'Prometheus' Allows Relaxed New Entrant Auction 109 Definition: FCC
Requirements for qualifying for special bidding credits for new entrants in the FCC’s July 27 auction of radio construction permits -- auction 109 -- will be relaxed because of the Supreme Court’s recent Prometheus ruling (see 2104010067), said a public…
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notice Tuesday. That decision restored the FCC revenue-based definition of eligible entities, and the rules allow investors and creditors of eligible entities to have bigger stakes in existing media properties and still qualify for new entrant bidding credits. The bidding credit provides a discount on the bid amount (see 2102080064). “This relaxed [equity/debt plus] standard was unavailable to applicants in recent auctions due to ongoing litigation, which was resolved by a recent U.S. Supreme Court decision,” the PN said. Normally, an entity can’t qualify for the new entrant credit if its equity and debt interests in mass media exceed 33% of its total asset value, but if an eligible entity is part of that calculation, it can exceed that threshold, the PN said.