Cunningham Broadcasting
Encyclopedia
Cunningham Broadcasting Corporation is an owner of television station
s in the United States
. The company currently owns six stations—four affiliated with Fox Broadcasting Company
(one of which also carries MyNetworkTV
on a digital subchannel), one affiliated with MyNetworkTV and one affiliated with The CW Television Network
.
Cunningham has very close ties to Sinclair Broadcast Group
. All six Cunningham stations are operated by Sinclair under local marketing agreement
s. In addition, over 90 percent of Cunningham's stock is controlled by trusts in the name of Sinclair founder David Smith's children. Based on these arrangements, Cunningham appears to be a shell corporation that Sinclair uses to circumvent Federal Communications Commission
regulations on ownership.
in Pittsburgh
. Sinclair sold WPTT to Edwards after Sinclair bought rival WPGH-TV
, but continued to operate the station under a local marketing agreement
before buying the station back outright in 2000.
The initial capital was supplied by Carolyn Smith, wife of Sinclair founder Julian Smith and mother of current Sinclair CEO David Smith. Carolyn Smith also controlled 70% of Glencairn's stock. However, Glencairn held itself out as a minority-owned broadcaster (Edwards is black), gaining instant favor with the FCC.
Glencairn's initial purchase set the stage for its future dealings. In 1994, Sinclair merged with Abry Communications, which owned WNUV
in Baltimore
. WNUV had been the principal rival to Sinclair's flagship station, WBFF
. Sinclair could not keep both stations because FCC rules at the time did not allow common ownership of two stations in a single market. Accordingly, Glencairn bought WNUV from Sinclair, and Sinclair took over WNUV's operations under an LMA. However, due to the Smiths' controlling interest in Glencairn, Sinclair effectively had a duopoly
in Baltimore--and had all but emasculated its principal rival.
Glencairn eventually bought ten more stations, and Sinclair controlled all their operations via LMAs. Due to Glencairn's financial structure (the Smiths eventually bought 97% of Glencairn's stock), Sinclair effectively had duopolies in all 11 markets. FCC rules at the time did not allow common ownership of two stations in a single market. Among the more notable purchases:
in Oklahoma City
, where Sinclair already owned KOCB
. When the FCC relaxed its rules, Sinclair simply replaced Glencairn as the buyer for KOKH. Glencairn then announced plans to sell five of its stations to Sinclair outright.
This move led Jesse Jackson
and others to file challenges to the proposed transactions. In the course of subsequent hearings, it emerged that Edwards did not know how much debt Glencairn would assume when the deals closed. This led FCC Commissioner Michael Copps
to question the deal's integrity, as well as Glencairn's decision-making process. It later emerged that Glencairn was to be paid for the proposed purchases with Sinclair stock, and that the Smiths controlled almost all of Glencairn's stock. Eventually, the FCC slapped Sinclair with a $40,000 fine for illegally controlling Glencairn. However, it took no further action, leading Copps to blast the decision as a backhanded endorsement of Sinclair's tactics.
in Dayton, Ohio
and WTAT-TV
in Charleston, South Carolina
were located in markets where Sinclair could not legally have duopolies. The reasons stated:
Sinclair, however, was able to buy five of Glencairn's stations, and Glencairn subsequently changed its name to Cunningham Broadcasting. However, nearly all of Cunningham's stock is owned by trusts in the name of the children of the Smith brothers, so Sinclair still effectively owns Cunningham. This situation led Sinclair Media Watch, a grassroots organization based in Asheville, to file informal objections when WLOS and WBSC's licenses came up for renewal in 2004. However, the FCC has taken no further action against Sinclair or Cunningham.
Television station
A television station is a business, organisation or other such as an amateur television operator that transmits content over terrestrial television. A television transmission can be by analog television signals or, more recently, by digital television. Broadcast television systems standards are...
s in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The company currently owns six stations—four affiliated with Fox Broadcasting Company
Fox Broadcasting Company
Fox Broadcasting Company, commonly referred to as Fox Network or simply Fox , is an American commercial broadcasting television network owned by Fox Entertainment Group, part of Rupert Murdoch's News Corporation. Launched on October 9, 1986, Fox was the highest-rated broadcast network in the...
(one of which also carries MyNetworkTV
MyNetworkTV
MyNetworkTV is a television broadcast syndication service in the United States, owned by the Fox Entertainment Group, a division of News Corporation...
on a digital subchannel), one affiliated with MyNetworkTV and one affiliated with The CW Television Network
The CW Television Network
The CW Television Network is a television network in the United States launched at the beginning of the 2006–2007 television season. It is a joint venture between CBS Corporation, the former owners of United Paramount Network , and Time Warner's Warner Bros., former majority owner of The WB...
.
Cunningham has very close ties to Sinclair Broadcast Group
Sinclair Broadcast Group
The Sinclair Broadcast Group is an American telecommunications company that operates the largest number of local television stations in the United States. Headquartered in Hunt Valley, Maryland, it owns a total of 57 stations across the country in 35 primarily small and medium markets, many of...
. All six Cunningham stations are operated by Sinclair under local marketing agreement
Local marketing agreement
In U.S. and Canadian broadcasting, a local marketing agreement is an agreement in which one company agrees to operate a radio or television station owned by another licensee...
s. In addition, over 90 percent of Cunningham's stock is controlled by trusts in the name of Sinclair founder David Smith's children. Based on these arrangements, Cunningham appears to be a shell corporation that Sinclair uses to circumvent Federal Communications Commission
Federal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...
regulations on ownership.
History
Cunningham was founded in 1994 as Glencairn, Ltd. It was headed by Edwin Edwards, a former Sinclair executive. Edwards had been general manager of one of Sinclair's original stations, WPTT-TVWPMY
WPMY is the MyNetworkTV-affiliated television station for Western Pennsylvania that is licensed to Pittsburgh. It broadcasts a high definition digital signal on UHF channel 42 from a transmitter located in Monroeville, Pennsylvania. Owned by Sinclair Broadcast Group, WPMY is the sister station of...
in Pittsburgh
Pittsburgh, Pennsylvania
Pittsburgh is the second-largest city in the US Commonwealth of Pennsylvania and the county seat of Allegheny County. Regionally, it anchors the largest urban area of Appalachia and the Ohio River Valley, and nationally, it is the 22nd-largest urban area in the United States...
. Sinclair sold WPTT to Edwards after Sinclair bought rival WPGH-TV
WPGH-TV
WPGH-TV is the Fox-affiliated television station for Pittsburgh, Pennsylvania. It broadcasts a high definition digital signal on UHF channel 43 from a transmitter at its studios on Ivory Avenue in the city's Summer Hill section. The station can also be seen on Verizon FiOS and Comcast channel 7...
, but continued to operate the station under a local marketing agreement
Local marketing agreement
In U.S. and Canadian broadcasting, a local marketing agreement is an agreement in which one company agrees to operate a radio or television station owned by another licensee...
before buying the station back outright in 2000.
The initial capital was supplied by Carolyn Smith, wife of Sinclair founder Julian Smith and mother of current Sinclair CEO David Smith. Carolyn Smith also controlled 70% of Glencairn's stock. However, Glencairn held itself out as a minority-owned broadcaster (Edwards is black), gaining instant favor with the FCC.
Glencairn's initial purchase set the stage for its future dealings. In 1994, Sinclair merged with Abry Communications, which owned WNUV
WNUV
WNUV, digital channel 40, is an affiliate of the CW Television Network, located in Baltimore, Maryland. WNUV is owned by Cunningham Broadcasting, but is operated by Sinclair Broadcast Group through a local marketing agreement with Fox affiliate WBFF . However, WNUV is effectively owned by...
in Baltimore
Baltimore
Baltimore is the largest independent city in the United States and the largest city and cultural center of the US state of Maryland. The city is located in central Maryland along the tidal portion of the Patapsco River, an arm of the Chesapeake Bay. Baltimore is sometimes referred to as Baltimore...
. WNUV had been the principal rival to Sinclair's flagship station, WBFF
WBFF
WBFF, channel 45, is a Fox-affiliated television station located in Baltimore, Maryland. WBFF is the flagship station of the Sinclair Broadcast Group, which also operates Baltimore's CW affiliate, WNUV-TV , through a local marketing agreement...
. Sinclair could not keep both stations because FCC rules at the time did not allow common ownership of two stations in a single market. Accordingly, Glencairn bought WNUV from Sinclair, and Sinclair took over WNUV's operations under an LMA. However, due to the Smiths' controlling interest in Glencairn, Sinclair effectively had a duopoly
Duopoly (broadcasting)
In United States broadcast television and radio, duopoly is a term used to describe a single company which owns two or more stations in the same city or community....
in Baltimore--and had all but emasculated its principal rival.
Glencairn eventually bought ten more stations, and Sinclair controlled all their operations via LMAs. Due to Glencairn's financial structure (the Smiths eventually bought 97% of Glencairn's stock), Sinclair effectively had duopolies in all 11 markets. FCC rules at the time did not allow common ownership of two stations in a single market. Among the more notable purchases:
- As part of the Abry merger, Sinclair also acquired WNRW-TV (now WXLV-TVWXLV-TVWXLV-TV is the ABC-affiliated television station for the Piedmont Triad area of North Carolina that is licensed to Winston-Salem. It broadcasts a high definition digital signal on UHF channel 29 from a transmitter in Randleman along I-73/U.S. 220...
) in Winston-Salem, North CarolinaWinston-Salem, North CarolinaWinston-Salem is a city in the U.S. state of North Carolina, with a 2010 population of 229,617. Winston-Salem is the county seat and largest city of Forsyth County and the fourth-largest city in the state. Winston-Salem is the second largest municipality in the Piedmont Triad region and is home to...
. It simulcast its programming on separately-owned WGGT-TV in Greensboro. Glencairn bought WGGT from its previous owner, ended the simulcast and turned WGGT into an affiliate of the fledgling UPNUPNUnited Paramount Network was a television network that was broadcast in over 200 markets in the United States from 1995 to 2006. UPN was originally owned by Viacom/Paramount and Chris-Craft Industries, the former of which, through the Paramount Television Group, produced most of the network's...
as WUPN-TV (now WMYVWMYVWMYV is the MyNetworkTV-affiliated television station for the Piedmont Triad area of North Carolina that is licensed to Greensboro. It broadcasts a high definition digital signal on UHF channel 33 from a transmitter in Randleman along I-73/U.S. 220...
).
- In 1995, Glencairn bought WRDC-TVWRDC-TVWRDC, channel 28, is an affiliate station of MyNetworkTV in the Raleigh-Durham-Fayetteville, North Carolina television market. The station is licensed to Durham, but its studios are in the Highwoods office park just outside downtown Raleigh...
in Raleigh, North CarolinaRaleigh, North CarolinaRaleigh is the capital and the second largest city in the state of North Carolina as well as the seat of Wake County. Raleigh is known as the "City of Oaks" for its many oak trees. According to the U.S. Census Bureau, the city's 2010 population was 403,892, over an area of , making Raleigh...
and gave Sinclair control of its operations via an LMA. Sinclair already owned WLFLWLFLWLFL is the CW-affiliated television station for North Carolina's Triangle licensed to Raleigh. It broadcasts a high definition digital signal on UHF channel 27 from a transmitter located in Auburn, North Carolina. The station can also be seen on Time Warner Cable channel 2 and in high definition...
in Raleigh. In effect, Sinclair now had duopolies in two of North Carolina's largest markets.
- In 1996, Sinclair merged with River City Broadcasting, which owned WSYXWSYXWSYX, channel 6, is an ABC-affiliated television station located in Columbus, Ohio. WSYX is owned by the Sinclair Broadcast Group, which also operates Fox affiliate WTTE through a local marketing agreement...
in Columbus, OhioColumbus, OhioColumbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
. This initially posed a problem for Sinclair, as it already owned WTTEWTTEWTTE is the Fox-affiliated television station for Columbus, Ohio. It broadcasts a high definition digital signal on UHF channel 36 from a transmitter on Stimmel Road. The station can be seen on Insight, Time Warner, and WOW! channel 8. For high definition digital cable, it is offered on Insight...
in Columbus. Sinclair decided to keep the higher-rated WSYX and sold WTTE to Glencairn. Sinclair continued to operate WTTE through an LMA. River City also owned WLOSWLOSWLOS is the ABC-affiliated television station for Western North Carolina and Upstate South Carolina licensed to Asheville, North Carolina. It broadcasts a high definition digital signal on VHF channel 13 from a transmitter on Mount Pisgah in North Carolina. The station can also be seen on Charter...
in Asheville, North CarolinaAsheville, North CarolinaAsheville is a city in and the county seat of Buncombe County, North Carolina, United States. It is the largest city in Western North Carolina, and the 11th largest city in North Carolina. The City is home to the United States National Climatic Data Center , which is the world's largest active...
and satellite station WAXA-TV in Anderson, South CarolinaAnderson, South CarolinaAnderson is a city in and the county seat of Anderson County, South Carolina, United States. The population was estimated at 26,242 in 2006, and the city was the center of an urbanized area of 70,530...
. Sinclair sold WAXA to Glencairn, who ended the simulcast and turned WAXA into an independent, later changing the calls to WFBC-TV and later WBSC-TV.
- In 1997, Sinclair purchased the broadcasting properties of Heritage Media, which included WCHS-TVWCHS-TVWCHS-TV is the ABC-affiliated television station for Charleston and Huntington, West Virginia. This area is the second-largest market in terms of area east of the Mississippi River and consists of 61 counties in Central West Virginia, Eastern Kentucky, and Southern Ohio...
in Charleston, West VirginiaCharleston, West VirginiaCharleston is the capital and largest city of the U.S. state of West Virginia. It is located at the confluence of the Elk and Kanawha Rivers in Kanawha County. As of the 2010 census, it has a population of 51,400, and its metropolitan area 304,214. It is the county seat of Kanawha County.Early...
. Sinclair already owned WVAH-TVWVAH-TVWVAH-TV is the Fox-affiliated television station for Charleston and Huntington, West Virginia which is the second-largest market in terms of area east of the Mississippi River. It broadcasts a high definition digital signal on UHF channel 19 from a transmitter south of Scott Depot along the Putnam...
in Charleston, but opted to keep the longer-established WCHS and sold WVAH to Glencairn. Also that year, Glencairn bought KRRT (now KMYSKMYSKMYS, channel 35, is the CW affiliate in San Antonio, Texas. The station is owned by Sinclair Broadcast Group. It is licensed to the nearby city of Kerrville. Its transmitter is located near Lakehills, Texas.-Founding:...
) in San Antonio, Texas, which already had an existing LMA with KABBKABBKABB is the Fox Network affiliate television station in San Antonio, Texas. It is co-owned with The CW Television Network affiliate KMYS by the Sinclair Broadcast Group...
(which Sinclair had acquired the previous year as part of its purchase of River City).
- In 1998, Sinclair and Glencairn teamed up to buy five stations from Sullivan Broadcasting. Glencairn simply bought the licenses while Sinclair bought the stations' other assets. Sinclair then leased the non-license assets back to Glencairn.
The 1999–2001 dispute
In 1999, the FCC finally relaxed its ownership rules and allowed one person to own two stations in a market starting in 2001. Ironically, this development brought the Sinclair-Glencairn arrangement to light for the first time. At the time, Glencairn was getting ready to buy Sullivan-owned KOKHKOKH-TV
KOKH-TV, virtual channel 25 , is the Fox-affiliated television station serving the Oklahoma City, Oklahoma television market...
in Oklahoma City
Oklahoma city
Oklahoma City is the capital and largest city of the U.S. state of Oklahoma.Oklahoma City may also refer to:*Oklahoma City metropolitan area*Downtown Oklahoma City*Uptown Oklahoma City*Oklahoma City bombing*Oklahoma City National Memorial...
, where Sinclair already owned KOCB
KOCB
KOCB, virtual channel 34 , is the CW-affiliated television station in Oklahoma City, Oklahoma. It is owned by Sinclair Broadcast Group of Maryland, LLC, in a duopoly with Fox affiliate KOKH-TV...
. When the FCC relaxed its rules, Sinclair simply replaced Glencairn as the buyer for KOKH. Glencairn then announced plans to sell five of its stations to Sinclair outright.
This move led Jesse Jackson
Jesse Jackson
Jesse Louis Jackson, Sr. is an African-American civil rights activist and Baptist minister. He was a candidate for the Democratic presidential nomination in 1984 and 1988 and served as shadow senator for the District of Columbia from 1991 to 1997. He was the founder of both entities that merged to...
and others to file challenges to the proposed transactions. In the course of subsequent hearings, it emerged that Edwards did not know how much debt Glencairn would assume when the deals closed. This led FCC Commissioner Michael Copps
Michael Copps
Michael Joseph Copps is a Commissioner on the U.S. Federal Communications Commission , an independent agency of the United States government. He has served as one of the commissioners of the FCC since May 31, 2001, and took on the additional role of acting chairman on January 20, 2009...
to question the deal's integrity, as well as Glencairn's decision-making process. It later emerged that Glencairn was to be paid for the proposed purchases with Sinclair stock, and that the Smiths controlled almost all of Glencairn's stock. Eventually, the FCC slapped Sinclair with a $40,000 fine for illegally controlling Glencairn. However, it took no further action, leading Copps to blast the decision as a backhanded endorsement of Sinclair's tactics.
Glencairn becomes Cunningham
In 2001, Glencairn tried to merge with Sinclair outright. However, the FCC rejected the deal because six of Glencairn's stations--WNUV, WVAH, WTTE, WBSC, WRGT-TVWRGT-TV
WRGT-TV, virtual channel 45, is the Fox-affiliated television station for the Miami Valley area of Ohio, which is licensed to Dayton. It broadcasts a high definition digital signal on UHF channel 30 from a transmitter at its Broadcast Plaza studios near the New Chicago section of the city. It can...
in Dayton, Ohio
Dayton, Ohio
Dayton is the 6th largest city in the U.S. state of Ohio and the county seat of Montgomery County, the fifth most populous county in the state. The population was 141,527 at the 2010 census. The Dayton Metropolitan Statistical Area had a population of 841,502 in the 2010 census...
and WTAT-TV
WTAT-TV
WTAT-TV is the Fox-affiliated television station for South Carolina's Lowcountry licensed to Charleston. It broadcasts a high definition digital signal on UHF channel 24 from a transmitter in Awendaw. The station can also be seen on Comcast, Knology, and Time Warner channel 6...
in Charleston, South Carolina
Charleston, South Carolina
Charleston is the second largest city in the U.S. state of South Carolina. It was made the county seat of Charleston County in 1901 when Charleston County was founded. The city's original name was Charles Towne in 1670, and it moved to its present location from a location on the west bank of the...
were located in markets where Sinclair could not legally have duopolies. The reasons stated:
- WNUV: Baltimore, despite being the 24th market, has only seven full-power stations. The FCC requires a market to have eight unique station owners once a duopoly is formed, not counting low-power stations.
- WTTE: Sinclair-owned WSYX is the third-rated station in Columbus while WTTE is the fourth-rated station. FCC rules do not allow common ownership of two of the four highest-rated stations in a single market. Also, Columbus, despite being the 32nd-largest market, has only seven full-power stations--too few to allow a duopoly in any case.
- WBSC: The FCC already permitted Media GeneralMedia GeneralMedia General, Inc. is a media company based in the Southeastern United States. Its major properties include newspapers such as The Tampa Tribune, the Winston-Salem Journal, and the Richmond Times-Dispatch, as well as numerous television stations, such as flagship station WFLA-TV.The company was...
, owner of WSPA-TVWSPA-TVWSPA-TV channel 7 is the CBS-affiliated television station for western North Carolina and South Carolina. It is licensed to Spartanburg, South Carolina with its transmitter is located on Hogback Mountain southwest of Tryon, North Carolina. Owned by Media General, the station is sister to CW...
, to buy LMA partner WASV (now WYCWWYCWWYCW is the CW-affiliated television station for Western North Carolina and Upstate South Carolina licensed to Asheville, North Carolina. It broadcasts a high definition digital signal on UHF channel 45 from a transmitter on Pinnacle Mountain Road, south of Green River Township's Jeter Mountain...
), and a Sinclair purchase of WBSC (now WMYA-TVWMYA-TVWMYA-TV is the MyNetworkTV-affiliated television station for Upstate South Carolina and Western North Carolina licensed to Anderson, South Carolina. It broadcasts a high definition digital signal on UHF channel 14 from a transmitter in Fountain Inn, South Carolina. The station can also be seen on...
) would leave only seven unique owners in the Greenville-Spartanburg-Asheville market. - WVAH: Sinclair-owned WCHS is the 2nd-rated station in the Huntington-Charleston market, while WVAH is #4.
- WRGT: Dayton has only seven full-power stations--too few to allow duopolies. Plus, Sinclair already owned WKEFWKEFWKEF, virtual channel 22, is the ABC-affiliated television station for the Miami Valley area of Ohio, which is licensed to Dayton. It broadcasts a high definition digital signal on UHF channel 51 from a transmitter at their Broadcast Plaza studios near the New Chicago section of the city...
, the #3 station, while WRGT is #4. - WTAT: Charleston has only six full-power stations--too few to allow duopolies. WTAT was nominally junior partner in an LMA with WMMPWMMPWMMP is the MyNetworkTV-affiliated television station for the Lowcountry area of South Carolina licensed to Charleston. It broadcasts a high definition digital signal on UHF channel 36 from a transmitter in Awendaw. The station can also be seen on Knology, Comcast, and Time Warner channel 13...
, which Sinclair had acquired in a group deal in July 1998.
Sinclair, however, was able to buy five of Glencairn's stations, and Glencairn subsequently changed its name to Cunningham Broadcasting. However, nearly all of Cunningham's stock is owned by trusts in the name of the children of the Smith brothers, so Sinclair still effectively owns Cunningham. This situation led Sinclair Media Watch, a grassroots organization based in Asheville, to file informal objections when WLOS and WBSC's licenses came up for renewal in 2004. However, the FCC has taken no further action against Sinclair or Cunningham.