SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
A sign for the Sinclair Broadcast Group building is seen in a buisness district in Hunt Valley, Maryland. (Photo: William Thomas Cain/Getty Images)
Sinclair's Sneaky Moves to Skirt Rules and Get Tribune Merger Approved
The right-wing television giant has proposed shady sales of a handful of stations to win federal regulatory approval for the $3.9 billion deal
Mar 02, 2018
Right-wing television giant Sinclair Broadcast Group is attempting to skirt ownership rules and gain approval from federal regulators for a $3.9 billion merger with Tribune Media by proposing sales--such as Chicago's WGN-TV to a Maryland-based car dealer--that would involve Sinclair still providing all services and effectively retaining control of the stations.
Despite Sinclair's reportedly cozy relationship with Federal Communications Commission (FCC) chairman Ajit Pai, the company has run into roadblocks with federal regulations in its mission to acquire Tribune Media's 42 stations. Sinclair announced last week that it would sell WGN-TV in Chicago as well stations in New York and nine other markets to appease regulators.
However, as the Chicago Tribune and consumer advocates are warning, proposed sales of stations in both Chicago and New York are actually sneaky bids for Sinclair to keep control of the stations through "an option and master services agreement" in each contract.
As the Tribune outlines, the $60 million sale in Chicago--to "a newly formed company headed by Steven Fader, a longtime business associate of Sinclair Executive Chairman David Smith"--would result in Sinclair still providing "everything from programming to advertising sales to the buyer, essentially running WGN-Ch. 9 through a services agreement."
"In plain English, these sidecar arrangements give Sinclair the ability to continue to manage the stations after they have been acquired by third parties, with the option to buy them back at some future time," according to a letter (pdf) of opposition that 15 members of the Coalition to Save Local Media sent to the FCC this week.
The WGN-TV deal would enable Sinclair to reacquire the station "for the same price, subject to adjustments, within eight years," the Tribune reports. Meanwhile, in New York, Sinclair has moved to sell WPIX-TV, under similar conditions, to Cunningham Broadcasting Corp.--which "is owned by the estate of Carolyn Smith, the mother of the Sinclair chairman."
The coalition letter declares that "Sinclair takes its misleading statements one step further in its plans for coming into compliance with the Commission's local ownership rule" in terms of how it plans to handle overlap markets--which are regions where Sinclair and Tribune both currently own stations, and the proposed merger would create a duopoly banned by federal regulations that aim to retain diversity in local news.
"Sinclair says, on one side of its mouth, that it intends to divest stations in eight different markets, but then, on the other side of its mouth, it says that with respect to three of these markets--Seattle/Tacoma, Oklahoma City, and Greensboro--it will enter into the same type of 'option' and 'services agreements,'" the letter notes. "And in three other markets--Indianapolis, Greensboro, and Harrisburg--Sinclair asks the Commission for waivers of the top-four duopoly rule."
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
Right-wing television giant Sinclair Broadcast Group is attempting to skirt ownership rules and gain approval from federal regulators for a $3.9 billion merger with Tribune Media by proposing sales--such as Chicago's WGN-TV to a Maryland-based car dealer--that would involve Sinclair still providing all services and effectively retaining control of the stations.
Despite Sinclair's reportedly cozy relationship with Federal Communications Commission (FCC) chairman Ajit Pai, the company has run into roadblocks with federal regulations in its mission to acquire Tribune Media's 42 stations. Sinclair announced last week that it would sell WGN-TV in Chicago as well stations in New York and nine other markets to appease regulators.
However, as the Chicago Tribune and consumer advocates are warning, proposed sales of stations in both Chicago and New York are actually sneaky bids for Sinclair to keep control of the stations through "an option and master services agreement" in each contract.
As the Tribune outlines, the $60 million sale in Chicago--to "a newly formed company headed by Steven Fader, a longtime business associate of Sinclair Executive Chairman David Smith"--would result in Sinclair still providing "everything from programming to advertising sales to the buyer, essentially running WGN-Ch. 9 through a services agreement."
"In plain English, these sidecar arrangements give Sinclair the ability to continue to manage the stations after they have been acquired by third parties, with the option to buy them back at some future time," according to a letter (pdf) of opposition that 15 members of the Coalition to Save Local Media sent to the FCC this week.
The WGN-TV deal would enable Sinclair to reacquire the station "for the same price, subject to adjustments, within eight years," the Tribune reports. Meanwhile, in New York, Sinclair has moved to sell WPIX-TV, under similar conditions, to Cunningham Broadcasting Corp.--which "is owned by the estate of Carolyn Smith, the mother of the Sinclair chairman."
The coalition letter declares that "Sinclair takes its misleading statements one step further in its plans for coming into compliance with the Commission's local ownership rule" in terms of how it plans to handle overlap markets--which are regions where Sinclair and Tribune both currently own stations, and the proposed merger would create a duopoly banned by federal regulations that aim to retain diversity in local news.
"Sinclair says, on one side of its mouth, that it intends to divest stations in eight different markets, but then, on the other side of its mouth, it says that with respect to three of these markets--Seattle/Tacoma, Oklahoma City, and Greensboro--it will enter into the same type of 'option' and 'services agreements,'" the letter notes. "And in three other markets--Indianapolis, Greensboro, and Harrisburg--Sinclair asks the Commission for waivers of the top-four duopoly rule."
Right-wing television giant Sinclair Broadcast Group is attempting to skirt ownership rules and gain approval from federal regulators for a $3.9 billion merger with Tribune Media by proposing sales--such as Chicago's WGN-TV to a Maryland-based car dealer--that would involve Sinclair still providing all services and effectively retaining control of the stations.
Despite Sinclair's reportedly cozy relationship with Federal Communications Commission (FCC) chairman Ajit Pai, the company has run into roadblocks with federal regulations in its mission to acquire Tribune Media's 42 stations. Sinclair announced last week that it would sell WGN-TV in Chicago as well stations in New York and nine other markets to appease regulators.
However, as the Chicago Tribune and consumer advocates are warning, proposed sales of stations in both Chicago and New York are actually sneaky bids for Sinclair to keep control of the stations through "an option and master services agreement" in each contract.
As the Tribune outlines, the $60 million sale in Chicago--to "a newly formed company headed by Steven Fader, a longtime business associate of Sinclair Executive Chairman David Smith"--would result in Sinclair still providing "everything from programming to advertising sales to the buyer, essentially running WGN-Ch. 9 through a services agreement."
"In plain English, these sidecar arrangements give Sinclair the ability to continue to manage the stations after they have been acquired by third parties, with the option to buy them back at some future time," according to a letter (pdf) of opposition that 15 members of the Coalition to Save Local Media sent to the FCC this week.
The WGN-TV deal would enable Sinclair to reacquire the station "for the same price, subject to adjustments, within eight years," the Tribune reports. Meanwhile, in New York, Sinclair has moved to sell WPIX-TV, under similar conditions, to Cunningham Broadcasting Corp.--which "is owned by the estate of Carolyn Smith, the mother of the Sinclair chairman."
The coalition letter declares that "Sinclair takes its misleading statements one step further in its plans for coming into compliance with the Commission's local ownership rule" in terms of how it plans to handle overlap markets--which are regions where Sinclair and Tribune both currently own stations, and the proposed merger would create a duopoly banned by federal regulations that aim to retain diversity in local news.
"Sinclair says, on one side of its mouth, that it intends to divest stations in eight different markets, but then, on the other side of its mouth, it says that with respect to three of these markets--Seattle/Tacoma, Oklahoma City, and Greensboro--it will enter into the same type of 'option' and 'services agreements,'" the letter notes. "And in three other markets--Indianapolis, Greensboro, and Harrisburg--Sinclair asks the Commission for waivers of the top-four duopoly rule."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.