[BC] LMAs - How Far Can They Go?

[Phil Alexander]

On 28 Jan 2006 at 8:42, Larry Fuss wrote:

> As one who has been involved in several small-market LMAs, both as the
> licensee LMAing the station to someone else, and as the LMA operator of
> another licensee's station, my best advice is to steer clear of LMAs.  I can
> tell you several horror stories...  I LMAed a station from a rather
> unscrupulous operator who essentially walked away from the station and
> abdicated control to me, even though the LMA contract required him to do
> certain things as the licensee.  He just didn't care.  

The licensee must be responsible for property and technical maintenance 
by contract, and failure should be a breach. I'm not a lawyer, but even
I know enough not to sign a contract that lacks a termination clause and
liquidated damages for foreseeable defaults.

> Later, when we got 
> into a dispute over something, he ordered me to take the station off the
> air.  

That is where the above should have been there to give you some recovery.

> Because I had money invested in new staff and new equipment, I refused.  

Which is why the licensee should be required to provide all necessary
equipment for programming and transmitting; and should be required by
contract to comply with all rules and regs. If the contract provides
that, and provides penalties, the incentive is stronger. I the licensee
won't agree - - run, RUN AWAY fast.

> I got fined for premature transfer of control, even though he was
> the guilty party.  

Again, good reason for a termination with damages to recover promotion
expense and effort to make station go.

> In another case, I LMAed a station to a guy who allowed
> the tower fence to fall-in and never told me.  He also didn't hook up the
> EAS equipment after moving the station to a new location.  Again, I was the
> one who got fined.

As licensee, inspection and rules compliance is YOUR responsibility.
One of the two required "presence" employees should be inspecting on
a regular, routine basis.
 
> In LMAs involving big companies, perhaps everything is done correctly, but
> it doesn't happen that way in small markets.

Isn't it more a question of quality of legal advice rather than market size?
Doing due diligence BEFORE starting and having a good agreement with teeth
in the event of default drawn by a good communications lawyer is only 
prudent, and is what you will see in a large market. Apply the same to a
small market and it will work the same.


Phil Alexander, CSRE, AMD
Broadcast Engineering Services and Technology 
(a Div. of Advanced Parts Corporation) 
Ph. (317) 335-2065   FAX (317) 335-9037





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