A Profile of SJL/Lilly Broadcasting/etc!

First In A Series Of Profiles of Erie Media.

(Editor’s Note: Earlier this year when SJL/Lilly/etc bought several stations from the Emmis group, Blogs in Hawaii and Oregon began lighting up to chronicle the resulting blood baths at KHON and KOIN respectively. Some of the information was correct and some was based on rumor. In trying to sort out who SJL was and is, I found one post from www.Hawaiithreads.com that was mostly factual in its brief telling of how the company began. After confirming the pertinent facts from other sources, I edited out those areas I could not confirm and any personal comments that I didn’t think were appropriate. Erie is included in his chronicle as well. The background of SJL/Lilly begins with its founder, George Lilly)

George's background is in sales. He's from Boston, and is a huge Boston Univ. supporter. Back in the 1980s, he was the GM at a station in Buffalo, and he, along with the backing of an investment group bought the NBC affiliate there in the mid-1980s for $56 Million. (WGR) Within two years, they sold it for $100 Million to Tak Communications. (Remember this was the crazy 1980s)

Anyways, this was encouraging enough for George to pursue other station opportunities. He settled in Montecito (California) after he purchased the NBC affiliate, KSBY-TV in neighboring San Luis Obispo. He sold this station a few years ago, but he still has a group of stations, primarily on the east coast. Most of his stations purchases are largely financed by outside investment firms, such as Alta and Blackstone, and while his name may be on the license, the equity is with the financial backers. Since Blackstone was recruited by Emmis to explore the sale of the stations, it seems likely that Blackstone decided to grab KHON and the other three mainland stations, and have SJL run them.

SJL refers to the initials of one his children.

OF NOTE OF THE KHON/KGMB duopoly: SJL had a similar scenario in Erie,
PA. SJL owns the NBC station, and it wanted to own the CBS station in the market as well. It could not, however, due to the FCC rules. George Lilly simply put the CBS license in one of his grown sons' name, (Kevin) yet the NBC station technically runs both stations (Brain).

The elder Lilly has been encouraging his sons to enter broadcasting; they owned a small ABC station in upstate New York (WENY), but in checking the FCC records, it looks like the financial partner, Mercury Capital took over the majority of the equity of that station--A usual consequence when the station is mismanaged, or the debts are not satisfied on schedule.

For the most part, SJL stations are good operations. George Lilly puts a lot of trust in a team of tv managers, lawyers, accountants who keep an eye out for him. The only red flag is the financial makeup of most of the SJL properties, which have a great deal of equity with financial firms, not broadcasters. While Broadcasting is still a business, the MBA-Pencil-Pushers (bean counters) will always be quick to cut costs or sell a station at a moment's notice, in order to keep the books looking good.

(Editor’s Note: SJL/Lilly recently sold Channel 10 in Altoona for 56 million to
NEXSTAR, the owner and operator of WJET-TV and WFXP. According to most of the
trade press, SJL reputation is to buy stations, cut costs and sell for a
handsome profit. Just to end any speculation that might exist, George, Brian and
Kevin Lilly are not the same Lilly’s of the pharmaceutical name.)

(ABOVE PHOTO BY : ERIC ISAACS / SPECIAL TO THE HONOLULU STAR-BULLETIN)

"Congress passed a law on February 1, 2006, setting a final deadline for the DTV transition of February 17, 2009. Most television stations will continue broadcasting both analog and digital programming until February 17, 2009, when all analog broadcasting will stop.." FCC http://www.dtv.gov/

It's Digital or Nothing in 2009!