DC Circuit Rejects Requested Stay of UHF Discount
The U.S. Court of Appeals for the D.C. Circuit rejected public interest groups’ request for an emergency stay of the FCC’s restoration of the UHF ownership discount, and ended the administrative stay of the rule (see 1706070053). “Petitioners have not satisfied the stringent requirements for a stay pending review,” said the order issued Thursday. “This is not very surprising, since stays are rarely granted. However, it is extremely disappointing,” said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman, who represented Free Press, the National Hispanic Media Coalition, Prometheus Radio Project and the others in the case. Since the restored discount’s effective date of June 5 passed during the administrative stay, the rule is effective immediately, an FCC spokesman said: “We are pleased by the court's decision.”
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Lifting the administrative stay and the discount taking effect clears the way for the proposed Sinclair/Tribune deal, said Fletcher Heald broadcast attorney Dan Kirkpatrick, speaking at the S&P Global Market Intelligence 34th Annual TV and Radio Finance Summit. It will allow further consolidation, he said. If the emergency stay request had been granted, it’s possible FCC Chairman Ajit Pai would have sped up the FCC effort to examine the national ownership cap and roll back other ownership limitations, Wells Fargo analyst Marci Ryvicker said.
The case will continue on the merits, Schwartzman said. “The case is far from over, and we feel that we have a strong case once it is fully briefed and argued,” he said. “With his decision to put an obsolete rule back on the books, Chairman Pai will devastate the American public’s access to multiple points of view from hard news sources,” said Cheryl Leanza, of the United Church of Christ Communications Office. She expects "a positive result when the court reviews the substance of this irrational and dangerous decision.”
The court’s decision on the stay isn't necessarily an indication of how it will judge the full case on the merits, but it could indicate the three-judge panel didn’t feel the case was likely to prevail on the merits, said Wiley Rein broadcast attorney Ari Meltzer. The case continuing forward means there’s still some element of risk for broadcast combinations that are relying on the UHF discount, he said.
Sinclair “fully expected” the stay would be rejected, said Sinclair Vice President-Corporate Development Scott Shapiro at the summit. “The FCC’s order eliminating the UHF discount was made without a comprehensive review of broadcast media ownership rules,” an NAB spokesman said. “NAB supports the Court’s decision denying the stay request.”