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Bailout For The 'Inquirer'?
A Discussion With Rendell’s Press Secretary
By Chris Freind, For The Bulletin
It is no secret the Philadelphia Inquirer and Daily News have severe financial difficulties.
The parent company of both newspapers, Philadelphia Media Holdings, has missed its debt payments since June, and according to Bloomberg News, the company is in “technical default” on its loans.
The papers were bought from the McClatchy Company in 2006 for $562 million. There are currently no buyers, especially given the recent volatility experienced by media entities nationwide. Making the situation even more precarious is that, even if there were a prospective buyer, obtaining financing in these market conditions is difficult, if not impossible.
The Tribune Company, owner of the Los Angeles Times and the Chicago Tribune, has filed for bankruptcy protection, as has the Minneapolis Star-Tribune. The Rocky Mountain News, strapped with large debts, could be permanently closing its doors, while the Seattle Post-Intelligencer has announced it will cease publication. The competing Seattle Times also is in danger of closure.
And The New York Times, because of its need to ease cash flow problems, is borrowing $225 million against its Manhattan headquarters via a sale-leaseback deal. Additionally, the Times borrowed $250 million from Mexican billionaire Carlos Slim, at a 14 percent interest rate. Mr. Slim will eventually become the largest single shareholder in the Times, owning up to 17 percent of common shares in the company.
After it was reported that Inquirer publisher Brian Tierney has been engaged in discussions with Pennsylvania Gov. Ed Rendell, D, about obtaining a $10 million government bailout for his newspaper, the Bulletin spoke with Chuck Ardo, the governor’s press secretary, for clarification.
The Bulletin: It has been reported that Inquirer publisher Brian Tierney has approached Gov. Rendell for a $10 million bailout for the newspaper.
Did that conversation take place?
Chuck Ardo: The governor and Brian Tierney have had a number of conversations over the course of the last several months. The governor has made no commitment as a result of those conversations.
TB: Is the bailout something that is still on the table?
CA: He would certainly be open to discussions with Brian, but we need to look at the situation that we are in economically and financially, and I think any discussions have to be seen through that prism.
TB: If the governor were to say, “Sure, we’ll do it,” from where would the money come?
CA: If the governor was persuaded to the wisdom of helping Philadelphia Media Holdings, the money could come from a number of revenue streams. It’s hard to say, and would depend on what kind of help they would need.
TB: Would that require legislative approval, or would it come from the executive branch?
CA: There are ways that the executive branch can do this without need for legislative action.
TB: Would the money be a grant or a loan?
CA: It would depend on what the discussions might lead to. But as of now, no commitment has been made at this point.
TB: It’s one thing when the government becomes involved in car companies and banks, but how do you think the public would react to a media company seeking and receiving government bailout money from Gov. Rendell? Can it truly be viewed as objective and unbiased in its political reporting?
CA: The entire concept of a democracy depends on an informed public. Newspapers are a critical source of information, so there is a fundamental need for newspapers to continue to provide that information to the public. Now whether that information rises to the level of triggering help from the commonwealth, is something we’ll have to wait for the future to unfold. “
Chris Freind can be reached at cf@thebulletin.us
The parent company of both newspapers, Philadelphia Media Holdings, has missed its debt payments since June, and according to Bloomberg News, the company is in “technical default” on its loans.
The papers were bought from the McClatchy Company in 2006 for $562 million. There are currently no buyers, especially given the recent volatility experienced by media entities nationwide. Making the situation even more precarious is that, even if there were a prospective buyer, obtaining financing in these market conditions is difficult, if not impossible.
The Tribune Company, owner of the Los Angeles Times and the Chicago Tribune, has filed for bankruptcy protection, as has the Minneapolis Star-Tribune. The Rocky Mountain News, strapped with large debts, could be permanently closing its doors, while the Seattle Post-Intelligencer has announced it will cease publication. The competing Seattle Times also is in danger of closure.
And The New York Times, because of its need to ease cash flow problems, is borrowing $225 million against its Manhattan headquarters via a sale-leaseback deal. Additionally, the Times borrowed $250 million from Mexican billionaire Carlos Slim, at a 14 percent interest rate. Mr. Slim will eventually become the largest single shareholder in the Times, owning up to 17 percent of common shares in the company.
After it was reported that Inquirer publisher Brian Tierney has been engaged in discussions with Pennsylvania Gov. Ed Rendell, D, about obtaining a $10 million government bailout for his newspaper, the Bulletin spoke with Chuck Ardo, the governor’s press secretary, for clarification.
The Bulletin: It has been reported that Inquirer publisher Brian Tierney has approached Gov. Rendell for a $10 million bailout for the newspaper.
Did that conversation take place?
Chuck Ardo: The governor and Brian Tierney have had a number of conversations over the course of the last several months. The governor has made no commitment as a result of those conversations.
TB: Is the bailout something that is still on the table?
CA: He would certainly be open to discussions with Brian, but we need to look at the situation that we are in economically and financially, and I think any discussions have to be seen through that prism.
TB: If the governor were to say, “Sure, we’ll do it,” from where would the money come?
CA: If the governor was persuaded to the wisdom of helping Philadelphia Media Holdings, the money could come from a number of revenue streams. It’s hard to say, and would depend on what kind of help they would need.
TB: Would that require legislative approval, or would it come from the executive branch?
CA: There are ways that the executive branch can do this without need for legislative action.
TB: Would the money be a grant or a loan?
CA: It would depend on what the discussions might lead to. But as of now, no commitment has been made at this point.
TB: It’s one thing when the government becomes involved in car companies and banks, but how do you think the public would react to a media company seeking and receiving government bailout money from Gov. Rendell? Can it truly be viewed as objective and unbiased in its political reporting?
CA: The entire concept of a democracy depends on an informed public. Newspapers are a critical source of information, so there is a fundamental need for newspapers to continue to provide that information to the public. Now whether that information rises to the level of triggering help from the commonwealth, is something we’ll have to wait for the future to unfold. “
Chris Freind can be reached at cf@thebulletin.us
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Reader Comments
The following are comments from the readers. In no way do they represent the view of thebulletin.us.
John Law wrote on Jan 27, 2009 9:26 AM:
" Previously I wrote...
" This is exactly how Governor Rendell has been saving money on the State Budget for years to pass along to his friends and campaign contributors in "No-Bid Contracts"! The cost HOWEVER has been passed down to the counties, cities and families of the Commonwealth, who pay in higher crime costs, legal costs and BLOOD AND DESTROYED FAMILIES! This is why Rendell should be investigated for Corruption, Involuntary Manslaughter, Reckless Endangerment, Criminal Conspiracy, and Civil Rights Violations...he's betrayed sacred public trust. Remember our Crime and Murder Rates are due to this portion of our population. Remember Cain, Warner, Floyd who brutally murdered Ploice SGT. Liczbinski...Giddings who brutally murdered Police SGT. McDonald...Shaw, the DNA confirmed "Frankford Rapist"...Burgess, who murdered and murdered again...Wilson and two other Parolees who died while repeatedly trying to kill COPs...AND this all happened within the last 12 months! The victims and destroyed families must sue to bring about change! By the way...nothing has changed besides the Body Count. When will this scandal end? Why aren't Tom Corbett and the U.S. Attorney doing anything? What is Mayor Nutter and the City Council doing about this? AND WHY AREN"T THE BIG PAPERS AND TV CARRYING THIS IMPORTANT STORY!? "
And now we know the rest of the story.
BRAVO BULLETIN...Keep lighting the way to the truth! Shame on the DAILY NEWS and The INQUIRER. Exposing Corruption!? You guys need to look to The BULLETIN! "
" This is exactly how Governor Rendell has been saving money on the State Budget for years to pass along to his friends and campaign contributors in "No-Bid Contracts"! The cost HOWEVER has been passed down to the counties, cities and families of the Commonwealth, who pay in higher crime costs, legal costs and BLOOD AND DESTROYED FAMILIES! This is why Rendell should be investigated for Corruption, Involuntary Manslaughter, Reckless Endangerment, Criminal Conspiracy, and Civil Rights Violations...he's betrayed sacred public trust. Remember our Crime and Murder Rates are due to this portion of our population. Remember Cain, Warner, Floyd who brutally murdered Ploice SGT. Liczbinski...Giddings who brutally murdered Police SGT. McDonald...Shaw, the DNA confirmed "Frankford Rapist"...Burgess, who murdered and murdered again...Wilson and two other Parolees who died while repeatedly trying to kill COPs...AND this all happened within the last 12 months! The victims and destroyed families must sue to bring about change! By the way...nothing has changed besides the Body Count. When will this scandal end? Why aren't Tom Corbett and the U.S. Attorney doing anything? What is Mayor Nutter and the City Council doing about this? AND WHY AREN"T THE BIG PAPERS AND TV CARRYING THIS IMPORTANT STORY!? "
And now we know the rest of the story.
BRAVO BULLETIN...Keep lighting the way to the truth! Shame on the DAILY NEWS and The INQUIRER. Exposing Corruption!? You guys need to look to The BULLETIN! "
John Law wrote on Jan 27, 2009 9:32 AM:
" " This sounds like the same story out of Illinois, explaining the hold their corrupt Governor had over the Chicago papers. It also explains how Governor Rendell has been allowed to murder innocent people and destroy families by releasing stone thugs en mass and not sending criminals back to prison for Parole Violations so he could save millions in State Budget Monies (for "No-Bid Contracts" I guess). Rendell is President of the American Conference of Governors, which explains how this corruption is also being played out in Illinois, Colorado, South Dakota, Kentucky, California, et al. How much blood is enough? What is the Legislature doing about this? Why isn't the U.S.Attorney taking action? Why won't Tom Corbett Man-Up? What is the Mayor and City Council doing? They have all know about this scandal for about a year now...before SGT. Liczbinski was brutally murdered. Why haven't the destroyed families been advised to sue? Where is the "Media"? WELL DONE BULLETIN! Keep lighting the way to the TRUTH! " "
puncher75 wrote on Jan 28, 2009 8:45 AM:
" Crazy that this is the onlypublication with a real investigative reporter, Chris Friend. Keep up the fantastic work! "
Big Poppa Pump wrote on Jan 28, 2009 11:16 AM:
" Would our rotund governor care to explain how bailing out the Inquirer and Daily News is a responsibility of Pennsylvania taxpayers? "
sabinapatti wrote on Feb 17, 2009 10:02 AM:
" Getting financial help from a government agency or government official-the highest public official in the state-is clearly a conflict of interest and not conducive to maintaining freedom of the press-which is essentially what the press is all about. If this were to go through, it would set a bad precedent. "
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bobguzzardi wrote on Jan 27, 2009 8:16 AM: