HOME
          
LATEST STORY
Ken Doctor: The New York Times’ financials show the transition to digital accelerating
ABOUT                    SUBSCRIBE
Sept. 6, 2012, 3 p.m.
IMG_1038

How Journal Register’s bankruptcy might affect the revival of the New Haven Register

The Register isn’t the sad, moribund daily it was not too long ago. But where’s the beef?

In the spring of 2009, when I began researching what would become a book about online community journalism, I couldn’t have found a better foil than the New Haven Register.

Owned by the bankrupt Journal Register Co. (JRC), the daily was moribund and mediocre, its disconnect from the community symbolized by its location: a gigantic converted shirt factory, partly surrounded by barbed wire, on the outskirts of the city next to Interstate 95. The contrast with the New Haven Independent, a nonprofit, online-only startup that is the focus of my book, couldn’t have been more stark.

Three years later, when I turned in my manuscript, things had changed considerably. JRC was out of bankruptcy. Its chief executive, John Paton, was winning industry plaudits for his “Digital First” strategy of accelerating the transformation from print to online. The New Haven Register had a new, young, progressive editor, Matt DeRienzo. And DeRienzo had outsourced printing to the Hartford Courant and had begun preparing to move his staff to a yet-to-be-determined location in the downtown. New Haven, a poor, largely minority city of about 130,000 people, was suddenly home to two of the country’s most closely watched experiments in reinventing local journalism.

So I was shocked on Wednesday when Jim Romenesko reported that JRC was once again entering bankruptcy. As Paton explained it on his blog, the idea is to get the company out from under the legacy costs that it took on when the newspaper business was a lot larger and more profitable than it is today: debt; long-term leases on buildings it no longer needs; and pension obligations. The strategy is to take advantage of Chapter 11 in order to reduce JRC’s cost structure and re-emerge from bankruptcy in a matter of months.

The pension piece has been the subject of considerable consternation on Twitter and elsewhere, as it raised the specter of out-of-state investors (JRC is headquartered in suburban Philadelphia) taking away from loyal employees what is rightfully theirs. DeRienzo countered by pointing out that pensions are guaranteed by the federal government. “No one’s retirement is at risk,” he wrote.

There’s no question that guaranteed pensions are largely a thing of the past in the private sector, with defined benefits having given way some years ago to the era of the 401(k). And JRC is not the only newspaper company with pension problems. In 2009, The New York Times Co. nearly reached a deal to sell The Boston Globe that would reportedly have brought in less cash ($35 million) than the Globe’s future pension obligations ($59 million), which prospective buyers were asked to assume.

In other words, if you were going to start any private enterprise from scratch, you would almost certainly not include pensions as one of the benefits that you would offer your employees. And I have little trouble believing that JRC’s pension system is weighing the company down.

On the other hand, it seems to me that JRC may soon face a “Where’s the beef?” moment. Paton’s tireless advocacy of Digital First has gotten a lot of attention and praise — deservedly so. At some point, though, Paton has to deliver real improvements both to the journalism of JRC’s news organizations and to the bottom line.

I think Paton and DeRienzo have the right values and the right motives. I’m rooting for them. Fundamentally, though, we are talking about trying to effect change from the top down. Corporate chain ownership has been a disaster for community journalism. I’d rather my paper be owned by a good chain than a bad one. But neither is an adequate substitute for local ownership — and yes, I realize that’s no panacea, either.

As the Lab’s Joshua Benton points out, this may be Paton’s last, best chance to remake JRC exactly along the lines that he envisions — truly a new start without the dead weight of his predecessors’ poor decisions dragging him down. I’m eager to see what he’ll do with that opportunity.

Dan Kennedy is an assistant professor of journalism at Northeastern University and a panelist on Beat the Press, a weekly media program on WGBH-TV Boston. His blog, Media Nation, is online at www.dankennedy.net. His book on the New Haven Independent and other community news sites, The Wired City, will be published by the University of Massachusetts Press in 2013.

POSTED     Sept. 6, 2012, 3 p.m.
SHARE THIS STORY
   
Show comments  
Show tags
 
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
Ken Doctor: The New York Times’ financials show the transition to digital accelerating
The numbers may look flat, but they contain a continuing set of ups and downs. Up next: executing on a year’s worth of launches.
Before the “teaching hospital model” of journalism education: 5 questions to ask
It’ll take a new generation of academic leadership — willing to incur the wrath of faculty, the greater university, alumni, industry, and analysts — to break through the old ways we train journalists.
Controlled chaos: As journalism and documentary film converge in digital, what lessons can they share?
Old and new media types from journalism, documentary, and technology backgrounds gathered at MIT to share practices and discuss mutual concerns.
What to read next
1020
tweets
The newsonomics of the millennial moment
The new wave of news startups is aiming at a younger audience. But do legacy media companies have a chance at earning their attention?
803A mixed bag on apps: What The New York Times learned with NYT Opinion and NYT Now
The two apps were part of the paper’s plan to increase digital subscribers through smaller, targeted offerings. Now, with staff cutbacks on the way, one app is being shuttered and the other is being adjusted.
413The new Vox daily email, explained
The company’s newsletter, Vox Sentences, enters an increasingly crowded inbox. Can concise writing and smart aggregation on the day’s news help expand their audience?
These stories are our most popular on Twitter over the past 30 days.
See all our most recent pieces ➚
Encyclo is our encyclopedia of the future of news, chronicling the key players in journalism’s evolution.
Here are a few of the entries you’ll find in Encyclo.   Get the full Encyclo ➚
Chi-Town Daily News
Corporation for Public Broadcasting
USA Today
Hechinger Report
ReadWrite
Ushahidi
NBC News
Investigative Reporting Workshop
The Tyee
Flipboard
The Daily Beast
The UpTake