Mike Hubbard became enamored with radio at the age of 13 while on a field trip to WKLY-AM 980 in his hometown of Hartwell, Ga. Two years later, at age 15, he became an air talent at the station.
By 2016, he had built a sports radio and television network and a successful political career as the first Republican Speaker of the House in Alabama in 136 years.
Today, he’s starting a four-year jail sentence. And, he’s spinning his radio assets in a deal that’s just been filed with the FCC.
On August 28, Hubbard’s request for a rehearing in a 2016 ethics case, upheld in April 2020 by the Alabama Supreme Court, was denied.
That set the clock ticking on a 15-day window in which Hubbard was to report to the Lee County, Ala. Sheriff’s Office to the start the process of serving a four-year sentence.
Hubbard was found to have Alabama’s ethics law. Now, with state-level options exhausted, a federal court appeal is under consideration. This would involve the Supreme Court of the United States.
In 2016, Hubbard was found guilty of 11 felony ethics charges. Alabama’s highest court earlier this year dismissed five of the 11 charges.
What did Hubbard do? Prosecutors argued that he used his public office to enrich himself, partly through consulting contracts, local media reports. The indictment came six years ago, and Hubbard says the deals were normal business transactions not related to public office.
While speaker of the Alabama House from 2012 to 2014, consulting contracts with three companies provided him with $525,000 in cash.
With Hubbard heading to jail, he’s now hoping to cash in on the sale of his Auburn Network Inc. radio properties, comprised of Class C WANI-AM 1400 in Opelika, Class A WGZZ-FM “Wings 94.3” in Waverly, and three FM translators in the college town of Auburn, Ala.: W254AY, W242AX and W294AR.
Also included in the transaction: WHBD-LD 38, a construction permit for a low-power TV station that is off the air according to the FCC’s database.; and East Alabama Living magazine.
Hubbard’s company intends to sell the properties to Auburn Networks LLC — a wholly different operation held 100% by Frank Lee Perryman.
Perryman is the sole member of Marble City Media, licensee of WYEA-AM in Sylacauga, Ala.; WSGN-AM in Alexander City, Ala.; WFXO-AM in Stewartville, Ala.; WRFS-FM in Rockford, Ala.; and WAUE-FM in Waverly, Ala.
This deal gives Perryman two FMs in Waverly. And, it appears the FCC is on track to approve the transaction. The stations’ license renewal applications are presently pending —due to “adverse findings” as shown in response to Question No. 6 on the instant assignment application.
In a seven-page legal statement, Hubbard’s conviction was addressed. While Hubbard engaged “in the type of misconduct that the FCC has traditionally considered to be
pertinent to its evaluation of a licensee’s character, this fact does not call into question his
propensity to deal truthfully with the FCC or to obey its rules,” Hubbard’s legal counsel explained.
Hubbard has owned and operated radio stations in Auburn since 1997. Since that time, the FCC noted, “he has maintained a flawless record of operating the stations in the public interest and has earned numerous awards” — including Station of the Year honors in 2009 and in 2016 from the Alabama Broadcasters Association.
“The misconduct in which he engaged was completely unrelated to the operation of the
radio stations and did not involve any other officers or directors of Auburn Network, or
employees of the stations,” the Media Bureau was told ahead of approving the deal. “He is an experienced and well-respected radio station owner, and there have been no complaints or citations for rule violations involving the operation of the radio stations … In this case, Mr. Hubbard’s consistent record of exemplary broadcast service is more indicative of truthfulness and reliability in his dealings with the FCC, as well as of his overall propensity to obey the law, than an isolated transgression in a field unrelated to his operation of broadcast stations.”
If the FCC agrees, Hubbard will sell the stations at a loss, with all of the properties going to Perryman for $775,000. Once the sale is completed, exactly $730,424.41 will be paid to Auburn Bank for two debts, $697,652.32 and $35,672.09. Next, $41,662.70 to be paid
to NMAC for a debt on an Auburn Network stations’ automobile.
Perryman will be on the hook for $24,787 for “necessary broadcast equipment” to North Texas Credit Banclease Acceptance/First Foundation Bank; $27,000 for tower leases; and $13,195.90 to BBVA Compass for the stations’ promotion vehicle.
All 13 employees would retain their jobs, the statement notes.
Perryman plans to assume control of the stations via a LMA on October 1.
Hubbard’s attorney is M. Scott Johnson of Smithwick & Belendiuk.
