Although Larry H. Miller's recent bid to buy KXIV would seem to preserve independent television in Salt Lake City, discussions are under way that could make Channel 14 less independent than it has been under its current ownership.
Miller and KSL are discussing an agreement under which Channel 5 would operate Channel 14."It's no secret that we certainly are looking," said William Murdoch, KSL's vice president and general manager. "What we have at the present moment is kind of an exclusive agreement with Larry. We're both evaluating.
"We're in a position where we wanted to at least discuss this with him. Nothing, certainly, is set."
According to papers filed with the Federal Communications Commission, Miller is purchasing KXIV from American Stores for $1.75 million. Dec. 15 is targeted as the date for the sale to close.
If it is consummated, the KSL-KXIV deal would be modeled after the local marketing agreement that is becoming more commonplace in radio. Under an LMA, one entity owns a station while the owner of another station in the same market operates it.
For example, KALL radio is now operated by KKAT. It's one of a half-dozen such arrangements in the Salt Lake radio market. Whether such an agreement between two television stations in the same market is legal is a question that's rather nebulous.
"It isn't illegal," said Amy Zozlov, an attorney with the Federal Communications Commission in Washington, D.C. "The FCC has not adopted rules yet that would apply to LMAs in television."
She said a ruling on the matter is expected in the next two to three months.
Several arrangements similar to the one KSL and KXIV are con-tem-pla-ting are already in existence around the country. But the future of those - as well as a Channel 5-Channel 14 pairing - would be at the mercy of any future FCC ruling.
"We have to wait and see what the commission rules," Zozlov said. "Some of them could be grand-fathered in. They may be allowed to operate just as they are. Or they could be forced to end the LMAs.
"They can't let control of one station pass to another station. That would be clearly illegal. LMAs are less clear right now."
KSL would seem to have a tougher path to gaining approval because its owners also own several other media outlets in Utah. Bonneville International Corp. owns KSL-TV and KSL Radio. And Bonneville is owned by The Church of Jesus Christ of Latter-day Saints, which also owns the Deseret News and Brigham Young University, which owns KBYU-TV and KBYU-FM.
Because of all this cross-ownership, KSL is prohibited from buying another TV station, Murdoch said. And there are indications that the possible KSL-KXIV agreement may be opposed by other broadcasters in the area who see it as too great a concentration of media in one entity.
Although executives at other local TV stations were reluctant to talk about their plans, they are consulting their attorneys and some are looking at the possibility of filing protests with the FCC.
The staff at KXIV is legally prohibited from direct contact with Miller, who recently resigned from KSL's advisory board, until after the station's sale is approved. And news of a deal between Miller and KSL reportedly came as a surprise to officials at Channel 14.
Program syndicators have been invited to a meeting on Monday and Tuesday to discuss the future of KXIV with John Martin, one of Miller's top aides, and KSL officials.
"It's really kind of a means of trying to determine where we go from here," Murdoch said. "One of the things we're looking at is if it's going to be a win-win situation for us and Larry."
Several syndicators seem taken somewhat aback by the joint meeting. And some, unsure about the legality of a television LMA, have indicated they will not attend.
"At first, it seemed sort of strange, but now there's no question in anyone's mind what's going on," one syndicator said.
KXIV staffers originally were elated when the Miller purchase was announced. Now they're afraid of losing their jobs. One reason to enter into an LMA is to reduce the number of employees.
"It's a matter of survival, of trying to get groups together to combine their resources, eliminate staff and increase ratings," Murdoch said.
It's unknown how many of the approximately 45 employees would retain their jobs if KSL takes over management of the station, but many would likely be laid off.
However, Murdoch wanted to down-play any such speculation.
"One of the things we're trying to do is not get this blown out of proportion. We're just kind of feeling our way here."