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Thursday, August 15, 2013

Morgantown Radio: WCLG Sale May Raise FCC Questions

In a market dominated by West Virginia Radio Corp. stations, news that Morgantown, WV radio stations WCLG 1300 AM and 100.1 FM are being sold is drawing attention.

According to wvgazette.com, the stations, locally owned by Bowers Broadcasting, are to be sold to an entity called AJG Corp. -- if the Federal Communications Commission approves the sale.

That could be critical, since FCC rules restrict the number of radio stations any one company may own in a market. If AJG Corp. had not been spun off from West Virginia Radio Corp. -- owned by Morgantown businessman and frequent political candidate John Raese -- then the original company might not meet those restrictions.

John Raese
In a market the size of Morgantown-Clarksburg, the FCC ownership limit is seven commercial stations, with no more than four in either AM or FM.

Incorporated in 2007, AJG operates three former West Virginia Radio Corp. stations: WKKW-FM in Fairmont, WFGM-FM in Barrackville, and WFBY-FM in Weston. If AJG bought WCLG-FM, it would have four FM stations in the market.

However, business filings with the Secretary of State's Office and FCC records show that, at the very least, AJG is closely aligned with West Virginia Radio Corp.:
  • AJG's office address, according to business filings with the Secretary of State's Office, is 1251 Earl Core Road in Morgantown -- the same address as West Virginia Radio Corp. offices and Morgantown radio stations, and also the location of the Dominion Post newspaper, owned by the Raese family. (FCC records list AJG's office address as 279 June Road, Stamford, Conn. A search on the real estate site Zillo shows that address is a private residence, with an estimated market value of $2.69 million.)
  • Vice president and general manager of AJG is Jack Murphy Jr., who used to be sales manager for West Virginia Radio Corp. The contact number listed for Murphy at AJG is the same as the main number for the WVRC business office.
On Wednesday evening, Murphy referred questions to the company's law firm, Fletcher, Heald and Hildreth of Arlington, Va.

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