Sinclair Broadcast Group

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The Sinclair Broadcast Group, Inc. (SBG) is a media company and the single largest operator of local television stations in the United States. According to the company's webpage, Sinclair's television group includes 20 FOX, 19 WB, 6 UPN, 8 ABC, 3 CBS, 4 NBC affiliates and 2 independent stations and reaches approximately 24% of all U.S. television households. [1] The company is based in Hunt Valley, Maryland.

SBG has been compared to the radio conglomerate Clear Channel Communications, and programming produced by the group is considered to have a right-wing slant. In April 2004, the company refused to broadcast a special "Nightline" broadcast, produced by the ABC television network, that was devoted to reading the names of soldiers who had died in Operation Iraqi Freedom. "Of the top twenty TV and Radio companies to make political contributions in 2004," reported MediaChannel at the time, "Sinclair Broadcasting Group, is among the most conservative, giving 98 percent of its $65,434 in political contributions to GOP candidates." [2]

More recently, Sinclair has gained notoriety by ordering its 62 local stations to preempt prime time programming to broadcast an anti-Kerry film a few days before the November 2, 2004 general election. Those 62 stations include affiliates of all six major commercial broadcast networks in Florida, Ohio, Wisconsin, Nevada and Pennsylvania. The broadcast will preempt normal prime-time programming on those outlets. [3] The airing of the film, according to the Los Angeles Times, "will be followed by a panel discussion, which Kerry will be asked to join, thus potentially satisfying fairness regulations." [4]

The order to broadcast the film even attracted criticism from John Lieberman, Sinclair's lead political reporter. "It's biased political propaganda, with clear intentions to sway this election," Leiberman said, even though speaking out against his employer brought the possibility of retaliation. "I have nothing to gain here -- and really, I have a lot to lose," he said. "At the end of the day, though, all you really have is your credibility." [5] Leiberman was fired within a few hours of making those comments [6].

Kerry film controversy

According to the Washington Post, (October 11, 2004, Sinclair Stations to Air Anti-Kerry Documentary, Paul Farhi), the film entitled "focuses on Kerry's antiwar testimony to Congress in 1971 and its effect on American POWs in Vietnam." [7] TItled "Stolen Honor: Wounds That Never Heal," the film is produced by Carlton Sherwood, a former associate of Tom Ridge, and includes interviews with former POWs who say their Vietnamese captors used Kerry's comments to undercut prisoner morale. The anti-Kerry organization, Swift Boat Veterans for Truth, is cross-promoting the film as part of $1.4 million advertising campaign. [8]

In response, the Democratic National Committee filed a legal motion with the Federal Election Commission stating that it is inappropriate for the media organization to air "partisan propaganda" in the last 10 days of an election campaign. [9]

Although the Washington Post reports that "Stolen Honor" was released in early September, SBG's webpage states, "The program has not been videotaped and the exact format of this unscripted event has not been finalized. Characterizations regarding the content are premature and are based on ill-informed sources." [10]

On October 12, 2004, Sinclair vice president Mark Hyman was interviewed by CNN's Bill Hemmer. In that interview, the following exchange occurred:

HEMMER: Democrats say this is illegal. Clearly, you do not. Why not?
HYMAN: Well, a couple of issues. First of all, we haven't even looked at a 90-minute program. But if John Kerry wants to spend 45 minutes or an hour with us, maybe we have a 90-minute program. Again, no formal format has been decided upon.
However, the accusations coming from Terry McAuliffe and others, is it because they are some elements of this that may reflect poorly on John Kerry? That it's somehow an in-kind contribution of George Bush?
If you use that logic and reasoning, that means every car bomb in Iraq would be an in-kind contribution to John Kerry. Weak job performance ratings that came out last month would have been an in- kind contribution to John Kerry. And that's just nonsense.
This is news. I can't change the fact that these people decided to come forward today. The networks had this opportunity over a month ago to speak with these people. They chose to suppress them. They chose to ignore them. They are acting like Holocaust deniers, pretending these men don't exist. [11]

Hyman's comparison of Democrats to Holocaust deniers has been widely condemned. For example, Abraham H. Foxman, National Director of the Anti-Defamation League, has written a public letter to the Washington Post [12], urging Hyman to retract his comments.

The structure of the company

Information for Fiscal Year ending December 31, 2003

  • Auditors: Ernst and Young LLP
  • Annual Sales $738.7 Million in Sales,as listed on Form 10-K
  • Number of Employees 3,266, as listed on Form 10-K
  • Sales per Employee $226,178
  • Listed on NASDAQ
  • Ticker: SBGI

The four sons of founder Julian Sinclair Smith control about 95% of the company.

David D. Smith founded Comark Communications, Inc. in 1978, a manufacturer of high power transmitters for UHF television stations. He has served as President and Chief Executive Officer since 1988 and as Chairman of the Board of Sinclair Broadcast Group, Inc. since September 1990. David Smith is currently a member of the Board of Directors of Sinclair Ventures, Inc., Acrodyne Communications, Inc., G1440, Inc., Summa Holdings, Ltd., KDSM, Inc., and Safe Waterways in Maryland.

On Tuesday August 13, 1996, David Smith was arrested in his hometown of Baltimore and charged with a misdemeanor sex offense. It was reported that Smith was caught being fellated by a prostitute while driving a company-owned car on the Jones Falls Expressway. (August 15, 1996, Baltimore Sun,Peter Hermann; August 17, 1996, Pittsburgh Post-Gazette.)

The company later issued a statement saying: "The allegations against Mr. Smith are of a personal nature. Sinclair is confident this matter will conclude in a fair and equitable resolution. The company will continue to operate under the direction of its current management." (Aug 19, 1996, Broadcasting & Cable Elizabeth A Rathbun. See also [http://atrios.blogspot.com/2004_04_25_atrios_archive.html#108335351404593578 Atrios])


Officers

  • David D. Smith - Chief Executive Officer, President, Chairman of the Board
  • David B. Amy - Executive Vice President, Chief Financial Officer
  • Darren Shipiro - Vice President, Sales
  • Nat S. Ostroff - Vice President, Technical
  • Donald H. Thompson - Vice President, Human Resources
  • J. Duncan Smith - Vice President, Secretary
  • Thomas I. Waters III - Vice President, Purchasing
  • Barry Faber - Head of Legal Department
  • Joe DeFeo - Vice President
  • M. William Butler - Vice President
  • Delbert R. Parks III - Vice President, Engineering
  • Gregg Siegel - Vice President, Sales
  • Mark E. Hyman - Vice President, Corporate Communications
  • Lucy A. Rutishauser - Vice President, Finance and Treasurer
  • David R. Bochenek - Chief Accounting Officer
  • Jeffrey W. Sleete - Vice President, Marketing
  • Frederick G. Smith - Vice President

Board of Directors [13]

  • David D. Smith, Chairman of the Board, President and Chief Executive Officer
  • Frederick G. Smith, Vice President
  • J. Duncan Smith, Vice President and Secretary
  • Robert E. Smith, Director
  • Daniel C. Keith, President and Founder of the Cavanaugh Group, Inc.
  • Martin R. Leader, Director
  • Lawrence E. McCanna, Managing Partner, Gross, Mendelsohn & Associates, P.A.
  • Basil A. Thomas, Of Counsel, Thomas & Libowitz, P.A.


Background information DKos Diary: "The Sinclair Broadcasting Group, Explored" by Hunter

Company history and marketing focus

The company originated in 1971 when Julian Sinclair Smith brought UHF station WBFF-TV in Baltimore, Maryland. After acquiring several existing UHF stations, Julian Sinclair Smith's four sons founded Sinclair Broadcast Group, Inc. in 1986. The Smith family controls over 90% of the stock in the Sinclair Broadcast Group, Inc. Smith family members who sit on the board of directors include David D. Smith, President and CEO, Frederick G. Smith, Vice President, and J. Duncan Smith, Vice President and Secretary.

The Sinclair Broadcast group owns and operates, programs, or provides sales and services to more than 62 media outlets. Many stations are owned outright by the company, but many others are affiliated through local marketing agreements, or LMAs. The stations are affiliates of various television networks: ABC, CBS, NBC, Fox, UPN, and the WB. Two of the stations are independents. Sinclair Broadcast Group, Inc. owns television stations in key Swing States such as Florida (WTTA - Tampa, WTWC - Tallahassee, FL), Missouri (KSMO - Kansas City, MO & KDNL - St. Louis, MO), Ohio (WTTE & WSYX - Columbus, OH, WKEF & WRGT - Dayton, OH), Minnesota (KMWB - Minneapolis, MN), and Wisconsin (WMSN - Madison, WI).

SBG has experimented with using a centralized news organization called "NewsCentral" that provides pre-packaged news segments for distribution to several of the group's stations. These segments are integrated into programming during local news broadcasts. Mark Hyman, a high-ranking executive at SBG, also creates editorial segments called "the Point" that are broadcast on all of the group's stations.

On April 9, 1999 shares of the company fell nearly 18% after Fox said it would cut the amount of commercial time available to affiliates. Sinclair said this move would hurt its cash flow. New York Times, April 9, 1999.

In July of 1999, the company sold 43 of its radio stations to Entercom Communications in a push to expand into digital television and the internet. New York Times, July 28, 1999.

See also Sinclair Broadcast Group/Media markets and advertisers.

Top Institutional Investors

A more complete list of institutional investors in Sinclair, including contact info, is at Media Matters

Why is Sinclair doing this? Wants favors from Bush

USA Today writes (11 Oct 04):

With its heavy concentration of Fox and WB affiliates, ranking in the middle of the pack in mostly midsize markets, Sinclair is barely profitable and laden with debt. It had a net profit of $14 million on revenue of $739 million in 2003.
Sinclair hopes to change that by solidifying its hold on local markets by controlling, for example, two stations in more cities and sharing operating and news-gathering costs. But it needs the federal government to relax several media ownership restrictions.
Sinclair wants officials to permit a company to own two or more stations in more communities than allowed now. It also wants the FCC to ease a restriction that bars a company from owning TV stations reaching more than 35% of all homes, and to lift the rule that keeps companies from owning newspapers and TV stations in most markets.
That's where the parties part ways. FCC Chairman Michael Powell, a Republican [and son of Colin Powell, and formerly GE-NBC's lawyer!], has made media deregulation a priority, although many of the FCC's rule changes are tangled in court. Kerry says he'll clamp down on changes that promote consolidation. [14]

According to Joshua Micah Marshall, however, airing the anti-Kerry film may actually hurt the company's business. He quotes a Lehman Brothers Equity Research analyst report dated October 15, 2004:

"In our opinion, Sinclair's decision to pre-empt programming to air 'Stolen Honor' is potentially damaging -- both financially and politically. In a best case scenario, we believe that this decision could result in lost ad revenues. In a worst case scenario, we believe the decision may lead to higher political risk. As mgmt has increased the co's political risk, we are reducing our 12-month price target to $9 (from $10)". [15]

Legal status of Sinclair's actions

The FCC has made it clear that it will do nothing to prevent the Sinclair broadcast. Eighteen Democratic senators had written FCC chairman Michael Powell asking him to investigate whether the Sinclair broadcast of the film should be allowed under FCC rules. FCC chairman Powell is quoted as saying "Don't look to us to block the airing of a program." [16]

According to an editorial in the Boston Globe (October 15, 2004)

Broadcasting "Stolen Honor" this close to the election would have violated the Fairness Doctrine, an FCC rule that mandated stations, as holders of scarce broadcasting licences, provide balanced coverage of political issues. The FCC abolished the rule in 1987 as the spread of cable television opened up broadcasting to a multitude of voices.

Following are additional excerpts from this editorial:

After the Fairness Doctrine was abandoned, the FCC retained a rule mandating that people get an opportunity to respond to personal attacks broadcast by a station. A federal court overturned this on procedural grounds in 2000.
A Sinclair spokesman, in a taped message, says the company wants Kerry to appear as part of the program - which it calls news. That could be an invitation to an in-station pillorying. Kerry should be able to set the time and determine the content of his own response.
Sinclair uses public airwaves at nominal cost for the FCC license. This cut-rate privilege ought to be accompanied by a commitment to public responsibility. Without an equal time allotment, the only acceptable approach by Sinclair is a decision not to broadcast "Stolen Honor" before the election. Afterwards the FCC should restore the personal attack rule and examine its abolition of the Fairness Doctrine to make sure the airwaves are not used for propaganda disguised as news. [17]

Legal issues may still remain, although the possibility of legal challenges seems to be fading.

Reed Hunt, the FCC chair from 1993 to 1997 under President Clinton, wrote, "Chairman Powell instead pretends that he has been asked to bar the showing of the propaganda -- which no one has asked him to do. His remarks are so far off the point, and he is so intelligent, that one must conclude that he knows what he is doing and intends the result -- tacit and plain encouragement of the use of the Sinclair airwaves to pursue a smear campaign. No broadcast group in the history of America has ever committed an hour to smearing a presidential candidate, and no FCC chairman before this one would have reacted with equanimity to this radical step down in broadcasting ethics."[18]

On October 15, Marc E. Elias, General Counsel of the Kerry-Edwards campaign, sent to a letter to Sinclair CEO David D. Smith (see above for Mr. Smith's background) in which he made the following points

  • Sinclair's airing of the program constitutes an illegal corporate-funded "electioneering communication."
  • Under the FCC's decision in Nicholas Zapple, 23 F.C.C.2d 707 (1970), a broadcasting station that permits supporters of a candidate to use its facilities to advance that candidate's campaign must provide supporters of the opposing candidate "quasi-equal opportunities." Despite the repeal of the Fairness Doctrine, the FCC has made clear that stations' Zapple obligations continue in effect.
  • The program does not meet any of the requirements for the exemptions from the equal opportunities requirement. It is not regularly scheduled on Sinclair's stations and will not be shown when news programming is regularly aired. The content of the program will not be controlled by Sinclair or an independent journalistic organization. The program instead is intended to be an attack on Senator Kerry and thus is not the result of decisions made on the basis of newsworthiness rather than to advance or retard a particular candidate. Thus, the program cannot qualify as either a bona fide news program or news interview.
  • It also cannot be viewed as an exempt documentary: That exemption explicitly applies only if the appearance of the candidate is 'incidental to the presentation of the subject or subjects covered by the news documentary.'"
  • Section 315(a) of the Communications Act was intended to prevent the licensee of a broadcasting station using the public airwaves to use that facility to promote one candidate for public office over another. The FCC in Zapple recognized that Congress's intent could be frustrated by stations that aired programs featuring supporters of one candidate instead of the candidate himself or herself. See RTNDA, 184 F.3d at 884 n.10. If Sinclair does air this program in which supporters of President Bush attack Senator Kerry, it must provide a similar opportunity for Senator Kerry's supporters. Please consider this a request that each Sinclair station that airs the documentary provide supporters of the Kerry-Edwards campaign with a similar amount of time on that station before the election at a time where an audience of similar size can be expected to be viewing the station. Please contact me or have a representative of each station do so in order to schedule an appearance by supporters of Senator Kerry.

Forms of activism against Sinclair

Several websites are promoting a boycott effort that calls on SBG advertisers to pull their advertising from Sinclair stations:

Journalist [Joshua Micah Marshall] has followed the Sinclair story and the boycott closely. He cites comments from one of his readers:

I've worked in the media business for 30 years and I guarantee you that sales is what these local TV stations are all about. They don't care about license renewal or overwhelming public outrage. They care about sales only, so only local advertisers can affect their decisions. [19]

Websites including the Daily Kos are also supporting the boycott and/or reporting on its results. The dKosopedia, a wiki hosted by the Daily Kos, has published responses by advertisers to citizen complaints, including a number of advertisers who have pulled or promised to pull ads from Sinclair stations. [20] According to AlterNet's Don Hazen, "companies are pulling their ads in various parts of the country, including Maine and Wisconsin. ... The rapidly growing, aggressive advertising boycott effort has already had a measurable financial impact on Sinclair, whose stock dropped 10 percent over the past week, closing on Friday at an all-time low of $7.04 - a $60 million loss in value." [21]

However, it has also been reported that businesses that have pulled or threatened to pull advertising from Sinclair outlets are being subjected to intense pressure from Sinclair ranging from the threat of legal action to an orchestrated intimidation campaign to force them to recant. As an example, Hannaford's supermarkets reversed their pullout decision as a result of these efforts.

Journalism professor Jay Rosen has suggested a different strategy that he thinks the pro-Kerry camp should consider:

"What Mark Hyman has been saying to the point of braying it is-- let's negotiate. John Kerry can keep Stolen Honor off the air by replacing it with himself. Sinclair has no other invitations out. So I say send Mike McCurry and Richard Holbrooke to Baltimore. They negotiate. Five minutes of film, 55 minutes of Kerry answering questions sounds about right to me." [22]

Rosen adds:

"If he takes the deal it sets up an historic broadcast. A final confrontation with the Right. Isn't that what the Right wants too? A chance, indeed, to clear the air about Vietnam, and a lot of other things. Will America watch? America will watch. And if he can't win that broadcast, he does not deserve to win the prize." [23]

Contact information

Sinclair Broadcast Group, Inc.
10706 Beaver Dam Road
Hunt Valley, MARYLAND 21030
(410) 568-1500
(410) 568-1533
http://www.sbgi.net

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External links

GPL disclaimer

This article is adapted from an article on the dKosopedia as well as from a corresponding article in the Wikipedia.

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