Can, hypothetically, KUSA operate KMGH in a major station duopoly via LMA though Gannett subsidiaries?

Question by Sam: Can, hypothetically, KUSA operate KMGH in a major station duopoly via LMA though Gannett subsidiaries?
I live in DMA 17. As you may know the McGraw-Hill Broadcasting division (one station being Denver’s ABC affil KMGH) is for sale and there is plenty of interest.

The license of Local NBC affil KUSA and minor “network” My Network TV affiliate KTVD are both held by Multimedia Holdings Corporation, a subsidiary of Gannett CO.

Hypothetically, if Gannett thought it was in their best interest to buy KMGH, would the following be a way to avoid FCC restrictions on major network duopoly ownership?

First, Gannett could create another holding company (lets call it TVX Holding Corp). After purchasing and hanging the KMGH license with TVX Holding Corp, TVX Holding Corp could then create a Local Marketing Agreement which would lend operations of KMGH to KUSA, thereby circumventing the duopoly restrictions (I think).

Another possibly would be that TVX Holding Corp is owned by Gannett (49.9%) and (lets say) Another Brand Broadcasting (50.1%). Since Another Brand Broadcasting doesn’t have a station in the market, again TVX Holding Corp could then create a Local Marketing Agreement which would lend operations of KMGH to KUSA, thereby circumventing the duopoly restrictions (I think).

Best answer:

Answer by Common Sense
There is a “failing station” exception to the rules, but the requirements are very specific and hard to meet, especially in a top 20 market. All the screwing around with percentages is irrelevant to the FCC. Control is what matters, and any LMA, JSA, shared services agreement, etc ALL counts toward ownership caps.

What do you think? Answer below!

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