Broadcasters, Associations Frequently Lobbying FCC on JSA Rules
Broadcasters and their associations restated their stances on the draft FCC order to attribute joint sales agreements, which sent industry stocks down Monday on concerns future JSAs would be limited (CD March 18 p5). Broadcasters told the commission that attributing JSAs would heavily affect their stations, in ex parte filings in dockets 09-182 and 10-71. The National Association of Black Owned Broadcasters continued to support an end to approving JSAs.
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Sinclair again said rules to attribute joint sales agreements are being created “without sufficient data about the local video marketplace, which data would be more appropriately solicited and analyzed in the context of the Quadrennial Review” of media ownership, in an ex parte filing (http://bit.ly/1ifh6Tg). If the FCC is intent on pursuing such rules in isolation, they “should be applied only to applications submitted for approval after the adoption of such rules, and not to any currently pending applications,” it said. To change the rules of pending applications mid-review “would be patently unfair, particularly after the time and resources already expended on bringing them into current compliance,” it said. The Media Bureau last week said it would scrutinze JSAs (CD March 14 p9).
Nexstar bemoaned the impact of the FCC’s processing of proposed TV sharing arrangements on pending JSA proposals between the firm and Mission Broadcasting. Nexstar urged the FCC to process the applications “in accordance with precedent at the time of their filing” (http://bit.ly/1fWCRrx). Nexstar urged the FCC to defer action on JSAs until a decision on the Comcast’s plan to buy Time Warner Cable for about $45 billion “has been reached and its impact assessed,” it said. The FCC also should “establish clear and objective standards under which to process applications proposing JSAs/SSAs, as certainty is a necessary prerequisite to deal structuring and financing,” it said. SSAs, or shared services agreements, also are said to be in line for FCC scrutiny.
Examining sharing agreements on a case-by-case basis and granting waivers for clearly beneficial arrangements isn’t a viable solution, NAB said (http://bit.ly/1cVPGT7). Waivers are inherently uncertain and will likely create obstacles “to the investment needed to purchase or run a television station,” it said. This approach also places the burden of proof on the wrong parties, “the good operators that are promoting localism, diversity and competition,” NAB said. To the extent that the commission is concerned that there are licensees in joint agreements that aren’t in control of their stations, the FCC should clearly describe standards for control “and prohibit only those operations that do not meet those standards,” it said. The commission could also require licensees “to file sharing agreements to ensure transparency,” NAB said. “Such an approach could be narrowly tailored to address the perceived problem.” NAB Tuesday also responded to the Department of Justice’s asking the FCC to attribute JSAs. (See separate report below in this issue.)
NABOB urged the FCC to no longer approve the many clearly abusive JSAs and SSAs “which the commission has permitted over the past decade” (http://bit.ly/Oz4VGz). Some agreements refer to loan guarantees provided by the JSA and SSA operator to the licensee, “but do not provide full information on such loan guarantees,” it said. The association’s review of approved arrangements leads to the conclusion that the FCC “has given little consideration to whether many of the JSA/SSA arrangements reflect a true arm’s length agreement on reasonable business terms,” it said. The FCC should consider allowing waivers of the attribution rule if minority ownership or other public interest benefit will result, and “a plan and timetable for full operational control by the licensees is included in the waiver request,” it said.
The Minority Media & Telecommunications Council recommended a nuanced approach to a JSA involving Tougaloo College in Mississippi. (http://bit.ly/1dmpagK). Such an approach is needed to “preserve the college’s ability to operate a broadcast television station and create a better model for improving ownership diversity,” said MMTC. In an ex parte filing last week, Tougaloo College said burdensome obligations and rigid deadlines would hamper the efforts of its station WLOO Vicksburg “to achieve and to prioritize its goals and would be counterproductive to the stated aims of NABOB and other groups that have opposed JSAs and SSAs” (http://bit.ly/1i9M8Mq). Commissioner Ajit Pai has said WLOO is an example of JSAs working.