Showing posts with label Wisconsin State Journal. Show all posts
Showing posts with label Wisconsin State Journal. Show all posts

Monday, May 12, 2014

Farewell To The State Journal




Ever since I ended my career as an itinerant musician decades ago, I’ve had a daily newspaper delivered to my home in every state and town I’ve lived in.  I’m sure the same is true for my wife Toni. We’re both still newsies at heart, so we had a serious discussion this weekend about the letter that came in the mail from The Wisconsin State Journal, which we’ve had delivered to the Compound since we bought the joint in ’98.

 

The letter informed us that the next time they took a chunk of money out of our bank account, the amount would be changing to $29.25 a month. A buck a day. They of course did not list what they’re charging now, so I looked it up, and it was pretty close what I thought it was: $22.65 a month.

 

Math is far from my strong suit, but I think that’s about a 29% increase.

 

My bride’s reaction was simple: we ought not be on the hook for paying down Lee Enterprises debt. I’m still not exactly sure how the ownership arrangement works; it involves entities like Lee, Capital Newspapers Inc., The Wisconsin State Journal, The Capital Times; one owns half of this and part of that; one owns part of this and some of that; yawn.  But Lee Enterprises seems to be the one in control.




I was saddened a few years back when Lee pulled the plug on the Capital Times, the “liberal” Madison daily paper. But, given the times, it wasn’t that surprising. The Capital Times is now essentially an online operation, but their print product is delivered as a section of the Wednesday morning Wisconsin State Journal, and I looked forward to getting it every Wednesday. I enjoy Paul Fanlund’s columns a great deal; I like Mike Ivey’s stuff; I enjoy the several pages of op/ed the Cap Times provides, too.

 

My wife and I are…..well, were….big supporters of the State Journal. We read it every day. At least, when it’s delivered before 6:30 AM on weekdays, we do. But lately, that’s been slipping. Too often it makes an appearance after 7 AM, and by then, Toni’s gone off to work and I’m at work in my home studio in front of this computer.  The State Journal still has some really top-notch reporters and columnists. George Hesselberg’s stuff is top-shelf. Dee Hall is a tremendous reporter. David Wahlberg is a formidable health-beat reporter. Our friend Doug Moe’s column is the quintessence of Madison. Pat Simms, a great reporter, still does some part-time work for the paper.  I know I’m forgetting some names; but – let me make it clear that our cancellation has NOTHING to do with their excellent work.

 

But the product the State Journal puts on our porch in the morning (and I mean literally on our porch – we tip our delivery man $50 at Christmas and $50 on the 4th of July to drive up the driveway and toss the paper right on our front porch) does not merit in any way a 29% increase in cost.  News content has steadily declined over the past few years, as the reporting staff was constantly downsized; overall, the quality is, in our estimation, lower. Again, not the quality of work being done by the reporting staff, but the overall quality of the paper.


Here’s the home office building for Lee Enterprises, in Davenport Iowa - certainly an unassuming edifice for a company that owns a lot of media properties.  I do not know a great deal about the finances of Lee Enterprises, but I do know that they made some gambles a while ago and racked up a huge amount of debt acquiring more media properties. Their stock has tanked a couple times in recent memory and was nearly de-listed not that long ago.


Above is a map representing Lee’s various media holdings. They have a pretty big footprint across the nation.


Mary Junck is the CEO, and, unflattering caricature above notwithstanding, I’m sure she’s had to make some “difficult decisions” in the past decade. Usually, the way I see it, the decisions have involved firing a lot of reporters, photographers, and content-creators in general, while taking huge bonuses as the stock tanks and the quality diminishes.

 

When I called Monday afternoon to cancel, the young lady who answered the phone didn’t even try to resell me.  She simply said “your last paper will be June 15th”. I had to ask how much it would cost to get the paper on Sunday only - $15/month, or, $3.46 per Sunday paper – an absurdly high rate for a paper which is mostly paid advertising.  I don’t expect Og Mandino (the so-called “world’s greatest salesman”) to be on the other end of the line, but perhaps a few dollars spent in sales training for the phone staff over there on Fish Hatchery Road (or wherever they are) would pay for itself in a hurry.

 

There is no joy here.  There was no sense lecturing the phone-answering-lady about the outrageousness of a 29% rate-hike. It’s a decision my wife and I did not make lightly, and I hope our friends who still work at the State Journal and Cap Times can hang on long enough to leave on their own terms.

 

As Ed Murrow used to say, good night, and good luck.

Thursday, March 29, 2012

Why Is This Woman Smiling?


You would, too, if you’d just been granted a half-million dollar bonus from a company that just three months ago was bankrupt.

This woman is Mary Junck, and she’s CEO of Lee Enterprises, the newspaper conglomerate that owns, among other things, the Wisconsin State Journal.  Lee went on a buying binge a few years ago, overpaying for a bunch of daily newspapers scattered around the country.  As a result, Lee racked up a billion dollars in debt (which their cash flow obviously couldn’t serve) and declared bankruptcy.

Why would such a company then turn around and give its CEO a half-million dollar bonus?  (Not to mention the 250-thousand-dollar bonus to the company’s CFO, Carl Schmidt.)

Because these two captains of industry….err, media….re-negotiated the company’s debt.

That’s the way it works on Wall Street…err, I mean in media….today.  It’s not whether your company is fiscally sound; it’s whether you can repackage the crappy debt you put out there, and find some investment banker outfit that will take your paper and charge your company dearly for doing so.

You just keep rolling the unsustainable debt, and collecting huge bonuses.

To make your cash flow support your debt, you slash payroll.  Ironically, as Ms. Junck was collecting her half-million-dollar bonus, Lee Enterprises was busy laying off a bunch of staff at its newspaper in Helena, Montana – the Helena Independent Record.  (By the way….how’d that paywall work out for you at the Independent Record?  Not so good?  Oh, that’s too bad.)

The company’s stock, which was almost de-listed a year ago because it had fallen below a dollar a share, is trading at about $1.21 today.  In 2004, Lee stock was trading at 48 dollars a share.

So, to summarize: Lee Enterprises stock has fallen totally into the toilet; the company has just emerged from bankruptcy; it has a billion dollars in re-financed and unsustainable debt; and it continues to cut staff in an effort to pay back the sharks they owe.

I’d say it’s about time to give the financial whiz kids who run this company a huge bonus, wouldn’t you?