I think that there's some conclusion jumping here chaps. Manx Radio have suggested that it may not bid for the job. That doesn't mean automatically that they won't nor does it mean that coverage is ending. This could be some grandstanding by MR to get better terms for the contract. I agree however that changing for the sake of it is idiocy.
Also, throw into the equation the two other competing radio stations 3FM and EnergyFM whose owners are constantly moaning about MR's services and business model (it gets around £850k per year from central gov for "public service broadcasting") and you have a recipe for turmoil. The owner of Energy was until recently a member of the IOM Parliament and he'll still have the wherewithal to influence things.
Finally, a lot of the staff for Radio TT are freelancers and could theoretically work for anyone they choose so a change in host doesn't necessarily mean a big change in personnel, although whether they would work for another broadcaster is an entirely different question!!