Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 FCC 96-100 In re Applications of ROY M. SPEER (Transferor) and SILVER MANAGEMENT COMPANY (Transferee) For Transfer of Control of SKIL Broadcasting Partnership, Licensee of WEHS-TV, Aurora, IL SKDA Broadcasting Partnership, Licensee of KHSX-TV, Irving, TX SKHO Broadcasting Partnership, Licensee of KHSH-TV, Alvin, TX SKMD Broadcasting Partnership, Licensee of WHSW-TV, Baltimore, MD SKNJ Broadcasting Partnership, Licensee of WHSE-TV, Newark, NJ, WHSI-TV, Smithtown, NY, and W60AI, New York, NY SKOH Broadcasting Partnership, Licensee of WQHS-TV, Cleveland, OH SKLA Broadcasting Partnership, Licensee of KHSC-TV, Ontario, CA SKVI Broadcasting Partnership, Licensee of WHSP-TV, Vineland, NJ SKFL Broadcasting Partnership, Licensee of WYHS-TV, Hollywood, FL ) File Nos: BTCCT-950913KG BTCCT-950913KE BTCCT-950913KF BTCCT-950913KH BTCCT-950913KJ BTCCT-950913KK BTCTTL-950913KQ BTCCT-950913KL BTCCT-950913KM BTCCT-950913KN BTCCT-950913KO 14684 SKTA Broadcasting Partnership, Licensee of WBHS-TV, Tampa. FL North Central LPTV, Inc.. Licensee of W13BN. Columbus. OH. K21OD. St. Louis. MO K26CR. Kansas City. MO W33AY, Springfield. IL W39BH. Champaign. IL W64BM. Toledo. OH K35CY. Minneapolis, MN K41DD. Des Moines, IA South Central LPTV, Inc., Licensee of K15DD, Witchita, KS K14IE, New Orleans, LA K67FD, Shreveport, LA K39CW, Tulsa, OK Southeast LPTV, Inc., Licensee of W24BF, St. Petersburg, FL W24AL, Atlanta, GA W56CM, Knoxville, TN W36AJ, Jacksonville, FL W58CD, Raleigh, NC W52BF, Mobile, AL W34BI, Birmingham, AL W31BB, Pensacola, FL Northeast LPTV, Inc., Licensee of W17BH, Huntington, WV W56CP, Roanoke, VA W56CS, Portsmouth, VA West LPTV, Inc., Licensee of K21CX, Tucson, AZ K14IF, Spokane, WA ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ORDER BTCCT-950913KP BTCTTL- BTCTTL BTCTTL BTCTTL BTCTTL BTCTTL BTCTTL BTCTTL 950913KR 950913KS 950913KT 950913KU 950913KV 950913KW 950913KX 950913KY BTCTTL-950913KZ BTCTTL-950913LA BTCTTL-950913LB BTCTTL-950913LC BTCTTL- BTCTTL- BTCTTL BTCTTL- BTCTTL BTCTTL- BTCTTL BTCTTL- 950913LD 950913LE 950913LF 950913LG 950913LH 950913LI 950913U 950913LK BTCTTL-950913LL BTCTTL-950913LM BTCTTL-950913LN BTCTTL-950913LO BTCTTL-950913LP Adopted: March 11, 1996 By the Commission: Released: March 11, 1996 14685 1. The Commission is today releasing a Memorandum Opinion and Order, FCC 96-89. in the above-captioned proceedings, granting consent to the transfer of control of Silver King Communications. Inc. (Silver King), from Roy M. Speer to Silver Management Company (Silver Management). On our own motion, for the reasons stated below, we hereby stay the effectiveness of that Order pending further Commission action. 2. On March 6, 1996, the same day that the Commission adopted its Order granting consent to the transfer of control of Silver King, Urban Broadcasting Corporation (Urban) filed an informal objection to the Silver King applications raising serious allegations which, if substantiated, might adversely affect Silver King's qualifications to remain a licensee. Urban is the licensee of WTMW(TV), Channel 14, Arlington, Virginia, whose controlling shareholder of record is Theodore White. Silver King holds a substantial non-voting equity interest in Urban, provides the vast majority of Urban's programming pursuant to a network affiliation agreement, and is a substantial creditor of Urban. In its objection, which was signed by White, Urban alleges that: [cjontrary to the passive, non-voting interest in Urban that Silver King has represented to the Commission, Silver King has in fact knowingly and willfully violated the Commission's rules by expending millions of dollars to construct and operate WTMW(TV) by bypassing Urban's majority and sole voting shareholder, Theodore White, often times without even consulting Urban after the fact for decisions made by Silver King in constructing the station's facilities. . . . Silver King retained engineers, purchased broadcast equipment and incurred substantial financial obligations to construct the station, all without obtaining the prior approval of Urban. ... Silver King has exercised an impermissible degree of influence over WTMW(TV) and affected Urban's financial, personnel and programming decisions. . . . Urban asserts that within 10 days of filing its informal objection, it will supplement that filing with documentary evidence substantiating its claims. 3. Urban's allegations potentially raise serious issues of misrepresentation and/or lack of candor to the Commission by both Urban and Silver King, as well as suggest violation of Section 310(d) of the Communications Act of 1934, as amended, 47 U.S.C. §310(d), which prohibits the transfer of control of a licensee without prior Commission approval. Such issues bear directly on the character, and thus the basic qualifications, of Urban and of Silver King. No allegations of misconduct or impropriety have been raised concerning Silver Management, the buyer in this transaction, or its principals. As a general rule, however, the Commission has required not only the buyer, but the seller as well, to be qualified before granting its consent to the transfer of broadcast licenses. Jefferson Radio Co. v. FCC, 340 F.2d 781 (D.C. Cir. 1984). This policy is broadly grounded on the need to deter licensee misconduct. See 1400 Corp., 4 FCC 2d 715, 716 (1966), modified, 1 FCC 2d 517 (1967) (Licensees must "be held accountable for their stewardship and will not be permitted to evade 14686 the consequences of their misconduct or abuse of a license by selling the station. . . ."). Given the nature and the source of the allegations against Silver King, we find it necessary to defer the effectiveness of our decision granting consent to the transfer of control of Silver King so that we may investigate these allegations and assess their impact on our determination that the transferor in this proceeding is qualified. 4. We shall consider Urban's informal objection as a petition for reconsideration of the Silver King transfer decision which we are releasing today and which we stay by this Order. We will, therefore, afford the applicants in this proceeding, Roy M. Speer and Silver Management Company, a period not to exceed ten (10) days from the date Urban files its supplemental information, as described in paragraph 5, below, in which to file oppositions to Urban's objection; in the event Urban does not supplement its objection, the applicants should file any opposition they wish to submit not later than March 25, 1996. Urban will be afforded seven (7) days after the date of filing of any oppositions in which to reply to such oppositions. 47 C.F.R. §1.106(g) and (h). Jovon Broadcasting Corporation (Jovon), licensee of WJYS(TV), Hammond, Indiana, and a petitioner to deny the captioned Silver King transfer applications, remains a party to this proceeding and may file whatever initial comments it believes are appropriate during the opposition pleading period. Other named parties may reply to Jovon's comments within seven (7) days of their filing. Anthony Pharr, Jeffra Becknell, and the Washington Area Citizens Coalition Interested in Viewers' Constitutional Rights (Citizens Coalition, collectively), are parties to a separate, pending proceeding involving WTMW(TV) in which issues directly parallel to those raised in Urban's informal objection have been joined. See File No. BAPCT-890418KF. We will, therefore, consider all parties to that pending proceeding to be panics to this proceeding. Conversely, we will consider all parties to this proceeding to be parties to the pending WTMW(TV) proceeding. Accordingly, we will afford Citizens Coalition the same pleading opportunity as that afforded Jovon. Other named parties may reply to any Citizens Coalition pleading within seven (7) days of its filing. Finally, pursuant to Section 1.1208 of the Commission's rules, 47 C.F.R. §1.1208, we will consider this proceeding to be a restricted proceeding for purposes of our ex parte rules. 5. We believe that fairness to the parties and our own interest in the integrity of our processes counsel an expeditious resolution of the issues raised by Urban's belated objection. Accordingly, we direct Urban to file any supplemental documentary evidence or further comment that it wishes to submit in this matter not later than March 15, 1996, and to serve copies of any materials which it files on the parties named herein by hand or facsimile. Oppositions and replies should be similarly served. 6. Accordingly, pursuant to §1.106(n) of our Rules, 47 C.F.R. §1.106(n), the effectiveness of the Memorandum Opinion and Order, FCC 96-89, issued in connection with 14687 the above-captioned applications and released today. IS HEREBY STAYED, pending further Commission Order. FEDERAL COMMUNICATIONS COMMISSION . Caton Acting Secretary 14688