B2
BUSINESS
APRIL 24-30, 2019
Nexstar sued by Marshall Broadcasting Group NEXSTAR FROM B1
MBG president and CEO Pluria Marshall Jr. “Ever since the deal was signed, Nexstar has gone to great lengths to constantly interfere, undercut our authority and sabotage our business, with little regard for the agreements in place with us or the FCC.” Despite the FCC’s mandate to make the public airwaves available to all citizens without regard for “race, color, religion, national origin, or sex,” the U.S. broadcast industry suffers from a pitiable shortage of minority owners. As of today, only 12 out of 1,400 full-power, commercial TV stations are Black-owned
—less than one percent. Since MBG owns three of the 12 stations, Nexstar’s efforts to push MBG out of business would remove 25 percent of the Black-owned stations on the air today. “Nexstar’s bait and switch flies in the face of the FCC’s quest for diversity in ownership. If allowed to go unchecked, it could affect ALL minority owned businesses in the telecommunications space,” said Dr. Benjamin F. Chavis Jr., President & CEO, National Newspaper Publishers Association (NNPA). “This behavior is a road map on how to use minority-owned businesses for companies’ own gain and squash diverse pro-
gramming once the ink on MBG’s ability to operate its its debt without Nexstar’s the deal is dry,” continued stations independently by: guarantee. Only after MBG Chavis. “Failing to act will •Consistently interfering threatened litigation did embolden companies to go in MBG’s sales and oper- Nexstar abide by its conafter the handful of remain- ations in defiance of FCC tractual obligations. ing minority-owned stations directives and commitment In addition to explaining and scare away prospective to Congress for diverse pro- how Nexstar undermined minority owners.” gramming. MBG, the lawsuit outlines During negotiations, the •Overcharging for its MBG’s efforts to work in FCC expressed concerns stations at the outset, pre- good faith with Nexstar to that the transaction would senting MBG with a price try and resolve the behavleave Nexstar with too tag of $58.6 million for the iors in question and create a much influence over the same stations and assets strong and prosperous partMBG assets. As such the that it intended to sell to nership between the two deal was only approved another potential buyer for companies. The filing makes clear that the commitment after Nexstar stated that only $42.3 million. “MBG shall maintain full •Trying to drive MBG out to resolving the issues was control, supervision and di- of business by attempting not mutual. As such, MBG rection of” the stations, in- to cause MBG to default on decided that the only approcluding the stations’ “man- its credit facility. As part of priate recourse was through agement, programming, obtaining FCC approval, the legal system. The case is Marshall finances, editorial policies, Nexstar agreed to guaranpersonnel, facilities and tee MBG’s credit facility for Broadcasting Group, Inc. v. compliance with the FCC five years. Nexstar, howev- Nexstar Broadcasting, Inc. Rules and Regulations.” er, attempted to withdraw and is filed in the Supreme Contrary to these provi- its guarantee after three Court of the State of New sions, and the FCC’s re- and a half years. Nexstar York, New York County. SOURCE Marshall Broadcastobligation to promote com- quirements, Nexstar has knew that MBG was in ing Group continuously hampered no position to refinance petition, diversity and localism in media ownership. Not only has the agency failed to meet this obligation, but it has also failed to adequately measure diversity in ownership among its license holders,” she said. Floberg continued: “The resulting media consolidation has left us with far less of the local news and information communiTrump-appointed leader, Mick Mulvaney ties need to stay informed. by Charlene Crowell as acting CFPB director, turned an about “To meet the needs of For New Pittsburgh Courier face on our military families by halting its communities of color and America’s 1.29 million member-strong, use of its supervisory powers to fulfill its low-income families, the FCC must nurture owner- all-volunteer military includes men and mandate of MLA enforcement. CFPB’s new Director Kathleen ship diversity, not let giant women from all 50 states, according to the companies like Nexstar U.S. Council on Foreign Relations. Regard- Kraninger made it clear that she supports and Sinclair devour even less of race or ethnicity, each made a choice the same policies and practices begun unand swore an oath to protect our nation. der her predecessor in a March 8 letter to more local stations.” Together, they wear our nation’s uniforms Ranking Members of the Senate Armed and carry our flag on assignments and de- Services Committee and the Committee ployments in times of both peace and war. on Banking, Housing and Urban Affairs, I’d like to believe that our entire nation re- Further in a recent Capitol Hill hearing, spects and appreciates their sacrificing ser- Director Kraninger went even further, adthing out, it’s shared space, vice that takes them away from families, our vising, as reported by POLITICO, Director and it’s socially unaccept- stateside, and deployments. Further, while Kraninger went even further, claiming able” to block traffic, Rand- these brave men and women protect us, the that Congress via legislation should pronation should also protect them—including vide CFPB with appropriate authority. er said. Confused? You’re not alone. Humans also make eye the clutches of predatory lending. It was that kind of perspective that led to Last October, a bipartisan group of 33 states contact with other drivers to make sure they’re look- strong bipartisan enactment in 2006 of the attorneys general (AGs) wrote then Acting ing in the right direction, Military Lending Act (MLA), a reform that CFPB Director Mulvaney following his ansomething still being devel- was strongly supported by the Department nouncement that the Bureau would no lonoped for autonomous vehi- of Defense. At the time, DoD warned how ger ensure that lenders would comply with severe financial stress diminished “military MLA as part of its supervisory examinations. cles. “We are perplexed by reports indicatAdd to that the antag- readiness.” Years later with the creation of onism that some feel to- the Consumer Financial Protection Bureau ing that the CFPB has determined that it ward robots. People have (CFPB), MLA enforcement was assigned to needs further statutory authority in order reportedly been harassing the new agency along with other laws, and to conduct examinations for MLA violaWaymo’s autonomous test MLA was updated to include the phrase, tions,” wrote the AGs. “We are disappointvehicles near Phoenix. The “shall be enforced by the CFPB.” That kind ed to learn that CFPB did not consult the Arizona Republic reported of language eliminates discretion or inter- Defense Department in developing its new in December that police is pretation, thereby ensuring appropriate examination policy, even though Congress specified that the Defense Department—not suburban Chandler have actions when warranted. For years, CFPB’s enforcement levied the CFPB—is the primary federal agency documented at least 21 cases in the past two years, fines against businesses that broke con- responsible for interpreting the MLA.” The officials signing the letter to Mulincluding a man waiving a sumer finance laws and made consumers gun at a Waymo van and financially whole with proportional resti- vaney represent states as far west as Alaska people who slashed tires tution. From July 2011 through Septem- and Hawaii, to as far east as Massachusetts and threw rocks. One Jeep ber 2017, CFPB’s Office of Servicemember and New York, and southward to Missisforced the vans off the road Affairs delivered $130 million of financial sippi and North Carolina. Together, these relief as a result of actions taken on 91,482 state officers understood and embraced that six times. military complaints filed. In just one lend- when it comes to consumer finance, predatoLEFT TURNS Deciding when to turn left ing area—payday loans—CFPB projected ry lenders make no partisan distinction. “There’s no utility in arguing the fine in front of oncoming traf- that servicemembers saved $35 million questionable difference between enforcefic without a green arrow every year as a result of MLA rules. Justification for continued aggressive ment and supervision,” said Scott Astrais one of the more difficult tasks for human drivers enforcement is attested to in CFPB’s own da, the Center for Responsible Lending’s and one that causes many reports. From 2016 to 2017, CFPB record- Federal Advocacy Director. “The bottom crashes. Autonomous vehi- ed a 47 percet increase in the number of line is that consumers—especially those cles have the same trouble. servicemember complaints. The following serving in the military—need their govWaymo CEO John Krafcik year, 2017 to 2018, the number of com- ernment’s protection against those who would exploit their personal finances and said in an interview last plaints were still rising at 12 percent. According to the Pentagon, military at the same time, jeopardize their military year that his company’s vehicles are still encounter- members can and do lose security clear- service and careers. Our nation should ing occasional problems at ances and/or less than satisfactory dis- protect them with just as much dedication charges each year. Every discharged sol- as they give to protect all of us.” intersections. (Charlene Crowell is the Center for Responsi“I think the things that dier’s separation costs the government an ble Lending’s deputy director of communications. humans have challenges estimated $58,000. Despite this abundance of complaints She can be reached at Charlene.crowell@responsiwith, we’re challenged with as well,” he said. “So some- and warranted enforcement, CFPB’s first blelending.org.) times unprotected lefts are super challenging for a human, sometimes they’re super challenging for us.” CONSUMER better option if borrowers are offered lowSOLUTIONS FROM B1 ACCEPTANCE er interest rates and can get out of debt The fatal Uber crash near bills or other debts. faster. Unfortunately, scams and decepRISKS CAN Phoenix last year did more tive marketing abound, Standaert says. OUTWEIGH REWARDS than push the pause button Cash-out refinancing and other home Unwary borrowers could wind up paying on testing. It also rattled consumers who someday equity borrowing are often aggressively high fees or higher interest rates and end will be asked to ride in marketed as good ways to cope with debt, up owing more in the long run. Often, the best solution isn’t a loan at but the drawbacks can be significant, says self-driving vehicles. Surveys taken after the Diane Standaert, an executive vice pres- all, says financial literacy expert Barbara Uber crash showed that ident with the Center for Responsible O’Neill, a professor at Rutgers Universidrivers are reluctant to Lending , a nonprofit that fights predatory ty. Cutting expenses and boosting income, give up control to a com- lending. The loans drain away equity that perhaps with a side job, can help people puter. One by AAA in otherwise could be used to build wealth or make extra payments to reduce their debts. If that isn’t possible, Standaert suggests callMarch found 71 percent of cover emergencies. Relief is often tempopeople are afraid to ride rary, since many continue to rack up debt. ing your credit card companies to ask if they in fully self-driving vehi- And the loans turn unsecured debt, which offer hardship programs that could reduce could be wiped out in bankruptcy, into se- your payments. Nonprofit credit counselors, cles. Autonomous vehicle com- cured debt that not only can’t be erased such as those affiliated with the National Foundation for Credit Counseling, have debt panies are showing test but could cost borrowers their homes. “That is incredibly dangerous,” Stan- management plans that can lower interest passengers information on screens about where the ve- daert says. “It puts your house at risk of rates on burdensome credit card debt. Truly overwhelmed borrowers should consult with hicles are headed and what foreclosure.” Retirement plan loans pose hazards as a bankruptcy attorney, preferably before they its sensors are seeing. The more people ride, the more well. If you don’t pay the money back on start skipping payments, O’Neill says. “That’s a sign of distress, and you need they trust the vehicles, says time, the balance turns into a withdrawal that triggers penalties and taxes—plus to take action before you get to that point,” Waymo’s Krafcik. “After they become more you lose all the future tax-deferred re- O’Neill says. (This column was provided to The Associated and more confident they turns that money could have earned. One rarely look at the screens, study found 86 percent of the people who Press by the personal finance website NerdWallet. and they’re on their phones left their jobs with outstanding 401(k) Liz Weston is a columnist at NerdWallet, a certified financial planner and author of “Your Credit or relaxing or sleeping,” he loans wound up defaulting on the debt. An unsecured personal loan could be a Score.”) said.
Lack of diversity cited LAWSUIT FROM B1
tion without first examining how such consolidation impacts ownership opportunities for women and people of color. The FCC responded by further weakening its rules with zero concern about the appalling lack of diversity in ownership, Floberg said. “That FCC attorneys would attempt to deny the legal standing of groups representing the interests of people the agency was created to serve is an alarming measure of just how far the agency has strayed from its public-interest mandate,” Floberg said. “The FCC has a statutory
CFPB denies duty to enforce Military Lending Act despite support from DoD and Congress
Autonomous cars AUTONOMOUS FROM B1
Greg McGuire, director of the MCity autonomous vehicle testing lab at the University of Michigan. Software also is being developed so vehicles can differentiate between real obstacles and snowflakes, rain, fog, and other conditions. But many companies are still trying to master the difficult task of driving on a clear day with steady traction. “Once we are able to have a system reliably perform in those, then we’ll start working toward expanding to those more challenging conditions,” said Noah Zych, Uber’s head of system safety for self-driving cars. In some limited areas that have been mapped in three dimensions, the cars can function in light snow and rain. PAVEMENT LINES AND CURBS Across the globe, roadway marking lines are different, or they may not even exist. Lane lines aren’t standardized, so vehicles have to learn how to drive differently in each city. Sometimes there aren’t any curbs to help vehicles judge lane width. For instance, in Pittsburgh’s industrial “Strip District,” where many self-driving vehicles are tested, the city draws lines across the narrow lanes to mark where vehicles should stop for stop signs. Sometimes the lines are so far back and buildings are so close to the street that autonomous cars can’t see traffic on the cross street if they stop at the line. One workaround is to program vehicles to stop for the line and creep forward. “Is it better to do a double stop?” asked Pete Rander, president of Argo AI, an autonomous vehicle company in which Ford has invested heavily. “Since intersections vary, it’s not that easy.” DEALING WITH HUMAN DRIVERS For many years, autonomous vehicles will have to deal with humans who don’t always play by the rules. They double-park or walk in front of cars. Recently in Pittsburgh, an Argo backup driver had to take over when his car stopped during a right turn, blocking an intersection when it couldn’t immediately decide whether to go around a double-parked delivery truck. “Even if the car might eventually figure some-
Debt ‘solutions’ could bring more problems
NEW PITTSBURGH COURIER
BUSINESS CALENDAR Sales Tax Webinar
APRIL 24—The Chatham Center for Women’s Entrepreneurship will present Sales Tax After June 2018 #Game Changer, 12 to 1 p.m., online. The session covers the Supreme Court ruling expanding states’ ability to levy sales tax on out-of-state purchasers, and what that means for small businesses. The session is free, but registration is required. Call Anne Flynn Schlicht at 412-365-1448 for more information.
Sales Workshop
APRIL 26—The Duquesne University Small Business Development Center will present Sales Boot Camp, 9:30 a.m. to 4:40 p.m., 108 Rockwell Hall, 600 Forbes Ave., Pittsburgh 15282. This full day training session presented by Scot Teachout of Peak Performance covers: getting past gatekeepers to decision makers; presentations skills; cold calling; getting the asking price; getting past objections; post-sale retention, and more. Cost $399. For more information, call 412-396-6233.
Investor Psychology Class (2 of 2)
APRIL 30—Ken Kaszak will present the second of two free seminars on biases that affect our purchasing habits and investment decisions at the Carnegie Library Hill District branch. 6 to 7 p.m. Learn to recognize these biases and how to counter them.
Two-Day QuickBooks Workshop
MAY 15 & 22—The Duquesne University Small Business Development Center will host a two-day workshop, 9:30 a.m. to 12 p.m., 108 Rockwell Hall, 600 Forbes Ave., Pittsburgh 15282. A representative from Dennis Piper and Associates will walk attendees through all the features and capabilities of QuickBooks software. Cost for both days is $49. For more information call 412396-1633.
PR Networking & Breakfast Seminar
MAY 10—The Chatham Center for Women’s Entrepreneurship will host Are You Ready for the Spotlight? What “PR” is—What it isn’t, 7:30 to 9 a.m., at the James Laughlin Music Center, Chatham University Shadyside Campus. Breakfast will be followed by a panel discussion with Caroline Callaway, president and founder of Bolt Public Relations. Topics to be covered include: What to do before launching a PR campaign; How to choose the right PR partner; Brand success stories and how to measure the effectiveness of a PR strategy, and more. Cost $25.
Entrepreneurs Conference
JUNE 6—The Duquesne University Small Business Development Center will host its 21st Annual Entrepreneurs Growth and Networking Conference, 8:30 a.m. to 4 p.m. at the Duquesne Union, 4th oor 00 Forbes Ave. Pittsburgh, 15282. The event features dozens of workshops, a Business Building Tradeshow, and leaders in technology, marketing, management and more. Cost is $139 and includes breakfast and lunch. Early registrants can save $50. For more information call 412-396-1633.
Workshop
JUNE 20—The Duquesne University Small Business Development Center presents First Step: Business Startup Essentials, 9:30 a.m. to 12 p.m. 108 Rockwell Hall, 600 Forbes Ave., Pittsburgh 15282. The workshop covers several topics, including: Business structure and formation; Fictitious name registration; insurance; employee relations; financing options; taxation requirements and more. Cost: $25. For more information call 412-396-1633.