Young Broadcasting overpaid for KRON San Francisco a decade ago, and to date earned a dubious return on investment for its management deal with Gray TV. Last summer, Gray announced a deal to manage seven of the Young stations for $2.2 million per year, plus incentives. But as a pair of banking groups scrapped for several months in bankruptcy court for control of the Young stations, Young told Gray in December 2009 to stay away from its stations until the judge decided who gets them. Still, Gray was paid its management fee.
Arthur J Gonzalez"Judge Gonzalez ruled last week on the stations' fate: Gray can finally set foot in the Young-owned outlets again. "It's now back in our court," said a Gray insider. "We will be managing the stations." Young entered bankruptcy in February 2009.