Nexstar Broadcasting Group has been paid $6.7 million in 2011 management and incentive fees, along with a termination payment, related to the sale of Four Points Media Group to Sinclair. Nexstar had managed the stations, but that relationship ended with Sinclair's acquisition of Four Points, which closed Jan. 3.
Approximately $4.7 million of the payment will be recognized in Nexstar's fourth quarter of 2011, while the balance will be recognized in the first quarter of 2012.
"The Four Points transaction is the culmination of our efforts on behalf of Cerberus to improve the market position and operating efficiencies of these stations and create value for the group," said Perry Sook, chairman, president and CEO of Nexstar. "We are confident that under Sinclair's management, the markets, viewers and advertisers served by these stations will benefit from a continued focus on quality programming and community service. We believe the positive outcome from this transaction for Cerberus, Four Points and Sinclair positions us well to enter into other management services agreements."
Speaking to investors in New York Dec. 6, Sook said he was "in discussions with other groups" about new management deals.