stations not being interested in UH's rights and KKEA having declining revenue, JD said:
"They (KKEA) shared their sales numbers and expense numbers with us and we could see it is a very tough situation for them." (HSA)
About how KKEA can use its sister station at AM 1500 to air multiple UH events simultaneously and their all-sports format gives a good platform to promote UH sports, JD said:
"They have the sports niche from where many of our customers come,." (HSA)
http://www.staradvertiser.com/sports/ferdswords/20110728_UHs_radio_rights_deal_is_an_interesting_partnership.html
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