Sinclair sinks, Trump’s temper, Cox’s cash value

There’s something to be said for waiting before starting to write. That’s not my nature. I want to get things out first. I type very well but nobody can do it as quickly as my brain, so I often dictate into a phone and email myself. Then, I make any corrections and additions, and create the graphics and email preferences.

But this saga of Sinclair Broadcast Group trying to buy Tribune Media that has been going on for more than a year and suddenly failing last week – supposedly failing – is full of interesting details.

NO sinclair tribune

I wrote about a lot of them, Tuesday night. That was mostly background. You know how little I admire Sinclair and the people who run it. Tonight, you’ll see exactly what went wrong for the deal and what I think should be done. Let’s just say what went wrong could’ve been a lot of what I wrote Tuesday night!

I’m going to suggest starting by reading that last post, if you haven’t. It gives a lot of background about why Sinclair is so despised – that I’ve written about for months but conveniently put in one place – so there’s no sense repeating it here.

cox media group

But first, the latest, and that’s Cox Media Group – one of the best corporations owning TV stations out there, and a private one – is exploring putting itself up for sale.

Yesterday, FTVLlive’s Scott Jones got a secret copy of the talking points Cox managers are supposed to use while talking to employees. Let’s face it, “talking points” is another phrase meaning public relations. In other words, they’re trying to convince the workers to keep working extra hard because everything is going to be great! (I hope you used your best Tony the Tiger when you read that.)

Of course, that’s not how employees are feeling. When your company suddenly sets itself up to be bought, there is lots of uncertainty. You know spending will go down and jobs will not be filled, so the company’s financials look more attractive. And being bought by another major established company could lead to layoffs. But you know that’s not in the talking points which you can see below in this six-page slideshow.

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Cox’s 14 TV stations are pretty good and most are highly-rated ones. From left to right, by row, they’re the ABC affiliate in Atlanta; ABC and independent in Orlando; Fox in Boston; CBS in Seattle; NBC in Pittsburgh; ABC and independent in Charlotte; Fox and CBS in Jacksonville; Fox in Memphis; CBS in Dayton, Ohio; Fox in Tulsa, Okla.; and also a “supply-side platform that brings automation and data-driven targeting to the buying and selling of television advertising” called Videa.

cox stations

There are also 61 radio stations, 4 daily newspapers, 11 non-daily papers, 16 digital brands, and one local cable channel.

FTVLive’s Scott Jones also got a market analyst report from Wells Fargo about how much Cox Media may be worth. The answer it gives is $2.65 billion, but consider many factors including the number of willing buyers, whether the stations get split up, and whether Tribune goes back on the market.

wells fargo cox

See Tuesday’s post for a lot more links to, and details on, the rest of Atlanta-based Cox.

So FCC Chairman Ajit Pai was arguably putting himself on the line while supporting the Sinclair-Tribune merger when surprisingly, last week, he said in a statement:

“Based on a thorough review of the record, I have serious concerns about the Sinclair-Tribune transaction. … The evidence we’ve received suggests that certain station divestitures that have been proposed to the FCC would allow Sinclair to control those stations in practice, even if not in name, in violation of the law. … When the FCC confronts disputed issues like these, the Communications Act does not allow it to approve a transaction. Instead, the law requires the FCC to designate the transaction for a hearing in order to get to the bottom of those disputed issues.”

How surprising?

Pai embraced the merger so much, he’s under investigation by the FCC’s inspector general for allegedly greasing the wheels by bringing back the UHF discount rule weeks before the deal was announced. That way, the new, larger company could still meet the FCC ownership limit of 39 percent of U.S. households, rather than vastly exceeding them.

— UPDATE: The FCC inspector general cleared Chairman Ajit Pai of being unfairly biased in favor of the Sinclair Broadcast Group–Tribune Media merger. —

sinclair before tribune
Sinclair’s reach now, without Tribune

Then yesterday – at an awkward moment for Pai, Sinclair and Tribune – a Washington-based U.S. Appeals Court rejected a challenge to the FCC reinstating the UHF discount that could’ve and could still pave the way for the merger. The three-judge panel was comprised of two President Barack Obama nominees and one President Trump nominee. They dismissed the case on technical grounds without considering its merits, ruling the activist groups that filed suit hadn’t shown they’d be injured by the consolidation at the heart of their case. What this really means is Tribune could be worth more if it pulls out of the deal, because other potential suitors will have more flexibility to make offers. Tribune can leave Sinclair at the alter/chuppah on Aug. 8.

The UHF discount, started in 1985, let companies with UHF (channels 14+) stations only count half the coverage area towards the ownership limit. But that was when there was a big difference between watching channels 2 to 13, and channels 14+. With today’s technology – and cable, satellite and computers added to the mix, and broadcast signals digital rather than analog – the quality looks the same. The rule was ended in 2016, just before the end of President Obama’s administration.

So why bring back the rule last year? For big corporations, up against the ownership limit, urging Pai to reinstate it so they could buy more stations – exactly what Sinclair needed to merge with Tribune.

According to Variety, Commissioner Mignon Clyburn, the sole Democrat on the FCC at the time, warned it would diminish diversity, competition, and localism, and she predicted a wave of mergers and acquisitions.

Variety wrote at the time,

“She showed a chart from Bloomberg showing how major station groups benefit from the discount. The largest, ION Media, reaches 33.7% of the country with the discount, but 65.2% without. Univision reaches 23.6% with the discount, but 44.8% without. When the discount was repealed last summer, station groups were allowed to retain their existing holdings, but they would be forced to divest assets in the event of a merger or corporate takeover.”

tv owner population share

But Pai argued the FCC would start examining the media ownership cap and reinstating the UHF discount would give the FCC a “blank slate.” The examination started in December.

generic tvA year later, in April 2018, Variety reported a panel of appellate judges asked why the FCC reinstated the rule and raised some concerns. Two of the three judges on the D.C. Circuit Court of Appeals also expressed concerns the FCC had restored a rule that was considered obsolete.

According to Variety, Judge Gregory Katsas noted to the FCC’s attorney, James Carr, that while the FCC

“might want to raise the cap,” there was “no reason for thinking at that the end of the day, part of the solution will be keeping the discount.”

“I think that is probably fair, your honor,” Carr replied. He argued that the UHF discount shouldn’t be eliminated without considering its implications to the 39% cap.

Meanwhile, CEO Chris Ruddy of conservative TV news network Newsmax said, “The judges on the D.C. Circuit reviewing the FCC’s UHF discount were left scratching their heads wondering why the rule was re-instated when everyone — Republicans and Democrats alike — agree that the discount is an analog relic and makes no sense in a digital world.

“The FCC should avoid the appearance of impropriety and proceed with a transparent national ownership cap proceeding to set a level playing field before approving any merger that benefits just one company, namely Sinclair.”

He also said he told President Trump strict limits on national TV ownership are needed not only to keep a lid on Sinclair, but also on the ‘liberal’ broadcast networks.

I told him [Trump] about my opposition because Sinclair would reach 70 percent of U.S. homes and — while I don’t disagree necessarily with Sinclair’s editorial point of view — I did not want to see NBC and ABC and the big liberal networks…[reaching] 70 percent.

“I think that would have been very dangerous if NBC was dictating the local news coverage in Des Moines, Iowa,” Ruddy said.

Keep in mind, Ruddy’s Newsmax and also Sinclair want to challenge Fox News Channel for conservative news viewers.

Politico summed it up by saying,

“Sinclair has been a frequent target for Democrats and liberal groups disturbed by reports that it favors President Donald Trump in its coverage via ‘must-run’ segments pumped to its network of stations.”

During the 2016 presidential election, The Washington Post reported Sinclair

“gave a disproportionate amount of neutral or favorable coverage to Trump during the campaign” while airing negative stories on Hillary Clinton, and Politico reported “on a boast by Trump’s son-in-law Jared Kushner that the president’s campaign had struck a deal with the broadcast group for better media coverage. Sinclair disputed the characterization, saying it was an arrangement for extended sit-down interviews that was offered to both candidates.”

Also, it was Trump who nominated Pai for the agency’s top post, so most experts felt the merger would eventually get the go-ahead due to President Trump’s public comments praising the media company, which boasts a conservative-leaning, anti-mainstream media news operation.

My last post mentioned many different cases of using shell companies under Sinclair’s control to still broadcast on more stations than allowed. Those so-called sidecar arrangements let Sinclair keep a stake in the revenue and programming of the spun-off stations.

I even asked, “Why was the FCC the last to find out? Or did it know and ignore the facts for political reasons?”

Today, I found a new example of a virtual triopoly (three stations in a market), when the FCC only allows duopolies (two stations in a market) and only under certain conditions.

So what changed? Politico reports problems in three cities.

WGN-TV

First, in Chicago, the plan was to sell

“WGN to Steven Fader, a Maryland business associate of Sinclair Executive Chairman David Smith who oversees car dealerships.”

According to Reuters,

“The draft order circulated by Pai’s office … said Sinclair’s actions around the divestiture of TV station WGN in Chicago ‘includes a potential element of misrepresentation or lack of candor.’”

Ouch! Not good for a company licensed to use the public airwaves. I used another example below and then offered a suggestion about what should happen to Sinclair.

Adweek added,

“The FCC feels Smith selling the asset to his friend and business associate presents a problem,”

and I’ll say the price of $60 million is ludicrous, considering the station is worth hundreds of millions of dollars.

According to The Chicago Tribune,

“The WGN services agreement would have kept Sinclair in charge of everything from programming to ad sales while giving it an option to buy back the station for the same price, subject to adjustments, within eight years.”

WPIX

Sinclair was also supposed to sell WPIX-New York, the nation’s largest TV market by far, for a measly $15 million to that same Cunningham Broadcasting, a company with close ties to the Smith family. That caused Pai to say he was concerned Sinclair’s proposed sales in Chicago and New York may have attempted to deceive the government.

Adweek said also troubling

“were the deals to sell stations in Dallas and Houston to Cunningham Broadcasting.”

The Tribune reported,

“The proposal also included an option to buy the stations back.”

According to Reuters,

“Separate filings with the FCC last month by the American Civil Liberties Union and conservative news outlet Newsmax Media” … raised “questions about whether Sinclair would continue to control some of the stations it proposes to divest.”

So Politico said,

“Pai announced an administrative law judge would review the station spinoff issues. The FCC takes that step when companies fail to persuade it that a transaction, even with conditions, would be in the public interest.”

Ars Technica reported the decision by FCC commissioners to adopt a Hearing Designation Order and have a judge review aspects of the deal was unanimous. Other options were

“denying the merger outright, approving the merger, or approving it with conditions.”

Click here for the full order. One of the key parts reads:

“Among these applications were three that, rather than transfer broadcast television licenses in Chicago, Dallas, and Houston directly to Sinclair, proposed to transfer these licenses to other entities. The record raises significant questions as to whether those proposed divestitures were in fact “sham” transactions. By way of example, one application proposed to transfer WGN-TV in Chicago to an individual (Steven Fader) with no prior experience in broadcasting who currently serves as CEO of a company in which Sinclair’s executive chairman has a controlling interest. Moreover, Sinclair would have owned most of WGN-TV’s assets, and pursuant to a number of agreements, would have been responsible for many aspects of the station’s operation. Finally, Fader would have purchased WGN-TV at a price that appeared to be significantly below market value, and Sinclair would have had an option to buy back the station in the future. Such facts raise questions about whether Sinclair was the real party in interest under Commission rules and precedents and attempted to skirt the Commission’s broadcast ownership rules. Although these three applications were withdrawn today, material questions remain because the real party-in-interest issue in this case includes a potential element of misrepresentation or lack of candor that may suggest granting other, related applications by the same party would not be in the public interest.”

This keeps getting better!at&t time warner

Politico said an administrative law judge was called in 2015 with the proposed Comcast-Time Warner Cable deal. The companies later abandoned it, rather than go through the hearing process. AT&T ended up with Time Warner, at least for now, after a federal judge allowed it without conditions, but the Justice Department is appealing.

By last Wednesday, Reuters reported Sinclair announced it would not divest the three TV stations currently owned by Tribune

“to ‘expedite’ the transaction after the FCC suggested the company would still control the stations,” and “two FCC officials who did not wish to be identified said Wednesday they believe the merger will not be able to proceed.”

Instead, Sinclair itself will acquire WGN-Chicago, and put KDAF-Dallas and KIAH-Houston into a divestiture trust and sold by an independent trustee (if the acquisition is finalized).

The Justice Department is also still reviewing the deal and the FCC may have even more concerns.

Sinclair denied any effort to mislead the FCC and issued this long statement:

“While neither Sinclair or Tribune have seen the draft HDO, Chairman Pai’s comments and press reports indicate the FCC is questioning the proposed divestitures in Dallas, Houston and Chicago.  Accordingly, in order to address such concerns and to expedite the Tribune transaction, Sinclair has withdrawn the pending divestitures of stations in Dallas (KDAF) and Houston (KIAH) to Cunningham Broadcasting Corporation and Tribune has withdrawn the pending divestiture of WGN in Chicago to WGN-TV LLC.  Sinclair intends to request permission from the FCC to put the Dallas and Houston stations into a divestiture trust to be operated and sold by an independent trustee following the closing of the Tribune acquisition.  Sinclair expects to have identified and entered into a purchase agreement with a third party buyer or buyers for the Dallas and Houston stations prior to closing.  As a result of the withdrawal of the application relating to WGN, Sinclair will simply acquire that station as part of the Tribune acquisition, which is, and has always been, fully permissible under the national ownership cap.

“Throughout the FCC review process of the Tribune merger and divestitures, Sinclair has had numerous meetings and discussions with the FCC’s Media Bureau to make sure that they were fully aware of the transaction’s structure and basis for complying with FCC rules and meeting public interest obligations. During these discussions and in our filings with the FCC, we have been completely transparent about every aspect of the proposed transaction. We have fully identified who the buyers are and the terms under which stations would be sold to such buyer, including any ongoing relationship we would have with any such stations after the sales. All relevant agreements documenting such terms as required by FCC rules have been filed. While we understand that certain parties, which oppose the transaction object to certain of the buyers based on such buyers’ relationships with Sinclair, at no time have we withheld information or misled the FCC in any manner whatsoever with respect to the relationships or the structure of those relationships proposed as part of the Tribune acquisition. Any suggestion to the contrary is unfounded and without factual basis.

“While the structures put forth to the FCC throughout the process have all been in compliance with law and consistent with structures that Sinclair and many other broadcasters have utilized for many years with the full approval of the FCC, we have consistently modified the structure in order to address any concerns raised by the FCC. As a result and in light of the ongoing and constructive dialogue we had with the FCC during the past year, we were shocked that concerns are now being raised. Nonetheless, we have decided to move forward with these additional changes to satisfy the FCC’s concerns.

“There can be no question regarding misrepresentation or character given that Sinclair has fully disclosed all terms of all aspects of the transactions it has proposed. The FCC’s reported concerns with sales to certain parties have been eliminated in light of the withdrawals of the applications relating to Dallas, Houston and Chicago. Accordingly, we call upon the FCC to approve the modified Tribune acquisition in order to bring closure to this extraordinarily drawn-out process and to provide certainty to the thousands of Tribune employees who are looking for closure.”

So what’s next for Tribune? Will it stick by the deal as it said it intends? We don’t know for sure yet, but it has until Aug. 8 and I already mentioned reasons to separate from Sinclair.

This video was made before Cox threw its assets into the ring.

One big winner, so far, could be 21st Century Fox Inc. chairman Rupert Murdoch, who has become close with President Trump.

Bloomberg notes, over the decades, Fox and Sinclair have been in business together, but the conservative organizations have also been rivals.

Sinclair owns dozens of local Fox affiliates. So does Tribune. Last year, Fox tried unsuccessfully to outbid Sinclair for Tribune.

In the meantime, the companies divide the retransmission fees paid by cable and satellite operators (meaning what you and I pay). Networks say local stations have more value because of them.

Former Fox exec Preston Paddon remembers in his blog,

“By 1992, Congress found that cable systems were paying carriage fees to the non-broadcast channels but not to the broadcasters, and that this was unfair to the broadcasters.”

It’s why we pay for free local TV if we’re not watching with an antenna.

Anyway, Sinclair buying Tribune and its own Fox affiliates would’ve given it a stronger negotiating hand in talks with Fox about how to divvy up those fees.

So after losing out on Tribune,

“Fox threatened to pull its affiliates from Sinclair and switch the stations to an independent broadcaster. Eventually, in order to satisfy regulators, Sinclair agreed to sell some Tribune stations to Fox, which, in turn, said it would renew Sinclair’s affiliation with more than two dozen stations.”

Now, Fox may be able to buy even more stations.

And “Sinclair may soon compete with Fox News for right-leaning TV viewers” may not come to pass. It has reportedly been talking about hiring former Fox News stars to create a block of conservative programming using WGN America, which it would acquire, or The Tennis Channel, which it already owns. Former Trump advisor Boris Epshteyn and former CBS correspondent Sharyl Attkisson already work for Sinclair. Politico reported Sinclair has even approached current and former Fox talent such as Jeanine Pirro, and Greta Van Susteren and Eric Bolling. I already wrote Talks with former Fox host Bill O’Reilly fell apart. Sinclair won’t admit to any of that.

Also, the Justice Department appealed the ruling that let AT&T buy Time Warner. That’s good for Fox at the moment because it involves Fox News Channel rival CNN, and may have kept Comcast/NBC from buying most of Fox, as it downsizes to become “New Fox.” Murdoch prefers Disney/ABC buying the assets, which the government already approved, and “the Murdoch family would see more tax benefits in that deal.”

So what’s President Trump’s beef? You already read about his relationship with Sinclair.

Tuesday night, he tweeted it was “sad and unfair that the FCC wouldn’t approve the Sinclair Broadcast merger with Tribune,” but Republicans control the FCC, he appointed Ajit Pai as chairman, and Pai has been accused of being too cozy with Sinclair. But except for appointments, the FCC is independent from the White House.

Deadline reported Sinclair commentator Boris Epshteyn, who used to work for Trump, is for the deal. So is Steve Bannon, who got friendly with Sinclair stations in swing states before the election. And Trump has to like Sinclair’s publicity.

The only Democratic FCC commissioner at the moment tweeted her response to the president with just one word: disagree.

But Trump’s friend Rupert Murdoch – who also owns TV stations and the pro-Trump Fox News Channel – is said to be against the merger. That would be especially so if Sinclair starts putting conservative news on cable through WGN America and The Tennis Channel. Trump is so chummy with Murdoch, he called in December to congratulate him on the Disney-21st Century Fox deal.

I wrote another friend, NewsMax chief Chris Ruddy, is definitely against Sinclair-Tribune, as well.

Furthermore, the president compared Sinclair-Tribune to letting “Liberal Fake News NBC and Comcast (get) approved” which happened under the Obama administration and FCC. Trump criticized it as being too big.

He didn’t mention it’s on the level of AT&T-Time Warner, which a federal judge recently allowed but the Justice Department is appealing.

The difference between Sinclair-Tribune and Disney-Fox – and NBC-Comcast and AT&T-Time Warner – is that the first pair involve companies that make content but don’t distribute it. In the second pair, NBC and Time-Warner make content, but Comcast and AT&T actually distribute it — Comcast through cable and AT&T by DirecTV satellite, both of which are paid subscription services.

In April, Axios reported President Trump defended Sinclair after the company started

“forcing conservative, pro-Trump editorials on its” news anchors and “Deadspin created a video of Sinclair broadcasters spurning ‘fake news.’

Viewers of Sinclair’s 200-plus local stations had already seen “centrally drafted opinion items reflecting its conservative, often pro-Trump positions,” but not by their own local anchors and certainly not side-by-side along with so many others.

That was at 6:34am. Keep in mind, a great number of Sinclair’s stations are affiliated with the networks.

Then, at 6:58, Trump took on CNN…

and got pushback from its PR department.

CNN reports some Sinclair journalists said they were unhappy with President Trump’s portrayal of the company as “conservative” because they want to be recognized for their straight-forward, nonpartisan work. Despite their stations being forced to air pro-Trump commentaries and stories, most journalists at local stations don’t want to be labeled by the president or anyone else.

As for Sinclair’s claim of more localism if the deal goes through, FTVLive’s Scott Jones found Sinclair station WSYX-Columbus, Ohio, doing a series of reports called “Gator Week” (as opposed to Shark Week, that has been on the Discovery Channel since 1988). Still, Jones thought it was “odd” considering “you don’t see many alligators in Ohio.” Then, he found out about other Sinclair stations doing the same thing, “including WGXA (Macon, Ga.), WPMI (Mobile, Ala.), WPEC (West Palm Beach) and others.” He joked he wasn’t sure it was a must-run.

I, myself, found Shark Week on a retweet from the Cunningham Broadcasting station in mid-Michigan. Maybe WBSF was allowed to go a different route.

WBSF’s “About” section says it’s “owned and operated by Cunningham Broadcasting Corporation and receives certain services from an affiliation of Sinclair Broadcast Group.” So there are three terms/phrases: owned, operated, and “receives certain services from an affiliation of Sinclair Broadcast Group.” Maybe that’s because just above, it says to send all press releases to news@nbc25news.com. So maybe “certain services from an affiliation of Sinclair Broadcast Group” includes press releases.

But wait!

Below, there are nbc25news email addresses for comments, webmaster (the Sinclair owned, operated, and apparently “affiliated” websites all look similar), contests and weather.

And below that are Sinclair (sbgi.net) email addresses for corporate, two for national advertising, and the secondary person for closed-captioning concerns.

So maybe those are all the “certain services from an affiliation of Sinclair Broadcast Group.”

That’s all very interesting since I knew Sinclair controlled two other stations in the same location!

NBC affiliate WEYI has on its “about” section (with the same look) that it’s “owned and operated by Howard Stirk Holdings, LLC and receives certain services from an affiliation of Sinclair Broadcast Group.” That entire phrase is merely a substitution for Armstrong Williams’ company and we established in my last post that WEYI is one of a few Howard Stirk stations run by Sinclair. They also use the nbc25news email, but it’s more appropriate here.

Then there’s Fox affiliate WSMH that has on its “about” section (with the same look, of course) that it’s – wait for this! – actually “owned and operated by Sinclair Broadcast Group.” The email addresses are all wsmh.com. The “receives certain services” phrase is not there.

I did notice after the paragraph with the name of the owner, etc., and ties to Sinclair, is another called “Community Involvement.”

What’s funny is that all three stations start with “The owner and Sinclair Broadcast Group, LLC. continue to broaden its recruiting outreach…”

That means “the owner” can be whichever company actually holds the station license and it’s not named here, just referred to as “the owner,” out of laziness.

But what’s especially funny here is saying “The owner and Sinclair Broadcast Group” when Sinclair is really the owner!

But seriously, how does Sinclair operate the three stations with the same address, etc.? We learned in my last post that’s not allowed in Baltimore, with Sinclair, Cunningham and Deerfield Media. In fact, in Nov., 2012, TVNewsCheck reported the situation as “a virtual triopoly.”

The FCC’s webpage called Broadcast Ownership Rules clearly states in its section, Local TV Multiple Ownership:

“An entity is permitted to own up to two TV stations in the same Designated Market Area if either:

  • “The service areas – known as the digital noise limited service contour – of the stations do not overlap

  • “At least one of the stations is not ranked among the top four stations in the DMA (based on audience share), and at least eight independently owned TV stations would remain in the market after the proposed combination”

That’s the summary in its entirety! The stations cover the same area. An old website reports “eight full-power television stations in the Flint-Saginaw-Bay City market,” the others being CBS and ABC affiliates, two PBS affiliates and a religious broadcaster.

And the NBC, Fox and CW stations are controlled by the same company, for all intents and purposes. I’d bet the CW station is not in the top four rated, but the rules are for an entity “to own up to two TV stations” – just two!

(The MyNetworkTV affiliate is on a sub-channel of the CBS affiliate.)

I just found the mid-Michigan situation by accident and wonder how many other cities this has been going on in.

TVNewsCheck’s Harry A. Jessell put it this way, and then made lists of winners and losers at this point:

“Its mishandling of its merger application has badly stained its permanent FCC record in a way that could greatly complicate its future regulatory dealings. … And a liar is what the FCC has accused Sinclair of being by obfuscating the fact it would continue to control three major market stations that it told the FCC it would spin off to other broadcasters to comply with ownership limits.

“You see, the FCC acts on the honor system. It presumes that you are obeying all the rules and expects you to confess any infractions. It’s the principal way the FCC polices those it regulates. That’s why lying – the ever-polite FCC calls it “misrepresentation” or “lack of candor” – is taken seriously and is the FCC equivalent of a capital crime. … As the lawyers pointed out to me this week, once indicted for misrepresentation as Sinclair has now been, it sticks because it goes to the broadcaster’s basic character qualifications to be a licensee. It cannot buy or sell a station or even renew a license until it resolves the character question. Sinclair’s best move now is to walk away from the merger and promise, no, swear on a stack of Bibles, that it will never, ever mislead the FCC again.

“Sinclair has no one but itself to blame for this fiasco. It pushed too hard to keep as many of the Tribune stations as it could and somewhere along the line lost sight of the larger goal – get the transfer through the FCC and get to closing. … (David Smith) kept going back to the FCC (and the Justice Department) demanding more and more. Ironically, he will likely end up with nothing, except maybe a new set of regulatory hassles.”

Bloomberg quotes B. Riley FBR Inc. analyst Barton Crockett, who said in a note he has

“never seen such ‘harsh’ language from the FCC about an applicant for a merger. The ‘vitriolic’ tone of the FCC statement makes it dubious that Sinclair and Tribune will be able to come back with divestitures that will satisfy the FCC.”

Bottom line: Anyone who knows me knows I can be tough, especially on myself. The people who run and invest in the nation’s largest media company have been breaking rules all over the place for many years. It’s time the FCC gets extremely serious so it’s taken seriously when protecting the public interest from those using the public airwaves.

Does anyone remember the RKO situation? Have a seat and look for similarities. (I wrote this with information from several Wikipedia listings.)

RKO General 1962
1962 logo

RKO General was the main holding company through 1991 for the non-core businesses of the General Tire and Rubber Company.

It had been in broadcasting since 1943, and General Tire bought the RKO Radio Pictures movie studio in 1955, but dissolved it in 1959. From then until 1991, it operated six TV stations and more than a dozen radio stations. It also holds the record for the longest licensing dispute in television history.

KHJThe trouble began in 1965. RKO General applied for license renewal of KHJ-TV in Los Angeles (now KCAL-Channel 9). A local group, Fidelity Television, challenged it, charging RKO with second-rate programming, and later and more seriously, that General Tire conditioned its dealings with certain vendors on the basis they’d buy advertising time on RKO General stations. These “reciprocal trade practices” are considered anti-competitive. RKO and General Tire executives testified before the FCC and rejected the accusations. Four years later, in 1969, the commission issued an initial finding that Fidelity’s claims were correct.WNAC RKO

That same year, RKO faced a license challenge for WNAC-TV in Boston (now WHDH-Channel 7, not to be confused with the old WHDH-Channel 5), again charged with reciprocal trade practices.

WOR RKOFour years later, in 1973, the FCC ruled in favor of RKO in the Los Angeles case, pending findings in the still-ongoing Boston investigation. The next year, in 1974, when RKO applied for license renewal of WOR-TV in New York (now WWOR-Channel 9, technically Secaucus, NJ), the FCC conditioned the renewal on the Boston case as well.

SIDEBAR: Another Boston FCC case lasted 15 years – not the record, but from sign-on to sign-off – and involved the former WHDH-Channel 5. The DuMont Television Network applied for a construction permit for the channel, but shut down its network before getting it. The Boston Herald Traveler Corporation got the license, signed on in 1957, and shortly after, the FCC started investigating allegations of impropriety in the granting of the television license. (Allegedly, the controversy was over luncheon meetings the newspaper’s chief executive had with an FCC commissioner during the original licensing process.) So the old channel 5 (WHDH) never had a license longer than six months at a time while the standard was three years.

Eventually, the FCC ordered comparative hearings and in 1969, a local group called Boston Broadcasters was granted a construction permit for a new station on channel 5 called WCVB after it promised to air more local programming than any other station in America at the time. That’s even though the old channel 5 (WHDH) often broadcast more local programming than any other commercial TV station in Boston. Herald-Traveler Corporation lost its court case in 1972 and WCVB went on the air in its place. Luckily, everyone on the old channel 5 moved to the new channel 5 which still broadcasts from the suburb of Needham, since the old WHDH-TV refused to sell its studios, transmitter and tower to the new WCVB, which is now owned by Hearst.

NOW BACK TO THE STORY: In June, 1974, an administrative law judge renewed the WNAC-Channel 7 Boston license even after finding General Tire and RKO General had engaged in reciprocal trade practices. In December, 1975, a company competing for the license called Community Broadcasting asked the FCC to revisit the case. It alleged General Tire bribed foreign officials, maintained a slush fund for U.S. political campaign contributions, and misappropriated revenue from overseas operations. RKO denied all the allegations during a year-and-a-half series of proceedings. Then, in July, 1977, General Tire admitted to an eye-popping litany of corporate misconduct, including the bribery and slush fund charges, in order to settle an action brought by the Securities and Exchange Commission. But the TV situation wasn’t over yet. Still, the RKO proceedings dragged on!

Finally, in 1980, after a half-decade of hearings and investigations, the FCC stripped RKO of WNAC’s license. It found RKO “lacked the requisite character” to be the station’s licensee and gave as examples, the reciprocal trade practices of the 1960s, false financial filings by RKO, and General Tire’s gross misconduct in non-broadcast fields.

But the worst was RKO’s dishonesty before the FCC. During hearings, RKO withheld evidence of General Tire’s misconduct, including the fact the SEC had been investigating the company in 1976. RKO also denied it had improperly reported exchanges of broadcast time for various services, despite indications to the contrary in General Tire’s 1976 annual report. So the FCC found RKO had displayed a “persistent lack of candor” over its own and General Tire’s misdeeds, which threatened “the integrity of the Commission’s processes.” That FCC ruling meant RKO lost the KHJ-TV Los Angeles and WOR-TV New York licenses as well.

RKO appealed to the District of Columbia U.S. Court of Appeals, which upheld the revocation solely on the basis of RKO’s lack of candor. It wrote in its opinion, “[t]he record presented to this court shows irrefutably that the licensee was playing the dodger to serious charges involving it and its parent company.” But the court interpreted the candor issue so narrowly that it applied only to WNAC-TV, and ordered rehearings for WOR and KHJ. RKO General appealed again, this time to the U.S. Supreme Court. In 1982, SCOTUS refused to review the license revocation, and it was over. RKO General sold WNAC’s assets to New England Television (NETV), a new company from the merger of Community Broadcasting and another competitor for the license, the Dudley Station Corporation. The FCC granted a full license to NETV on channel 7, which it renamed WNEV-TV. Since then, the station changed its call letters to WHDH-TV, had low ratings, and was sold to Ed Ansin’s Sunbeam Television Corporation. (This WHDH has no relation to the old WHDH-Channel 5.)

It could’ve been worse. In 1983, the FCC began taking competing applications for all of RKO’s broadcasting licenses, but Congress passed a law sponsored by Sen. Bill Bradley requiring the commission to automatically renew the license of any commercial VHF-TV station relocating to a state without one, meaning New Jersey and Delaware. Two months later, RKO General officially changed WOR’s city of license from New York to Secaucus, NJ, where it remains on paper. The FCC made the station move its main studio there and step up coverage of events in the Garden State. Still, WOR maintained its identity as a New York station. (It’s now owned by Fox, which also owns WNYW-Channel 5, and got rid of channel 9’s newscasts.)

In 1984, RKO sold its Radio Networks operation to United Stations. In 1986, under pressure, RKO put WOR up for sale. MCA/Universal won the bidding war and the FCC approved the purchase. In 1987, MCA changed the call letters to WWOR. (Remember the slogan Universal 9, about 15 years before NBCUniversal was formed?)

RKO was lucky it sold WOR. In 1987, an FCC administrative law judge found it unfit to be a broadcast licensee due to a long history of deceptive practices he called the worst case of dishonesty in FCC history, and ordered RKO to surrender the licenses for its two remaining two TV stations and 12 remaining radio stations. RKO declared all of the employees responsible for the misconduct had been fired and appealed, claiming the ruling was deeply flawed. But the FCC made it clear it would probably reject any appeals and strip the licenses, and urged RKO to sell everything before that became necessary.

In 1988, under an FCC-supervised deal, the license of KHJ-Los Angeles was granted to Fidelity, the company that had originally challenged RKO General. Fidelity then transferred it to Disney, before it bought ABC, for $324 million. RKO got about two-thirds and Fidelity got the rest. By 1991, everything was sold. (Fort Lauderdale-Miami’s WAXY-FM 105.9 – which labeled itself “an RKO radio station” before giving its call letters, near the end – was sold in 1990. That was 28 years ago! Unbelievable!)

TVNewsCheck’s Harry Jessell put it this way:

“When people are making comparisons between your station group and RKO General, you know you have screwed up.”

I think there are too many changes going on in the industry right now as technology improves so quickly. Jessell mentioned certain former FCC commissioners would’ve gone the RKO route with Sinclair. I agree because now more than ever, broadcasters use the public airwaves and must pay us back with public service under tougher rules than its competitors. And the FCC needs complete and total honesty, with so much on its hands.

Sinclair needs to be brought down similarly for all it has done, with the same family as owners and no concern for anything but profit over the decades. The stations should be separated. Local broadcasters or broadcasting groups with no other industry interests should be given first shot at the stations. Then, they can hire experienced people with original ideas, and decisions would be made right there in the studio building.

Please leave your comments in the section below, and don’t miss out. If you like what you read here, subscribe to CohenConnect.com with either your email address or WordPress account, and get a notice whenever I publish. I’m also available for writing/web contract work.

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Who says everything I write is negative (but correct)?

This is my 90th blog post and like most journalists, I identify mistakes all over and somehow — often through publicity — try to get them fixed. But not on this milestone. There’s too much good to write about.

feature heroes

I also want to point out the page CohenConnect Headlines Sitemap has a list of all the blog posts I’ve written and published over the past 3+ years, in chronological order. Nobody — early readers nor myself — can remember everything I’ve done and there hadn’t been a place to look. The right side of what you’re reading (or bottom on mobile) just show the past 10 and the most popular. A regular “sitemap” of category words is well below, on the bottom of the right side (or the bottom on mobile). But the “search” box also works very well, contains both categories and tags, and maybe more.

So staying positive, let’s honor some heroes with this post. These days, there are too few and far between. I remember years ago, while working at WCAU in Philadelphia, Larry Mendte saying on the air with such certainty, “Heroes never admit they are,” or something to that effect.

I’ll start by setting something straight. Two survivors of the Marjory Stoneman Douglas High School massacre in Florida posed for a picture with the caption Prom 2018, but they won’t be going together.

That’s despite what Pink News in the UK reported Tuesday, to the disappointment of Cameron Kasky and David Hogg’s many fans.

The publication describes Kasky “lovingly hugging Hogg, who contrasts Kasky’s sloppy smile with a stair which pierces your soul.”

Monday, Kasky posted the picture on Twitter. Click here for that original article, which may not be true, but contained a lot of positive reaction from hopeful supporters.

Yesterday, the Miami Herald wrote,

“Rebecca Boldrick, Hogg’s mother, told TMZ.com that Hogg has another date for the prom.
“Jeff Kasky, Cameron’s dad, told TMZ, ‘Cameron and David love each other very much, as do the 20 or so other kids that are part of their group, but not in a romantic type of way.’”

Then, Cameron’s mother, who has been a friend for about 40 years, posted a picture of the two of them titled “My date” Tuesday night. I’m not naming her because she has not put her name out in the public.

You watched Kasky dress down Sen. Marco Rubio (R-Fla.) in a CNN town hall for refusing to refuse contributions from the National Rifle Association. In fact, what it took for Cameron to try to get a simple “yes” or “no” answer to his question from a sitting U.S. senator and former presidential candidate from his own state was amazing!

2018-02 kasky rubio tapper cnn town hall

Fellow survivor Hogg also became a gun control advocate and activist against gun violence, but he has been more controversial. New to Florida — his family moved from L.A. at the start of high school — he chose to attend Stoneman Douglas because of its TV production classes.

Hogg may be most famous for what The Washington Post called his “dust-up with Fox News host Laura Ingraham,” who used this tweet to “make fun of the teen’s public lament about being rejected by colleges to which he had applied.”

(It really won’t matter because he plans to take next year off after high school to campaign in the midterm elections.)

The next day, Ingraham apologized to Hogg but not anybody else she’d put down over the years, including LeBron James, and by then it was too late.

So, knowing how TV and news are businesses that revolve around money (Where have you heard that multiple times before?), he urged his 700,000+ Twitter followers to boycott Ingraham’s advertisers.

The Washington Post noted, Hogg called the apology an insincere “effort just to save your advertisers.”

Then, “In a matter of days, Ingraham lost more than a dozen advertisers, including Johnson & Johnson, Nestlé, Hulu, Jenny Craig, Ruby Tuesday and Miracle-Ear.”

That weekend, Hogg told CNN,

“It’s disturbing to know that somebody can bully so many people and just get away with it, especially to the level that she did. … No matter who somebody is, no matter how big or powerful they may seem, a bully is a bully, and it’s important that you stand up to them.”

He even went as far as to compare the tweet and Ingraham’s criticism of him, saying they “were in line with bullying statements she had made about others: a conflict with gays while she was at Dartmouth in 1984 and, recently, responding to LeBron James’s political statements by saying that the NBA star should ‘shut up and dribble.’”

“I’m glad to see corporate America standing with me and the other students of Parkland and everybody else. Because when we work together, we can accomplish anything.”

Then Ingraham took a week off. Fox claimed the vacation had been planned.

Hogg, now 18, has already made political change.

When Leslie Gibson, who was running unopposed for the Maine House of Representatives, described fellow Parkland student Emma González as a “skinhead lesbian,” Hogg called for somebody to challenge the Republican. He got not one but two other candidates, and Gibson dropped out of the race in response to public reaction critical of his comments.

Today, a little more controversy. The conservative network The Blaze is reporting,

“The Zionist Organization of America is calling on Parkland survivor and activist David Hogg to change the name of his forthcoming book, as it believes that the title shows ‘shocking insensitivity to Holocaust survivors.’
“Random House publishers announced Thursday that David and his sister Lauren had penned a deal with the publishing house to release a book, #NEVERAGAIN: A New Generation Draws the Line, June 5.”

Lauren is a freshman survivor.

According to The Blaze, Random House said it plans to make a donation to Everytown for Gun Safety.

The Blaze also reports the book is being described as

“a statement of generational purpose, and a moving portrait of the birth of a new movement.”
“In times of struggle and tragedy, we can come together in love and compassion for each other,” David told Entertainment Weekly. “We can see each other not as political symbols, but as human beings. And then, of course, there will be times when we simply must fight for what is right.”
Sister Lauren added, “It’s amazing to see that so much love can come from so much loss. But from our loss, our generation will create positive change.”

But I’ve had an issue with using the phrase “never again” since it has always referred to one event: the murders of 6 million Jews and millions of others in the Nazis’ organized extermination campaign during World War II. Personally, I think the book title should be changed, and don’t think the phrase should be used in any other matter, but don’t doubt Hogg’s sincerity about the gun issue.

The ZOA said in part,

“By co-opting ‘Never Again’ title for his book opposing guns, David Hogg trivializes the holocaust” and the Hoggs’ book title “offends Holocaust survivors, Jews, and all human rights-loving people.”

Those are sections the Glenn Beck-founded network chose to highlight, due to its own agenda.

Click here for the complete press release issued yesterday, which also said,

“This statement should not be construed as in any way lessening our shock, outrage and pain regarding the Parkland school shooting. ZOA completely sympathizes with the loving, bereft families and all the infinitely precious victims of the Parkland shooting, all other school shootings, and all other shootings. All affected by these tragedies are in our hearts and prayers. …
“It is an expression that should never be politicized or co-opted by anyone, regardless of political affiliation. …
“The Holocaust was unique and unprecedented, in that: it involved a ‘final solution’ designed to murder every single Jewish man, woman and child; Jews were the only people killed for the ‘crime’ of existing; the murder of Jews was an ‘end in itself’ rather than a means to some other goal; and the people who carried out the ‘Final Solution’ were primarily average citizens ‘just doing a job.’ None of the other terrible slaughters and genocides this world has witnessed share all these characteristics.”

We’ll see what happens.

A third of the 20 founding members of the group Never Again MSD is activist Emma González, who has also had to deal with criticism of her bisexual orientation, hairstyle and more, including this.

The Washington Post reported,

“A doctored animation of González tearing the U.S. Constitution in half circulated on social media during the rally, after it was lifted from a Teen Vogue story about teenage activists. In the real image, González is ripping apart a gun-range target.”

emma tear gun ange target NEVER AGAIN.gif

I guess you could say desperate liars were targeting her because they had nothing better.

dc crowd

The group was promoting the March 24 “March for Our Lives” rallies in which even the president’s daughter, Tiffany Trump, supported. I traced how this posting came to be.

cameron speaks

 

time magazineKasky, Hogg and González — along with fellow students Jacqueline Cohen and Alex Wind — even made Time magazine‘s list of the 100 most influential people in the world for becoming prominent activists, organizing protests, and speaking out publicly to demand stricter laws on gun control.

Time wrote in an article, How we chose the 2018 TIME 100 list of the world’s most influential people: “Barack Obama, who has said that his greatest frustration as President was the failure of commonsense gun-safety laws, draws inspiration from the Parkland, Fla., teenagers who organized the March for Our Lives: ‘They have the power … to reject the old constraints, outdated conventions and cowardice too often dressed up as wisdom.’” Click here for the Time article about the Parkland 5.

Mashable went back further, writing the former president…

and first lady…

“both tweeted support for the Parkland teens following the deadly shooting, and wrote them a handwritten letter in praise of their ‘resilience, resolve and solidarity.’”

Notice the dates on everything. The attack took place on Feb. 14.

Mashable included a typed version of the letter, for those of you having trouble with Mr. Obama’s handwriting, and also a look at celebrities joining in at the March for Our Lives.

Even former NFL placekicker Jay Feely needs a lesson on seriousness, after The Sporting News showed a tweet he posted. It showed a “photo of him holding a gun while standing between his daughter and her prom date” that was intended to be a joke.

Feely should know better. He’s from Florida, grew up there and spent a year with the Miami Dolphins. The next day, he clarified what had happened.

On a more positive note, the South Florida Sun-Sentinel reports the prom will be an “over-the-top” party with a touching tribute, and students promising the best prom ever, after 17 people were shot to death at their school on Valentine’s Day. Four seniors were killed. So were seven freshman (that will be some prom in three years), plus three other students and two adults.

Eventually, the prom committee wanted to recognize the tragedy that’ll mark their high school memories. There will be a memorial near the entrance to the ballroom. It’ll also include two members of their class who died in 2016 of cystic fibrosis and suicide. The memorial will be surrounded by couches and designated as a quiet place to sit and think.

Inside, the prom will be stopped by 17 seconds of silence.

It also won’t be expensive. The cost: Just $30 per ticket, and $50 for non-seniors. The hotel, DJ, florist, decorator, and other vendors are donating their services for free or at cost, and the hotel is giving families of the senior victims a free weekend of their choice.

Good for all of them!

Marjory Stoneman Douglas survivors, along with high school students from around the country, were not even born 19 years ago during the Columbine High School shooting in Littleton, Colo.

(I remember it like yesterday. I had returned from vacation, was working at WCAU, and our news anchor Renee Chenault happened to be from Littleton. She ended up going there to report from her hometown, but being local news, did not get the publicity of Katie Couric for touching the hand of a victim’s father on the Today show.)

There were an estimated 150,000 students protesting on Friday’s anniversary at more than 2,700 walkouts, according to organizers.

The Chicago Tribune, in an Associated Press article published Friday afternoon, said,

“In a new wave of school walkouts, they raised their voices against gun violence. But this time, they were looking to turn outrage into action.”
The students, “turned their attention to upcoming elections as they pressed for tougher gun laws and politicians who will enact them. Scores of rallies turned into voter registration drives. Students took the stage to issue an ultimatum to their lawmakers.”

Activists behind a March 14 protest, a month after Stoneman Douglas, estimated it drew nearly 1 million students.

(I find it interesting The Chicago Tribune used an Associated Press article, while I learned Chicago’s Fox TV station asked the other Fox stations for a story they could post on their website, because they were apparently unable to write one of their own. Were there no rallies anywhere near Chicago? Probably plenty, considering the numbers above! At minimum, I would’ve shown the big one around town and then another in a zip code they wanted to target for ratings. Even chopper video would’ve done the job except for hearing the students tell their reasons for walking out, firsthand. But we know how Fox stations operate with sharing web articles. It seems at this point, they’ve become dependent on their sister-stations rather than even try to do the work. I love how so many of today’s young people are the opposite of this kind of corporate laziness!)

The Washington Post noted, “Critics have questioned whether … the high school students demanding that the nation’s gun laws be strengthened are mature enough to understand the complex policy positions they have staked out.”

Isn’t this exactly what we want from our young people? To think, investigate and reconsider if necessary? And don’t these particular students who experienced what they did have unique insight on the issue? Yet some people feel the need to criticize them. Maybe it’s because they need to be heard. Maybe because these grown-ups really have not grown up and are jealous. Or maybe because “the kids are alright” and and it simply bothers them because they have issues of their own.

How much are they bothered?

Click here for “Ted Nugent says Parkland students ‘have no soul,’ calls them ‘mushy-brained children’” (The Washington Post, March 31, 2018).

Nugent, perhaps the NRA’s most outspoken board member, told a San Antonio radio station, “These poor children, I’m afraid to say, but the evidence is irrefutable. They have no soul,” after discussing with the host their belief the teenagers have been manipulated by left-wing ideologues.

“The lies from these poor, mushy-brained children who have been fed lies and parrot lies,” Nugent said. “I really feel sorry for them. It’s not only ignorant, dangerous and stupid — it’s soulless. To attack the good, law-abiding families of America when well-known, predictable murderers commit these horrors is deep in the category of soulless.”

Click here for “How the Parkland teens became villains on the right-wing Internet” (The Washington Post, March 26, 2018).

If ardent NRA supporters don’t lose now, or in this year’s midterms, or even the 2020 presidential election, they should absolutely know the demographics of this country are changing. Eventually, they will lose to people who have felt real pain and others of that generation. It’s going to happen, whether they’ll consider themselves martyrs, or if they’re even alive to feel any suffering from their defeat.

Tammie Jo Shults Wikipedia
Wikipedia

Also a hero: Last week, the pilot of Southwest Airlines flight 1380, Captain Tammie Jo Shults, landed her plane calmly and successfully, on just one engine, here in Philadelphia. She saved 148 lives.

The trouble on the flight from New York to Dallas started when one of its engines appeared to explode in midair. The only person killed was passenger Jennifer Riordan who was partially sucked out of a broken window. That was extraordinary despite the tragedy.

 

Southwest Airlines 1380 YouTube
YouTube

According to The Guardian, “Those present recalled that after the plane had landed, Shults walked through the aisle to talk to them, to see how they were doing.”

Talk about responsibility AND customer service!

Turns out, The Guardian continued,

“Shults was one of the first female fighter pilots in the US Navy and was elite enough to fly an F/A-18 Hornet. She flew training missions as an ‘enemy pilot’ during Operation Desert Storm, as women were then still excluded from combat missions.”

James Shaw waffle houseAlso not to be forgotten is the heroism of Waffle House diner James Shaw Jr. Early Sunday morning, outside Nashville, he was sitting with a friend at the restaurant counter when police said a gunman wearing nothing but a green jacket opened fire outside.

As CNN reported, “Glass shattered, dust swirled and Shaw said he saw a man lying on the ground.”

Four people were killed.

CNN continued, Shaw

“bolted from his seat and slid along the ground to the restroom, he said. But he kept an eye and an ear out for the gunman. And the moment the shooter paused, Shaw decided to ambush him … before more lives were lost.”

He charged at the man with the rifle. They fought. Finally, Shaw said he managed to wrestle the barrel of the rifle from the gunman, tossed it behind the counter and the shooter escaped.

“The gun was hot and he was naked but none of that mattered,” Shaw said, with a burn on his hand a wound on his elbow where a bullet grazed it.

He told reporters,

“I figured if I was going to die, he was going to have to work for it. … I was just trying to live.”

Travis Jeffrey Reinking, 29, was arrested Monday, after a 34-hour manhunt.

NBC News pointed out he went from wearing only a green jacket to a green “suicide smock — a padded gown made from heavy-duty polyester that is held together with Velcro strips.”

schoolhouse rock
map Mount Bethel Pa

If you are of a certain age, you remember Schoolhouse Rock! from ABC on Saturday mornings. The jazz musician who was instrumental in that cartoon series died Monday in Mount Bethel, Pa., 92 miles and an hour-and-a-half drive from Philadelphia.

Bob Dorough was 94.

Schoolhouse Rock! ran from 1973 to 1985. The cartoons, including “My Hero, Zero” and “Three is a Magic Number,” (the first in the series) were written and performed by Dorough.

His biography says he “entertained and instructed unsuspecting children.”

Schoolhouse Rock! came back for another five years in the 1990s and its 40th anniversary was marked with a DVD edition of the entire five subject series.

Has a Schoolhouse Rock! tune ever helped you on a test? Do you have a favorite? I especially liked how a bill became a law (“I’m Just a Bill”) and “Conjunction Junction.”

Wells Fargo Center Wikipedia
Wikipedia

Finally, there’s the Wells Fargo Center in Philadelphia, site of last night’s Sixers playoff game where they eliminated the Miami Heat. Actually, the topic is replacement names, and Wells Fargo is not a very good corporate citizen.

I have always been against companies buying names for stadiums and liked it when NBC Sports, before losing the NFL in 1998, made it a point of not referring to the names of stadiums but just the city, unless there was confusion between different stadiums.

Philly.com says its readers suggest either Wilt Chamberlain, Sam Hinkie or Ed Snider.

Wachovia Center Wikimedia Commons
Wikimedia Commons

The stadium, where the Flyers played hockey until their season ended earlier this week, is named for Wells Fargo which is a big bank in Philadelphia and many other cities. Before that, it was named Wachovia. Before that, First Union. FU Center had something special to it. And before that, CoreStates. Just shows you how banks take each other over and waste money having to change the names on every branch and piece of real estate, including the ones they sponsor or use to advertise.

Speaking of money, Wells Fargo was in trouble yet again for what the website called “scams that targeted its own customers,” specifically its mortgage and auto insurance practices. The Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency made the accusations and ordered the bank to make restitution, plus pay the regulators $1 billion in fines. Wells Fargo did not admit or deny any allegations.

Just two years ago, Wells Fargo’s employees recused of secretly opening more than 2 million deposit and credit card accounts to meet their sales targets and receive bonuses. The bank had to pay $185 million to settle those allegations. It also fired about 5,300 employees for doing what may have been their jobs. In that case as well, Wells Fargo did not admit or deny allegations.

San Francisco-based Wells Fargo has been the nation’s third largest bank by assets.

FYI, the late Wilt Chamberlain played for the San Francisco/Philadelphia Warriors and the Philadelphia 76ers, and is widely considered one of the greatest and most dominant players in NBA history. He still holds the single-game scoring record, having scored 100 in one game. It happened March 2, 1962, in Hershey, Pa. against the New York Knicks. The Philadelphia Warriers moved west to San Francisco after that season.

Sam Hinkie Twitter
Twitter

Sam Hinkie was General Manager and President of Basketball Operations of the Philadelphia 76ers. He graduated from the Stanford Graduate School of Business and led the Sixers to some lousy seasons, but the team rebounded from what he left behind. In 2015, ESPN named Hinkie’s Sixers as the major professional sports franchise that had most embraced analytics.

Ed Snider Wikipedia
Wikipedia

And the late Ed Snider helped build the Spectrum and owned the Flyers, the Wells Fargo Center and a lot more. Wikipedia noted, “In a 1999 Philadelphia Daily News poll, Snider was selected as the city’s greatest sports mover and shaker, beating out legends such as Connie MackSonny HillBert Bell, and Roger Penske.”

Click here for several other readers’ thoughts on new names, some more serious than others!

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