Are Sinclair’s problems just getting started?

A favorable presidential tweet and a court win on a crucial Federal Communications Commission regulatory loophole may have buoyed Sinclair Broadcast Group as the conservative broadcaster faces the daunting prospect of a lengthy administrative hearing over its Tribune merger. But the “lack of candor” the FCC flagged when it sent the deal for review could dog the company beyond the transaction (Sinclair didn’t offer complete information about its ties to entities picking up stations it planned to spin off in connection with the deal, the agency contends). At a House FCC oversight hearing, FCC Commissioner Jessica Rosenworcel told lawmakers, “We have raised issues about the candor of this company before the FCC and misrepresentations they made in the context of this transaction. I think those are serious issues of character qualification. … To the extent they have been identified as a problem here, we should be open to investigation in other contexts as well.” Setting the Tribune merger aside, critics could use the issues raised in the FCC’s order to challenge Sinclair’s ability to renew licenses for stations it already owns or tries to buy down the road. If Sinclair moves forward with the administrative hearing, and the company gets a negative ruling on the candor issue, that could be grounds to lose its licenses. As for the Tribune acquisition?  “There’s no instance of a merger review going through a hearing,” said Gigi Sohn, a Georgetown Law fellow. “It would be extremely difficult for Sinclair to convince the Administrative Law Judge that it didn’t engage in misrepresentation, particularly given the strength of the hearing designation order.”