FCC Proposes $612,000 Forfeiture for Nexstar on WPIX 'de Facto' Ownership

The full FCC -- with Commissioner Brendan Carr concurring in part -- proposed a $612,395 forfeiture against Nexstar for violating the 39% national ownership cap and taking de facto control of Mission Broadcast’s WPIX New York station without agency permission, said a notice of apparent liability issued late Thursday. The NAL also proposes requiring Mission within 12 months to either divest WPIX to a third party or apply to the FCC to sell it to Nexstar, which in turn would have to divest stations to come in under the national cap. The FCC “is prohibited from allowing a company to own or control broadcast stations that in total reach more than 39 percent of the national television audience,” said Chairwoman Jessica Rosenworcel in a brief statement released with the NAL. “The record here reflects a situation where a company exceeds this threshold. Unless and until Congress changes this law, it is the responsibility of this agency to enforce it.” Nexstar is a client of Wiley, Commissioner Anna Gomez's former law firm. Late last month, she received an ethics waiver that allows her to vote on enforcement items involving Wiley clients (see 2403150055). Nexstar’s relationship with Mission and WPIX was the focus of multiple court and FCC proceedings (see 2402130023), one of which was recently decided in Nexstar’s favor (see 2403210027). “NALs are not final decisions on the merits,” said Carr’s concurrence, in which he objected to the NAL citing aspects of Nexstar's relationship with Mission, which past FCCs approved, as part of the company's violations. “And I will keep an open mind as the FCC reviews the record in response to this document. Part of that will require the FCC to ensure that any remedies the agency finds necessary are ones that are appropriate given the procedural posture of this enforcement action.” Nexstar is “extremely disappointed in today’s action by the Federal Communication Commission regarding our relationship with WPIX-TV and we intend to dispute it vigorously,” said CEO Perry Sook in a release. “We believe the FCC has been misled by the often distracting noise in the media ecosphere and that it has completely misjudged the facts.”