Today FM sale may be affected by BCI rules

UK media group Emap could face difficulties selling Today FM, the Dublin-based national radio station, if the Broadcasting Commission of Ireland enforces a rule that prevents stations from being sold within two years of having their licence renewed.

Today FM had its 10-year national licence renewed in March 2006, which would suggest that Emap might have to wait for another 12 months before selling the station. The licence is due to expire in 2017.

Emap is planning to sell its three Irish radio stations, Today FM, FM104 in Dublin and Highland Radio in Donegal. These are thought to be worth up to €190 million, with Today FM thought to account for more than €100 million of the price tag.

The ownership and control rules state: "The BCI will generally look unfavourably upon proposed changes in ownership structures within a two-year period after the award of the sound broadcasting contract."

A change of ownership within two years could "undermine the integrity" of the licensing process and "be unfair to unsuccessful applicants". The rules, however, state that the BCI will operate a "level of flexibility" in certain cases and if they satisfy three criteria.

These are that there were no other applicants for the contract; the shareholders selling their interest were also shareholders over the period of the first contract; and that the proposed new shareholders have undertaken to comply with all of the contractual obligations from Today FM's licence with the BCI.

Today FM's bid to renew its licence was unopposed and any new owner is certain to agree to honour the terms of the licence renewal.

The station, however, could encounter problems in relation to its ownership during its previous contract. Today FM hit the airwaves in March 1997 as Radio Ireland. Its original backers included John McColgan and Moya Doherty, Dermot Desmond and Denis Desmond. It was acquired by Scottish Radio Holdings in 2001, which was taken over by Emap in 2005.