The tranquil town of Red Lion, Pa., nestled to the southeast of York, Pa., has now attracted national headlines for another “zombie” capture. This time, there’s a multi-million payment involved, and a big pay-day for the seller.
The deal was signed and sealed on Aug. 29. However, it’s only now been filed with the FCC.
There’s a full-power TV station licensed to Red Lion — WGCB-49. It presently uses Digital Channel 30, and that’s got some value to wireless carriers that participated in the FCC’s incentive auction.
With a full-power signal in the Harrisburg-Lancaster-Lebanon-York, Pa., DMA just up the road from Baltimore, WGCB licensee NRJ TV attracted a $84,023,049 payout for its participation in Auction 1000.
A post-auction Channel-Sharing Agreement (CSA) was codified with ABC affiliate WHTM-27, owned by Nexstar Media Group.
Now, that CSA is being sold by NRJ TV to Rocket Dog LLC and Red Lion 49 Media. The price: $2.5 million.
A $100,000 non-refundable deposit has been made to the seller, with two closings agreed upon by the parties. The first closing includes redacted payment information; the second closing will see the payment of $1.5 million.
The agreement includes a 2018-2020 carriage elections statement, noting that the buyer and seller will cooperate with MVPDs in electing “must carry” status; this process has been completed based on the dates set forth in the agreement.
Furthermore, there is a lease-back agreement in place, as NRJ TV will remain the owner of the real property assets. A symbolic rental fee of $1 per month was agreed upon.
NRJ’s legal counsel in this transaction is James Altenbach of Greenberg Traurig.
The buyer is led by Jeff Winemiller. He’s perhaps best-known as the owner of Pennsylvania Sports Entertainment Network, and Microwave Rental LLC, based in Manning, S.C.
He became manager of Rocket Dog in June 2017 and has a resume that includes stints as Chief Engineer of WPMT-43 in York, Pa., in the mid-1990s.
The sale of the CSA for WGCB concludes a huge profit-making adventure for Robert G. Andrews and Ted Bartley, principals of NRJ Holdings. They acquired WGCB in Sept. 2012 for $9 million from an estate tied to Red Lion Broadcasting Co.