The massive sale of television stations out of the Newport portfolio created a lot of new O&Os for acquiring companies, and it has also spawned a cottage industry in the television station rental business.
Such is the case in the deal in which Newport Television is selling WXXA-TV Albany NY to Shield Media LLC. Shield is headed by Sheldon Galloway, who is an executive with White Knight Broadcasting.
Shield will pay $19.5K cash for the station, but will not be operating it as a standalone in the market. It is entering into both a JSA and an SSA with Young Broadcasting of Albany, owner/operator of WTEN-TV.
The deal will create an in-market alliance between two major network affiliates. WXXA brings Fox to the DMA, and WTEN carried ABC.
The terms of the JSA have been standardized for all of such arrangements that have been created as a result of Newport’s dealings. Under its terms, Shield will get 70% of all ad revenue generated under Young’s stewardship, and Young will get to keep 30%.
Under terms of the SSA, cash will be flowing in the other direction. Shield will pay a base amount of $66,666 for various services rendered by Young.
The other Big Fours include Hubbard’s NBC WNYT and Sinclair’s CBS WRGB. The Sinclair station has a little sister, CW WCWN.