Relevant Radio seeks to blunt impact of $4.7 million FCC penalty
A reader noted this report by Mark Pattison of Catholic News Service. The possible penalty is the difference between
Relevant Radio's withdrawn bid and the winning bid in an auction for FM radio spectrum in Yarnell, Arizona. RR says software problems lead it to erroneously think the location would let a station's signal reach metropolitan Phoenix. When that problem was discovered, it withdrew its bid.
Bob Atwell, chairman of Relevant Radio and its nonprofit parent, Starboard Media Foundation, said that the FCC is aware of Relevant's circumstances. The proposed penalty is "more than one-third of our (annual) budget" of $12 million, he said, and more than the net worth of Advance Acquisitions, Starboard's for-profit arm that engaged in the auction.
There might be a good reason for this "for-profit arm" but it would be better if it were in RR's
Annual Report [20 pp. pdf].
Update: Relevant Radio not directly affected by FCC finePatricia Kasten, with Mark Pattison, reports in The Compass on reaction from Trish Luerck, CEO of Relevant Radio.
"It was less than adequately explained by Catholic News Service (CNS)," said Luerck, "reporting it as if Relevant Radio had been levied these fines. But it was, in fact, Advanced Acquisitions, a wholly owned subsidiary of Starboard Media" which is also the parent company of Relevant Radio.
Still nothing on the reason for the for-profit subsidiary and why it bids on licences.