Sinclair Agrees to Record, 3-2 $48M Penalty; Licenses Not Revoked
Sinclair agreed to a $48 million civil penalty as part of settling an FCC probe of the company's since-killed takeover of Tribune Media, the agency announced (see 2005060061) Wednesday. FCC Chairman Ajit Pai said the agency isn't revoking Sinclair's licenses after staff investigated various allegations. That fit with expectations as staffers were reviewing lack of candor that potentially occurred during the pendency of Sinclair/Tribune (see 1906270068).
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Commissioners voted 3-2 on the settlement, a spokesperson confirmed. Commissioner Geoffrey Starks voted no, his office said. Commissioner Mike O’Rielly "has raised concerns about how this process has played out over the last two years, and while some questions remain, we’re glad that a mutually agreed upon solution could be found that allows Sinclair to get back to broadcasting," his office emailed. "Especially during the pandemic, it’s more important than ever that we seek to reduce burdens for stations that are serving their communities.”
The consent decree "will be released in the coming days after, among other things, Commissioners have submitted statements," emailed the agency spokesperson. Offices of other commissioners didn't comment.
"I disagree with those who, for transparently political reasons, demand that we revoke Sinclair’s licenses," Pai said. "While they don’t like what they perceive to be the broadcaster’s viewpoints, the First Amendment still applies around here."
Free Press interpreted that as a jab at the group and its allies that opposed Sinclair/Tribune. “Sinclair’s long record of lying to and misleading" the FCC "has caught up with it yet again," said Free Press co-CEO Craig Aaron. "We applaud the FCC for taking action -- after years of looking the other way and bending the rules to benefit Sinclair -- though the penalty should have been much steeper."
The FCC said the consent decree ends investigations of Sinclair's disclosure of information about buying Tribune TV stations and whether the buyer negotiated retransmission consent agreements in good faith and identified the sponsor of content it produced and supplied to Sinclair and other TV stations. “Sinclair’s conduct during its attempt to merge with Tribune was completely unacceptable,” Pai said. "Today’s penalty, along with the failure of the Sinclair/Tribune transaction, should serve as a cautionary tale to other licensees seeking Commission approval of a transaction in the future."
Sinclair is "pleased with the resolution," said a tweet attributed to CEO Chris Ripley. "Sinclair is committed to continue to interact constructively with all of its regulators to ensure full compliance with applicable laws, rules, and regulations." A company representative didn't comment further. Tribune declined to comment. That company has since been purchased by Nexstar and reported Q1 results Wednesday (see 2005060059).
It's the highest civil penalty involving a broadcaster, the FCC said: The prior high was $24 million by Univision in 2007, as that company was being taken private.
Sinclair has licenses coming up for renewal. Its first license renewal applications are due June 1, the regulator's spokesperson noted. "Staff doesn't usually accept any until after then," said public interest lawyer and broadcast consolidation opponent Andrew Schwartzman regarding oppositions. The consent decree wasn't available.
United Church of Christ lawyer Cheryl Leanza wants to see that document, she emailed. "Did Sinclair admit fault? Did the FCC make caselaw that can be applied to future behavior by Sinclair or others?" The Univision fine didn't appear to "result in any precedent to protect children," Leanza noted. The broadcaster apparently didn't follow children's TV rules (see 1906270068). "Will this time be any different," Leanza asked now.
This decree will make for "interesting reading, as the Commission can't resolve substantial and material character issues without a hearing," emailed Schwartzman. "The Commission can try to wriggle out of that, but I doubt that it can succeed."