A consortium backed by investors including comedian Pat Shortt and former Cranberries musicians Noel and Mike Hogan has made a bid for a lucrative 10-year broadcasting licence in Limerick.
The Heart FM group went head-to-head at an oral hearing yesterday with the incumbent franchise holder in Limerick's independent radio sector, Live 95FM, which is owned by media company UTV.
It is estimated that the radio licence could generate gross profits in the region of €15-€20 million over the term of the 10-year franchise for the winning group.
Presenting its case to the Broadcasting Commission of Ireland (BCI), Heart FM said it was proposing to employ 36 full-time and 33 part-time staff at a new 5,000sq ft facility comprising studios and office space in Limerick city.
The consortium, which is chaired by former RTÉ broadcaster Michael McNamara, also includes managing director of Limerick Travel Tony Brazil and solicitor and broadcaster Will Leahy, as well as the Hogan brothers and Mr Shortt.
The BCI heard that Heart FM predicts a turnover of €4.3 million in the first year of operation with a 51 per cent market share in the same period.
A total of €300,000 would be allocated to the marketing budget in the first year and the group expects revenue to grow by 9 per cent annually in each of the first three years of the station's operation.
Heart FM also plans to allocate 25 per cent of its total output to news and current affairs, which it says is a significantly higher proportion than Live 95FM.
The consortium has also proposed to broadcast two daily local talk shows, including a late-night programme, compared to the single show currently broadcast in the morning slot on Live 95FM.
Some €1.3 million of its initial total investment of €2.5 million will go towards building and equipping its state-of-the-art studios, the BCI heard.
Limerick's Live 95FM, which is seeking a renewal of its existing licence, said it had an established track record in the area since it was taken over by the UTV group in 2002.
Market share in the franchise area had risen significantly from 33 per cent to 51.3 per cent following a total investment by UTV of €16 million in the past four years.
The chairman of the group, Prof Donal Dineen of the Kemmy Business School at the University of Limerick, told the hearing that the partnership between UTV as the sole shareholder and locally based management and staff who retain editorial control had proven a "winning formula" over the last four years.
The station attracts 127,000 listeners every week and has a strong track record of compliance with the BCI, the oral hearing heard.
It will employ a smaller staff than its competitor for the licence - 46 in total - and has committed a budget of €1 million for investment in new technology over the 10-year period of the licence
The Live 95FM group told the oral hearing that it plans to continue to build on its success over the last four years and has a long-term commitment to the Limerick city and county franchise area.
"I respectfully submit that the discerning Limerick audience has already endorsed Limerick's Live 95FM," said Prof Dineen.
A decision on which consortium will be awarded the new licence for the Limerick franchise area is due to be announced by the BCI on January 22nd.
