|
TheBuzz Erika Engle |
Radio rollovers beget
beef in Big Island
broadcast bizBig Island broadcaster Hugh "Buddy" Gordon has filed a complaint with the Federal Communications Commission over new ownership and management changes for 75 percent of the island's radio stations.
The changes are "way too monstrous," said Gordon.
The complaint alleges violations of FCC rules for multiple ownership of broadcast facilities; unauthorized concession or assumption of control of stations licensed to Pacific Radio Group Inc. and Big Island Radio; anticompetitive actions intended to inhibit or preclude fair competition and misrepresentations to the FCC by Pacific Radio, Big Island Radio or both.
Maui-based Pacific Radio purchased a four-station group from Connecticut-based Maverick Media Inc. in April and agreed to purchase eight stations from Big Island Radio in August. FCC ownership limits required Pacific Radio to sell three of its new acquisitions and those deals have also been reported in this space.
But Gordon contends two of those sales agreements will allow Pacific Radio to retain control over those stations.
"I'm doing this because I'm still a 17 percent shareholder of Big Island Radio and I'm a licensee of another radio station, KHBC, and we believe there have been violations of the FCC rules. I want to protect my future standing with the FCC," he said.
Pacific Radio President and chief executive officer Chuck Bergson had received a copy of the complaint, but declined comment until he could study it further. Big Island Radio President Glenn Yee also received a copy of the complaint, but did not respond to a request for comment.
One of Pacific Radio's buyers is Aloha Radio Group LLC, headed by former Big Island Radio General Manager Nelson Ray Parker and its former general sales manager, Frank Hooton. They purchased KHWI-FM 92.7.
Another buyer is Virginia-based communications attorney Dan J. Alpert. He has agreed to purchase KKOA-FM 107.7 from Pacific Radio, which he has represented in recent deals.
"This is an insider transaction ... and is merely a means of warehousing KKOA, which PRG cannot itself own or subject to an LMA (local marketing agreement)," the complaint says.
Gordon's complaint alleges that Pacific Radio will end up with control of more than $3 million of the $4 million in annual advertising revenue available on the Big Island.
The complaint asks the commission to instruct Pacific Radio to immediately stop operating Big Island Radio's stations unless it can prove it is operating the stations legally and that its local marketing agreements with other operators are legitimate.
The complaint cited a failure by the parties to file applications for transfer of broadcast licenses with the FCC, but both the complaint and applications were filed Oct. 7.
See the Columnists section for some past articles.
Erika Engle is a reporter with the Star-Bulletin. Call 529-4302, fax 529-4750 or write to Erika Engle, Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210, Honolulu, HI 96813. She can also be reached at: eengle@starbulletin.com
