A Toledo television station is on track to be sold for more than $22 million to a company that has ties to another local station.
Paperwork filed with the Federal Communications Commission on Tuesday states WUPW-TV, Channel 36, is in the process of being bought by American Spirit Media.
The head of that company, Thomas Henson, already operates at least three other TV stations with Raycom Media, which is the parent company of WTOL-TV, Channel 11.
A shared services agreement included in the FCC filing on WUPW's sale states that Channel 36 and Channel 11 will be able to share news staff and broadcasts. WTOL can share "live-feed, fully-staffed and produced newscasts for broadcast on WUPW," the agreement says.
Newscasts provided by WTOL cannot exceed 15 percent of WUPW's weekly programming in accordance with FCC rules.
And newscasts will have an "on-air" appearance as if they had been originated by WUPW, the shared services agreeement says. The agreement is for at least 10 years, effective when the sale of WUPW is final.
In addition to news, WUPW and WTOL will share access to studios, master control, technical facilities, maintenance, and promotional efforts.
The new owners of WUPW would pay WTOL more than $1.3 million the first year of the agreement. That amount would be adjusted for inflation in following years.
Typically, when news operations at two stations are combined, jobs are lost.
Representatives from WUPW and Raycom Media did not return repeated calls for comment.
Bob Chirdon, WTOL's general manager, didn't acknowledge the agreement when asked about it, other than saying "Raycom is not involved with the purchase."
Mr. Chirdon declined to comment further.
WTOL is a CBS affiliate. WUPW is a Fox affiliate.
The next step in the sale of WUPW is a 30-day period of public comment. The FCC would then consider any objections before approving the deal.
The FCC has rules that prevent one company from controlling multiple media outlets in one market. But the rules do not keep two separate companies from sharing some facilities and operations.
The purchase agreement states that WUPW's lease and tangible personal property such as equipment, vehicles, and towers will be owned by American Spirit Media.
Mr. Henson is listed as the president and CEO of American Spirit Media LLC. He also is the chief executive officer of Henson-Tomlin Interests LLC. The company has holdings in media, real estate, and consumer products.
American Spirit Media is not contractually obligated to hire any of WUPW's employees. A list of employees who will be kept on by American Spirit Media will be given to WUPW's owner, LIN Media, 30 days before the close of the station's sale. LIN Media acquired WUPW in 2002.
Stephen Lacy, an associate dean of graduate studies within the College of Communication Arts and Sciences at Michigan State University, said it's typical of local TV stations to combine resources as companies try to cut costs.
"When you go from having two independent newsrooms to one or one and a half, you lose reporters," he said, adding that those losses impact the number and quality of stories told within a community.
WUPW broadcasts two newscasts weeknights at 6:30 p.m. to 7 p.m. and 10 p.m. to 11 p.m. None of the other local stations have news broadcasts during those hours.
In the most recent Nielsen ratings, from November, WUPW's 6:30 newscast drew an average of 2,000 viewers. That's down from 6,000 a year earlier.
The station made up for some of that lost viewership with its 10 p.m. newscast, which was watched by an average of 2,000 more total viewers in November compared to November, 2010: 16,000 to 14,000.
WTOL, meanwhile, has settled into second place overall in the market, behind WTVG-TV, Channel 13. WTOL won the noon to 12:30 p.m. and 11 p.m. to 11:30 p.m. newscasts in total number of viewers, and WTVG won the 5-6 a.m., 6-7 a.m., and 6-6:30 p.m. news slots. The two stations are virtually tied in total viewership for their 5-6 p.m. newscasts.
Staff writer Kirk Baird contributed to this report.
Contact Kris Turner at: kturner@theblade.com or 419-724-6129.