Less than 48 hours before it was due to go under the hammer, DCL directors have withdrawn 3AK from the auction block and announced a decision to hold onto the licence and, in a move unprecedented in Australian radio, are planning to lease the station to a third party instead.

The lessee is a new company called Sports Entertainment Network, to be known as S-E-N, headed up by Danny Staffieri, previously GM of Adelaide’s 5AA. S-E-N has put down a $100,000 non-refundable cash deposit and has agreed to lease the station from DCL for one million dollars per annum over three years commencing January 1st, 2004.

In announcing the new venture to the stock exchange, DCL Director, Peter Quattro said, “The leasing agreement which will be entered into will be the first of its kind in Australia’s radio history”.

3AK will run a 24 hour all sport format. Mr Staffieri said of the deal, “The station presents us with the opportunity to create a major niche player in the AM radio market in Melbourne. Our focus will be to entertain our audience through all things sport.”

The new operation will move into 3MP’s Richmond premises so that both organizations can benefit through shared studio and infrastructure.

Follow the link below for DCL’s official statement to the ASX in PDF format.