Thanks to Confessor Gopher for calling our attention to the FCC's rejection of what it is basically calling sham sale to Whitley Media, a broker. I'm excerpting without permission from an update to the previous news item from RadioInsight.
Stating that the license transfer is not a true sale in that all economic risk would remain with Cumulus as Whitley would get the same brokerage fee regardless of the price he sells the station for, Cumulus would remain the defacto owner of the station.
The APA, by providing for Whitley to be reimbursed out of the sale proceeds for any losses and expenses he incurs in operating the Station, makes it clear that all of the economic risk of operating the Station would remain with Cumulus. Likewise, because Whitley is required to remit to Cumulus all of the proceeds from the sale of the Station, less his expenses and his brokerage fee, Cumulus would retain all of the risk of loss and potential for profit from the sale of the Station to a third party. Whitley will receive his brokerage fee and no more, whether the Station is sold for $1 million or $10 million. Given these “economic realities,” we conclude that the agreement between Cumulus and Whitley cannot be reasonably characterized as a proposed $100 sale of the Station to Whitley and that Cumulus would remain the owner of the Station.
Cumulus spun-off KTDK to Whitley in order to LMA 103.3 KESN from ESPN. That LMA was set to begin as soon as the KTDK spinoff to Whitley closed. Now both are on-hold indefinitely.
This also answers the question I had earlier, which is whether the "sale" of 104.1 was necessary to allow Cumulus to enter into the management agreement for 103.3 KESN, that answer being "yes."
So sounds like we'll have 104.1 for awhile longer, and ESPN will have to find some other way to figure out what to do with those time slots.