New York Times Co. – Page 6

After tumult, status quo for the Times Co.

Downtown Worcester — Union Station, Worcester

With 2009 drawing to a close, it’s now possible to say something that would have been inconceivable six months ago: the New York Times Co. is still the owner of the Boston Globe and the Worcester Telegram & Gazette, and is likely to remain so for the foreseeable future.

Was it all a dream? Starting last spring, and stretching well into the summer, there was nothing but tumult. First the Times Co. demanded — and ultimately got — $20 million in concessions from the Globe’s unions. The drama was high, as management threatened to shut down the paper if the unions refused to meet its demands, while the Boston Newspaper Guild — by far the largest union at the Globe — rejected one set of concessions before finally bowing to the inevitable.

Then the Times Co. put both papers on the market. And, for a while, it looked like a significant restoration was in the works. A group headed by former Globe executive Steve Taylor emerged as a leading would-be possible buyer for the Globe, and former T&G editor Harry Whitin looked like he might be moving into the publisher’s office at his old paper.

But Times Co. executives decided to hold on to the Globe. Then, yesterday, they announced that the T&G was no longer for sale, either.

No doubt the papers were pulled off the market for a variety of reasons, both good and bad. Costs are down, circulation revenue is up thanks to a hefty price increase and, overall, the financial picture at both papers appears to be brighter than it was a year ago. On the other hand, is there any doubt that both papers would have been sold if Arthur Sulzberger and company had been able to get what they considered to be a fair price?

With things more or less the same as they ever were, members of the community have a right to feel as though they’ve been jerked around. It would be a good idea if the Times Co. devoted 2010 to rebuilding the Globe’s and the T&G’s ties to the community.

Naming Chris Mayer to be the Globe’s next publisher (he’ll have responsibilities for the Telegram & Gazette as well) was a smart first step. He’s energetic, he’s rooted in Greater Boston and he seems far more likely to be a presence on the local scene than his recent predecessors have been.

But both papers have a long way to go if they are to recover from the wounds they’ve suffered — wounds that are largely characteristic of what the entire industry is going through, but some of which were self-inflicted. The best thing the Times Co. can do next year in these parts is to make itself invisible.

Photo (cc) by Bree Bailey and republished here under a Creative Commons license. Some rights reserved.

Sean Murphy responds to Totten

Boston Globe reporter Sean Murphy, who was the prosecutor in the Boston Newspaper Guild’s ouster of president — now former president — Dan Totten, spoke with me a little while ago. Murphy is highly critical of remarks Totten made in an e-mail reported yesterday by the Boston Herald’s Jessica Heslam. Says Murphy:

All I want to say is that this was a prosecution, not a persecution. Mr. Totten was not the victim of a political vendetta. He was a victim of his own bad conduct. I was asked to be the prosecutor and agreed to do so. It was done by the book. There was no personal animosity. Any suggestion otherwise is false. Any suggestion that I was biased is false. I was well known to be a “no” vote on both contract proposals, which was in line with the position of Mr. Totten. I did not participate in any recall efforts. I was known to eschew recall.

Murphy adds that, though he did attend a meeting to discuss Totten’s possible removal, Totten “knows full well I expressed great skepticism.”

I asked Murphy whether there has been any talk about whether the accusations made against Totten by the union could result in the involvement of law enforcement. Murphy’s response: “I have not broached that subject nor has anybody in my presence.”

Earlier coverage.

More on Dan Totten’s ouster

It turns out the Boston Newspaper Guild did indeed use the term “guilty” in an e-mail to its members about the removal of president Dan Totten; see the update at the end of my earlier item.

And Adam Reilly of the Phoenix speaks with Boston Globe staff reporter Maria Cramer, who says Totten was ousted strictly because of his misdeeds — and not out of any sense that he’d bungled the Guild’s dealings with the New York Times Co. Reilly writes:

“I find that suggestion” — i.e., that Totten’s trial represented a form of payback — “to be insulting in the least,” Cramer says. “We spent nearly four hours looking at the evidence, which was lengthy and very detailed…. It’s a duty that we took extremely seriously. We understood that the result would probably meet with this kind of criticism. But at the same time, I definitely feel we made the right decision — I have no doubt about that — and that it was free of politics.”

And there the matter rests. For now.

Still more: Boston Herald reporter Jessica Heslam has an e-mail exchange between Totten and his accusers. Looks to me like this is the key quote from Totten:

BNG / TNG / CWA has designated a member to act as “prosecutor” in this matter who attended a newsroom meeting this past September, 2009 with the purpose of assisting in the distribution and signing of a petition for my removal from office as BNG president. His actions were based on newsroom members opinion of the ratified contract of July, 2009, and their disagreement with its provisions. The jury selected for the trial contains several members as panelists who also attended the September, 2009 newsroom meeting and were signatories to a removal petition. None of these individuals is impartial; in fact, they are seeking to have me removed from office, and using this process as a vehicle to that end. This is in direct contradiction to the letter and spirit of the by-laws, and I will not be party to it.

Why was Dan Totten ousted?

Both the Boston Globe and the Boston Herald today report on the ouster of Boston Newspaper Guild president Dan Totten, whose leadership during the union’s months-long standoff with the Globe’s owner, the New York Times Co., was widely criticized.

Each story raises more questions than it answers, starting with the use of the word “guilty” to describe the internal ruling against Totten on Wednesday. That’s a pretty loaded term, but neither account gives any indication whether it’s one that the union specifically uses, or if it’s just a less-than-legally-precise description of what happened.

As for the charges against Totten, let’s take a look at the specifics:

He was found to have signed the name of another union official to his own paycheck.
He was found to have improperly used his union credit card to buy $254 worth of personal items.
He was found not to have produced receipts in a timely manner.

Are any of these accusations the sort of thing that law enforcement would find interesting? Perhaps the second item, although — not to downplay the seriousness of the allegation — it probably wouldn’t be worth the time given how little money was at stake. But it would seem to me that if Totten is not under any sort of criminal investigation, then we should tread carefully before labeling him a union crook.

As for the two other items, you could argue whether Totten should be punished for signing someone else’s name so that he could cash his own paycheck, but it was, after all, his own paycheck. Not producing receipts in a timely manner? You’ve got to be kidding.

I want to make it clear that I’m not sitting in judgment of anyone. Perhaps Totten really was, uh, guilty of serious malfeasance. My only point is that we don’t know.

I’d like to see someone dig into this and find out whether we are truly talking about malfeasance, or if instead Totten was sacrificed because his members are unhappy with the way he dealt with the Times Co.

The Guild-Times Co. standoff was the biggest local media story of the year. Totten’s fall is an important element of that.

Update: One question has been answered. According to a copy of an e-mail from the Guild that has been forwarded to Media Nation, it is indeed the Guild itself that used the term “guilty.” Here’s the full text:

Dear Boston Newspaper Guild Member,

A jury of members of the Boston Newspaper Guild today found President Daniel Totten guilty of charges that he improperly signed a paycheck and ignored directives to turn over expense receipts in a timely manner. The jury voted to expel Mr. Totten from the union, and also ordered him to pay a fine of $254. The jury heard several hours of testimony from Union officers and office staff. Mr. Totten declined to participate in the trial process. The five members of the jury were chosen by random selection. Mr. Totten has the right to appeal the verdict.

Sincerely,

Scott Steeves
Acting President, The Boston Newspaper Guild

Welcome, Romenesko readers. There’s a lot more where this came from here.

“What’s the end-game there?”

Former Boston Globe columnist John Ellis, a venture capitalist who disclosed earlier this year that he’d done some work for a potential buyer, warns that things are still bad at 135 Morrissey Blvd. and likely to get worse.

“How long can the NYT afford to carry the net operating losses?” he asks. “When does it make more sense to just shut it down?”

Ellis also argues that the Globe must do everything it can to hang on to what’s left of its big-name sports talent, namely columnists Dan Shaughnessy and Bob Ryan.

I revere Ryan, who, despite his veteran status, happens to be one of the hardest-working folks at the Globe. Shaughnessy’s a good read even when he’s sending me over the edge. But the idea that management might have to shell out more money to keep its stars from jumping to the Internet is galling at a time when everyone else is being asked to sacrifice.

Which is not to say Ellis is wrong. He’s probably right.

Surveying the Globe-al manscape

A grateful Media Nation extends its thanks this morning to Tom Fielder, dean of Boston University’s College of Communication, for giving me an excuse to run this photo of Platinum Equity chairman Tom Gores one more time.

Fiedler cites the photo in explaining why Gores would have been all wrong for Boston if he had succeeded in purchasing the Boston Globe. Jessica Heslam and Christine McConville of the Boston Herald write:

Fiedler said if there was one story that signaled the sale wasn’t moving ahead, it was the Oct. 7 Globe piece on Platinum founder Tom Gores that included a photo of him “with his chest open, chest hair just puffing out.”

“This said to me, number one, the Globe editor who laid out this page doesn’t like this guy, and number two, this guy doesn’t understand Boston,” he said.

“Chest hair just puffing out”? Really? As I noted on Oct. 7, the day the Globe ran the photo, Gores was “[w]earing a flamboyantly pinstriped black suit jacket over a black shirt strategically unbuttoned to show off his smooth chest.” And I’ve had some serious and substantive discussions with fellow media analysts as to whether Gores may have partaken in some manscaping to achieve his smooth look.

It’s likely that Fiedler was too horrified to look closely.

In other Globe-related news, we learn in the Herald story that ballooning pension-liability costs were a major reason that the New York Times Co. ultimately failed in its attempt to sell the Globe either to Platinum or to a group led by former Globe executive Stephen Taylor. That was a story the Herald broke a week ago, so good on them.

In the Globe, Beth Healy and Robert Weisman report that Globe publisher Steve Ainsley would not rule out further cuts when he and Times Co. president Janet Robinson met with employees yesterday.

Over at Beat the Press, Ralph Ranalli quotes Globe staff member Scott Allen’s downbeat take on the meeting: “I think people probably came away from that meeting feeling like well, we know who our owner is, but we don’t see any improvement in our working conditions for some time to come.”

Times Co., Globe renew their vows

I ducked into a Starbucks in downtown New Haven so I could write this. So, for now, just a few preliminary thoughts about the New York Times Co.’s announcement that it has decided against selling the Boston Globe.

Like most observers, I thought the happy talk last month from Times Co. chairman Arthur Sulzberger Jr. and president Janet Robinson was aimed mainly at driving up the price. So even though I had been hearing since last week that things were not going well with the two interested buyers (Platinum Equity and a group led by former Globe executive Stephen Taylor), it still struck me as plausible that the Times Co. would sell — at any price. In hindsight, it’s now clear there was a price below which Sulzberger and company were not willing to go.

I do think the Times Co. damaged its credibility in Boston this year by being so uncommunicative about its battle with the Globe’s unions (especially the Boston Newspaper Guild) and about the would-be sale. The company’s got some work to do on the community-relations front.

But there were certainly worse possible outcomes than this. Platinum Equity, by all accounts, would have relentlessly focused on the bottom line. I was rooting for a Taylor comeback, but if that group was as under-capitalized as I was hearing, then you can be sure that more cuts would have been the first order of business.

Besides, people who buy newspapers tend to want to bring in their own editor. I think Marty Baron has done a terrific job under incredibly difficult circumstances this year, and if this means he stays, then that’s a good thing.

Overall, today’s announcement is not bad news. Which is not quite the same as good news, but close enough.

More from the Times, the Globe, the Herald and Beat the Press.

And then there was one?

Venture capitalist John Ellis, a former Boston Globe columnist who’s been nosing around the Globe situation for months, posted an intriguing tidbit [update: but apparently wrong; see below] on Twitter a little while ago:

there’s a rumor about that Platinum Equity declined to make a “final” bid on the Boston Globe. I wonder if its true.

If Platinum is out of the picture, that would presumably leave the group put together by former Globe executive Stephen Taylor as the only remaining interested buyer. But do Taylor and company have enough capital to get the New York Times Co. to say “yes”?

I also wonder if this might pave the way for a comeback by Boston businessman Jack Connors, whose proposal to take the Globe non-profit was left by the side of the road a few months ago.

Wednesday morning update: Well, so much for that rumor. The Globe’s Beth Healey reports that both groups submitted bids for the Globe, and that a third group submitted a bid for the Worcester Telegram & Gazette.

Through the glass darkly

Friday was deadline day for bidders seeking to make an offer to buy the Boston Globe and the Worcester Telegram & Gazette from the New York Times Co. And it appears there’s not much to report.

New York Times media reporter Richard Pérez-Peña writes that it’s not even clear whether the two contenders for the Globe, a group led by former Globe executive Stephen Taylor and California-based Platinum Equity, had submitted bids.

Each had reportedly offered to pay $35 million as well as assume pension liabilities of $59 million. Jessica Heslam had reported in the Boston Herald that the estimate of those liabilities had recently been revised upward to $115 million. Pérez-Peña quotes sources who confirm the upward revision, but suggest the error was not quite as great as that.

It’s hard to know what to believe. I can tell you that I’ve heard the actual pension liabilities may be even higher than what Heslam’s sources told her. The truth may be that such estimates are hard to nail down, and that opinions differ.

Meanwhile, Telegram & Gazette reporter Shaun Sutner breaks the news that former T&G editor Harry Whitin is involved in a group that is seeking to buy the paper separately — the first indication that the Globe and the T&G might be split up. (The Globe runs the story as well.)

The money guy is identified as Ralph Crowley, the president and CEO of Polar Beverages.

The Times Co. bought the Globe in 1993 for $1.1 billion and the T&G in 2000 for $296 million.

Several months ago, a T&G source explained to me all the multifarious ways that Globe and T&G operations had been combined over the years. I was left with the distinct impression that it would be an expensive proposition to try to separate the two at this point.

But if the two papers end up with different owners, I suppose it wouldn’t be that difficult for them to reach an agreement to continue joint operations that make sense.

Deadline day for the Boston Globe sale

Tomorrow is the day that the New York Times Co. has set to accept final offers to sell the Boston Globe. And Media Nation is picking up some well-informed buzz that things are not going well with either of the two prospective buyers — a group led by former Globe executive Stephen Taylor or Platinum Equity, owner of the San Diego Union-Tribune.

Like any reader of the Globe, I have a rooting interest in this. I’d like to see the Taylors make a comeback. But even if they can pull this off, you have to wonder if they’ll be so under-capitalized that the cutting will resume almost immediately.