Late last month, the FCC approved the $370 million buy for Sinclair Broadcast Group to close on 18 Barrington Broadcasting Group stations, including WSTM-TV (NBC) and WSTQ-TV (CW) in Syracuse. Sinclair is also operating or providing sales services for six Granite Broadcasting stations, including its WTVH-TV (CBS) Syracuse. However, the shared services agreement (SSA) that brought WTVH under the same facility as WSTM and WSTQ could be ending in 2017. Sinclair announced in its 11/25 Barrington Closing press release it’s not interested in renewing the deal Barrington had with Granite for both WTVH and WHOI-TV (ABC, CW) Peoria, IL, which ends in March of that year: “Following its acquisition by Sinclair, WSTM (NBC) in Syracuse, NY, will continue to provide services to WTVH (CBS), which is owned by Granite Broadcasting, and receive services on WHOI in Peoria, IL from Granite Broadcasting. Sinclair has, however, notified Granite Broadcasting that it does not intend to renew these agreements in these two markets when they expire in March of 2017.”
Here’s some history: The lineup before the Barrington/Sinclair deal had Barrington’s WHOI-TV (ABC) moving out of its original studio/transmitter site and into a SSA with Granite’s WEEK-TV Peoria (NBC) and WAOE-TV Peoria (MyNetwork TV, Antenna TV). Sinclair had owned WYZZ 43 (Fox), which long ago moved into an SSA with Nexstar’s WMBD-TV Peoria (CBS, BounceTV). The old WYZZ-TV Bloomington/Peoria studios in Bloomington are now a Bloomington bureau for WMBD and WYZZ. When Sinclair did the Barrington deal, it transferred WYZZ to Cunningham Broadcasting so it could acquire WHOI. Cunningham operated WYZZ through an LMA with Nexstar. When Granite ended up running three stations in Peoria, it hubbed the master control for all of them out of its duopoly in Fort Wayne—an efficient situation.
So, what might happen with this monkey wrench thrown in three years from now? CNYRadio.com noted that while Sinclair said in its release “it does not intend to renew” the existing deal, it never said it would be completely opposed to any deal: “That could leave the door open for Sinclair and Granite to form a new deal, likely one which only focuses on arrangements for WTVH. In Peoria, the other market involved in the existing deal, Sinclair already has a close ally in Cunningham Broadcasting, the owner of the market’s Fox affiliate. We suspect Sinclair may want to move its Peoria station from Granite’s facility to the Cunningham facility. Any new deal would likely focus exclusively on WTVH’s residency within the WSTM building, without any reciprocal agreement in Peoria.”
CNYRadio.com also noted that if Granite can’t strike a new deal with Sinclair, Granite could try to form an SSA with Nexstar’s NewsChannel 9 WSYR-TV in Syracuse. “We wouldn’t even be surprised to see Nexstar’s close friend, Mission Broadcasting, put up an offer to buy WTVH from Granite,” they added.
RBR-TVBR reached out to David Amy, EVP & CFO, and Lucy Rutishauser, VP & Treasurer, Sinclair for comment, but have not heard back as of yet. Stay tuned.
See the full CNYRadio story here.
