The distinction must be made between mandatory taxation, imposed by governmental authorities through legislative or regulatory fiat, and the market-mediated economic burden borne by consumers as a result of discretionary purchasing decisions—particularly in response to tariffs or other trade-related price shifts.

Broadcast owners face both compulsory costs and discretionary market responses. Regulatory fees, which are due this month, are largely non-negotiable fiat costs. While tariff-driven price hikes for capital equipment may discourage investment, but purchases can be deferred or avoided. That’s a market-mediated burden, not taxation in the legal sense.

Regulatory fees, application fees, music license fees are non-negotiable. Tower site leases are semi-negotiable. Station purchases are shaped by seller expectations, lack of lending due to FCC collateral restrictions, and financially limited buyers.

Think of it this way:  Mandatory taxation as a legal obligation, like a toll you must pay to use a bridge. Consumer discrimination in response to tariffs is more like choosing to take the long way around because the toll feels too high.

In our humble opinion, we believe that this distinction is why we have not seen rampant inflation due to the Trump tariffs.  Yes, some prices have and will go up, but we are not expecting to see runaway inflation and in fact based on recent results, we may, in fact, see lower inflation and increased GDP and increased income with which to finally pay down some debt.

Over the coming weeks, we’ll take a deeper dive into the following:

* Part 1: Fixed vs. Flexible Costs
* Part 2: Fantasy Math in Valuations
* Part 3: Buyers Want a Deal, Sellers Want a Time Machine
* Part 4: Collateral damage – Lending Gaps
* Part 5: Tower Leases and the M&A Trap

For What It’s Worth…
That’s 30 For Now

Check out our Stations for Sale and Sold Here