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                                                                   Exhibit 10.16


                                 PROMISSORY NOTE

$5,000,000.00                                        Dated as of May 8, 2001





          1. OBLIGATION. FOR VALUE RECEIVED, the undersigned, BIG CITY RADIO,
INC., a Delaware corporation ("Borrower"), promises to pay to the order of
Stuart Subotnick ("Lender"), at Lender's offices at 810 Seventh Avenue, New
York, New York, or at such other place as Lender may direct, in lawful money of
the United States of America, the principal sum of Five Million Dollars
($5,000,000.00) (or such lesser amount as has been advanced by Lender) together
with interest accrued on unpaid principal as provided in Section 2 of this Note.

           2. INTEREST. Interest shall accrue on the unpaid principal amount at
a rate per annum (computed on the basis of a 360-day year) equal to the lower of
(i) the Prime Rate (as defined below) in effect on the date hereof plus two
percent or (ii) the highest rate permitted by New York law. As used herein, the
term "Prime Rate" shall mean the rate of interest publicly announced from time
to time by J.P. Morgan Chase & Co. ("Chase") in New York, New York, as its
reference rate (the "Reference Rate") with the understanding that the Reference
Rate is one of Chase's base rates, serves as a basis upon which effective rates
of interest are calculated for loans making reference thereto, and may not be
the lowest of Chase's base rates. Interest shall be payable on the demand of the
Lender.

          3. PAYMENT. The entire outstanding principal balance of this Note, and
any accrued and unpaid interest thereon, shall be due and payable on demand at
Lender's option. Borrower acknowledges and agrees that this Note is a demand
obligation that may be called by Lender at any time.

          4. OPTIONAL PREPAYMENT. Borrower may, at any time, prepay in whole or
in part any principal or interest due or outstanding under this Note without
penalty, with each such prepayment to be applied first against outstanding
accrued interest, and, after all outstanding interest has been paid, against the
principal, if any, then unpaid.

         5. NO LENDER OBLIGATION. The Borrower acknowledges and agrees that any
advances made by lender hereunder are solely within Lender's discretion and
Lender shall have no obligation whatsoever to make any advances to the Borrower.

         6. GOVERNING LAW. The parties intend that this Note shall be governed
by and construed in accordance with the internal laws of the State of New York,
without reference to



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any principles of choice of law or conflict of laws.

          IN WITNESS WHEREOF, This PROMISSORY NOTE has been duly executed by the
undersigned, BIG CITY RADIO, INC., on the day and in the year first above
written.

                                                   Borrower

                                                   BIG CITY RADIO, INC.

                                                   By:
                                                      --------------------------
                                                       Paul Thomson
                                                       Chief Financial Officer