FCC Eases Way for Station Sales

FCC EASES WAY FOR STATION SALES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC has backed off an effort to make new buyers responsible for the sins of previous station owners. Communications lawyers balked when the commission tried to modify “tolling agreements,” which allow the agency to approve a license renewal and sale while still investigating a complaint. The commission wanted to make the buyer liable, a prospect that could have killed some transactions. “If you are a buyer and the FCC says that in order to get the deal done, you have to sign on to potential liability for an indecency violation that starts at $325,000 a pop, the potential liability could be extraordinary, particularly if you were buying a small-market TV station worth $3 million,” said one attorney, who along with others asked not to be identified because they have cases pending before the commission. “Who's going to buy it when there are a couple of $325,000 wild cards out there?”
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