The Orlando Sentinel from Orlando, Florida • Page 58

Central Florida Business 12 COVER STORY From 1 Who shares in Channel 9's sale COMINT 3S.4 million (28.3) Shareholder I Proceeds (in millions) .2.1 AbramowiU, Leedy. Loomn C. Avrum 12.1 Meitin. Ralph Pan American Bank of Mercer, Julia Orlando, for the lata Donald Parkins, Paul S. Evant 2.1 Quinby, Thomas Hatcher, Ralph 2.1 Robinson, James Hednck, David 4.2 Smilh, Bettys Sue Hedrick, F.

Cleveland Jr. 21 Trapnell, J. Harold Lane, John 2.S Witting, Chris i TV 9 $35.4 million (28.3) Shareholder Proceeds Gray, Gordon 3.5 Sharp, Joel 1.S Kraft, Kenneth Houston Jr 1.7 Johnson, George 3.2 O'Callaghan, Jack 2.2 McKean, Hugh 2.2 McKellar, Jane Ives 3.2 Cox, Wtltoughby T. Jr. Gumey, J.

Thomas Jr. Murray, Louis Roper, Bert Nicholson. David Johnson, Thomas P. Miller, Gloria Cassel, Nova xzr CENTRAL NINE $6.2 million (5) Shareholder Proceeds Barker, Mark V. Jr.

Bower, Harry Bryan, rover Caruso, Austin A. Danner, Richard G. .325 3v0 .640 .640 ...1.1 Davis, J. Rolte 640 Hubbard, Frank 640 Lilley, Robert 640 McAllister, William 325 Smathers, Benjamin Corp. operated WFTV under a temporary FCC license from 1958 until 1969, its application for a permanent license was challenged continually.

In 1958, a congressional subcommittee found that Mid-Florida could have received favorable treatment from the FCC because the corporation's lawyer, William Dial, was a college buddy of FCC commissioner Richard Mack. (Later, as a top official of Sun Banks, Dial helped it grow.) In 1971, a federal grand jury accused Martin Segal, a Mid-Florida official, of giving money to a mobster's gambling operation. Segal, who no longer owns Mid-Florida shares, never was tried. His wife shot him three times paralyzing him and then killed herself. (Segal is an Orlando area attorney.) Meanwhile, other companies jockeyed for position.

To appeal to the FCC, companies recruited investors who had worked as broadcasters. In tune with a Supreme Court ruling that the FCC should consider minority participation, Comint stood out by recruiting two blacks as investors. While fighting each other at FCC and court hearings, Mid-Florida, Co-mint, TV 9 Florida Heartland Television Inc. and Central Nine Corp. jointly operated WFTV under a 1969 court order.

Some confusion ended in 1981, when investors of the five companies agreed to co-own the station. Last year investors agreed to sell the station. In February they agreed to sell to SFN. Gordon Gray of Riviera Beach said he did not expect any agreements in his lifetime much less the $3.5 million he will receive from the WFTV sale. Gray, now in his 70s, invested in TV 9 at the urging of a friend he visited in Orlando in 1966.

That friend was among at least 14 investors who died during litigation. Gray characterized many of the surviving investors as mature, successful professionals who probably are not excited about improving their finances. "Maybe some people would buy a Mercedes instead of a Ford," he said. "I know I'll have a pretty good chunk. I'm not going to worry about it.

I'm too old." For investors, kicking in extra cash for legal fees and operating WFTV has diminished some of the euphoria. "It's not like getting a phone call and being named sweepstakes winner," said Mark Barker of Orlando. "It has been 19 years." After borrowing $10,000 to invest in Central Nine in 1965, Barker borrowed more money later to keep his invest ment, he said. Barker, 58, co-owns McAllister-Barker Associates an advertising agency. He will receive $325,000 from the sale of WFTV.

Despite the ho-hum reaction of some investors, the sale of Channel 9 attracted the attention of Sun Banks, Florida's second-largest bank-holding company. Sun Banks held a seminar last month for WFTV's owners. An expert for Ernst Whinney, a public accounting firm, discussed tax consequences of the sale. A Sun Banks offi- FLORIDA HEARTLAND TELEVISION punch there," Purcell said. Harcourt Brace Jovanovich one of the nation's largest publishers, last month finished moving its corporate headquarters to Orlando from New York.

"I don't know," Purcell continued. "I would like to think we could do more in Orlando. Orlando is a great place." For SFN, Orlando's greatness lies in the rapidly growing number of households containing televisions. With 646,400 such households, the nine-county Orlando-Daytona Beach-Melbourne television market is the nation's 30th largest, according to Ar-bitron Ratings a research firm. In 1973 it was the 51st largest with only 354,200 television households.

Growth potential of this television market accounts for $25 million of WFTV's $125 million selling price, Purcell estimated. "I expect Orlando to be in the top 25 television markets in three to Five years. There's a big difference between being No. 26 and No. 25." Many advertising agencies limit their purchases of television time to the top 25 markets, Purcell explained.

Buying WFTV will help SFN enter a lucrative industry and diversify its holdings. Selling WFTV will enable some of the current owners to change their lifestyles. Sale of the station will end many years of confused ownership. Sixty-seven investors, many of whom are Orlando area residents, own shares in five companies that co-own WFTV. One investor, A.N.

Abramowitz of Orlando, already is preparing to receive $2.1 million from the sale. An Equitable Life Assurance Society agent, Abramowitz is reducing his work hours, clerical staff and office space. "The money I get isn't enough to retire and live forever in Bora Bora," Abramowitz said. "I'll probably semi-retire sometime this year. It just takes the pressure off.

I'll work with less pressure." With proceeds from selling his home and his share of WFTV, Abramowitz plans to buy condominiums in Orlando; Carmel, and Switzerland. "I'm going to travel." Echoing many investors, Abramowitz said he never dreamed that his gamble to own WFTV would pay off in such a big way. Abramowitz, 50, borrowed $6,000 in the mid-1960s to buy shares of Co-mint Corp. Comint was among at least five companies then seeking Federal Communications Commission authority to own Channel 9. The battle to control Channel 9, which began in the 1950s, formed one of the longest license application procedures in FCC history.

Each time the FCC favored one company, the other companies would appeal. The case bounced between the FCC and federal appeals court in Washington at least six times. Besides its legal complexity, the saga of WFTV's ownership contains the elements of a soap opera. Although Mid-Florida Television $12.5 million (10) Shareholder Proceeds Gay. J.

Douglas Jr 1.5 Phillips. Joel P. Jr 650 McElroy, Sara as Eaton, Thomas 1.1 trustee 1.3 Barfield. Harry 250 Fishback, Florence 1.3 Brown, W. Kingsley 1.1 Schweirer, Nils 625 Amerson, Henry 250 Parish, Martha 62S Bell.

Jean Allen, as Wagner, Robert Lee 750 trustee 1.5 Murphy, Robin 650 Dominick, Julian 650 MID-FLORIDA TELEVISION CORP. $35.4 million (28.3) Shareholder Proceeds Baker, Mrs. Jesse 768 Brechner, Joseph 18.1 Brechner, Marion 4.2 Doenges. Robert 616 Gibbs, Irving 768 HeinUelman, Robert N. .768 Johnson, A S48 Labellman, Lillian 439 Mortal, Reggie 219 Savage.

Dr. Alvin 1.5 Stuart, Laureda 1.3 Sullivan, Julia 768 Estate of Harris H. Thomson S.2 Source 1981 ownership document Med with the Federal Communications Commission Calculations arc estimates based on individuals' reported percentage ot ownership ot the companies that were partners in Channel 9 l. "i VlHI BnVANT'SFSTINFL continued on next page.