NEW YORK — It has been in the works for months and, when all is said and done, control of Spanish Broadcasting System (SBS) will no longer be in the hands of its founder, Raúl Alarcón Jr. Instead, creditors that include many foreign investment groups will hold majority control of the company. That’s unsettling to the Hispanic Marketing Council, which has submitted formal comments to the FCC sharing its concerns about what the future of the 100% minority-owned debtor-in-possession could mean to the nation’s Latino populace.
“With SBS reaching millions of listeners daily, we’re calling on the FCC to thoroughly evaluate the impact of public interest and Hispanic audiences before moving forward,” the organization said.
It did so as part of MB Docket No. 26-240, and HMC Executive Director Horacio Gavilan shared with the organization’s members on Friday (10/2) how it had submitted formal comments with the Commission and “why we spoke up.”
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First, the HMC spoke how how SBS operates leading Spanish-language radio stations in key U.S. markets — stations that deliver news, emergency information, entertainment and “a sense of community” to millions of listeners.
However, in private conversations with RBR+TVBR, multiple people close to the matter acknowledge that a transfer of control of SBS to its lienholders could bring changes designed to recoup their financial losses regardless of a continued commitment to the U.S. Hispanic audience. This includes format changes in San Francisco and Chicago, along with market rumors that WPAT-FM in New York could become a Country station, filling a market void left by Audacy.
“A change in ownership could affect the programming, services and audiences tied to those licenses,” Gavilan said to HMC members. “Our filing makes the case that this is not just a business transaction — it is a question of how public-interest obligations to Hispanic audiences will continue to be met.”
With the public interest an emblematic gauge of the Carr Commission, such a consideration could pass muster with acting Media Bureau Chief Alex Sanjenis. Alternatively, the FCC could simply tell the HMC that it cannot weigh a post-bankruptcy ownership composition change based on possible business decisions largely tied to programming changes, as it is not within the Commission’s power to predicate a transfer of control based on content guarantees or pledges.
Nevertheless, the HMC asks the Commission in its letter sent October 1 to the Commission to conduct “a thorough review of the broader public-interest implications of the proposed ownership structure before making a final decision,” allow sufficient time for investigation, discussion and public input, and analyze the potential effects on the audiences and communities the stations serve.
“As the only national trade organization representing marketing, communications and media companies that engage the U.S. Hispanic community, HMC has a responsibility to speak up when decisions like this one could shape how our community is informed and served,” the HMC believes.
Still, the letter could be seen as a “Hail Mary” by those hoping Mr. Alarcón, somehow, someway, retains control of a company he founded in 1983 with the purchase of WVNJ-AM in Secaucus, N.J., and took public just shy of 27 years ago.S
