Sinclair CEO Says Removing FCC Ownership Cap Will Enable ‘More Level Playing Field’

Ahead of Thursday’s FCC vote, Sinclair CEO Chris Ripley expressed his support for the removal of the broadcast station ownership cap, stating that it would enable local TV owners to compete more effectively against well-capitalized tech companies. In an interview on an earnings call, Ripley argued that removing the cap would create a more level playing field for broadcasters, as they would face fewer regulatory constraints compared to big tech and streaming platforms.

He added that the removal would also strengthen broadcasters’ ability to invest in local news and open up opportunities for mergers and acquisitions. Sinclair is prepared to participate in large-scale M&A activity if the rule change is approved, according to Ripley. The FCC currently limits broadcast owners to controlling stations in no more than 39% of markets, but Thursday’s vote could potentially remove the cap altogether.

Removing the cap would also facilitate Nexstar’s acquisition of Tegna, which is currently on hold. Critics and consumer advocacy groups have cautioned that removing the cap could lead to further consolidation of power among a few affiliate TV owners, potentially eroding local independent news coverage. Despite the concerns, Ripley maintains that the FCC is acting within its legal authority and believes that broadcasters will be able to transact under the new rule shortly after the vote.