Rick Edmonds – Media Nation

A closer look at what happened at the National Trust for Local News — and what may be coming in Maine

Former home of the Portland Press Herald in Maine, now a luxury hotel — Former headquarters of the Portland Press Herald in Maine, now a luxury hotel. Photo (cc) 2023 by Dan Kennedy.

I suspect we’re going to be hearing a lot more about the National Trust for Local News and especially its newspapers in Maine, anchored by the Portland Press Herald. The National Trust’s co-founder and CEO, Elizabeth Hansen Shapiro, stepped down last week, and I’ve heard from serious people that substantial cuts may be coming.

While we’re waiting, though, I recommend this thoughtful analysis by Rick Edmonds, who writes about the business of news for the Poynter Institute. He speculates that one reason the National Trust may have run into trouble was that it morphed from a philanthropic venture that acquired newspapers into a nonprofit organization that saw its mission as actually running them.

In an interview last summer, Dr. Hansen Shapiro told Edmonds, “half-joking,” that “we are becoming like Gannett or McClatchy,” two chains notorious for cutting costs at their newspapers through top-down management. The difference was that the National Trust’s management was focused on improving its papers rather than squeezing out every last drop of revenue. But as Edmonds writes in a piece that was published on Thursday:

In practice, though, that meant not only ownership but decision-making had migrated up to a central office. The trust had become out of sync with the mantra that news organizations work best when they are owned and run by those closest to the local communities.

The National Trust’s first move was to acquire 24 weekly and monthly newspapers in the Denver suburbs back in 2021, which Ellen Clegg and I write about in our book, “What Works in Community News.” It later expanded into Maine and Georgia, and today owns about 60 papers.

Last summer, Hansen Shapiro told Edmonds that the National Trust was shifting from 25% investments and 75% execution to the reverse. In other words, what was originally intended as a project to save newspapers from chain ownership and then run them with a light touch morphed into something much more hands-on.

That has played out in an especially painful way in Maine, where Press Herald editor Steve Greenlee left to take a position at Boston University last year (in an email with Edmonds, he cryptically referred to leaving “at a time of great stress”), and Lisa DeSisto, the longtime publisher of the Press Herald and CEO of the Maine Trust for Local News (essentially a subsidiary of the National Trust), abruptly exited from her job in December.

My usual caveats: Hansen Shapiro is featured in our book and has been on our podcast; DeSisto is a professional friend of ours; and we were the guests at a fundraiser for the Maine Trust last October.

Update: Jody Jalbert has resigned as publisher of the Sun Journal of Lewiston, which is a Maine Trust paper. The story is paywalled, but according to Jalbert’s LinkedIn profile, she had been with the paper in various business-side positions since 1988. That’s a lot of experience to be walking out the door.

The Portland Press Herald and its owner get enmeshed in a controversy over sponsored content

The former headquarters of the Portland Press Herald is now a hotel. Photo (cc) 2023 by Dan Kennedy.

News publishers like sponsored content for a variety of reasons. In a sea of nearly worthless programmatic ads, sponsored content — also known as native advertising — commands a premium price. The articles, if they are well-done, attract eyeballs. They evade ad-blockers, too. At worst, they can be confused with actual editorial content, but with proper disclosure they raise no more in the way of ethical issues than does a standard banner ad.

Earlier this week, a conservative website called the Maine Wire reported the existence of a $117,000 deal cut by the Maine Trust for Local News to publish sponsored content from the state’s Department of Education. The nonprofit Trust owns the Portland Press Herald and a number of smaller daily and weekly papers. The Maine Wire article says in part:

The payment will cover the publication and promotion of six articles portraying the Maine DOE in a flattering light. It’s unclear whether the state-sponsored “news” content will be written by someone from the Maine DOE or employees of the Maine Trust for Local News newspapers.

The taxpayer-funded “marketing campaign” will highlight the Maine DOE’s “use of federal emergency relief funding,” and will aim to “promote the best learning opportunities for all Maine students” and to “inspire ‘trust in our schools,’” according to the document.

Scare quotes aside, though, this is just garden-variety sponsored content. Rick Edmonds of the Poynter Institute looked into it (scroll down to “Sponsored content controversy in Maine”) and found the deal to be pretty unremarkable, writing:

The Wire chose to ignore that article-style pieces became a staple of digital advertising more than a decade ago. The Federal Trade Commission has taken the position that as long as sponsorship is disclosed, it’s not deception (though violations, especially among influencers, are not uncommon).

The format is typically employed by companies burnishing their image, but there is no obvious reason the door should be slammed shut on a self-promoting government placement.

In fact, the first of six such sponsored ads that the Trust will be running says “Sponsored” and “Content provided by Maine Department of Education” right at the top. The article, which appeared in the Press Herald, is also in a different typeface from what the paper normally uses. Edmonds passed along a statement from Trust chief executive Lisa DeSisto as well:

Branded content is a growing piece of our advertising product offerings. We’ve attracted new customers to the Maine Trust by offering branded content products, and we think they’re an important part of our revenue goals. In developing these products, nothing has been more important to us than creating a clear distinction between branded content advertising and our journalism.

Michael Socolow, a journalism professor at the University of Maine, initially raised some concerns about the arrangement on Twitter but then backed off once he saw the actual ad. “Turns out article’s labelled ‘Sponsored Content’ right at top, it’s not written by any journalists, and it’s actually a terrible piece of advertorial/propaganda [poorly written, boring + too long, and uninteresting]. So I’m less concerned,” he wrote.

Now, I do think it’s fair to ask whether a news organization ought to be accepting sponsored content from a government agency — but that horse left the barn quite a while ago. For instance, I searched the sponsored content at The Boston Globe to see if it had any similar arrangements, and it took me no time at all to find a native ad from Vermont Tourism, which a little additional searching revealed is a state agency. That said, it wouldn’t be a bad idea for the Trust to have a conversation with its journalists about what practices are and aren’t acceptable, and to listen to any concerns the newsroom might raise.

Finally, a disclosure: The Maine Trust is sponsoring an event for Ellen Clegg and me in Portland on Oct. 15 to talk about our book, “What Works in Community News.” (You can register here.) I worked with DeSisto at The Boston Phoenix and, later, Ellen and DeSisto were colleagues at The Boston Globe; we both think highly of her. You can make of that what you will. But Edmonds and Socolow have no such ties, and their conclusions are the same as mine.

Gannett’s latest outrage; plus, AI comes to Boston, and student journos cleared

Gannett and USA Today headquarters in McLean, Va. Photo (cc) 2008 by Patrickneil.

Even by the rock-bottom standards of Gannett, what happened to Sarah Leach was shameful. Poynter media analyst Rick Edmonds reported last week that the country’s largest newspaper chain had hit the brakes on plans to restaff some of its smaller daily newspapers. And on Thursday he wrote that his source, Leach, was fired for “sharing proprietary information with [a reporter for] a competing media company.” Edmonds called the firing “outrageous!”

The Poynter Institute, a journalism training organization, competes with Gannett? Who knew?

So how was Leach, who’s based in Michigan and managed 26 Gannett newspapers in four states, identified as Edmonds’ confidential source? Edmonds writes: “As best Leach and I can figure, they must have tapped into her office email. ‘That’s the only way I can think of that they could have known,’ she said.” That is sleazy behavior by a news company, although we all know that employers have a right to read their employees’ email. That’s why many of the newsroom sources I’ve communicated with over the years use their personal email accounts. (As always, tips welcome, and anonymity guaranteed.)

In a remarkably magnanimous post for her newsletter, Leach writes:

I’m not bitter toward my former employer. It’s not Gannett’s fault. In many ways, it’s just the natural byproduct of media conglomerates owning publications in major metropolitan areas with hundreds of thousands of people … [ellipsis hers] and papers in much smaller towns who need local journalism just as much…. [ellipsis mine]

Let’s use this moment as a catalyst for a critical conversation about local media outlets and the audiences they serve. There has been an unprecedented loss of journalists and community newspapers across the country, and news deserts are growing larger and more numerous.

Gannett owns about 200 ~~weekly~~ daily newspapers across the U.S., anchored by USA Today. The company also owns a diminishing number of weekly papers, and has closed or merged many of them in Eastern Massachusetts, sparking the rise of a number of local news startups. Gannett likes to claim that it’s simply shifting from print to digital, but — to name just one example — try finding any Medford or Somerville news on its Wicked Local website for those cities. Gannett dailies in this region include the Telegram & Gazette of Worcester, The Patriot Ledger of Quincy, The Providence Journal and the MetroWest Daily News of Framingham.

Back in February, Gannett’s chief content officer, Kristin Roberts, and chief sales officer Jason Taylor appeared on “E&P Reports,” a vodcast hosted by Editor & Publisher’s Mike Blinder, to tout the chain’s recommitment to local news. And maybe that’s continuing at the larger dailies, but who knows? I’m not blaming Roberts and Taylor, who are quality executives with solid backgrounds. But Gannett’s behavior continues to be reprehensible — not only for firing Leach but for trimming back its latest commitment to local news and for running the vast majority of its papers into the ground, leaving communities without the news and information they need.

A couple of other local news tidbits:

• AI local news comes to Boston. My writing and podcast partner Ellen Clegg spotted this one: Hoodline, which uses artificial intelligence to cover two dozen cities, including Boston, is cranking out tidbits from locales such as Boston, Everett and Bridgewater. The stories have bylines, but when you click through, you find a little “AI” next to the name. For instance: “AI By Mike Chen,” which raises the possibility that Chen is a bot — a practice we’ve seen elsewhere. (If he’s an actual journalist who’s been hired to vet this stuff, my apologies.) Here’s what Hoodline has to say about its use of AI and its “In-House Writing Collective,” which sheds some light on who Mike Chen may or may not be:

We view journalism as a creative science and an art that necessitates a human touch. In our pursuit of delivering informative and captivating content, we integrate artificial intelligence (AI) to support and enhance our editorial processes. This includes organizing information and aiding in the initial formatting of stories for the editorial phase. Our stories are cultivated with a human-centric approach, involving research and editorial oversight. While AI may assist in the background, the essence of our journalism — from conception to publication — is driven by real human insight and discretion.

It turns out that Hoodline has been around since 2018, with Disney among its original backers. Although automation was part of its DNA from the beginning, presumably its use of AI has become a lot more aggressive since the rise of modern tools such as ChatGPT in late 2022.

• Charges dropped in Dartmouth. New Hampshire state authorities have dropped charges against two student journalists for The Dartmouth. Charlotte Hampton and Alesandra “Dre” Gonzales had been arrested on May 1 while covering pro-Palestinian protests even though they were wearing clearly visible press credentials, according to the independent student newspaper.

Student journalists have been producing some of the most important coverage of both the protests and the counter-protests that have broken out in response to the war between Israel and Hamas.

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An elegant, comprehensive takedown of how Alden pillages local newspapers

Among those of us who have obsessively followed Alden Global Capital’s destruction of newspapers over the years, there was very little that was new in McKay Coppins’ 7,000-word magnum opus that The Atlantic published this week. Still, Coppins is a gifted writer, and he’s pulled together the full story in a manner that is both elegant and comprehensive.

The arc of Coppins’ narrative is familiar. Alden, a hedge fund, got into the newspaper business about a decade ago. At first, Alden indulged the chief executive it inherited from one of the chains it acquired, John Paton, and then turned on him when he wasn’t willing to go along with the drastic cost-cutting they insisted on. I imagine Alden co-founder Heath Freeman was initially impressed with the blunt, profane Paton, who was not averse to slashing expenses to align them with revenues. The problem was that Paton actually cared about journalism and was not on board with Freeman’s insistence on endless rounds of cuts in order to enrich himself and the other co-founder, Randall Smith.

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One fact I hadn’t known previously is that Randall Smith, secretive and a generation or so older than Freeman, is the brother of Russ Smith, founder of the now-defunct New York Press. Russ also founded the Baltimore City Paper, the Washington City Paper and now runs the website Splice Today.

The New York Press was a big deal in the 1990s, as Coppins notes, publishing 10,000-word columns by Smith that attacked the elite media establishment. Smith also once published a lengthy takedown of The Boston Phoenix by another writer that infuriated all of us. I wish I still had a copy. No complaints by me about Smith, though — he wrote a favorable review of my first book for The Wall Street Journal, and I enjoy bantering with him on Twitter about music and baseball.

But back to our story. Coppins’ description of Freeman, the more active and public of the two partners in running Alden’s newspapers, is priceless:

People who know him described Freeman — with his shellacked curls, perma-stubble, and omnipresent smirk — as the archetypal Wall Street frat boy. “If you went into a lab to create the perfect bro, Heath would be that creation,” says one former executive at an Alden-owned company, who, like others in this story, requested anonymity to speak candidly. Freeman would show up at business meetings straight from the gym, clad in athleisure, the executive recalled, and would find excuses to invoke his college-football heroics, saying things like “When I played football at Duke, I learned some lessons about leadership.” (Freeman was a walk-on placekicker on a team that won no games the year he played.)

And Coppins’ description of Alden’s business model is right on target:

What threatens local newspapers now is not just digital disruption or abstract market forces. They’re being targeted by investors who have figured out how to get rich by strip-mining local-news outfits. The model is simple: Gut the staff, sell the real estate, jack up subscription prices, and wring as much cash as possible out of the enterprise until eventually enough readers cancel their subscriptions that the paper folds, or is reduced to a desiccated husk of its former self….

Alden’s calculus was simple. Even in a declining industry, the newspapers still generated hundreds of millions of dollars in annual revenues; many of them were turning profits. For Freeman and his investors to come out ahead, they didn’t need to worry about the long-term health of the assets—they just needed to maximize profits as quickly as possible.

Where I have a bit of a problem with Coppins is that though he credits some of the earlier reporting he relies on, he’s haphazard about it. I winced at his sole reference to Julie Reynolds, whom he quotes indirectly a single time and identifies only as a former reporter for the Monterey Herald in California. In fact, since leaving the paper Reynolds has been indefatigable in reporting on Alden. It was because of her 2017 cover story for The Nation, for instance, that we know Randall Smith used his ill-gotten newspaper gains to buy 16 mansions in Palm Beach, Florida. Just recently she reported for Nieman Lab that Alden’s acquisition of Tribune Publishing was tainted by dubious gamesmanship of the sort that should have prompted a do-over.

Then there’s the Baltimore hotel magnate Stewart Bainum, whose bid to buy Tribune fell short this past spring. In August, Rick Edmonds of Poynter reported that Bainum was launching a well-funded digital news nonprofit in order to compete with Alden’s Baltimore Sun. Coppins writes about that without giving any credit, and it’s being repeated in media circles as though it was his scoop.

But these are quibbles. Coppins is a gifted writer and has done a prodigious amount of reporting of his own.

Recently The Atlantic published an essay by Elaine Godfrey about the damage done to her hometown newspaper in Iowa by Gannett, the country’s largest newspaper chain. (Alden’s holdings come in second.)

The Atlantic deserves credit for using its prestige to focus on the local news crisis, and on the Wall Street greed that has transformed it into a catastrophe.

Poynter analyst hails Globe’s prospects

Earlier this month, before the New York Times Co. announced it was putting The Boston Globe up for sale for the second time in four years, Poynter Institute business analyst Rick Edmonds sat down with Josh Benton of the Nieman Journalism Lab for the lab’s weekly podcast, “Press Publish.”

Toward the end of their nearly hour-long conversation, Benton asked Edmonds which newspapers he thought had the brightest prospects over the next few years. Edmonds responded that he could think of four major metros that were getting it right: the Globe, the Seattle Times, the Milwaukee Journal Sentinel and the Tampa Bay Times — formerly and still better known as the St. Petersburg Times.

(It should be noted that Poynter owns the Tampa Bay Times, although I think anyone would point to that paper as one model for how to do it right.)

What Edmonds meant: the four papers had done a better job than most of maintaining the quality and depth of their journalism while at the same time achieving some measure of success financially. Earlier in the podcast, Edmonds voiced his enthusiasm for flexible online paywalls such as the Globe’s (now becoming less flexible).

As another prominent newspaper analyst, Ken Doctor, observes, a lot of newspapers are likely to be sold in the months ahead. The business has recovered slightly since the depths of 2009 and prices are low. Of course, prices are low because the long-term prospects for newspapers remain grim. Still, there are no doubt a number of prospective owners who have enough money and ego to think that they will be the great exception.

Seen in that light, the Globe is a prime property that can be acquired for an attractive price. “The Globe isn’t going anywhere,” Globe columnist Kevin Cullen writes. “It’s changing owners.”