The good news about American newspapers is that the news isn’t completely bad. The Inland Press Association just examined the financials of more than 120 of the country’s dailies and reported that even though ad and circulation revenues have been dropping for years, “operating profits still ranged from more than 8.5 percent to 13.6 percent of gross revenue in all circulation groups except 25,001-50,000.”
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At what price over $0 would the Post-Tribune be a bargain? Ten years ago, says Grimm, “we put in a bid of $37.5 million and it went for a little over $38 million.” The price of STMG stock was down to a nickel a share when the group filed for bankruptcy in March, and on that basis, the Sun-Times reported, “the entire company is worth about $4 million.” Today’s Post-Tribune is such a stripped-down operation that, the guild observes, if it shifted to Web-only publication nobody’s job would become obsolete. The Post-Tribune no longer has presses—printing was transferred to the Sun-Times presses on South Ashland in Chicago, burdening the Post-Tribune with earlier deadlines. It no longer has trucks—distribution of Media Group papers was turned over to Tribune drivers, doing the Post-Tribune no favor because Tribune circulation is spotty in northwest Indiana.
The Post-Tribune does still have reporters—though Grimm says that “in the last two years we’ve probably seen a 25 percent reduction in newsroom staffing, at least, and that’s not counting attrition.” It has real estate—its offices in Merrillville, a bureau in Crown Point, and the abandoned presses in Gary. And Grimm believes it has prospects.
Despite these bleak terms, the president of the newspaper guild in Portland, Maine, hailed the Blethen sale as a victory for labor. “People on the ground-floor level are going to be involved in the decision making of the company,” he said. “It’s amazing that we were able to do it. The newspaper industry is collapsing. No one is buying newspapers. Banks are not lending any money to newspapers. There hasn’t been a bank to lend money to buy a newspaper in two years. So this is quite a remarkable story.”
What if your flippers turn out to be strippers? I ask him.
The worst case scenario? The Times in nearby Munster, a bigger paper that Grimm believes makes money hand over fist, buys the rival Post-Tribune, shuts it down, and has northwest Indiana all to itself. Grimm believes—well, he hopes—the region’s readers and advertisers won’t stand for this. He hopes some of them will stand up and show some money.
The subhead: Renter accused of beating, burning him (Sun-Times, July 6).
