590 The Fan, KFNS-AM is going through changes again. Station owner Randy Merkel is selling a 25% stake in ownership to Tim McKernan, the current station operator of CBS Sports 920 WGNU-AM in St. Louis.
Under the terms of the deal, Merkel will assign the station’s license to the McKernan Radio Group, even though he will retain 75% control of the licensee. McKernan will also be paid a $50,000 signing bonus and receive a $200,000 working capital reserve fund.
In assuming control of the radio station, McKernan will be responsible for all programming responsibilities, and his show “The Morning After” show will move on to the station’s airwaves and broadcast weekdays from 7a-10a CT. His website InsideSTL.com will also become the radio station’s website.
If Markel elects to sell the remainder of his ownership stake, McKernan will have right of first refusal to buy him out. He also has the opportunity to match any additional offers.
The final layers of the agreement include McKernan signing an employment agreement with the new company for five years at annual rates of $200,000, $225,000, $250,000, $275,000, and $300,000. He will also receive a car allowance of $1,950 per month for himself, his spouse, and one employee. If the radio station is sold to a third party, McKernan would receive a $100,000 buyout.
What is unclear at this time is what will air on 920AM, which shows will be part of the on-air lineup, and whether McKernan will continue branding the radio station as 590 The Fan or give it a fresh identity. There’s also the option of continuing to use the CBS Sports name.
All Access was the first to report this information.