[BC] LMAs - How Far Can They Go?

[Steve]

  ----- Original Message ----- 
  From: Cowboy 
  To: Broadcasters' Mailing List 
  Sent: Saturday, January 28, 2006 5:17 AM
  Subject: Re: [BC] LMAs - How Far Can They Go?

  >> The licensee remains responsible for the operation of the
  >> radio station within the terms of its license, ( including EAS )
  >> AND must maintain that "meaningful" presence.
  >> Two people must be employees of the current licensee.

  Well, that part is has been handled. However, the LMA holders are reimbursing the licensee for these saleries. The licensee has turned over their bank accounts to the LMA holders. They account for all the income. They pay the licensee 1500 bucks a month plus a capped fee of 500 bucks for sales. So some months that fee could be 2 grand. Now listen to this one. The license holders believe if they were nabbed by the FCC for violations they would simply sue the LMA holders for the fines! The LMA has been conveniently setup as an LLC. Hey, the LLC dumps the bank account and that's it as (and I'm sure you probably know how LLCs work) that IS the only asset they have. THE CASH. They come out smelling like a rose and queitly walk away. Sue them? I think not. Well, they can attempt to but they'll not get a dime. Couldn't they be deemed by the FCC unfit to hold a license? I know you're not a lawyer but some of these things seem obvious to me but, then again, I could be wrong. Something is not right about this whole thing and I'm trying to get a grip on just what those things might be. 

  The bottom line here Cowboy is they (the current licensees) want to get out of the biz so badly they've turned over the operation to the LMA folk.

  >> The LMA's I have been involved with, short version :
   
  >> The licensee isn't technically responsible for content, but that's
  >> about where disavowing responsibility stops.

  That's what I thought. 

  Thanks for your input. It's always appreciated.

  Steve
  Steve Walker Productions