Big names compete for radio licence
Those looking to win the licence include Bob Geldof, U2 manager Paul McGuinness, property developer Johnny Rohan, Denis O’Brien, Abrakebabra founder Graeme Beer and concert promoter Denis Desmond.
According to submissions to the Broadcasting Commission of Ireland, the five consortiums expect the station to gain a market share in Dublin of around 8%.
Favourite to win the BCI’s approval is Phantom FM, whose backers includes Mr Desmond, Mr McGuinness and his business partner Trevor Bowen, and Frank Gleeson of the Whelan’s and Village music venues in Dublin.
Phantom FM said in its submission it would target 15-34 years in Dublin and expects to spend e1 million in launching the station and building its profile.
Phantom, which had held a temporary licence, forecast a 2% share of the market in its first year with revenues of around €900,000. It said this would double by 2007 to 4% off the market and €1.7m in revenues.
It said there is room in the market for the alternative music station as many of those in the age group are dissatisfied with the current choice in the city.
Another high-profile consortium is Radio Eleven, backed by the Abrakebabra founder Graeme Beer who is its largest shareholder with a 30% stake. Treasury Holdings boss Johnny Rohan, nightclub owner Robbie Fox and Gavin Bonnar, who is the husband of Sharon Corr, are also members of the consortium.
They propose a mix of music from reggae to rock across the day-time schedule with specialist music programmes in the evening.
It has secured €4 million in funding with a commitment for a further €2m prior to being launched.
It forecasts revenues of €1.35m in the first year of operations rising to €4.07m at the end of the fifth year.
The most experienced bidders are Xfm, which runs the eponymous London station. It has teamed up with UTV, the owners of County Media in Cork and Dublin Q102, and former Atlantic 252 chairman Donncha O’Driscoll.
Denis O’Brien has also thrown his hat into the ring and taken a stake in Edge FM. Mr O’Brien, who owns Dublin’s 98FM and is the largest shareholder in Newstalk 106, has joined with accountants Greg Sparks, businessman Trevor O’Reilly, publican Kevin Fitzsimons and ex-Yahoo director Lee Thompson.
The last bidder is Zed FM which has pulled in theformer Boomtown Rat Bob Geldof to back its applications. The consortium is headed by Dermot Hanrahan, who was previously chief executive of Dublin commercial station FM104.
The Stokes family, who own Hotpress magazine, and Jim Aiken the concert promoter are also backing this bid. Zed FM has already lined up €3 million in funding.
The BCI will review the submissions over the summer and oral hearings to discuss the bids will begin in early September.
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