http://transition.fcc.gov/fcc-bin/tvq?call=W21CK-D (http://transition.fcc.gov/fcc-bin/tvq?call=W21CK-D) is the FCC web page on that station in Charlotte, NC. Click Application List (https://licensing.fcc.gov/cgi-bin/ws.exe/prod/cdbs/pubacc/prod/app_list.pl?Facility_id=67022). Then click on the Application (http://licensing.fcc.gov/cgi-bin/ws.exe/prod/cdbs/forms/prod/prefill_and_display.pl?Application_id=1677471&Service=DC&Form_id=314&Facility_id=67022) link for the application that has a number of BALDTA 20150317AAJ. Then take a look at Attachment 5 (https://licensing.fcc.gov/cdbs/CDBS_Attachment/getattachment.jsp?appn=101677471&qnum=5040©num=1&exhcnum=1), "Agreements for Sale of Station." The Local Marketing Agreement allows 3ABN to use the station for one year after its sale, for free, and maybe longer if both parties agree.
The buyer, OTA Broadcasting, was founded in 2011 by an investment entity controlled by Michael Dell of Dell Computers. It owns 24 stations according to its website, http://otabroadcasting.com/.
http://myemail.constantcontact.com/LPTV-INDUSTRY-NEWS---THU--MARCH-19--2015.html?soid=1116948470874&aid=eKKPTctexSM (http://myemail.constantcontact.com/LPTV-INDUSTRY-NEWS---THU--MARCH-19--2015.html?soid=1116948470874&aid=eKKPTctexSM) is a link to a newsletter which has a blurb about the sale of this station:
WHY IS 3ABN SELLING A CLASS-A?
Because they have 16 of them and they can! Spectrum Investor OTA Broadcasting (aka Michael Dell) Buys Charlotte NC Class-A W21CK-D For $1.1 Million
OTA Broadcasting (bankrolled by Michael Dell of Dell Computers), one of the incentive auction spectrum investors in Class A (and full power) television stations, is now buying an auction eligible Class-A station, W21CK-D, in Charlotte, NC, from powerhouse religious broadcaster, Three Angels Broadcasting (3ABN). The reported price is $1,100,000 cash. With an estimate pop count of 1,464,472, that works out to about $0.75 per pop, way way, did I say, way low for a Class-A auction eligible station. There is reported an LMA in place, and who knows what if any size of a back-end deal there is. But all we care about that the 3ABN viewers continue to get the high-quality programming from 3ABN. Of all of the religious broadcasters, 3ABN puts out a multitude of diverse channel offerings, and to know they are getting more funding to continue to do so it great. We also expect that after the auction payday they are in line to get (tax-free?) they will re-invest those zillions back into their other LPTV properties.
3ABN owns over 100 stations, some full powers, and 16 Class-A's. We will not even try to total up the incentive auction opening bid prices and final prices from the FCC. But little W21CK-D could be valued at over $90 million.
Can anyone explain to me what the above means when it talks about auctions? Any thoughts on the term "back-end deal"? Did 3ABN really sell the station for far, far less than what it was worth?