Pappas GOP air gift shot down by FCC MB
The FCC has ruled that Pappas Telecasting may not donate 325K worth of free television airtime to Republican candidates unless it provides a similar gift to rival Democrats. William Johnson, Deputy Chief of the FCC's Media Bureau, said "When a candidate is furnished time at no cost, competing candidates are entitled to receive the same amount of free time in comparable time periods," according to the Associated Press.
Democrats in California and in Washington had challenged the gift of free political advertising for Republican candidates by Pappas Telecasting. Pappas, which has made a smaller amount of time available to Democrats, has argued that its actions are perfectly legal.
The group has made 325K worth of airtime available to 13 Republican county election committees at 25K a pop. After that move received widespread criticism, it offered a similar gift to five Democratic county election committees, amounting to 125K total. That move did nothing to quell criticism, which reached the point where Rep. John Dingell (D-MI) requested that the FCC look into the matter.
Pappas has again gone on the defensive. Chairman/CEO Harry J. Pappas said, "Pappas Telecasting carefully researched not only the legality of its contributions under California law to the Democratic and Republican County Committees but also carefully and specifically inquired of the very agency which enforces the various political advertising laws and regulations, the FCC, about the specific circumstances of the intended non-monetary contributions. It was confirmed to Pappas Telecasting's lawyer by the FCC's Political Office that such non-monetary contributions, as permitted under California law, are equal in value to the lowest unit rate for the amount and class of time utilized by candidates. Thus, opposing candidates are not entitled to free time, but are entitled to an equal opportunity to advertise at the same value - - the lowest unit rate. And, simply put, we welcome all candidates to use our facilities. This company and its owners have a thirty-year history of supporting worthy elected officials and candidates of both major parties and independents, too. We believe that is what good citizenship and being a good broadcaster is all about."
He continued, "But in the present case, the central truth is that Pappas Telecasting is exercising free-speech rights and our right to make contributions. This is still a free country. In the midst of the passions existing during this political season, we must not forget Voltaire's vow: 'I may not agree with what you say, but I will defend to the death your right to say it.'"
RBR observation:
Womble Carlyle Sandridge & Rice attorney Gregg Skall told RBR that Pappas is technically correct in asserting the legality of its Republican airtime donation, although he said the door is wide open for the Democrats to challenge it as a sham transaction (10/28/04 RBR Daily Epaper #211). Looks like that won't be necessary.
We think that even if this was technically, it still was not a wise thing to do. The gift was compared at one point to the gift of catering services. The difference, of course, is that food service is a ubiquitous commodity, and broadcast airwaves are not.
The Pappas and Sinclair uproars come at a time when television broadcasters are close to gaining meaningful deregulation in Washington. That process is bemired, thanks to stiff opposition from many different quarters, and the 3rd Circuit ruling which sent the FCC's dereg attempt back for reconsideration.
Pappas and Sinclair have inspired the opposition to dig in their heels and carry the fight against deregulation forward. We remember years ago when Sen. Ernest Hollings stated that he was a "born-again regulator." Hollings is taking his leave of Congress, but the torch has been passed along, notably to Byron Dorgan (D-ND) in the Senate and Edward Markey (D-MA) and Maurice Hinchey (D-NY) in the House. The headlines generated by Pappas and Sinclair will no doubt make it easy for both to enlist allies.
Lest anybody write this off as a mere left-wing talking point, let's remember that Trent Lott (R-MS) and others otherwise diametrically opposed to Dorgan are signed onto the battle against media ownership consolidation.
Sinclair and Pappas have beyond any doubt stiffened the opposition. Although it appears that the Pappas airtime donation is indeed perfectly legal, broadcasters seeking regulatory relief would be much better off had the Smith and Pappas families contented themselves with cash donations to their favorite candidates, rather than dragging the entire broadcasting industry into this unwanted spotlight.
Are you reading this from a forwarded email?
