A Virginia low-power FM must take steps to avoid violating the FCC’s underwriting announcement rules for noncommercial broadcasters. But it will keep its license.
This decision regarding WXRK(LP) in Charlottesville is one of a series that originally involved five LPFMs that participated in an unusual joint marketing arrangement.
Their “coop” prompted a license renewal challenge in 2019 from Saga Communications, which owns several stations in the region.
Saga asked the FCC to deny their license renewals based on several allegations, as we’ve reported, with the coop arrangement a central part of the case. Saga called it “an elaborate sham designed to give the appearance of compliance … while operating a commercial enterprise.”
Two of those stations are no longer active, with one having gone silent in 2020 in part because of the resulting financial strain, according to a local news report.
A third licensee agreed in 2024 to pay a $1,000 penalty and received a shortened license renewal. The fourth signed a consent decree last year without a financial penalty and won a full-term renewal.
Now comes the decision for the fifth.
Details
Blue Ridge Free Media is licensee of WXRK and operates on 92.3 MHz in Charlottesville. It broadcasts a rock format known as Rock Hits 92.3.
Saga Communications, through its Tidewater Communications subsidiary, alleged that the station was broadcasting commercials regularly. It also contended that WXRK was not conforming to its educational purpose and was part of an operating agreement that is prohibited by FCC rules.
Blue Ridge disputed the allegations and in turn claimed that Saga was abusing the commission’s processes in an attempt to eliminate competition.
As in the other cases, the FCC acknowledged that the LPFMs had entered into “highly unusual” agreements by forming the Virginia Radio Coop and using Experience Media and Experience Sales to sell underwriting announcements.
The FCC said it has reviewed these agreements to ensure that they do not create common ownership or control of any stations, which would violate LPFM license restrictions.
It noted that the LPFMs had formed the coop in part to share a transmitter site, antenna, studio and office facilities. The commission agreed that this was “unconventional” but it found that the coop was similar to a shared services agreement.
“The coop operating agreement itself does not contain any provisions that allow the coop to control the programming, personnel or finances of any station operated by its members that are commission licensees,” it found.
But as in the other cases, the FCC also expressed unease, saying such agreements created possible conflicts and that the case “identified issues” that it would look closely at should similar cases come up in future. “We remain troubled by this type of arrangement,” it wrote.
(Read the FCC’s summary of the latest case.)
Blue Ridge did admit to airing announcements that failed to comply with the underwriting laws. It agrees to name a compliance officer, implement a compliance plan and file updates with the FCC. It avoided a financial penalty by showing that it did not have means to pay one.
The FCC did not accept other assertions by Saga or find that WXRK’s actions merited an end to its license. But it rejected Blue Ridge’s argument that Saga was misusing commission processes to eliminate competition to its stations.
Nick Langan’s reporting contributed to this article.
