in Houston, Texas
University of Houston must disclose payment info, some communications in KTRU purchase from Rice University: AG
Friday, Jan 14, 2011, 02:58PM CST
By Steve Miller
radio

The state Attorney General has ruled that the University of Houston must turn over certain business records relating to the sale of Rice University’s radio station KTRU to U of H, including the amount paid to a third-party consultant.

In October, Texas Watchdog filed a request for public records that eventually yielded documentation of duplicity on the part of U of H regarding the $9.5 million KTRU sale. Other e-mails showed how public relations staffers bickered about how to present the sale of the station, correctly anticipating the small but formidable public outrage it elicited.

 

U of H asked the AG’s office for a ruling on some of the correspondence and payment information we requested. 

 

The Jan. 7 ruling dictates that U of H can’t withhold communications with or payment to Public Radio Capital (PRC), a nonprofit consultancy that brokered the sale. The ruling did allow that some information being appealed by U of H met the standards for withholding, but much did not:

"We find the information we have marked consists of advice, opinions, and recommendations regarding a policymaking matter of the system that were communicated within the system and between the system and PRC. However, the remaining information consists of general administrative information that does not relate to policymaking or information that is purely factual in nature. Further, we note that a portion of the remaining information consists of communications with a consultant retained by Rice. We find that you have not established that the system shares a privity of interest or common deliberative process with this party. Thus, you have failed to demonstrate, and the information at issue does not reflect on its face, that the remaining information consists of advice, recommendations, or opinions that pertain to policymaking. Accordingly, the remaining information is not excepted from disclosure ... and it may not be withheld on that basis."

PRC sought to keep its payment information private, but the AG disagreed:

Upon review, we find PRC has failed to demonstrate that its payment information meets the definition of trade secret, nor has it established a trade secret claim for this information.

Texas Watchdog has also obtained audio of the U of H Board of Regents August meeting at which the purchase of KTRU was discussed. It appears that Rice never shopped the station and simply told U of H that it was moving KTRU online.

 

The sale of KTRU is pending FCC approval, with a public comment opposing the license transfer submitted by a local group, Friends of KTRU.

 

Contact Steve Miller at 832-303-9420 or stevemiller@texaswatchdog.org.


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Comments
disappointed alum
Saturday, 01/15/2011 - 01:52PM

... if there's really nothing wrong with this deal... then what do they have to hide...?

Craig
Monday, 01/17/2011 - 12:58PM

Rice never shopped the station because nobody is buying antiquated radio stations to begin with.

houstonian
Monday, 01/17/2011 - 01:01PM

Hope this results in the sale being voided and KTRU returning to the air. Disappointing UH would lower itself to hostile takeovers....this is not football...

David
Monday, 01/17/2011 - 02:26PM

I'm sure Rice did a feasibility study before they decided to sell. This study most likely revealed that the station wouldn't bring much in the sour economy. Selling at at $9.5m made sense in the long term due to the cost of running a station with little in advertising revenue or donations.

Perplexed
Monday, 01/17/2011 - 02:26PM

@houstonian.....Just trying to understand your comment about a "hostile takeover". As I understand it, Rice shopped KTRU to UH, not the other way around. How on earth is that a "hostile takeover" on UH's part? This whole episode has left me scratching my head as to why suddenly everyone cares about a station virtually nobody listens to (KTRU) when they didn't before this deal was announced.

Don
Monday, 01/17/2011 - 02:52PM

Too bad KTRU didn't have this many "friends" when the station was looking for an audience. I'm an aging baby-boomer and love rock and alternative music. My sons are both musicians. None of us listened to Rice radio because the music was awful. It was just not worth listening to. This is a terrible city for radio (Austin, Dallas and San Antonio are better), but KTRU offered nothing. I wish they had. As a result, I'm pulling for UH to win this dispute. A full-time classical music station and a full-time NPR affiliate would be a good start on improving FM radio in Houston.

texd
Monday, 01/17/2011 - 02:56PM

So two independent valuations by outside consultants put the value at $12mm, and then UH got the station for $9.5mm. Helluva deal for UH. Rice just looks worse and worse in this thing.

Rice '93 Alum
Sunday, 01/23/2011 - 05:18PM

Figures that Rice said whatever was expedient to get the promise of money from UH. I hope this fails.

Chris Knutson
Wednesday, 02/02/2011 - 09:24PM

@ perplexed quote- "This whole episode has left me scratching my head as to why suddenly everyone cares about a station virtually nobody listens to (KTRU) when they didn't before this deal was announced."

"Everyone suddenly caring" might be an indication of how many people actually do listen to KTRU. I am one of them, and he fact is, in this quality-starved radio market of Houston, it's one of perhaps three stations I can bear to listen to for any period of time (never mind that radio ads make my brain hurt). For people who want to listen to interesting things, it is a valuable resource.

Wednesday, 02/02/2011 - 09:34PM

@Don please remember not everyone shares the same tastes. Some of us are bored to death with "rock and alternative" but truthfully that has little to do with the discussion at hand.

This is about David Leebron looting the cultural resources of the city of Houston to pad Rice's coffers. Please remember that the transmitter was donated to KTRU to put it on the air for the city of Houston to enjoy, not to be sold on a rainy day to build a cafeteria. It's an affront to Philanthropists who would have a say about the dispensation of their donations.

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