A footnote to the controversy over the loss of KNGY-FM, “Energy 92.7,” San Francisco’s Gay oriented dance music station. It appears that had the frequency’s new management wanted to, it could have retained the old format’s staff, or at least retained the services of Energy’s popular morning show duo: Fernando and Greg.
Radio Survivor has obtained a copy of the Asset Purchase Agreement between 92.7’s former owner, Flying Bear Media, and the buyer, Ed Stolz of Golden State Broadcasting. Section 7.9 of the agreement outlines personnel issues:
“7.9 Employee Matters. Within twenty (20) days following the date of this agreement, Buyer shall notify Sellers which of Sellers’ employees Buyer wishes to employ. Effective as of the Closing Date or the LMA [Local Marketing Agreement] Effective Date, Buyer shall offer employment to such employees.”
The agreement is dated July 13, 2009. According to the contract, a Local Marketing Agreement would have been triggered had both parties not closed the deal on Sunday September 13. But from the documentation it looks like Golden State owns the license outright, having purchased it for six and a half million dollars.
This gives a somewhat different picture of the choices that Golden State faced when it bought the station than I took from my brief interview with Stolz. During that conversation I asked him whether he had any inclination to keep the old format and staff.
Stolz pointed out that the prior owner had gone into default with its lender and dismissed its staff “long before we ever reached the building.” This contract suggests that, whatever financial condition Flying Bear was in, the company offered Stolz the choice of keeping the Energy 92.7 team.
That option appears not to have been taken. Golden State has picked new call letters for the signal: KREV, and gone to a Top 40 format which, so far, is entirely bereft of any on air talent.