My guess is that they will play the "race card" if they go to the hearing.  They blamed the CRTC for their misfortunes when they applied for 102.7 MHz, in the "Scarborough" hearing a few years back.   A reading of that transcript, and the heated exchange with the hearing chair and other commissioners suggests that the folks at G98.7 called the CRTC's bluff....that they would do nothing to them....
From the November 2014 decision denying G98.7's applicationCKFG-FM Toronto 
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[*]In Broadcasting Notice of Consultation 2014-102, the Commission indicated that Intercity may have failed to comply with section 9(2) of the Regulations, for the 2011-2012 and 2012-2013 broadcast years. Specifically, the licensee filed CKFG-FM’s annual returns for each of those broadcast years after the 30 November deadline. 
[*]The Commission further indicated that this licensee may have failed to comply with sections 15(2) and 15(5) of the Regulations for the 2011-2012 and 2012-2013 broadcast years. Section 15(2) sets out the requirements for radio station licensees relating to CCD contributions, based on the station’s total annual revenues. Section 15(5) sets out the portions of those required CCD contributions that must be allocated to the Community Radio Fund of Canada and to FACTOR or MUSICACTION. Intercity did not make any contributions to CCD for those broadcast years. 
[*]The Commission also indicated that Intercity may have failed to comply with the following condition of licence for CKFG-FM, set out in Broadcasting Decision 2011-369, relating to over-and-above CCD contributions: 
6. In addition to the required basic annual contribution to Canadian content development (CCD) set out in section 15 of the Radio Regulations, 1986, as amended from time to time, the licensee shall make a contribution of $249,545 to CCD, to be allocated as follows over seven consecutive broadcast years upon commencement of operations: $35,800 in year one, $37,024 in year two, $36,330 in year three, $36,346 in year four, $36,330 in year five, $36,296 in year six and $36,418 in year seven.=12pxFootnote 4Of this amount, the licensee shall allocate no less than 20% per broadcast year to FACTOR. The remaining amounts of this additional CCD contribution shall be allocated to parties and initiatives fulfilling the definition of eligible initiatives set out in paragraph 108 of Commercial Radio Policy 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006. 
[*]Specifically, the licensee did not make its required contributions for the 2011-2012 and 2012-2013 broadcast years, resulting in an apparent total shortfall of $63,874 in over-and-above CCD contributions. 
[*]Finally, the Commission indicated that Intercity may have failed to comply with the following condition of licence for CKFG-FM, also set out in Broadcasting Decision 2011-369, relating to reporting on programming for Toronto’s Caribbean and African communities: 
7. The applicant is required to file an annual report by 30 November of each year providing specific details on the manner in which it has fulfilled its programming requirements in serving the Caribbean and African communities of Toronto with its spoken word programming and musical format. 
[*]Specifically, for the 2011-2012 and 2012-2013 broadcast years, the licensee filed this report after the 30 November deadline. 
[*]Not only are these instances of non-compliance numerous, they are serious in nature and have occurred within the short period of time since the launch of the station in November 2011. As an example, the licensee indicated at the hearing that it would make its basic CCD contribution payment for the 2012-2013 broadcast year by no later than the end of February 2014. However, as of the date of this decision, the Commission has not received proof of payment for this contribution. 
[*]The Commission has examined the licensee’s non-compliance in the context of its revised approach to non-compliance by radio stations (see Broadcasting Information Bulletin 2011-347). As set out in that approach, the Commission takes into account the quantity, recurrence and seriousness of the non-compliance, as well as the relationship between the application for amendment and any instance of non-compliance. 
[*]Intercity’s proposal was based on remedying CKFG-FM’s apparent signal issues in Scarborough and would serve to ensure that the station’s service to the Black and Caribbean population in the entire Greater Toronto Area would extend to Scarborough (which is part of the Greater Toronto Area). The Commission questions, however, whether Intercity, by not having fulfilled its commitment in regard to rectifying its non-compliance, understands or appreciates the importance of adhering to these necessary requirements. Further, it stresses that requests for amendments, technical or other, are, as noted above, not normally granted in cases where licensees are not in good standing with those requirements. As a consequence, and in view of the nature and the seriousness of the above-noted instances of non-compliance, the Commission does not consider it appropriate to approve Intercity’s application to add an FM transmitter at Scarborough to broadcast the programming of CKFG-FM. The Commission notes that it will review this licensee’s performance and the manner in which it has remedied its various instances of non-compliance as part of the licence renewal for CKFG-FM in 2017.
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If they tried to, as you say, “play the race card,” I’m not sure it would work. The CRTC has already found an easy workaround to accusations about discrimination when it pulled the licence from Aboriginal Voices Radio.
 
All they would have to do is call for applications from black ownership groups to take over a similar format on the frequency and run it properly. That’s what they did with AVR, asking for members of the Indigenous community to come forward, replacing one bad performer with hopefully a better one from the same group of people.
 
Hard to claim racism if you’re looking to give the same community – albeit a different company – a chance to own a radio station in the #1 market in the country.