Good Karma - ESPN

Last week’s announcement from Good Karma Brands that it will buy The Walt Disney Company’s ESPN Radio sports stations in New York, Los Angeles and Chicago included lots of details but not the most important one: the price. Yesterday the Craig Karmazin-led company revealed the missing piece in a filing with the FCC. It will pay $15 million to buy “ESPN 1050” WEPN, New York; “ESPN 710” KSPN, Los Angeles; and “ESPN 1000” WMVP, Chicago.

Under the terms of the deal, Good Karma will fork over $1 million in cash when the sale closes and then pay the remaining $14 million through a series of quarterly installment payments of $500,000. The deal also includes Good Karma Brands assuming the local marketing agreement for Emmis-owned “98.7 ESPN” WEPN-FM New York, which Disney subsidiary ESPN has operated since April 2012 and has a lease that extends through August 2024. ESPN has paid an annual fee of $8.4 million for the New York FM for the first year of the LMA term with 3.5% annual fee increases.

The contract says the sale does not include the transmitter sites for KSPN or WMVP. Good Karma has operated the latter under a local marketing agreement since October 2019. But it does include the equipment used by KSPN at its current Pasadena site, which Good Karma will be able to move to its new tower site at Disney-owned country KRDC (1110) in Valley Village where it will be diplexed onto the existing towers of KRDC. Under the move KSPN will change from a nondirectional 50,000 watts at day and a directional 10,000 watts at night to operate with a daytime power of 34,000 watts and nighttime power of 2,500 watts, using a different three-tower directional pattern for each operating mode. In addition, WMVP is moving to Downers Grove, IL.

The companies have also agreed to extend their ESPN Digital sales agreement, which began in 2015, in which GKB represents display and video inventory on ESPN.com and the ESPN app to local and regional advertisers in 14 markets.

GKB also operates ESPN affiliate stations in Cleveland, Madison, Milwaukee and West Palm Beach.