Can non-commercial stations be LMA'ed from one non-profit to another, so long as the station continues to operate as a non-comm?
-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
Stupid Question
- Thread starter musicsweep
- Start date
Yes. The station where I work, WXXI in Rochester NY, has LMA-like agreements in place to operate WRUR-FM Rochester for the University of Rochester and WEOS Geneva and WITH Ithaca for the Colleges of the Seneca. And in Wisconsin, Wisconsin Public Broadcasting has long operated stations licensed to two other entities, the Wisconsin Educational Communications Board and the U. of Wisconsin.
As in any such scenario, the services of a good communications lawyer are essential to make sure everything's done correctly.
As in any such scenario, the services of a good communications lawyer are essential to make sure everything's done correctly.
One caveat: technically LPFM licenses (which, by definition, are non-commercial) cannot be LMA'd to a third party.
In the real world, that's a squishy concept to say the least. An awful lot of religious-programmed LPFM's are effectively being run by a centralized office...even if the "official license holder" is the local parish. And there are some community LPFM's that are being run by a coalition of organizations which may include the actual license holder...although how involved the actual license holder really is, is a variable concept.
LPFM or not...no matter what you've got set up with an LMA, the license-holder cannot abrogate their responsibility as a license-holder. In short, if there's a fine, the fine always goes to whoever's name is on the license. Doesn't matter what the LMA contract says. In fact, if you abrogate your responsibility by trying to LMA too much away, that by itself can result in a fine.
Like Scott says: you really need a good lawyer who knows this stuff to review any LMA attempt.
In the real world, that's a squishy concept to say the least. An awful lot of religious-programmed LPFM's are effectively being run by a centralized office...even if the "official license holder" is the local parish. And there are some community LPFM's that are being run by a coalition of organizations which may include the actual license holder...although how involved the actual license holder really is, is a variable concept.
LPFM or not...no matter what you've got set up with an LMA, the license-holder cannot abrogate their responsibility as a license-holder. In short, if there's a fine, the fine always goes to whoever's name is on the license. Doesn't matter what the LMA contract says. In fact, if you abrogate your responsibility by trying to LMA too much away, that by itself can result in a fine.
Like Scott says: you really need a good lawyer who knows this stuff to review any LMA attempt.
Another caveat about the LPFM licenses. Since they cannot be "sold" by one not-for-profit organization to another, but only "given".... The attorney who is going to guide such a transaction must take a look at the question: If money cannot change hands when one "owner/licensee" conveys to license to another new "owner/licensee", my "country boy" attempt to play amateur attorney would suggest that maybe an LMA could NOT include a rental fell or other valuable consideration as payment of an LMA.
If LPFM survives and thrives, I would expect the FCC to have to revisit the concept of "ownership" of LPFM.
But back to the original question... these special rules regarding LPFM are different than the rules for what we call NCE stations. But asking your attorney to think about these peculiar LPFM issues might result in an awakened brain recognizing some peculiar opportunities and peculiar prohibitions in transactions related to NCE stations.
If LPFM survives and thrives, I would expect the FCC to have to revisit the concept of "ownership" of LPFM.
But back to the original question... these special rules regarding LPFM are different than the rules for what we call NCE stations. But asking your attorney to think about these peculiar LPFM issues might result in an awakened brain recognizing some peculiar opportunities and peculiar prohibitions in transactions related to NCE stations.
Actually you can "sell" an LPFM, but the maximum selling price is limited to the (amortized) cost of equipment and facilities.
In other words, five years ago I got an LPFM. I paid $50,000 for studio equipment, a transmitter, antenna and related gear. If that amortizes to $20,000 today, that's the max I can sell it for. IIRC, rent does not count...so you can't charge for studio rent or tower rent...but you can count if you BUY a tower or a condo/building for studios, because those are assets that can amortize.
And your point about a paid LMA is totally valid; that's strictly prohibited. You can't pay-for-play with LPFM's. An unpaid LMA is also technically forbidden, but as I mentioned, it's a squishy sort of thing.
In other words, five years ago I got an LPFM. I paid $50,000 for studio equipment, a transmitter, antenna and related gear. If that amortizes to $20,000 today, that's the max I can sell it for. IIRC, rent does not count...so you can't charge for studio rent or tower rent...but you can count if you BUY a tower or a condo/building for studios, because those are assets that can amortize.
And your point about a paid LMA is totally valid; that's strictly prohibited. You can't pay-for-play with LPFM's. An unpaid LMA is also technically forbidden, but as I mentioned, it's a squishy sort of thing.
- Status