With the likelihood of an approval from the FCC dimming in the wake of the Commission’s Notice of Apparent Liability for Forfeiture handed to Nexstar Media Group and Mission Broadcasting last week, the owner of a Detroit television station who has agreed to sell the facility to Mission has signed off on a deal amendment that pushes the termination date by nearly three more months.
A “second amendment to asset purchase agreement” has been signed by Kevin Adell, CEO of Adell Broadcasting Corp., and Dennis Thatcher, President/CEO of Mission Broadcasting, that amends the date by which the sale of WADL-38 in Detroit must close by until June 29.
And, Adell tells RBR+TVBR, it was Chairwoman Jessica Rosenworcel herself that suggested the deal termination date be extended — after an unprecedented four meetings held between her and the WADL licensee.
The transaction’s termination date had originally been Easter Sunday (3/31). However, the FCC has not yet acted on the filing of the original asset purchase agreement dated May 10, 2023.
While there was speculation as to why the Commission hadn’t given its OK, or no, to the deal, all became abundantly clear on Friday (3/22), when the FCC released its NAL detailing how it believes Nexstar maintains de facto control of Mission Broadcasting-owned WPIX-11 in New York. Nexstar Chairman/CEO Perry Sook immediately responded, vowing to “vigorously” dispute the Commission’s findings.
Huge fines and a remedial solution largely tied to a forced spin of a property (or properties) to come within the national ownership cap limit of 39% were also presented by the Commission to Nexstar and Mission.
While the Commission is primarily fixated on WPIX, a similar ownership conundrum would arise in Detroit. In its NAL, the FCC noted that Nexstar enjoys shared services agreements for every Mission TV station. However, New York was the lone market where both companies did not each have stations of their own. Nexstar does not have a station in Detroit. As such, a similar ownership concern could be the No. 1 reason why Adell has been unable to close on WADL-TV’s $75 million sale.
Nexstar’s two Michigan TV markets are Lansing and Grand Rapids, respectively.
With the second amendment to the transaction signed, the Rev. Jesse Jackson Sr., founder and President of the RainbowPUSH Coalition, wrote to the Commission to request another meeting with Chairwoman Rosenworcel and each of the FCC’s four Commissioners.
Rev. Jackson extended “heartfelt gratitude” to Rosenworcel “for the patience and astute foresight” she exhibited during a March 14 meeting, during which “her determination and assurance that the Commission’s review
process for the WADL license transfer application is nearing a conclusion” bolstered RainbowPUSH’s “confidence in the FCC’s commitment to fairness and inclusivity.”
He said, “We are grateful that the chairwoman showcased her appreciation of the significance of this transaction to our community.”
Jackson also thanked Thatcher and Mr. Adell for signing the second amendment, extending the termination date of the transaction.
And, while Jackson did not mention Mission and Nexstar and the NAL by name, it is known that this “outstanding matter unrelated to Adell Broadcasting” delayed action on the WADL transfer of control approval process.
“We are hopeful that action can now be taken on the WADL application,” Jackson said. “We continue to be concerned with the fairness and duration of the delay, as the application has now been pending for more than 10 months.”
That’s why RainbowPUSH wants another meeting, with a stated goal of gaining insights on the status of the application, understanding the perspectives of each commissioner, and seeing how RPC can help finalize resolution on the application.
