More interesting legal questions here connected to your statement.
FCC rules state that it is a violation to transfer control of a station to someone else without authorization. However, if the licensee -- whether an individual or corporation -- hires employees or contractors to maintain, operate, and program the station, is that an invalid transfer of control? If so interpreted, then only the iHeart and RadioOne board of directors would be allowed to operate the transmitters and get on the air, not their employees and contractors.
I think you would first have to define what “transfer control” means. The licensee delegates authority to employees or contractors to operate, repair or maintain a broadcast facility. These individuals are clearly not the licensee, but they are performing under the supervision and authority of the licensee. If they are not doing their job properly, they can be suspended or terminated. This is exercising control.
When you have a nonprofit station such an an NCE or LPFM, the licensee almost never has employees or contractors. They have volunteers. They actually depend on these volunteers for programming, to solicit donations, and generally keep the station on the air. KPFT is the best example. Pacifica, the licensee, is based in Los Angeles. KPFT has its own volunteer board in Houston that votes on who to hire to be the station manager. Programming is either syndicated or produced by local volunteers. While Pacifica is technically the licensee, the California-based nonprofit has almost ZERO control over the Houston station.
In the case of KPFT, even though they have a local volunteer board, they are clearly under the control of the parent organization, Pacifica Foundation. Don’t believe me? Just follow the money. When their real estate on Lovett was sold, who received the proceeds of the sale?
KACC is another example of control. While it seems that the students are running the station, they are under the influence of the instructors, who are under the control of Alvin Community College, who is the licensee.
Ditto for KTRU. Or, should I say, what was formerly KTRU. While it appeared, and was often promoted, as a student-run radio station, the students actually didn’t have authority or control. Once again, follow the money. Rice University (the licensee) sold the station to University of Houston, which in turn sold it to KSBJ Educational Foundation. Of course, tge Rice University students put up a valiant protest, but in the end the Administration showed them who was really in control.