Sinclair Waiver Plan Could Have New Retrans Implications, ACA Says
A Sinclair proposal that it be allowed to temporarily own duopolies in several markets after approval of its takeover of Tribune (see 1803070050) would create new retransmission consent concerns, said the American Cable Association in an ex parte letter posted…
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Tuesday in FCC docket 17-179. ACA said that, though Sinclair said the stations will be sold to new owners, that the request could involve Tribune stations being temporarily owned by Sinclair before being passed to a new owner could activate “after-acquired” clauses in retrans deals involving the stations. “By combining after-acquired station clauses with temporary ownership waivers, Sinclair could -- intentionally or otherwise -- automatically increase retransmission consent prices for stations that Sinclair cannot lawfully own,” ACA said. Since Sinclair hasn’t specified which stations it will divest, to whom and under what terms, ACA can’t evaluate the possible effects of the proposal. “Until Sinclair discloses information regarding the stations it proposes to divest, it has not provided the ‘full and complete record' necessary,” ACA said. “Without such information, the Commission cannot proceed with its review.”