Conflicts of interest and the new media moguls

5790408612_8952178d3f_mWashington Post executive editor Martin Baron has rejected a demand by a group of left-leaning activists that the Post more fully disclose Amazon.com’s business dealings with the CIA.

Nearly 33,000 people have signed an online petition put together by RootsAction, headed by longtime media critic Norman Solomon, to call attention to Amazon’s $600 million contract to provide cloud services to the CIA. The Post’s owner is Jeff Bezos, the founder and chief executive of Amazon. Here is the text of the petition:

A basic principle of journalism is to acknowledge when the owner of a media outlet has a major financial relationship with the subject of coverage. We strongly urge the Washington Post to be fully candid with its readers about the fact that the newspaper’s new owner, Jeff Bezos, is the founder and CEO of Amazon which recently landed a $600 million contract with the CIA. The Washington Post’s coverage of the CIA should include full disclosure that the sole owner of the Post is also the main owner of Amazon — and Amazon is now gaining huge profits directly from the CIA.

Baron, in his response, argues that the Post “has among the strictest ethics policies in the field of journalism, and we vigorously enforce it. We have routinely disclosed corporate conflicts when they were directly relevant to our coverage. We reported on Amazon’s pursuit of CIA contracts in our coverage of plans by Jeff Bezos to purchase The Washington Post.” Baron goes on to point out that the Post has been a leader in reporting on the National Security Agency and on the CIA’s involvement in the Colombian government’s fight against an insurgency, writing:

You can be sure neither the NSA nor the CIA has been pleased with publication of their secrets.

Neither Amazon nor Jeff Bezos was involved, nor ever will be involved, in our coverage of the intelligence community.

(Note: I first learned about the petition from Greg Mitchell’s blog, Pressing Issues.)

The exchange between RootsAction and Baron highlights the conflicts of interest that can arise when wealthy individuals such as Bezos buy in to the newspaper business. It’s a situation that affects The Boston Globe as well, as its editors juggle the lower-stakes conflict between John Henry’s ownership of the Globe and his majority interest in the Red Sox.

Baron himself is not unfamiliar with the Red Sox conflict, as the New York Times Co., from whom Henry bought the Globe, owned a minority stake in the team and in New England Sports Network, which carries Red Sox games, during most of Baron’s years as Globe editor.

The way the Globe handled it during those years was just about right: don’t disclose in sports stories, but disclose whenever the paper covers the Red Sox as a business. Current Globe editor Brian McGrory has insisted that Henry will not interfere. Henry, in a speech before the Greater Boston Chamber of Commerce last week, said he would not breech the wall of separation between the Globe’s news operations and its business interests.

Of course, it’s not as though the era in which news organizations were typically owned by publicly traded corporations was free of such conflicts. (The Times Co., after all, is a publicly traded corporation, though the Sulzberger family calls the shots.) Media critic Danny Schechter noted in his book “Embedded: Weapons of Mass Deception” that MSNBC — then in its pre-liberal phase — was a cheerleader for the war in Iraq even as its then-corporate parent, General Electric Co., was a leading military contractor.

But the rise of a new breed of media moguls such as Bezos, Henry and Aaron Kushner of the Orange County Register, who buy their way into the news business with their own personal wealth, seems likely to bring the issue of conflicts to the fore. The same is true of a media entrepreneur of a different sort — eBay founder Pierre Omidyar, who is launching an online venture called First Look Media with (among others) the journalists Glenn Greenwald and Laura Poitras.

It is the very fact that these individuals have been successful that makes them such intriguing players in the quest to reinvent the news business. But disclosure and non-interference need to be at the forefront of their ethical codes.

Swartz case leads Media Nation’s top 10 of 2013

Aaron Swartz speaking in 2012
Aaron Swartz speaking in 2012

Last January, not long after the young Internet genius Aaron Swartz committed suicide, civil-liberties lawyer Harvey Silverglate wrote powerfully about the abusive prosecutorial tactics that may have led to his death.

Swartz faced a lengthy federal prison sentence for downloading academic articles at MIT without authorization. Even though the publisher, JSTOR, declined to press charges, U.S. Attorney Carmen Ortiz brought a case agains Swartz under the Computer Fraud and Abuse Act. As Silverglate put it, the law is “a notoriously broad statute enacted by Congress seemingly to criminalize any use of a computer to do something that could be deemed bad.”

Silverglate’s article was republished in Media Nation with the permission of Massachusetts Lawyers Weekly, where it originally appeared. And it was far and away the most viewed article in Media Nation in 2013.

Today we present Media Nation’s top 10 posts for 2013, based on statistics compiled by WordPress.com. They represent a range of topics — from the vicissitudes of talk radio to a media conflict of interest, from Rolling Stone’s controversial cover image of accused Boston Marathon bomber Dzhokhar Tsarnaev to the sad, sudden death of The Boston Phoenix.

The top 10 is by no means representative of the year in media. Certainly the biggest story about journalism in 2013 involved the National Security Agency secrets revealed by Edward Snowden to The Guardian and The Washington Post — a story that did not make the cut at Media Nation.

Here, then, is our unrepresentative sample for the past 12 months.

1. Harvey Silverglate on the Aaron Swartz case (Jan. 24). Few people were more qualified to weigh in on U.S. Attorney Ortiz’s abusive tactics than Silverglate, my friend and occasional collaborator, who several years ago wrote “Three Felonies a Day,” a book on how the federal justice system has spun out of control. But Silverglate’s take wasn’t the only article about Swartz to generate interest in Media Nation. The aftermath of Swartz’s suicide also came in at No. 11 (“The Globe turns up the heat on Carmen Ortiz,” Jan. 11) and No. 13 (“Aaron Swartz, Carmen Ortiz and the meaning of justice,” Jan. 14). In a bit of poetic justice, a project Swartz was working on at the time of his death — software that allows whistleblowers to submit documents without being identified — was unveiled by The New Yorker just several months after his suicide.

2. The New Republic’s new owner crosses a line (Jan. 28). A little more than a year ago, the venerable New Republic was saved by Chris Hughes, a co-founder of Facebook who is using some of his fortune to restore the magazine to relevance and fiscal health. But he crossed an ethical line last January when he took part in an interview with President Obama, whose campaign he had worked on, and tossed a series of softball questions his way. At the time I wrote that Hughes was guilty of “no more than a minor misstep.” So how did it rise to No. 2? It turns out that a number of right-leaning websites picked up on it, bringing a considerable amount of traffic to Media Nation that I normally don’t receive.

3. Dailies go wild over sports controversies (Aug. 30). Four months after publishing this item, I find it hard to make heads or tails of what was going on. But essentially Globe-turned-Herald sportswriter Ron Borges contributed to a Rolling Stone article on the Aaron Hernandez murder case, which generated some tough criticism from both the Globe and the well-known blog Boston Sports Media Watch. That was followed almost immediately by a Globe article on the ratings collapse of sports radio station WEEI (AM 850), which brought yet more tough talk from, among others, ’EEI morning co-host Gerry Callahan, who also happens to write a column for the Herald. Yes, Boston is a small town.

4. Rolling Stone’s controversial cover (July 17). I thought it was brilliant. I still do. The accusion that Rolling Stone was trying to turn Dzhokhar Tsarnaev into some sort of pop-culture hero is absurd and offensive — and not borne out by the well-reported article that the cover was designed to illustrate.

5. Glenn Ordway walks the ratings plank (Feb. 14). Ordway built sports talker WEEI into a ratings monster only to see its numbers crater in the face of competition from the Sports Hub (WBZ-FM, 98.5). Ordway was by no means the problem with WEEI. But station management decided it could no longer afford his $500,000 contract, and so that was it for the Big O.

6. A big moment for The Boston Globe (Dec. 17). It was actually a big year for the Globe, from its riveting coverage of the marathon bombing and the standoff that led to the arrest of Dzhokhar Tsarnaev to the paper’s acquisition by Red Sox principal owner John Henry. But two days in mid-December were emblematic of the paper’s continuing excellence and relevance — a long, detailed exposé of the Tsarnaev family that revealed Dzhokhar, rather than his older brother, Tamerlan, may have been the driving force behind the bombing; an investigation into a case of alleged “medical child abuse” that pitted a Connecticut family against Children’s Hospital; and a nationally celebrated series of tweets by staff reporter Billy Baker about a Boston teenager from a poor family who had been admitted to Yale.

7. The Boston Phoenix reaches the end of the road (March 14). A stalwart of the alternative-weekly scene and my professional home from 1991 to 2005, the Phoenix was a voice of incalculable importance. But with even the legendary Village Voice struggling to survive, the alt-weekly moment may have passed. At the time of its death, the Phoenix had more than 100,000 readers — but little revenue, as advertising had dried up and both the print edition and the website were free. I scribbled a few preliminary thoughts in this post, and later wrote something more coherent for PBS MediaShift.

8. The return of Jim Braude and Margery Eagan (Feb. 6). Eagan and Braude’s morning show was the one bright spot on WTKK Radio, an otherwise run-of-the-mill right-wing talk station that had been taken off the air a month earlier. So it was good news indeed when the pair was hired to host “Boston Public Radio” from noon to 2 p.m. on public station WGBH (89.7 FM). (Note: (I am a paid contributor to WGBH-TV’s “Beat the Press,” where Eagan is a frequent panelist.)

9. Joe Scarborough grapples with history — and loses (Feb. 17). Asking cable blowhard Scarborough to write a review for The New York Times Book Review about the relationship between Dwight Eisenhower and Richard Nixon could have been a smart, counterintuitive move. But it only works if the writer in question is, you know, smart.

10. The bell tolls for WTKK Radio (Jan. 3). As I already mentioned, Jim Braude and Margery Eagan were able to walk away from the rubble of WTKK, which was shut down by corporate owner Greater Media and turned into an urban music station. Just a few years earlier the station had been a ratings success with trash-talking hosts like Jay Severin and Michael Graham. But tastes change — sometimes for the better.

Photo (cc) by Maria Jesus V and published under a Creative Commons license. Some rights reserved.

We are alive

Click for the GIF.
Click on image for an animated GIF

It was 5-0. I was giving serious consideration to throwing in the towel. I started dozing on the couch. If the cat hadn’t been sitting next to me, I’m sure I would have gone horizontal and achieved complete unconsciousness — and thus I would have missed one of the great comebacks in Red Sox history.

There were many heroes (none bigger than David Ortiz, of course) and goats in this one. But how amazing is it that the Sox might not have won if Jose Iglesias hadn’t made that error in the ninth? Yes, Prince Fielder should have snagged it, but Iglesias shouldn’t have thrown it in the first place.

Before the series I had picked Detroit in six, mainly on the strength of their overwhelming starting pitching. By the seventh inning I was starting to wonder about a sweep. Now? Go Sox!

Some pressing questions for John Henry

Boston Globe InstagramThis commentary was published earlier at The Huffington Post and at WGBH News .

The speculation had been building since Wednesday, when The Boston Globe reported that Red Sox principal owner John Henry had restructured his bid to buy the paper.

It reached a peak on Friday afternoon, when legendary baseball reporter Peter Gammons — himself a Globe alumnus — posted a one-line item on his new website, Gammons Daily: “A source says the New York Times Corporation has chosen John Henry as the new owner of the Boston Globe.”

Confirmation came early today, as the Globe and The New York Times each reported that Henry had purchased the Globe and its associated properties — most prominently Boston.com and the Telegram & Gazette of Worcester — for $70 million. The Globe’s story led page one, whereas the Times’ version apparently didn’t even make it into today’s print edition.

The sale price represents a huge comedown from 1993, when the Times Co. purchased the Globe for $1.1 billion, half the company’s stock-market valuation at that time. As if by way of justification, the Times’ report on the Henry deal runs through several other pennies-on-the-dollar sales of major metropolitan newspapers in recent years, including those of Philadelphia’s daily papers, the Inquirer and the Daily News, as well as The Tampa Tribune.

Henry’s winning bid also thwarts an attempted comeback by members of the Taylor family, who owned the Globe almost from its founding in 1872 until the 1993 sale.

Among the would-be buyers was a group that included Stephen Taylor, a former executive vice president of the Globe, and Benjamin Taylor, a former publisher. A lot of people in Boston were rooting for the Taylors. But the money they got for selling the paper 20 years ago was split among dozens of family members, and their bid to repurchase the Globe was widely viewed as undercapitalized. You have to assume that if they had the money, the Times Co. would have sold it to them already — or in 2009, when the Globe was first put up for sale.

The ascension of a wealthy local owner may represent the best possible outcome for the Globe. Nevertheless there are questions Henry will have to answer soon — starting with the fate of publisher Christopher Mayer and editor Brian McGrory, well-liked Globe veterans who generally get high marks for the way they’re running the paper. Will they stay? Or will Henry bring in his own people?

Here are a few other questions for Henry.

1. Will he seek to improve the Globe’s bottom line by investing — or by cutting? Unlike newspaper owners who’ve financed their acquisition by taking on debt that they then have to pay off by slashing the newsroom, Henry has the luxury of being able to do anything he wants.

Although paid print circulation and advertising revenue have been dropping, the Globe is believed to be marginally profitable — a considerable improvement over 2009, when the Times Co. actually threatened to close the paper over mounting losses. The Globe today also has about 360 full-time editorial employees. That’s quite a drop from the 550 or so the Globe employed a dozen years ago, as my WGBH colleague Adam Reilly recently reported in Boston magazine, but it’s still enough to make the paper by far the largest news organization in Eastern Massachusetts. The Globe may no longer be the 800-pound gorilla, but a 600-pound gorilla can still accomplish a lot.

My guess (and hope) is that Henry will pursue a growth strategy, and that he has a healthy enough ego to believe he can succeed where others have failed. Perhaps he’ll emulate Aaron Kushner, the young greeting-card executive (and onetime Globe bidder) who’s attracted attention with his attempts to turn around the Orange County Register by hiring journalists and expanding coverage.

One aspect of Kushner’s stewardship I hope Henry doesn’t emulate is Kushner’s emphasis on print. The Globe has taken an innovative approach to the Internet with its two-website strategy (Boston.com, which is free, exists alongside the paid BostonGlobe.com site), a streaming music station, RadioBDC, and online coverage of Boston’s suburbs, neighborhoods and colleges through its Your Town and Your Campus sites. (Disclosure: Our students at Northeastern University contribute to Your Town and Your Campus as well as to other parts of the Globe.)

Henry could be a hero to the newspaper business if he can figure out new digital strategies. A print-first orientation would be a major step backwards.

2. What happens to the Globe’s Boston headquarters? The Globe occupies prime Dorchester real estate near the University of Massachusetts and the JFK Library, leading to considerable speculation that the next owner might want to sell the property and move the paper. Indeed, the Globe’s land and physical assets might be worth the $70 million purchase price all by themselves.

The challenge is that the Globe’s massive printing presses would have to be moved. And the paper has been able to build a nice business for itself by printing a number of other papers, including the city’s second daily, the Boston Herald, as well as some suburban papers.

Still, it would make all kinds of sense to move the presses to a low-cost exurban location and transfer the newsroom and business operations to a smaller space closer to the downtown.

3. How will the Globe cover the Red Sox? The jokes have already started (yes, I’ve done my best to help) about Globe sports columnist Dan Shaughnessy, a notoriously negative presence who wrote former Red Sox manager Terry Francona’s trash-and-burn memoir Francona: The Red Sox Years, which is highly critical of the Red Sox’ ownership.

In fact, the Globe and the Red Sox have been down this road before. Until a few years ago, the Times Co. was a part-owner of New England Sports Network (NESN), which broadcasts Red Sox and Bruins games and whose majority owner is the Red Sox. Henry’s sole ownership of the Globe, though, would represent full immersion in a way that the NESN deal did not.

The real issue is not how the Globe covers the Red Sox as a baseball team but rather how it manages the tricky task of reporting on a major business and civic organization that’s run by the paper’s new owner.

Earlier this year the Globe published a tough report on a sweetheart licensing deal the Red Sox have with the city to use the streets around Fenway Park before games — making “tens of millions of dollars” while “paying a tiny fraction in licensing fees.” (Further disclosure: Some of the Globe’s reporting was done in partnership with Northeastern’s Initiative for Investigative Reporting.)

I’d expect to see tough scrutiny of how the Globe covers the Red Sox in the months and years ahead. No doubt the Herald and other rival news organizations will pay close attention to the relationship. The problem isn’t so much that the Globe is likely to go into the tank for the Red Sox (it isn’t), but that it’s really in a no-win situation.

The answers to those and other questions will emerge in the weeks and months ahead. What matters today is that our largest and most important news organization has been purchased by a local businessman with deep pockets and a track record as a good corporate citizen. That’s good news not just for the Globe, but for all of us.

Photo (cc) by Dan Kennedy.

How’s that trade working out? (XX)

The story isn’t online, but here’s a teaser from the new issue of Sports Illustrated:

STILL KICKIN’ IT

He was once the unlikeliest of idiots in a band of heroes that made history. Nearly a decade later, Bronson Arroyo is still standing, still chilling to his own beat, still one of the game’s most dependable innings-eaters.

I believe Wily Mo Peña played in Japan last year. Not sure what he’s doing this year.

Why John Henry’s bid for the Globe makes sense

John Henry
John Henry

Maybe it’s because this has dragged on for such a long time, but Beth Healy’s report that Red Sox principal owner John Henry has decided to make a solo bid to buy the paper and its associated properties carries with it the ring of inevitability.

He’s got the money, which has always been the big question about local favorites Steve and Ben Taylor. If they had the cash, the New York Times Co. would have sold it to them in 2009.

Henry doesn’t have any obvious flaws, like San Diego businessman “Papa Doug” Manchester. He’s even restructured his bid — possibly at the request of the Times Co.?

I wouldn’t be surprised to see Henry introduced as the next owner of the Globe sooner rather than later — possibly to be followed by an announcement that Dan Shaughnessy has accepted a job at ESPN.

Photo via Wikipedia.

A not particularly happy ending for George Scott

For any Red Sox fan who came of age in the late 1960s, the death of George Scott conjured up a lot of memories.

I got hooked in 1968, the year after their Impossible Dream season, and I remember being utterly perplexed at the horrendous slump Scott had fallen into. He finished the season batting .171 with just three home runs. Fortunately for him and the Red Sox, better times were ahead.

There are a lot of worthwhile remembrances for you to peruse, but perhaps the most disheartening is Gordon Edes’, who reports for ESPN.com that Scott ended his days unhappy over his treatment at the hands of the sport he excelled at. Edes writes:

George Scott, according to his biographer [Ron Anderson, the author of “Long Taters”], never got over the bitterness he felt over the fact that Major League Baseball, and the Red Sox in particular, never offered him a job when his playing days were over — as an instructor, a coach or a manager.

Scott was a good player and a fan favorite. Unfortunately, he enjoyed his best years after the Red Sox traded him to Milwaukee following the 1971 season, bringing him back just as career was beginning to fade. The statistics say he hit 33 homers for the Sox in 1977. My memory says he hit 31 of those homers before the All-Star break. Two years later, he’d be out of baseball.

My last George Scott memory was from the late 1990s, when he was managing the Massachusetts Mad Dogs in Lynn. I took my son to Fraser Field one night. Afterwards, we hung around for a while, hoping for an autograph, until an announcement was made that Scott wouldn’t be available. I didn’t blame him. It couldn’t have been an easy life.

Also worth reading:

Thinking about the big Red Sox trade

Josh Beckett and Kevin Youkilis meet President Obama at the 2009 All-Star Game.

I used to write about the Red Sox quite a bit here, but I’ve found that Facebook and Twitter are generally more than sufficient to express a few opinions and get a discussion going. Still, with the Sox having pulled off perhaps the biggest trade in team history, I’ve got to say something.

So here’s something: I like it. I’m thrilled to see Josh Beckett leaving, of course. I like Carl Crawford, but his body’s been breaking down since he got here. And though there are going to be many days when we’d love to see Adrian Gonzalez in the middle of the Red Sox’ lineup, the fact is that Ben Cherington, Larry Lucchino and company didn’t have the financial flexibility to fix what’s killing them — a lack of starting pitching. Now they do.

Bobby Valentine? I don’t know. I’ve got no problem with Bobby V. He’s not as good a manager as Terry Francona, but he’s been maligned since he got here for reasons that I don’t understand. No one was going to win with this team, especially with all the injuries.

The role of the sports media in the Red Sox drama this year deserves deeper exploration. Thanks to the competition between sports-talk radio stations WEEI and WBZ-FM, the environment seems more toxic than it has in many years.

No doubt there were and are problems with the clubhouse chemistry — Francona, Cherington and Valentine have all said that. And yes, more than four players certainly should have showed up for Johnny Pesky’s funeral. But is all the drama swirling about the team even remotely as important as the injuries and — beginning last September — the complete collapse of the starting pitching? (Insert obligatory reference to beer and chicken here.)

The craziness especially affected fans’ perception of Beckett. He seemed unwilling or unable to help himself in terms of public relations, and it strikes me as credible that his lack of physical conditioning is at least partly responsible for his miserable record this year.

But it wouldn’t surprise me if Beckett’s been concealing a significant injury — one the Dodgers presumably already knew about. Let’s not forget that another non-fan favorite, John Lackey, took the ball every fifth day last year despite having a torn ligament in his elbow. These guys want to compete. If it weren’t for Beckett, the Sox would never have won in 2007, and that should count for a lot.

The big loss was Gonzalez. Evidently the trade wouldn’t have happened without him. The fact that he was making way too much money and seemed a little soft when the game was on the line makes his departure more palatable. But the stories coming out about his supposed whining and lack of leadership should be taken for what they are until someone is willing to speak on the record.

Official White House photo by Pete Souza.