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Sinclair Broadcast Group

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The Sinclair Broadcast Group (SBG) NASDAQ: [SBGI] is the operator of the largest number of local television stations in the United States with a total of 59 stations across the country in 38 (mostly) small and medium markets. Broadcasts by SBG stations can be received by 24 percent of American households. The company is based in Hunt Valley, Maryland.

Ownership

Though Sinclair became a public company in 1995 and is currently traded on NASDAQ under the symbol SBGI, the Smith family still retains a majority financial interest, and all four Smith brothers serve as executives or directors.

Background

Network # Stations
Fox 19
WB 17¹²
ABC 11
UPN
NBC 1
CBS 2
My Network TV ¹
CW ²
Independent 2¹²
¹17 stations (10 WB, 6 UPN and
1 independent) starting September.
²8 stations (7 WB and 1 independent)
starting September.

Many stations are owned outright by the company, but many others are affiliated through local marketing agreements, or LMAs. The stations are affiliates of various television networks: ABC, CBS, NBC and Fox. In January 2006, UPN and the WB merged into a new network, The CW, which announced on May 2006 that Sinclair's 8 WB stations (WVTV, KMWB, WNAB, WTTO/WDBB, KOCB, WLFL and WNUV) and independent KFBT will become affiliates of the newly-formed network. In February 2006 My Network TV, a new spin-off of Fox's parent News Corporation, was formed to pickup stations that were losing either UPN or The WB. That announcement resulted in Sinclair signing a deal the following March, bringing 10 soon-to-be-ex WB affils (WTTA, WCWB, WSTR, WBSC, KRRT, WTVZ, WNYO, KVWB, WDKA and WNYS), 6 soon-to-be-ex-UPN affils (WUXP, WCGV, WUPN, WMMP, WABM and WRDC) and one independent (WFGX) to the new upstart come September 2006. Fox's deal with Sinclair was also strengthened by renewing its 19 stations to a six-year deal. The deal also includes flagship WBFF/Baltimore, despite Fox having a O&O, My Network TV affiliate WUTB, in the same market.

SBG has been compared to the radio conglomerate Clear Channel Communications (although they own TV stations as well as radio stations). The company, founded by Julian Smith, originated in 1971 with the launch of UHF station (and still current Sinclair flagship) WBFF (Channel 45) in Baltimore, Maryland. It is currently run by CEO David Smith and three other sons of Julian Smith.

SBG had experimented with using a centralized news organization called News Central that provided prepackaged news segments for distribution to several of the group's stations. These segments were integrated into programming during local news broadcasts. Mark Hyman, a high-ranking executive at SBG, also creates conservative editorial segments called "The Point" that are broadcast on some of the group's 61 stations. In addition, most of the stations that aired "News Central" emulated the prepackaged news studio appearance for local stories. This model was ultimately unsuccessful, and on March 31, 2006, News Central ended its national news broadcasts (although as of May 2006, The Point survives). Most stations running the News Central format ended up cancelling their news coverage altogether, although some stations that did this have subsequently contracted with competing TV stations to produce their newscasts.

Relationship to Glencairn/Cunningham

Between 1994 and 1997, nine stations owned by Glencairn Ltd. entered local marketing agreements with Sinclair-owned stations in the same cities. Glencairn was owned by Edwin Edwards, a former Sinclair executive, who also personally owned WPTT-TV in Pittsburgh. Since the Smiths owned nearly all of Glencairn's stock, some claimed Glencairn was a corporate shell with the sole purpose of evading FCC rules against owning more than one station in a market. In December 2001, after complaints from Jesse Jackson and several other media companies, the FCC fined Sinclair $40,000 for illegally controlling Glencairn. Sinclair tried to merge outright with Glencairn in 2001 and purchase Edwards' Pittsburgh station, now WPMY. However, the FCC only allowed four of the stations to come directly under the Sinclair banner. Glencairn kept the others and changed its name to Cunningham Broadcasting. Cunningham is owned by trusts in the name of four members of the Smith family.

Nightline controversy

In 2004, Sinclair attracted controversy when it decided that eight ABC stations it owned would not be allowed to broadcast an April 30 airing of a Nightline tribute to the 721 soldiers killed in the 2003 invasion and occupation of Iraq.

The group issued a statement that said in part, "The action appears to be motivated by a political agenda designed to undermine the efforts of the United States in Iraq." ABC responded, saying that the program was meant to be an expression of respect which seeks to honor those who have laid down their lives for this country."

For differing reasons, the decision to not air the episode attracted criticism both from supporters and opponents of the Iraq war. Affected stations were in the following markets:

WTXL in Tallahassee, Florida, owned by Media Venture Management and part of an outsourcing agreement with SBG, decided to air the program. In other affected areas, a number of independent stations stepped into the breach to air the broadcast.

Kerry film controversy

In October 2004, it was reported that Sinclair would order all 62 of its affiliate stations to preempt prime time programming to air Stolen Honor: Wounds That Never Heal, a documentary critical of U.S. presidential candidate John Kerry's anti-Vietnam War activism, just two weeks before the November 2 election. [link] The film was produced by Carlton Sherwood, a former associate of Tom Ridge, and accuses John Kerry of prolonging the Vietnam War because of his anti-war activism. The organization Swift Boat Veterans for Truth, an anti-Kerry organization whose name become well known in the 2004 election year, was cross-promoting the film as part of a $1.4 million advertising campaign. [link]

In response, the Democratic National Committee filed a legal motion with the Federal Election Commission stating that it is inappropriate for the media organization to air "partisan propaganda" in the last 10 days of an election campaign. [link]

Sinclair fired its Washington bureau chief Jon Leiberman, stating he revealed company business when he publicly discussed the documentary in an interview published October 18th in the Baltimore Sun.

Liberal political action groups, such as moveon.org, and mediamatters.org, rallied their members to threaten to boycotting companies who advertized during the program and to contact companies to let them know they intend to boycott them, and sign a petition on stopsinclair.org. The controversy caused Sinclair's stock to drop, with its heaviest volume after William Lerach threatened legal action claiming inside transactions and citing stopsinclair.org as evidence. New York state comptroller Alan Hevesi wrote a [letter] to the Smiths demanding answers about Sinclair's stock price. Hevesi is the trustee for the state's pension fund, which holds 256,000 shares of Sinclair stock. Finally, Sinclair backed down and aired an edited version of the show.

Accusations of misinformation

On August 30, 2005, in the segment "The Point", broadcast on Sinclair newscasts across the country, Sinclair commentator Mark Hyman falsely claimed that Social Security discriminates against minorities, whereas the truth is that some minorities have longer life expectancies after retirement than whites[link].

He also falsely claimed that spouses who worked for less than 10 years because they "gave up [their] career in order to raise a family... get diddly-squat"[link]. In fact, married Social Security recipients are eligible for all the benefits that they have earned for themselves, and, in addition, if those benefits are less than half of what their spouse receives, they also receive spousal benefits that increase their overall benefits to an amount equal to half their partner's benefit, plus survivor benefits.[link]

Stations operated by SBG

State Market Call sign Network Channel
Alabama Birmingham WTTO WB 21 / 28 Digital
WABM UPN 68 / 36
WDBB (L) WB 17 / 18
Florida Pensacola/Mobile WEAR-TV ABC 3 / 17
WFGX (L) Ind. 35 / 25
Tallahassee WTWC NBC 40 / 2
Tampa WTTA (L) Ind. 38 / 57
Illinois Champaign-Springfield WICD ABC 15 / 41
WICS ABC 20 / 42
Peoria WYZZ 1 Fox 43 / 28
Iowa Cedar Rapids KGAN CBS 2 / 51
Des Moines KDSM Fox 17 / 6
Kentucky Lexington WDKY Fox 56 / 4
Paducah KBSI Fox 23 / 22
WDKA (L) WB 49 / 50
Maryland Baltimore WBFF Fox 45 / 46
WNUV (C) WB 54 / 40
Massachusetts Springfield WGGB ABC 40 / 55
Maine Portland WGME CBS 13 / 38
Michigan Flint WSMH Fox 66 / 16
Minnesota Minneapolis WUCW WB 23 / 22
Missouri St. Louis KDNL ABC 30 / 31
New York Buffalo WUTV Fox 29 / 14
WNYO WB 49 / 34
Rochester WUHF 2 Fox 31 / 7
Syracuse WSYT Fox 68 / 19
WNYS (L) WB 43 / 44
Nevada Las Vegas KVMY WB 21 / 22
KVCW Ind. 33 / 29
State Market Call sign Network Channel
North Carolina Asheville WMYA (C) WB 40 / 14
WLOS ABC 13 / 56
Greensboro WXLV ABC 45 / 29
WMYV UPN 48 / 33
Raleigh-Durham WLFL WB 22 / 57
WRDC UPN 28 / 27
Ohio Cincinnati WSTR WB 64 / 33
Columbus WTTE (C) Fox 28 / 36
WSYX ABC 6 / 13
Dayton WKEF ABC 22 / 51
WRGT (L) Fox 45 / 30
Oklahoma Oklahoma City KOCB WB 34 / 33
KOKH Fox 25 / 24
Pennsylvania Pittsburgh WPGH Fox 53 / 43
WPMY WB 22 / 42
South Carolina Charleston WMMP UPN 36 / 35
WTAT (C) Fox 24 / 40
Tennessee Nashville WZTV Fox 17 / 15
WUXP UPN 30 / 21
WNAB (O) WB 58 / 23
Texas San Antonio KABB Fox 29 / 30
KMYS WB 35 / 32
Virginia Norfolk WTVZ WB 33 / 38
Richmond WRLH Fox 35 / 26
West Virginia Charleston WCHS ABC 8 / 41
WVAH (C) Fox 11 / 19
Wisconsin Madison WMSN Fox 47 / 11
Milwaukee WCGV UPN 24 / 25
WVTV WB 18 / 61
(L) - Local marketing agreement
(O) - Outsourcing agreement
(C) - Owned by Cunningham Broadcasting and operated by Sinclair via a local marketing agreement, but effectively owned by Sinclair due to Cunningham's financial structure
1: Owned by Sinclair, but managed by Nexstar Broadcasting Group-owned CBS affiliate WMBD-TV
2: Owned by Sinclair, but managed by Nexstar Broadcasting Group-owned CBS affiliate WROC-TV

See also

References

External links

Sinclair

Anti-Sinclair activism

News/comment

 


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