Common Cause and Public Knowledge are the latest groups to raise their voices in opposition to the FCC making a decision on the proposed Sinclair-Tribune merger before a federal appellate court rules on the reinstatement of the controversial UHF discount.
In a motion filed Thursday with the FCC, the nonprofits pressed the commission to “hold the proceeding in abeyance,” (or delay), until the D.C. Circuit court completes its review of the discount, which allows TV station owners to count only 50 percent of UHF holdings reach toward the 39 percent national audience reach cap.
The UHF discount was eliminated in 2016 on the grounds that it was obsolete with the transition to digital TV, but reinstated in 2017 under FCC Chairman Ajit Pai. A federal appeals court heard arguments in April against the FCC’s use of the UHF discount.
The groups argue a decision on the discount directly impacts whether the Sinclair-Tribune deal can be completed as proposed.
“Specifically, the application and proposed divestitures rely on the existence of the UHF discount,” the groups wrote. “If the Commission’s reinstatement of the UHF discount is vacated by the court, bringing the reach of the transaction under the 39% cap would require divestitures that account for 33% of national reach—more than four times more than the currently proposed divestitures. To be blunt, this would mean that the transaction would have to be undone if consummated.”
Common Cause and Public Knowledge pointed out that if the merger is approved ahead of the court’s ruling it would be “very difficult or impossible,” to undo the transaction or bring it into compliance with the significantly lower ownership cap.
The groups also asserted a delay is warranted by precedent, citing proceedings the commission had previously put on hold pending the outcome of related cases.
While the petitioners’ latest filling seeks a delay, they note that both groups maintain their stance that the deal should be denied in its entirety.