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7 FCC Red No. 13 Federal Communications Commission Record FCC 92D-40 c. whether. in light of the evidence ad­ Before the duced pursuant to a and b above, the Federal Communications Commission bank letter establishes a present firm in­ Washington, D.C. 20554 tent to lend the necessary funds for con­ struction; d. whether. in light of all the evidence adduced above, the applicant is finan­ MM Docket No. 90-375 cially qualified. In re Applications of 2. To determine with respect to Rainbow Broadcast­ ing, Inc., whether there is a reasonable possibility FOX TELEVISION File No. BRCT-880801LW that the tower height and location proposed by it STATIONS, INC. would constitute a hazard to air navigation. 3. To determine which of the proposals would, on a For Renewal of License of comparative basis, better serve the public interest. Station KTTV(TV) 4. To determine in light of the evidence adduced Los Angeles, California pursuant to the foregoing issues, which of the ap­ plications should be granted. and For purposes of determining Fox's entitlement to a re­ RAINBOW File No. BPCT-881101KH newal expectancy under the standard comparative issue, BROADCASTING, INC. the Presiding Judge ruled that the relevant time period was March 6, 1986, when Fox became the licensee through For Construction Permit for a New November 30, 1988, the end of the license term. (Tr. 30, 33). Commercial Television Station in Los Angeles, California 2. Prior to the hearing, Rainbow moved for summary decision of the air hazard issue specified against it. The motion was granted by Memorandum Opinion and Order, Appearances FCC 90M-3246, released October 16, 1990. William S. Reyner, Richard S. Rodin, Mace J. Rosenstein, 3. By Order, FCC 91M-1129, released March 16, 1991, on behalf of Fox Television Stations Inc.; Robert Lewis the Presiding Judge designated the following issue against Thompson, Ellen S. Mandell, Howard J. Barr, on behalf of Rainbow: Rainbow Broadcasting, Inc.; and Norman Goldstein, on behalf of the Chief, Mass Media Bureau. To determine whether Rainbow Broadcasting, Inc. is financially qualified. INITIAL DECISION OF ADMINISTRATIVE 4. In specifying this issue the Presiding Judge noted that LAW JUDGE JOSEPH CHACHKIN it is contingent on resolution of the financial issue speci­ fied in the HDO which requires a determination as to Issued: June 2, 1992; Released: June 19, 1992 whether Rainbow was financially qualified at the time it certified. The burden of proceeding and the burden of proof on this issue was placed upon Rainbow. PRELIMINARY STATEMENT 5. The Presiding Judge denied motions to enlarge the 1. By Hearing Designation Order, 5 FCC Red 5255 issues filed on September 26, 1990, by Rainbow against (HDO), released August 22, 1990, the Chief, Video Ser­ Fox and Fox against Rainbow, by Memoranda Opinions vices Division, designated for hearing the application of and Orders. FCC 90M-3815, released December 4, 1990, Fox Television Stations Inc. (Fox) for renewal of license of and FCC FCC 90M-4043, released December 21, 1990. A Station KTTV(TV), Los Angeles, California and the mutu­ subsequent motion to enlarge issues filed by Fox against ally exclusively application of Rainbow Broadcasting, Inc. Rainbow on January 3, 1991, was dismissed by Memoran­ (Rainbow) for construction permit for a new commercial dum Opinion and Order, FCC 91M-543. released February television station to operate on the channel now utilized 11, 1991. by KTTV(TV). The HDO specified the following issues: 6. Prehearing conferences were held on October 26, 1990, and January 22. 1991, an admissions session on 1. To determine with respect to the bank commit­ March 25, 1991, and hearing sessions on April 9-12, and ment letter of Bank of America to Rainbow Broad­ May 10, 1991 in Washington, D.C. Additional hearing casting. sessions were held on May 14-15, 1991 in Los Angeles, California. The record was closed on May 15, 1991. (Tr. a. the terms and conditions with respect 1518). Proposed findings of fact and conclusions of law to rate of interest and collateral, if any, were filed July 22, 1991; replies were filed August 19, for the proposed loans; 1991. b. the duration and terms and conditions for repayment of the loan; 3801 FCC 92D-40 Federal Communications Commission Record 7 FCC Red No. 13 Boston, Massachusetts. The assets of WFXT, Inc. (includ­ Findings Of Fact ing the FCC licenses) were assigned to Boston Celtics Broadcasting Limited Partnership (BCBLP) on May 11, 1990. As consideration for the sale of the assets, WFXT, Fox Television Stations Inc. Inc., received and continues to hold a debenture which, under certain circumstances, may be converted into part­ nership interests of BCBLP (Fox Ex. 1, p. 1). Description of the Applicant 13. The following daily newspapers are published by 7. Fox Television Stations Inc. (Fox) is a wholly-owned corporations in which certain officers and directors of Fox subsidiary of Twentieth Holdings Corporation (THC). The and THC have attributable interests: The Boston Herald, single majority voting stockholder of THC is Mr. K. Ru­ Boston, Massachusetts, and San Antonio Express-News, San pert Murdock. who holds 51 percent of the voting rights. Antonio, Texas. Other than the foregoing, Fox, and THC Mr. Barry Diller holds 25 percent of the voting rights. and its attributable principals, have no attributable media Fox, Inc., holds 24 percent of the voting rights (Fox Ex. 1, interests (Fox Ex. 1, p. 3). l pp. 1-2). 8. The officers and directors of Fox are as follows: Integration Name Position 14. Fox does not claim any credit for the integration of ownership into management of KTTV (Integration and K. Rupert Murdock Director Diversification Statement of Fox Television Stations Inc., Barry Diller Director/Chairman dated November 9, 1990, at 3). Richard A. Sarazen Director Chase Carey Senior Vice President Dean Ferris Senior Vice President Fox's Past Performance Record -- Renewal Expectancy David Y. Handelman Senior Vice President/ Secretary John P. Meehan Senior Vice President Renewal Period Andrew G. Setos Senior Vice President 15. The relevant period on which to evaluate Fox's Gerry Friedman Vice President performance as licensee of KTTV begins on March 6, 1986 Muriel Reis Vice President (the date Fox acquired KTTV from Metromedia), and ends Earl J. Hammond Vice President Molly Pauker Vice President on November 30, 1988 (referred to herein as the "license Michael M. Doodan Assistant Secretary term" or "renewal period") (Tr. 33). See 47 C.F.R. § Bonnie Bogin Assistant Secretary 73.1020(a)( 14 )(ii). William Lockard Ass is tan t Secretary David E. Miller Assistant Treasurer (Fox Ex. 1, p. 2). The Los Angeles Television Market 16. During the renewal period, Los Angeles was ranked 9. The officers and directors of THC are as follows: by Arbitron as the second largest television market in the United States. Its over 4 million television households Name Position were served in 1988 by at least 17 commercial television K. Rupert Murdock Director stations and five non-commercial television stations. Dur­ Barry Diller Director/Chairman ing the renewal period, each of the three major television Richard A. Sarazen Director Chase Carey Senior Vice President networks owned and operated a VHF television station David Y. Handelman Senior Vice President/ licensed to Los Angeles. Four independent VHF stations, Secretary including KTTV, also were licensed to Los Angeles (Fox John P. Meehan Senior Vice President Ex. 1, pp. 3-4). Earl J. Hammond Vice President Michael M. Doodan Assistant Secretary David E. Miller Assistant Treasurer Ascertainment (Fox Ex. 1, pp. 2-3). 17. KTTV made a continuous effort during the renewal period to ascertain the needs, interests and concerns of the 10. Fox acquired Television Station KTTV(TV), Channel Los Angeles community and the station's five-county 11. Los Angeles. California (KTTV), from Metromedia Ra­ southern California service area. To this end, KTTV man­ dio & Television, Inc., on March 6, 1986 (Fox Ex. 1, p. 1). agers and department heads were assigned to interview community leaders representing a broad cross section of the viewing area. Seventeen managers and department Diversification heads participated in the station's ascertainment efforts 11. As part of the same transaction in which it acquired during the renewal period (Fox Ex. 2, p. 1). KTTV, Fox also acquired the following five television sta­ 18. Although not required by the Commission's Rules to tions: WNYW-TV, New York, New York; KDAF-TV, do so, see Commercial TV Stations, 98 FCC 2d 1076, Dallas, Texas; KRIV-TV, Houston, Texas; WTTG(TV), 1098-1101 (1984), during the renewal period KTTV con­ Washington, D.C.; and WFLD-TV, Chicago, Illinois. On ducted formal ascertainment of the needs, interests and April 18, 1990, Fox acquired KSTU(TV), Salt Lake City, concerns of the viewers in its service area. KTTV relied Utah, from MWT Corp (Fox Ex. 1, p. 1). principally on three ascertainment methodologies: (1) 12. On December 31, 1986, Fox's parent company, KTTV representatives conducted in-person interviews with THC, acquired all the shares of WXNE-TV, Inc. (now community leaders; (2) community leaders were invited to WFXT, Inc.), the licensee of WXNE-TV (now WFXT(TV)), 3802 7 FCC Red No. 13 Federal Communications Commission Record FCC 92D-40 attend group discussions of community concerns with re­ 19. Religion 7 presentatives of KTTV management (some of the group 20. Youth/Students 16 ascertainment discussions were sponsored by KTTV alone; 21. Women 3 others were joint efforts by KTTV and other Los Angeles television stations); and (3) ascertainment interviews were (Fox Ex. 2, p. 3). conducted by telephone when circumstances prevented an 23. In addition, KTTV's ascertainments were conducted in-person meeting (Fox Ex.
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