Raleigh Class A on the Brink


LPTVA presumably auction-eligible station in the Raleigh-Durham DMA had multiple violations of FCC rules and regulations on its rap sheet and has recently faced the possibility of losing its Class A status.

The stations is WZGS-CD, owned by ZGS Raleigh.

ZGS and the FCC decided to agree to decree to put the matter to rest.

The most serious violation was failure to remain on the air. Between April 2010 and March 2012, it broadcast for only a little more than two weeks.

ZGS said it lost network affiliates on the Channel 44 facility and resulting financial shortcomings resulted in the dark periods.

Additionally, the station’s public file was deficient in two categories: issues/program lists and children’s television reports; also, file documents were not uploaded to the station’s online public file.

The FCC put the station on notice for reclassifications, but under terms of the consent decree that will not happen.

ZGS will make a voluntary contribution to the US Treasury of $55,000 and will have its Class A license renewed.

RBR+TVBR observation: Is this a big deal? Oh my, yes.

According to the FCC’s Greenhill 2 valuations are calculated by EOBC, incentive auction bidding for this station could start at $156,380,355 and work down.

EOBC would be more generous, with bidding starting at $314,855,762.

Greenhill 1 found Raleigh to be a moderately-expensive auction market.

The maximum expectation for a relinquished full power station was pegged at $51M with a median of $47M. Class As will be cheaper, with a max/median of $26M/$20M.

All of these numbers, even the very lowest ones, $55K look quite insignificant.

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