• by Wayne Friedman , Staff Writer, November 5, 2004

Sinclair Broadcast Group must be doing some new financial math - perhaps calculations yet to be discovered on this planet.

David Smith, CEO of Sinclair Broadcast, now says the controversial "POW Story: Politics, Pressure, and the Media," which ran right before the election, was hugely profitable -- so much so that it intends to produce more such news shows.

Smith said the flap - in which original press reports had Sinclair airing a pro-President Bush documentary - created "tens of millions of dollars" in promotional value.

Press reports say that though fewer spots were sold around the broadcast, Sinclair was able to charge more for them. But news stories didn't get any actual numbers, nor did total advertising dollars for the night it aired.

News stories didn't reveal how Sinclair came to this financial conclusion - especially since major advertisers such as Burger King, Verizon Wireless, and a host of other national consumers brands pulled all their advertising that evening. Additionally, many local banks and restaurants and other business pulled advertising as well.

Fewer advertisers -- according to my high school math -- equates to less demand and therefore weaker pricing - not more.

Smith asserted ratings were high. Maybe they were. But if he airs more politically-slanted news programming, major advertisers might leave for good. Before today, a number of big advertisers threatened to avoid Sinclair altogether - for the long term - just because of its openly conservative political positions.

All this can't be good news.

Next year, local television advertising will spiral to usual downward slump as it will be a non-Olympics and politically dry advertising year. If that's not enough pressure, all broadcast stations are increasingly being pinched by local cable interconnects and cable systems that have siphoned away local advertising the last few years.

Oh, and by the way, Sinclair reported its third quarter profit fell 74 percent yesterday -- due to sluggish advertising. Its stock price is down 50 percent this year.

No matter.

Smith is obviously feeling positive about his man winning the Presidential election, with the expectation that President Bush will look to deregulate much of television -- including the broadcast station license review process.

All of which will free up Sinclair's programming moves. But it's a "Jerry Springer" effect Smith is going for. Controversial content can bring high ratings -- but with that comes a smaller pool of advertisers, and less ad revenue.

All to say during the next political-charged show, Sinclair would do well to add trashy right-wing strippers.

After all, if you are standing behind your right for free speech, why just limit the discussion to pols when you can add some pole dancing.