Sinclair Will Appeal If FCC Denies Its Purchase Plan
Sinclair Bcstg. said it plans to appeal the FCC’s expected denial of its application to take over the licenses of 5 stations currently owned by Cunningham Bcstg. “If it’s rejected, we will appeal on the basis for the denial,” said Sinclair. Gen. Counsel Barry Faber.
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Under the 1999 duopoly rule, Sinclair’s purchases would create illegal duopolies because it would own more than one station in a market with fewer than 8 independently owned stations. The issue resurfaced after the item appeared to be scheduled on the FCC’s agenda at the Commission’s meeting today (Thurs.) -- considered an unusual move by some FCC observers. But Wed., the item, circulating on the 8th floor since Aug., was pulled from the agenda. It wasn’t known at press time if the FCC voted on the item or why it was removed from the agenda. One source cited the already lengthy agenda.
The FCC likely will reject the purchase plan, Commission sources told us. FCC Media Bureau Chief Kenneth Ferree declined to comment, saying only that the plan “facially violates the current rules.” Sinclair executives have said past statements by Ferree indicated the FCC would have a difficult time blocking station deals. But the FCC said Sinclair may be seeking to acquire stations prematurely while the ownership rule is in limbo.
For several years, Sinclair has sought to buy the 5 stations -- WNUV (Ch. 54, WB) Baltimore, WTTE(Ch. 28, Fox) Columbus, O., WTAT-TV (Ch. 24, Fox) Charleston, S.C., WVAH-TV (Ch. 11, Fox) Charleston-Huntington, W.Va., and WRGT-TV (Ch. 45, Fox) Dayton, O. Sinclair already controls programming for all 5 stations through local marketing agreements -- which the FCC voted to phase out. But the status of the LMA ban is uncertain because of the media ownership court rulings.
New media ownership rules the FCC adopted in June 2003 might have allowed those purchases. But the 3rd U.S. Appeals Court, Philadelphia, in Sept. blocked the new rules from taking effect until it could decide their legality. The old rules stayed in effect while the new rules were remanded. The U.S. Solicitor Gen.’s office recently decided not to seek an administration appeal of the ruling to the U.S. Supreme Court. Sinclair had argued the 3rd Circuit’s decision contradicts an earlier U.S. Appeals Court, D.C., decision ordering the FCC either to justify or eliminate the rule. “Sinclair is trying to pick a fight so they can create a conflict between the D.C. and 3rd Circuit,” said Media Access Project Pres. Andrew Schwartzman. He said it was “fantasy” to hope the D.C. circuit will hear the case, because the rule is in limbo.