Boosting Minority Ownership Hits Roadblock

[Y2kTheNewOldies]

https://tvnewscheck.com/article/top-news/244944/boosting-minority-ownership-hits-roadblock/

Last summer, Rep. G.K. Butterfield (D-N.C.), along with five other members of Congress, introduced H.R. 3957, the “Expanding Broadcast Opportunities Act.” At about the same time, Sen. Gary Peters (D-Mich.), introduced S. 2433 in the Senate. Both are intended to revive the FCC’s Tax Certificate Policy. The legislation, if enacted, would direct the FCC to take proactive steps to increase diversity of ownership in the broadcasting industry, reviving a policy that was repealed in 1995.

The tax certificate program addresses the issue that appears to be at the heart of the decision by the three-judge panel of the U.S. Court of Appeals for the Third Circuit to set aside the FCC’s 2017 decision to relax broadcast ownership rules. The court has been focused on data surrounding female and minority station ownership.

Most recent statistics, which are admittedly at least five years old, show that women in the United States own fewer than 6% of radio and television stations. Data collected at about the same time show that African Americans own only 10 (or fewer) TV stations, less than 1% of the total, and 1.2% of commercial FM radio stations. Of course, these numbers do not include the 11 television stations recently acquired by Byron Allen’s Entertainment Studios.

 

[TheBigA]

The assumption seems to be that there are impediments to women or minorities buying broadcast properties. I have never seen that to be the case. The only real impediment is having the money. The other would be the desire to get into the business. Right now, that last one seems bigger than the first. Not a lot of people walking around with big wads of money looking specifically to buy radio or TV stations.

If I was suggesting ways to increase diversity, I'd begin by offering interest-free loans, guaranteed by the government. They'd have a big long line of people applying for money. But they'd probably want to sell the properties for a quick profit to non-minorities.

Here's what the House bill says:

"Specifically, the bill allows companies engaged in the qualifying sale of a broadcast station to receive favorable tax treatment by electing nonrecognition of the gain or loss resulting from the sale. To qualify for this treatment, the sale must result in or preserve ownership of a broadcast station by socially disadvantaged individuals."

I'm sure lots of radio companies would love to sell their stations and not pay cap gain tax. That's what CBS was looking for. They used the Reverse Morris Trust. But if they could have just wiped out the cap gain, CBS would have gladly sold to anyone. But it doesn't solve the bigger problem, which is giving minorities the cash to buy the stations in the first place.

 

[Kelly A]

The assumption seems to be that there are impediments to women or minorities buying broadcast properties. I have never seen that to be the case. The only real impediment is having the money. The other would be the desire to get into the business. Right now, that last one seems bigger than the first. Not a lot of people walking around with big wads of money looking specifically to buy radio or TV stations.

All true. The Commission has been giving women and minorities preference during the application process for years. Back in the 80's, my wife was appointed to the board of a group building a couple new stations, so that box was checked.