How Rupert Murdoch saved the Boston Herald — not just once, but twice

As I noted Thursday, one of the few positive contributions Rupert Murdoch can take credit for is preserving The Wall Street Journal as a great national newspaper. Another is that he saved the Boston Herald — not once, but twice. Larry Edelman of The Boston Globe writes about the first time (he interviewed me). I tell that story as well as the tale of Murdoch’s second rescue in my 2018 book “The Return of the Moguls,” which I excerpt below.

The Hearst chain, which had converted the Herald (known then as the Herald American) to a tabloid during the final years of its ownership, had run out the string by 1982. I remember one old-timer telling me that, with closure just hours away, workers came in to rip out the vending machines from the paper’s hulking plant in the South End. At the last minute, Murdoch reached a deal with the unions and the paper was saved.

Under Murdoch’s ownership, the Herald established itself as a feisty alternative to the Globe, sometimes beating its larger rival on important local stories. That continued in the 1990s after Murdoch’s protégé Pat Purcell bought it from him. To this day there are people who believe that Murdoch continued to pull the strings behind the scenes, but I never believed it. Murdoch just didn’t care that much about the Herald, and I don’t doubt that he let Purcell have it on extremely favorable terms.

Unfortunately, the Herald’s financial model pretty much stopped working in the early 2000s, and today it’s owned by the New York hedge fund Alden Global Capital, famous for sucking the life out of its papers. Alden owns two other Massachusetts papers as well — The Sun of Lowell and the Sentinel & Enterprise of Fitchburg.

At one time Murdoch also owned the Ottaway chain, which included the Cape Cod Times and some small weeklies, including the Middleboro Gazette, where I grew up. Murdoch is fondly remembered by taking a hands-off approach, but I honestly wonder whether he even knew those papers were part of his empire. The Gazette was later closed by the Gannett chain, and today Middleborough is served by an independent startup, Nemasket Weekly.

Here’s what I wrote in “Moguls” about the Herald and Murdoch’s TV station, WFXT-TV (Channel 25), which he sold off a few years ago. The “endless struggle” I refer to was the Herald’s long-time ownership of Channel 5, an existential threat to the Globe that was removed when the Globe reported that its rival had gained the broadcast license because of corruption at the Federal Communications Commission. The Herald was stripped of its license in 1972, and Hearst swooped in to pick up the pieces.

The Globe’s endless struggle with the Herald’s broadcast ambitions played itself out in one last, faint echo in 1988, when Murdoch, who then owned the Herald, purchased Channel 25. Ted Kennedy, by then a leading member of the Senate, quietly slipped a provision into a bill that made it almost impossible for the FCC to grant a waiver to its rule prohibiting someone from owning both a daily newspaper and a TV station in the same market. At the time, I was a reporter for The Daily Times Chronicle, which served Woburn and several surrounding communities north of Boston. I remember covering a local appearance by Kennedy as he was dogged by the Herald reporter Wayne Woodlief. “Senator, why are you trying to kill the Herald?” the persistent Woodlief asked him several times.

Murdoch chose to sell off Channel 25, thus saving the Herald; he repurchased the TV station after selling the Herald to Purcell. But the Herald columnist Howie Carr remained bitter. He told me years later that Kennedy’s actions were worse than [Globe ally Tip] O’Neill’s, since O’Neill was just trying to help one of several papers rather than destroy the Globe’s only daily competitor. “I think Tip was just trying to get an ally,” Carr said, “whereas Ted was trying to kill the paper in order to deliver the monopoly to his friends.”

The liberal reputation the Globe developed during the Winship era was cemented during Boston’s school desegregation crisis of the mid-1970s, when the Globe wholeheartedly supported federal judge Arthur Garrity’s order to bus children to different neighborhoods in the city to achieve racial balance. It was a terrible time in Boston, as white racism ran rampant and bullets were fired into the Globe’s headquarters and at one of the paper’s delivery trucks. The Globe took the right moral stand, and its coverage earned the paper its second Pulitzer for Public Service. Winship in those years enjoyed a reputation as one of the finest editors in the country. But it was also during those years that the Globe became known as the paper of Boston’s suburban liberal elite and the Herald that of the urban white working class, a dichotomy that has persisted to this day.

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How FCC ownership regulations helped shape the Boston media landscape

Photo (cc) 2008 by Dan Kennedy

The U.S. Supreme Court on Thursday unanimously upheld a 2017 ruling by the FCC to loosen media ownership regulations, including an end to the so-called cross-ownership ban. That ban prohibits one entity from owning a newspaper and a TV or radio station in the same market.

The FCC’s long, tortured history on cross-ownership shaped the Boston media scene from the 1950s through the ’80s. Although the ban wasn’t formalized until 1975, the FCC had much to say about the issue well before that. No one told the story better than John Aloysius Farrell in his 2001 book “Tip O’Neill and the Democratic Century,” which I wrote about for The Boston Phoenix.

It’s a pretty amazing tale, and it’s crucial if you want to understand how the dynamic between The Boston Globe and the Boston Herald played out over the course of those decades. The very short version: the Boston Herald Traveler, with the support of the Kennedys, obtained the license to Channel 5 in the 1950s through corrupt means. The Globe, with the help of O’Neill, then a young congressman, exposed that corruption. That, in turn, led to the Herald’s losing the license to Channel 5 in the early 1970s, thus cementing the Globe’s status as the city’s dominant daily newspaper.

The final act played out in the late 1980s when Rupert Murdoch, who then owned the Herald, bought Channel 25 and sought a waiver from the FCC that would have allowed him to keep both. Sen. Ted Kennedy slipped an amendment into a bill that made it virtually impossible for the FCC to grant such a waiver. Several years later Murdoch sold the Herald to Pat Purcell, a longtime lieutenant. Although the Herald enjoyed a few years of prosperity under Purcell, it eventually entered a long, slow decline, ending in bankruptcy and the sale to the hedge fund Alden Global Capital in 2018.

So now that the cross-ownership ban is gone, what’s next? A number of organizations, including the media-reform group Free Press, opposed the FCC’s move, arguing that it will make it more difficult for local groups, including those representing women and people of color, to acquire media outlets. I agree, although there’s also a case to be made that newspapers and, to some extent, broadcast media are so moribund that ownership regulations are more about the last century than this one.

It does seem likely to me that we’re going to see newsrooms that combine newspaper and broadcast operations in an attempt to save money. We’ll see less diversity and less coverage as a result. But given that virtually all media have shifted to the unregulated internet, the ultimate effect of such consolidation is yet to be determined.

Why Rupert Murdoch probably won’t buy the Herald

Published earlier at WGBHNews.org.

Here’s the answer to today’s Newspaper Jeopardy question: “Maybe, if there’s a willing buyer and seller.”

Now for the question: “With Rupert Murdoch getting out of the Boston television market, is there any chance that he would have another go with the Boston Herald?”

Following Tuesday’s announcement that Cox Media Group would acquire WFXT-TV (Channel 25) from Murdoch’s Fox Television Stations as part of a Boston-San Francisco station swap, there has been speculation as to whether Murdoch would re-enter the Boston newspaper market. Universal Hub’s Adam Gaffin raises the issue here; the Boston Business Journal’s Eric Convey, a former Herald staff member, addresses it as well. I’ve also heard from several people on Facebook.

First, the obvious: There would be no legal obstacles if Murdoch wants to buy the Herald. The FCC’s cross-ownership prohibition against a single owner controlling a TV station and a daily newspaper in the same market would no longer apply.

Now for some analysis. Murdoch is 83 years old, and though he seems remarkably active for an octogenarian, I have it on good authority that he, like all of us, is not going to live forever. Moreover, in 2013 his business interests were split, and his newspapers — which include The Wall Street Journal, The Times of London and the New York Post — are now in a separate division of the Murdoch-controlled News Corp. No longer can his lucrative broadcasting and entertainment properties be used to enhance his newspapers’ balance sheets.

Various accounts portray Murdoch as the last romantic — the only News Corp. executive who still has a soft spot for newspapers. The Herald would not be a good investment because newspapers in general are not good investments, and because it is the number-two daily in a mid-size market. Moreover, the guilty verdict handed down to former News of the World editor Andy Coulson in the British phone-hacking scandal Tuesday suggests that Murdoch may be preoccupied with other matters.

On the other hand, who knows? Herald owner Pat Purcell is a longtime friend and former lieutenant of Murdoch’s, and if Rupe wants to stage a Boston comeback, maybe Purcell could be persuaded to let it happen. Even while owning the Herald, Purcell continued to work for Murdoch, running what were once the Ottaway community papers — including the Cape Cod Times and The Standard-Times of New Bedford — from 2008 until they were sold to an affiliate of GateHouse Media last fall.

There is a storied history involving Murdoch and the Herald. Hearst’s Herald American was on the verge of collapse in 1982 when Murdoch swooped in, rescued the tabloid and infused it with new energy. Murdoch added to his Boston holdings in the late 1980s, acquiring Channel 25 and seeking a waiver from the FCC so that he could continue to own both.

One day as that story was unfolding, then-senator Ted Kennedy was making a campaign swing through suburban Burlington. As a reporter for the local daily, I was following him from stop to stop. Kennedy had just snuck an amendment into a bill to deny Rupert Murdoch the regulatory waiver he was seeking that would allow him to own both the Herald and Channel 25 (Kennedy’s amendment prohibited a similar arrangement in New York). At every stop, Herald reporter Wayne Woodlief would ask him, “Senator, why are you trying to kill the Herald?”

The episode also led Kennedy’s most caustic critic at the Herald, columnist Howie Carr, to write a particularly memorable lede: “Was it something I said, Fat Boy?” Years later, Carr remained bitter, telling me, “Ted was trying to kill the paper in order to deliver the monopoly to his friends” at The Boston Globe.

Murdoch sold Channel 25, but in the early 1990s he bought it back — and sold the Herald to Purcell, who’d been publisher of the paper, reporting to Murdoch, for much of the ’80s. It would certainly be a fascinating twist on this 30-year-plus newspaper tale if Murdoch and Purcell were to change positions once again.

Meningitis story nudges its way into Senate race

Ted Kennedy

The controversy over compounding pharmacies is now crossing into the U.S. Senate race between Republican incumbent Scott Brown and Democratic challenger Elizabeth Warren. Hard to say where this might lead, but it’s worth keeping an eye on.

First up: Noah Bierman and Frank Phillips report in the Boston Globe that Brown backed an effort by the compounding-pharmacy industry to stop the U.S. Drug Enforcement Administration from imposing new regulations. Brown also received $10,000 in donations from a fundraising event organized by the owner of the New England Compounding Center in Framingham, ground zero in the meningitis outbreak.

That sounds pretty bad. But Brown’s explanation — that he and the industry wanted a rule requiring drugs to be delivered directly to doctors rather than patients — seems reasonable.

“As you know, they sometimes fall into the wrong hands,” Brown told the Globe. “I was advocating getting it to the doctors, which I don’t think loosens regulations.”

Next up is the Boston Herald, whose reporter Erin Smith writes today that, in 2007, Sen. Ted Kennedy pushed for exactly the kind of tough regulations and DEA oversight that might have prevented the meningitis cases.

Again, it’s hard to know how that might be relevant to the Brown-Warren race. But the Herald story describes an industry flat-out opposed to any federal involvement.

“They have a huge amount of lobbyists. They give money to politicians. We didn’t have that,” Arthur Levin, director of the Center for Medical Consumers, told the Herald. “Sen. Ted Kennedy had a lot of influence, but obviously the bill didn’t get enough support.”

If nothing else, the Herald story casts the industry’s more recent efforts, supported by Brown, in a less benign light. And given that Brown holds Kennedy’s old seat, it could make for an irresistible compare-and-contrast.

I doubt we’ve heard the last of this.

Photo (cc) by Brian Finifter and republished under a Creative Commons license. Some rights reserved.

Brown’s reasons for rejecting debate make no sense

Tom Brokaw

This commentary is also online at the Huffington Post.

What we were talking about, in case U.S. Sen. Scott Brown’s diversionary tactics led you astray, was a televised debate, held before a neutral audience, to be moderated by Tom Brokaw. Everything else is baloney.

As you no doubt already know, Brown made two demands that had to be met before he would agree to a debate with his Democratic rival, Harvard Law School professor Elizabeth Warren.

The first was that Vicki Kennedy, president of the Edward M. Kennedy Institute, which would sponsor the debate, refrain from endorsing a candidate for “the duration of the Senate race.”

The second was that the debate be carried only by local media outlets and not by “out-of-state cable networks with a reputation for political advocacy” — clear reference to the liberal outlet MSNBC, which had been mentioned as a possibility.

Both demands were ridiculous because they were irrelevant. But when Vicki Kennedy rejected the first of those demands, that was enough for Brown to say no.

(At this point I suppose I should include a non-disclosure: I’m not related to those Kennedys.)

Brown might have been able to make a reasonable case for asking Vicki Kennedy not to endorse until after the debate. But demanding that she refrain for “the duration” was just silly. If the media consortium that includes the Boston Globe schedules a debate, will Brown insist that the Globe not endorse? And what will Brown say if the Boston Herald, as is its wont, puts together its own debate? Surely he won’t ask the paper to withhold its all-but-certain Brown endorsement.

As for MSNBC, the debate organizers could prevent the channel from carrying it live. Afterwards, though, Rachel Maddow, Ed Schultz and company would be free to show clips and comment on them whether they had carried the full debate or not. The fair-use provision of the copyright law guarantees that — not to mention the First Amendment.

And why did I say the debate would be held before a neutral audience? Because you can be sure the Brown and Warren campaigns would insist on equal numbers of partisans in the audience. So the Kennedy Institute’s sponsorship isn’t an issue, either.

I know some observers have questioned Brokaw’s alleged liberal bias. But since that hasn’t been raised by the Brown campaign, we have to assume he had no problem with Brokaw as moderator. When Brokaw moderated a debate between Barack Obama and John McCain in 2008, he seemed mainly interested in making sure neither candidate exceeded his allotted time. Liberal or not, Brokaw has earned his status as a fair-minded journalist who can be trusted not to throw the debate to either candidate.

It’s also hard to figure why Brown suddenly has a problem with Vicki Kennedy or the Kennedy Institute, given that he took part in a debate with Martha Coakley two years ago that was co-sponsored by the institute without setting any preconditions. As Herald columnist Peter Gelzinis points out, it was only a year ago that Brown couldn’t say enough good things about the late Ted Kennedy’s widow.

Globe columnist Scot Lehigh thinks Brown’s demands were “reasonable,” and he gives the senator credit for sticking to them. Yet Lehigh doesn’t tell us what Brown could possibly gain by failing to take part.

As my Northeastern colleague Alan Schroeder, an expert on political debates, puts it, “They’re making such an ­effort to portray Brown as someone with bipartisan credentials who can work with Democrats, and yet here’s this relatively mild example of cooperating with a Democrat, and they’re balking at it.”

Boston Phoenix political columnist David Bernstein wonders if Brown is trying to curry favor with the hierarchy of the Catholic Church, which has had its own issues with Vicki Kennedy.

Who knows what Brown and his advisers are thinking? Their political astuteness is generally beyond question. Maybe this will prove to be a smart move. Right now, though, it looks like a rare misstep, especially curious given that Brown initially made the Warren campaign look flat-footed with his rapid acceptance of several debate invitations.

My own bias is in favor of as many debates as possible, regardless of the venue. For instance, I don’t understand why Warren won’t say yes to WBZ Radio (AM 1030) talk-show host Dan Rea, who is conservative but is as fair as they come.

The candidates really don’t have anything better to do. How would we prefer they spend their time? Making television ads? Attending fundraisers? Of course not. They should spend as much time as possible side by side, talking about the issues. It’s not always the most edifying experience, but it’s better than any conceivable alternatives.

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

A Globe-Herald spat, 31 years down the line

Jimmy Carter in 1980

Former Boston Herald (and Boston Phoenix) political reporter Peter Lucas checks in with an account of his exclusive Herald interview with then-President Jimmy Carter during Carter’s 1980 re-election campaign against Ted Kennedy.

Lucas’ stroll down memory lane was prompted by a Jessica Heslam piece in the Friday Herald — part of the paper’s multi-day package on its White House snub — recounting past instances of journalists and presidents not getting along. Heslam wrote:

Veteran White House reporter Curtis Wilkie, who covered former President Jimmy Carter’s administration for the Boston Globe, said that Democratic commander in chief “so disliked” the Hub broadsheet that he gave the conservative Herald an interview rather than the Globe, because the administration felt the Globe had been unfair to Carter.

“He didn’t care for the Globe. It didn’t matter to me,” said Wilkie, who teaches journalism at the University of Mississippi. “Nothing wrong with being in an adversarial position with the White House. Better to be adversarial than too cozy.”

Wilkie’s recollections prompted an email from Lucas to Heslam. Lucas, now a columnist for the Lowell Sun and the Fitchburg Enterprise & Sentinel, sent along a copy to Media Nation and gave me permission to post it. I’ve broken it into a few paragraphs for readability:

Jessica: Curtis Wilkie doesn’t know what he’s talking about regarding the Herald’s interview with Jimmy Carter. I got that interview and by no means was it “given” to me. Wilkie is in need of a memory transplant when he says it did not matter to the Globe at the time. The Globe absolutely panicked and whined to the White Housse for weeks.

Not to bore you with an old war story but here it is. Ted Kennedy was challenging Carter for the presidency in 1980. The Globe was in the tank to Kennedy, (what else is new?) and Kennedy was not talking to the Herald. I told Jody Powell, Carter’s press secretary, that the Globe would kill him in the primaries but that the Herald would give him a fair shake.

All I wanted out of it was an exclusive interview with the president who at the time was in his Rose Garden strategy because of the Iranian hostage situtaion and not talking to any reporters. The primary coverage was important because you had the Iowa caucus coming up and this was to be followed by the caucus in Maine and then the really important New Hampshire primary.

Powell was skeptical and wary. He did not want to anger the Globe. I persisted. So Carter beats Kennedy in Iowa and the Globe gives the headline to Kennedy. The same happens the following week in Maine. I go to Jody Powell and say I told you so. I hound him (as only a Herald reporter can do) in the days before the New Hampshire primary and Carter finally relents. I get to interview Carter alone in the Oval Office and the story leads the paper Feb. 15, 1980. It is a huge deal and makes the national news. (I still have it hung up in my garage.)

Days later Carter beats Kennedy in his own backyard of New Hampshire and it is all over for Kennedy, although he staggers around through the convention. The story was a clean exclusive and it embarassed the Globe to no end, including my friend Wilkie. The Globe had a huge Washington Bureau at the time and we had nobody down there, and here comes a Herald reporter out of nowhere and beats the hell out of them, It was great. Joe Sciacca will remember.

Keep up the good work. Cheers, Peter Lucas.

Highly entertaining stuff. I would, of course, love to post a response from Wilkie. And just to keep the historical record straight, Lucas in 1980 was working for the Hearst-owned Herald American. The modern Herald came into existence two years later, when Rupert Murdoch saved it from being shut down.

Photo via Wikimedia Commons.

Rachel Maddow breaks liberal hearts

In my latest for the Guardian, I argue that MSNBC talk-show host Rachel Maddow, whose network recently took out a full-page ad so that she could tell U.S. Sen. Scott Brown that she’s not running for his seat, would actually be the best candidate the Democrats could put up in 2012.

It’s not that Maddow is so wonderful, although she’s pretty good. Rather, it’s that the death of Ted Kennedy exposed the hollowed-out core of a party that dominates state government, but that has failed to develop any new talent in a generation. The one exception: Gov. Deval Patrick. And he’ll be lucky to get re-elected.

Tom Oliphant reviews Kennedy memoir

Tom Oliphant
Tom Oliphant

Retired Boston Globe columnist Tom Oliphant’s closeness to the late senator Ted Kennedy may have deprived him of the ability to consider Kennedy dispassionately or skeptically. But he did have insights into Kennedy’s character and thinking that were rare for a journalist to attain.

So I highly recommend Oliphant’s review of Kennedy’s posthumous memoir, “True Compass,” which appears in a new quarterly journal called Democracy. According to Oliphant, Kennedy’s personal tone, his serious consideration of Catholic social-justice ideas and his remorse over his personal failings come through in ways that were rarely heard outside the circle of his family and close friends. Oliphant writes:

Introspection was never a Kennedy strength or habit, but “True Compass” has surprised and astonished those who knew him well. That includes me, a baby reporter in the late 1960s gleefully sucked into the vortex of Kennedy’s involvement in all the burning issues of his time. I dealt with him for 40 years in a happy evolution from quasi-student to willing accomplice on scores of causes (some hopeless, many successful) to something more personal; my real bias is that I never stopped being stunned by his work ethic, his relentlessness and diligence, not to mention his kindness.

Above all, Oliphant invokes a time when Kennedy was part of a better Senate — less ideological, less money-driven than today’s circus. Sadly, it makes you realize that if it seems Kennedy’s likely successor, Martha Coakley, may be unable to fill his shoes, neither could a young Ted Kennedy himself, given how the institution has diminished in stature and seriousness.

Photo (cc) by the BBC World Service and republished here under a Creative Commons license. Some rights reserved.

A desultory race for a storied seat

Coakley speaks with reporters following her victory rally Tuesday night at the Sheraton Boston. Click on image for more photos.
Coakley speaks with reporters following her victory rally Tuesday night at the Sheraton Boston. Click on image for more photos.

In my latest for the Guardian (whose technical difficulties prevented this from being posted earlier), I write that the only surprising aspect of the U.S. Senate race to succeed the late Ted Kennedy was how little interest the voters demonstrated.

That’s not likely to change with state Attorney General Martha Coakley now slated to face off against state Sen. Scott Brown in the final election.

Do the expedient thing

I am genuinely puzzled by a statement from U.S. Rep. Michael Capuano’s Senate campaign, reported in the Boston Globe. Capuano’s campaign treasurer, Bruce Percelay, was asked to comment on the fundraising advantage state Attorney General Martha Coakley has built. The Globe’s Matt Viser writes:

“Our hats go off to our competitors who were able to raise that much money,” said Bruce A. Percelay, treasurer for the Capuano campaign. He added that Coakley’s campaign had “a significant jump on us” because she declared earlier, while Capuano “made a conscious decision not to begin any fund-raising until Joe Kennedy made his decision.”

“If it temporarily puts us a little behind the starting line, then it was a small price to pay for doing the right thing,” Percelay said.

Yes, we all know that Capuano waited until Kennedy decided not to run for his uncle’s seat. No news there. What puzzles me is that the Capuano campaign wants everyone to know that.

Does the congressman want us to think he really does believe the Kennedys have a hereditary right to the seat? Does he honestly expect us to think Coakley disrespected the sainted memory of Ted Kennedy by jumping into the race while various and sundry Kennedys were pondering whether to run?

The outpouring of public affection for Ted Kennedy was genuine. In general, though, I think voters would like to see the Kennedys take their place in line like everyone else. You may have noticed that public reaction to Gov. Deval Patrick’s appointment of Kennedy coatholder Paul Kirk as interim senator wasn’t exactly enthusiastic.

Regardless of Coakley’s merits as a potential senator, I think her decision to jump in and not wait for the Kennedys can only help. As for Capuano, I would like to hear him explain directly why he apparently believes that Joe Kennedy would make a better senator than he would.