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Radio Station Purchase Agreement

Before disclosing specific information about the station(s), the seller will most likely require the buyer to sign a confidentiality or confidentiality agreement. This is a common practice in the industry and sometimes becomes necessary to allow the buyer to exercise discretion over the private information communicated to the company during the due diligence period. Gannett Company`s acquisition of Belo in 2013 was rejected by organizations such as the American Cable Association and Free Press, with Gannett considering using LMAs and two shell companies owned by former Executives of Belo and Fisher Communications (Sander Media and Tucker Operating Co.) to circumvent restrictions imposed by fcc newspapers in Louisville, Phoenix, Portland, Oregon and Tucson. Although Gannett claimed the deals were legal, Craig Aaron, president of Free Press, said that “the FCC should not let Gannett break the rules. The consolidation of the media leads to fewer journalists in the newsroom and fewer opinions in the ether. The concentration of media in the hands of fewer companies only benefits the companies themselves.┬áThe deal would have embellished Gannett with a virtual trio in Phoenix, consisting of its NBC KPNX channel, independent KTVK and CW subsidiary KASW. In Tucson, FOX subsidiary KMSB and MyNetworkTV subsidiary KTTU were already operated by Raycom Medias subsidiary KOLD-TV under a common services agreement founded under Belo`s ownership, but Gannett would continue to make advertising sales for the channels. [61] Under Federal Communications Commission (FCC) rules, a local marketing agreement must, as part of the agreement, give the company that manages the channel (the senior partner) control of all of the station`s facilities, including the station`s finances, personnel and programming. The original licensee (the junior partner) remains legally responsible for the chain and its operation, such as for example. B compliance with the relevant substantive rules. From time to time, a “local marketing agreement” may relate to the sharing or outsourcing of certain functions, including advertising sales. This can also be called a Temporary Brokerage Contract (TBA), Local Sales Contract (LSA), Management Service Agreement (MSA) or most often referred to as joint sales agreement (JSA) or “SSA”.

JSAS are charged against the ownership ceilings of television and radio channels. [1] [2] In Canada, local marketing agreements between national stations require the agreement of the Canadian Radio and Telecommunications Commission (CRTC), although Rogers Media has entered into a similar agreement to control a radio station established in the United States in a border market. However, the FCC required that Gray WAGT continue to operate a separate station until the end of the auction and that no joint sales contract be entered into. [121] Following the sale, Gray dissolved Schurz`s shared services and joint sales agreements with WJBF-TV and Media General and replaced its previous news programs with WRDW simulcasts. [123] [124] Gray also criticized WJBF for “refusing to accept a smooth transition of [WAGT] staff,” given that WAGT employees are covered by Media General`s employment due to the SSA. [125] In North American broadcasting, a local marketing agreement (LMA) or local management agreement is a contract in which one undertaking undertakes to operate a radio or television station owned by another party. Essentially, it`s some kind of renting or buying time….