On the evening of October 7, 2004, St. Olaf College Vice President of College Relations Jan McDaniel appeared before the St. Olaf Student Senate [PDF, 4 pages] to answer questions about the announced sale of WCAL charitable trust assets. The minutes read as follows:
McDaniel: Last Nov, MPR offered to purchase. We were surprised. [St. Olaf College President] Thomforde talked to Board of Regents (BoR) in spring. Then brought to BoR exec committee. Hired radio broker to see if price was right. Found 11 potential buyers. Let 4 or 5 bid. EMF offered $3 mill more than MPR. So, MPR offered promo time and some administrative stuff for Olaf. Regents met in Aug and were shown 2 offers. Made unanimous decision. WCAL is non-commercial. Commercial value is 3-4 times more. Satellite radio is starting, which is a threat to non-commercial radio, especially classical. The value of the station and value in 10 yrs will be less than value of $10.5 million in the endowment in 10 yrs. Over last 10 yrs, Olaf cut funding to WCAL. Cut all money last year and station had balanced budget. The money will boost our nat'l ranking. The BoR decided that endowment will do more long-term good than WCAL will.
We note that:
St. Olaf has never released the information on the identity of the "11 potential buyers" or the 4-5 buyers that they "allowed" to bid. In fact, no other bidders have come forwards except for Educational Media Foundation (EMF).
St. Olaf never gave any notice to the broader community of the sale so that a non-profit community group could be formed to make a bid (as has been done with other public radio stations).
No proof was ever offered as to how a paid service such as satellite radio would be a threat to a FREE service such as radio. St. Olaf never addressed the question of why, if this was true, would MPR invest in another station.
No proof was ever offered on how St. Olaf came to the conclusion that the value of the station was–or would be–decreasing.
St. Olaf showed no proof of how the money would boost "national ranking." (Note that a number of prominent colleges are refusing to participate in ranking surveys because of their flawed methodology.)
McGuire: What does "promo spots" entail? Concerts? Ads?
McDaniel: Similar to what WCAL does. 30 sec spots, 10 times a day. Worth $1.3 mill.
The MPR annual reports choose to value these at just under $800,000 — far less than $1.3 million.
McGuire: Will MPR do our concerts?
McDaniel: MPR will nationally broadcast Xmas Fest. Making proposal to do online streaming of chapel and other concerts.
McDaniel neglects to mention that St. Olaf has sold the rights to the Christmas Festival to MPR. There is no mention to the students of the cost of Internet streaming and the limitations this places on listening audiences.
Hensel: Students for WCAL mentioned building. Is the building involved?
McDaniel: Selling license and some equipment, but not the building.
The Purchase Agreement with MPR stipulates that St. Olaf has actually sold the building and grounds to MPR.
Guest: What are plans for that building?
McDaniel: Unsure. Pete Sandberg will work on that when Sci Complex is built, etc.
Hensel: What are non-monetary costs of having WCAL?
McDaniel: No direct benefit from not having to support it. College gives free rent, etc. No benefit except getting space and money.
The college's claim of "free rent" is bogus. WCAL donors gave all the funds to build the radio building. Thus, the space that St. Olaf is "getting" is taking control of a building that they did not build or purchase — but which they have now sold to MPR,
Witt: How many student workers?
McDaniel: 2 or 3 currently. Will be reassigned.
Henke: Will we have to hire people for recording concerts?
McDaniel: John Gaddo is working on business plan. We have terrible acoustic spaces, but our recording engineers make them sound great. Some endowment money is available to support recording. It's way too important to lose.
By terminating WCAL employees, there would be no engineers available on campus. Responsibilities for these recordings have now been assumed by a former WCAL junior staff member who is an audio technician, not an engineer. McDaniel is not asked and does not explain what endowment money is "available". SaveWCAL believe that she may be referring to the WCAL charitable trust endowment.
Heringer: How did college weigh the loss of PR vs the money we're getting?
McDaniel: TV and radio are personal with emotional connections. It's an 82 yr tradition, wonderful asset, part of our marketing. Hard to embrace the change. Pleased that there is dialogue.
Despite have an excellent Cost/Benefit analysis of WCAL available to the Board of Regents–and sent to them later on October 4, 2004–this was apparently not considered in their decisions. Remember, it has been publicly reported that the Regents made the decision to sell WCAL charitable trust assets with no printed materials in front of them and in a discussion that lasted only 20-30 minutes]
Schowalter: 28 employees, correct? What's their future like?
McDaniel: MPR offered to hire 2. MPR hasn't announced new format yet. Once that happens, more should get hired. These are high quality employees. Olaf giving job transition/retraining help. No one knows when sale will actually close. Can be anytime after Oct 19th. Employees don't know when the end date is.
MPR has hired only a few former WCAL employees.In September 2008, it announced that it was terminating the employment of approximately half of the former WCAL staff members working for MPR.
White: How was it announced to media, staff and student workers?
McDaniel: Told staff at 4 PM, media at 4:15. Didn't contact student workers.
St. Olaf did not inform any WCAL stakeholders before the sale was announced. St. Olaf also informed the media before sending out the news to alumni.
Heringer: Have any big donors said they won't donate? Any drop in giving?
McDaniel: Not aware of it. Phoneathon going on. About 10 have refused to donate since station's been sold. Advancement dept would know more.
Many alumni have reported that they have changed their giving and bequests due to the sale of WCAL charitable trust assets.
Carl: Would cost to convert WCAL to satellite be prohibitive?
McDaniel: Stations aren't converting. Kind of like cable TV. Satellite would be in the millions of $$. Wouldn't work.
Hensel: Big student issue is that they weren't consulted. Were any? Why not?
McDaniel: Students not consulted. [St] Olaf decides a lot without student participation. That's how we have to work. License owned by BoR. So they decided.
The WCAL/KMSE license was held by St. Olaf College as a trustee, not as an owner.
[http://www.stolaf.edu/orgs/sga/senate/minutes/2004_05/10-07-04.doc]
