In Colorado, a used press will help preserve print papers

Photo (cc) 2021 by Dan Kennedy

Colorado media-watcher Corey Hutchins reports that the National Trust for Local News, a nonprofit that works to keep newspapers alive and out of the hands of corporate chain owners, has purchased a used printing press that will serve the two dozen papers it owns in the Denver suburbs as well as papers owned by other publishers. The trust bought those papers, known collectively as Colorado Community Media, back in 2021.

Ellen Clegg and I interviewed National Trust CEO and co-founder Elizabeth Hansen Shapiro and CCM publisher Linda Shapley for our book, “What Works in Community News.” They have both appeared on our podcast as well. When I met Shapley in her newsroom in the fall of 2021, she was in the midst of trying to pivot her papers to digital — but she acknowledged that print remained an important part of the mix for readers and, especially, for advertisers.

“I totally get that there are advertisers out there who don’t necessarily see digital as a way forward,” Shapley said. “But they recognize the fact that this is going to be how people find you. So I don’t see them as playing against each other but as something that can work in tandem.”

Now those papers — as well as papers owned by other publishers who’ve been hurt by the disappearance of Colorado’s printing presses — can continue to be offered in print as well as online.

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The Colorado Sun donates its share of 24 suburban papers and urges they go nonprofit

Photo (cc) 2021 by Dan Kennedy

One of the more innovative efforts at saving newspapers from chain ownership is winding down, although the papers themselves remain protected. The Colorado Sun announced Wednesday that it would transfer its ownership shares of Colorado Community Media (CCM), a chain of 24 weekly and monthly papers in the Denver suburbs, to the nonprofit National Trust for Local News, which led the effort to buy the papers two years ago. The Sun had been given a stake in CCM in return for helping to run the papers.

The reason given for pulling out was that the Sun is in the process of converting from a for-profit public benefit corporation to a nonprofit, which I wrote about recently for Nieman Lab. A story in the Sun that appeared Wednesday urged nonprofit status for CCM as well: “Just as we believe that nonprofit is the right fit for The Sun, we believe it’s a good fit for these weeklies, too. That will be a decision for the​​ Trust and the board of directors of the Colorado News Conservancy, the parent company of CCM.” No money is changing hands. (The Conservancy is the entity established by the National Trust and the Sun to run the CCM papers).

Sun editor and co-founder Larry Ryckman said on X/Twitter: “We’ve been proud co-owners of Colorado Community Media for 2 years & wish it well in this new chapter. They’re doing great work & deserve your support.” Linda Shapley, publisher of CCM, was quoted in the Sun as saying: “I’m grateful for The Sun’s support at a time that was most critical for our future At Colorado Community Media, we’re excited to be part of the evolving Colorado news ecosystem, and we’re dedicated to serving our communities with timely, factual news and information.”

The Sun and CCM are the subject of a chapter in “What Works in Community News,” a book about the future of local journalism by Ellen Clegg and me that will be published in January. In September 2021 I spent nearly a week in Denver reporting on Colorado’s media ecosystem. Obviously that ecosystem is still in flux, but the period covered by our book ends in late 2022.

I believe what was taking place in Colorado back then is a story still worth telling: the founding of the Sun by 10 journalists who’d quit The Denver Post following deep cuts by its hedge-fund owner, Alden Global Capital; the Sun’s early hopes of raising money through blockchain technology; its unique governance structure; and its participation in the acquisition of CCM.

Ellen and I look at our book not as a standalone entity but, rather, as the hub of an ongoing story that also comprises updates to our website, a podcast (Shapley, National Trust executive director Elizabeth Hansen Shapiro, and former Denver Post editor Greg Moore have all been guests, and we hope to have Ryckman on once the book has been released), and an evolving social media presence (we’re currently on X/Twitter and Mastodon, but that may change).

So of course we want you to read our book. But we also hope you’ll turn to our other platforms to keep up on the latest.

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Linda Shapley talks about journalism, leadership and the power of diversity

Linda Shapley. Photo (cc) 2021 by Dan Kennedy.

On the new episode of the “What Works” podcast, Ellen Clegg and I speak with Linda Shapley, the publisher of Colorado Community Media, who describes herself as a longtime denizen of the state’s media ecosystem. Indeed, she was at Colorado Politics and worked for 21 years for The Denver Post. “I’ve been a lieutenant for a lot of really great generals,” she once said. “This is my opportunity to be a general.”

CCM is a group of about two dozen weekly and monthly newspapers in the Denver suburbs. They were saved from chain ownership two years ago when they were purchased through a deal led by the National Trust for Local News. Last August we spoke with Elizabeth Hansen Shapiro, the co-founder and CEO of the trust.

Shapley has talked about the power of representation as a visible Latina leader in an industry that has traditionally been dominated by white men. She says she hopes to use her position to encourage more diversity in journalism. Her mentor at the Post, Greg Moore, was a previous guest on What Works. You can listen to his episode here.

Shapley grew up in northeastern Colorado, in a rural county. Her father had a dairy farm. When I was in Colorado doing research for our book-in-progress, “What Works in Community News,” she told me that dairy farming is a lot like newspapers, because cows don’t know it’s Christmas.

Also this week, we talk with Madison Xagoraris, a graduate student in the Media Advocacy Program at Northeastern University’s School of Journalism. Xagoraris recently reported on KefiFM, a Boston-based Greek music outlet dedicated to serving the Greek and Greek American communities in the Boston area and throughout New England.

Ellen has a Quick Take about retired journalists who are busy launching startup newsrooms. Nieman Reports has a piece by Jon Marcus that looks at the Asheville Watchdog in North Carolina, and the New Bedford Light in Massachusetts. These journalists say they want to help bolster the profession they gave their lives to by setting up nonprofit community news sites and mentoring younger reporters and editors. They aren’t playing pickleball.

I’m in a Colorado state of mind: My Quick Take is on the fifth anniversary of the Denver Rebellion, when the staff of The Denver Post rose up against further newsroom cuts being imposed by its hedge-fund owner, Alden Global Capital. That rebellion sparked a revolution in Denver journalism.

You can listen to our conversation here and subscribe through your favorite podcast app.

Colorado media activists save Aurora’s weekly newspaper

Photo (cc) 2012 by Ken Lund

Media activists in Colorado have stepped up once again to save a newspaper from either closing or falling into the clutches of corporate chain ownership. Colorado media watcher Corey Hutchins, a journalism professor at Colorado College, reports that Sentinel Colorado, a free weekly with a daily website in Aurora, will be acquired by a temporary holding company.

It’s a complicated transaction that involves some of the same players that pulled off the purchase of Colorado Community Media’s weekly and monthly newspapers last year. CCM is now being managed by The Colorado Sun, a digital start-up in Denver that was given an ownership stake.

Aurora, Colorado’s third-largest city, has a population of about 380,000 and is approximately a dozen miles east of Denver.

As with the CCM transaction, the Colorado News Collaborative has helped with the Aurora deal, although the Sun is not involved this time around. Laura Frank, the collaborative’s executive director, was quoted by The Sentinel as saying:

Journalism leaders and community members in Colorado are finding ways to change the narrative and the trajectory of failing news outlets. Together, we are making journalism stronger, which makes democracy stronger. I’m thrilled COLab can help support that work.

Earlier this year, the nonprofit Corporation for New Jersey Local Media acquired 14 weekly newspapers serving about 50 cities and towns. The papers will be run as a public benefit corporation — a for-profit arrangement that is geared toward serving the public rather than rewarding its owners.

That’s also the business model for the Sun and CCM, and it’s been emerging at news organizations across the country as a third-way alternative to traditional for-profit ownership and nonprofit status.

No guest this week as Ellen and I kick it around on the ‘What Works’ podcast

No guest this week as co-hosts Ellen Clegg and I run down a number of news stories, including a major deal in New Jersey: the nonprofit Corporation for New Jersey Local Media (CNJLM) acquired 14 weekly newspapers serving some 50 municipalities. The papers were owned by the New Jersey Hills Media Group.

The deal is similar to one announced last year when Colorado Community Media sold its 24 weekly and monthly newspapers in a complex deal involving several nonprofit organizations. The difference is that management of the Colorado papers was turned over to The Colorado Sun, a digital start-up that was awarded an ownership share and could eventually become the majority owner. In New Jersey, the sellers, Liz and Steve Parker, will remain in charge.

Ellen unpacks the story behind a glaring omission in the award-winning documentary film, “Storm Lake,” and we both try to grapple with the blockchain and how Web3 might affect local newsrooms.

You can listen to our conversation here and subscribe through your favorite podcast app.

A nonprofit campaign saves 14 weekly newspapers in suburban New Jersey

Photo (cc) 2009 by Wally Gobetz. Hills Media is headquartered in Whippany, N.J., home to the Whippany Railway Museum.

Big news out of New Jersey: The nonprofit Corporation for New Jersey Local Media (CNJLM) has acquired 14 weekly newspapers serving some 50 municipalities. The papers are owned by the New Jersey Hills Media Group.

The deal is similar to one announced last year when Colorado Community Media sold its 24 weekly and monthly newspapers in a complex deal involving several nonprofit organizations. The difference is that management of the Colorado papers was turned over to The Colorado Sun, a digital start-up that was awarded an ownership share and could eventually become the majority owner. In New Jersey, the sellers, Liz and Steve Parker, will remain in charge.

As with the Colorado deal, terms of the Hills Media transaction were not disclosed. According to an announcement on the CNJLM website, the organization sought to raise $500,000 to purchase the Hills papers, though it’s not clear whether that covered all or just part of the cost.

According to an email announcement by Amanda Richardson, executive director of  CJNLM, the Hills Media papers will be reorganized as a “societal benefits corporation.” A New Jersey guide to benefit corporations explains it this way: “While traditional corporations have the single duty to maximize profit, benefit corporations have the increased purpose of considering society and the environment in addition to seeking a profit.”

Public benefit corporations are increasingly being set up as the ownership vehicle of choice for news outlets since they do not operate under some of the restrictions that traditional nonprofits must contend with, such as a prohibition against endorsing political candidates or specific pieces of legislation on their editorial pages. The Sun, The Philadelphia Inquirer and, closer to home, The Provincetown Independent are all public benefit corporations. All three also have nonprofit affiliations that allow them to raise tax-exempt money for in-depth reporting projects.

Confusingly, Hills Media’s own story claims that the company will become a nonprofit and incorrectly describes the Inquirer, Colorado Community Media and the Tampa Bay Times as nonprofits. The Inquirer and the Times are for-profit newspapers owned by nonprofit organizations.

The Corporation for New Jersey Local Media, part of the Community Foundation of New Jersey, is “dedicated to preserving and expanding the quality and accessibility of professional journalism that is vital to informed civic engagement and the practice of democracy.”

Hills Media serves Morris, Somerset, Essex and Hunterdon counties, which are directly east of Newark.

Correction: I must have read Hills Media’s story too quickly. In fact, it does state that the newspapers will be reorganized as a societal benefits corporation.

In the rural heartland, indie newspapers survive with a back-to-basics approach

It’s something I’ve seen over and over in tracking the state of local news for the past dozen years. Despite the very real challenges community journalism faces from technological and cultural change, news organizations that are not burdened by corporate chain ownership can continue to serve as vital, financially sustainable operations.

A new report by Tony Baranowski, director of local media for Times Citizen Communications in Iowa Falls, Iowa, makes the point. While he was a fellow at the West Virginia University Reed College of Media and the West Virginia Press Association’s NewStart Program, he studied several newspapers in the Upper Midwest in depth and surveyed more than 50 small newspaper publishers across the country.

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What he found was that, despite the narrative that local newspapers are dying, these independent papers were keeping their heads above water. Baranowski writes:

The strongest community news outlets are locally owned and managed by families or individuals with local ties that stretch back decades. That’s not an easy circumstance to replicate for a would-be publisher looking to buy or launch a news organization in a rural town, but it’s not a prerequisite, either. In fact, the common denominator is less longevity than fostering community spirit and pride within both staff-generated content and advertising in a traditional newspaper’s pages.

Among the people interviewed in Baranowski’s report is Jim Slonoff, the co-founder and publisher of The Hinsdalean, a free paper launched in suburban Chicago in 2006. I wrote about The Hinsdalean a couple of months ago to highlight its practice of signing up members of the community to write essays on a variety of topics. Although running unpaid columns is hardly new territory for local newspapers, The Hinsdalean actively recruits writers and limits them to a two-year term, ensuring a steady stream of fresh voices.

Like many of the people Baranowski spoke with, Slonoff said The Hinsdalean’s emphasis remains on print rather than digital. Slonoff said:

That’s the thing I don’t get about newspapers in general, because so many of them put so much money and resources into their websites with no return. We took the 180 degrees approach and said our money is coming from display advertising and real estate advertising. Why would we not focus on that? Facebook doesn’t bring us any money, Twitter and Instagram don’t. There’s nothing I get out of it that I know of, except we’re there. And we get a lot of likes and things and get a lot of this and comments and that feels good.

That might seem like a retrograde approach, but it’s one I’ve heard from a number of publishers who have to figure out how to break even.

The Provincetown Independent actually charges more for digital subscriptions than for a print-plus-digital combination, telling readers that “if we were to go online only, the savings in not having to print and mail the paper would not be anywhere near enough to make up for the loss of print advertising revenue.”

Last week I interviewed Jerry and Ann Healey, who sold their Colorado Community Media newspaper group earlier this year to The Colorado Sun, a start-up digital news organization, in a deal put together by the National Trust for Local News. They told me that, in many cases, when they offered a package combining digital and print, their advertisers weren’t interested — they wanted to be seen in the print newspaper. “In the community newspaper space, print is still a viable thing,” Jerry Healey said, “and the advertisers know that too.”

Then there’s Kris O’Leary of Central Wisconsin Newspapers, who told Baranowski that her readership includes Amish and Mennonite communities. Not much digital potential there.

Another of Baranowski’s findings is that newspapers with offices in the communities they cover tend to be healthier than those that have consolidated operations far from the people they serve.

If this sounds like Baranowski is recommending a back-to-the-future approach, it may be because he’s surveying local journalism in the rural heartland. A digital-first approach makes sense in affluent urban and suburban areas where readers can be persuaded to sign up for online-only subscriptions.

But in some parts of the country, technological advances have not changed the media all that much over the past several decades. It is in such places that journalism can do well by following a model that would have been familiar to our grandparents — independently owned newspapers, rooted in the community and supported by local businesses.

An ambitious plan to save local news by investing in community journalism

Golden, Colo., is among the cities and towns served by Colorado Community Media

Rick Edmonds of Poynter interviewed Elizabeth Hansen Shapiro and Lillian Ruiz about the National Trust for Local News, a project they founded to invest in community journalism projects around the country.

Their goal is to raise $300 million in order to finance deals like the purchase earlier this year of Colorado Community Media, a chain of two dozen weekly and monthly papers in the Denver suburbs. The papers are now being run by The Colorado Sun, a start-up website founded by a number of former Denver Post journalists.

My colleague Ellen Clegg and I interviewed Hansen Shapiro recently to ask her about the National Trust. We especially wanted to learn more about how she had arrived at the $300 million figure, which she had told Ben Smith of The New York Times might be enough to save every independent community paper in the United States that is at risk of shutting down or being sold off to a chain owner.

She told us that her estimate was based on research showing that there are about 4,000 independent weekly and daily papers — what she called “sub-large-chain titles,” to include those held by small regional chains — with perhaps as many as 2,400 owners. Here is how she described the National Trust’s strategy:

We’re approaching it two ways. One is inbound interest from publishers who are ready to retire and want to figure out what the next move is. Some of them have successors lined up, but they don’t have financing. Some of them don’t have successors lined up and their businesses are failing. And that’s the house-on-fire version. And some of them have great businesses. They don’t have a successor. They think they want to be out of the business in two years, and they’re like, could we start a conversation now so that so we can figure out something?

Any paper can be kept out of the hands of a hedge fund or a corporate chain is a victory.

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How a group of Denver area newspapers were saved from corporate ownership

Photo (cc) 2008 by Alyson Hurt

Just before Thanksgiving last year, Melissa Milios Davis was contacted by Jerry Healey, the co-owner — along with his wife, Ann Healey — of Colorado Community Media, which publishes 24 weekly and monthly newspapers in the Denver suburbs.

The Healeys were approaching retirement and looking to sell, and they were hoping to avoid turning over their life’s work to a corporate chain owner or a hedge fund. Milios Davis, vice president for strategic communications and informed communities at the Gates Family Foundation, serves on the executive committee of the Colorado Media Project, which has been seeking ways forward for local news since 2018.

That encounter, Milios Davis said at a recent webinar (you can watch it here; background information here), led to the sale last month of the Healeys’ newspapers to a new entity whose majority owner will be The Colorado Sun, a startup digital news operation that’s run as a public benefit corporation. That means the 24 papers, like the Sun, will not be organized to enrich its owners; any profits they earn will be rolled back into news coverage and other operations.

“These are still profit-making enterprises. It’s a business,” said Milios Davis, adding it would have been a “huge loss” if the papers had fallen into the wrong hands.

Also speaking at the webinar, organized by the Media Enterprise Design Lab at the University of Colorado Boulder, were Lillian Ruiz, co-founder and managing director of the National Trust for Local News, and Larry Ryckman, editor and co-founder of the Sun. The moderator was Nathan Schneider, an assistant professor of media studies at the university.

According a recent article about the deal by Corey Hutchins of Colorado College, the papers will be owned by the newly formed Colorado News Conservancy, which in turn is co-owned by the National Trust for Local News and the Sun. Hutchins reported that the 40 employees who worked for the Healeys, about half of them journalists, would keep their jobs.

The conservancy is currently seeking a publisher, Ruiz said at the webinar, and has invested a considerable amount of attention in the process. “We didn’t want to create just a replication of who have we had some handshakes with over a highball,” she said.

The Sun itself, which was founded after the meltdown of The Denver Post under the ownership of the hedge fund Alden Global Capital, is continuing to grow, said Ryckman — from a staff of about 10 when I wrote about the Sun for the Nieman Journalism Lab last fall to 15 today, with more on the way. He described the chance to save the community newspapers as something that was too important to pass up.

“At least on the Sun side, this came together pretty quickly,” he said. “This absolutely was a cause that was near and dear to our hearts…. We know who’s first in line when it comes to buying newspapers these days, and no one wants to see that happen.”

What helped jump-start the deal, said Milios Davis, was a study that the Colorado Media Project conducted several years ago in partnership with the Colorado Press Association. Among the findings: the number of journalists covering local news had been cut in half over the previous decade, in line with what was taking place nationally; and that of 151 newspapers they could identify, 93 were still locally owned.

“We saw on the horizon that a lot of these were … older owners” who lacked a succession plan, she said, explaining that there were 44 in that category. “We were looking at this as a tidal wave that would slowly crash on the shores,” which led to conversations about how to help them transition to new local ownership.

And then the Healeys came along.

One of the most important takeaways from what is happening in Colorado is that local news can still be run on a sustainable basis, and that corporate control and the gutting of newsrooms are not inevitable. As I wrote a few weeks ago, I would love to see the Colorado story replicated across the country. Ruiz said the exact model being used in Colorado might be unique to that area. But she added that her organization is looking at what might work in other parts of the country — especially in communities of color.

So how do we wrest control of local news away from chain owners? Report for America co-founder Steven Waldman, who’s been everywhere lately (it also turns out that he’s a co-founder of Ruiz’s organization), wrote an op-ed piece for the Los Angeles Times calling for tax breaks for newspaper owners who sell to nonprofits or public benefit corporations.

That would provide an incentive for the likes of Alden and Gannett to take their money and go home. I would add another incentive: tax penalties to be imposed on for-profit owners of newspaper chains of a certain size that are not owned locally.

Communities deserve a chance to take charge of their news and information. Three years after Alden all but destroyed The Denver Post, we’re starting to see a renaissance fueled by a new media venture and an old one that’s been given new life.

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