David Zeeck, publisher at The News Tribune, tells readers all is well at his paper because TNT has turned a profit every week, every month.
There has not been one month, not one week, that we haven't been in the black.
But McClatchy is forced to take revenue from its 30 daily newspapers to pay down $2 billion in corporate debt, thanks to the 2006 Knight Ridder acquisition. Sure, the debt has been deferred but it's still there, weighing heavily on the company and the 30 newspapers.
So does Zeeck factor the company's crushing debt into his calculations? If not, I think he gave readers the wrong impression.
I emailed Dave Zeeck to ask. I'll let you know his response.
.
.
.
10 comments:
Mmmm, liberal newspaper, liberal thinking, means liberal accounting (hear lying).
Call it the Stockholm Syndrome.
Since McClatchy loves both “TurboTax” Timmy Geithner and Charlie “Tax Cheat” Rangel, they have no compunction against cooking their books, just like them.
The (taxpayer-funded) US National Whitewater Center here in Charlotte tries to pull the same trick every time they have to report their financial status: They report that they have an "operating profit", meaning they're bringing in more money than they spend running the place. The problem is that they also have tens of millions of dollars of debt, in the form of the loans used to finance the place. The "operating profit" is not enough to cover even the interest on those loans, never mind actually paying off any of the principal.
It's semantic BS like this that makes me want to pop someone in the head with a kayak oar.
FWIW - His comments, as I read them, referred not to McClatchy, but the local paper. Now whether the News Tribune (Tacoma) should be considered to hold a proportionate-to-their-size portion of the company's substantial debt may be a worthy debate, but his column written for the local audience seems to deal with the assets and liabilities of the local property.
Well, several McClatchy papers fit that description. My understanding is that the Charlotte Observer and News and Observer in Raleigh are both "profitable" if you compare their revenues to the cost of running their particular operations.
But that doesn't matter: They are owned by a company with $2B in debt. That debt is inextricably wedded to them UNLESS the creditors allow them to be spun off into their own operation. Obviously, that would just sink McClatchy proper further into the quicksand, so spin-offs won't be allowed to occur. Claiming "we're still profitable" is sort of like being one of the folks clinging to the stern rail of the Titanic as it sinks: You're still dry now, but it doesn't change the fact that the ship is going down and taking you with it.
Yes he is only referring to his specific paper. Of course, Dave had to fire lots of folks so they could remain in the black.
Actually, once they got rid of editor David Seago their editorial policy became much more balanced. Still pretty liberal, but not off into moonbat territory.
I just wonder how these folks who seem to love the idea of socialism and income redistribution feel when they work their butts off and manage to keep their paper in the black and make all the right decisions but their profits are taken away and given to the losers working at the unprofitable papers.
The TNT would be even more in the black if it wasn't paying people time-and-a-half to cover for the people on mandatory furloughs.
Well, several McClatchy papers fit that description. My understanding is that the Charlotte Observer and News and Observer in Raleigh are both "profitable" if you compare their revenues to the cost of running their particular operations.
Not really Raleigh has sooo much debt to mcclatchy they are one of the worst offenders. Their production dept. debt will Never be paid of ! The smaller papers with less overhead are the best money makers.
But then boy blunder is even messing that up. :(
Sorry Above "of" = Off
I have a rather large mortgage used to purchase my house. I pay monthly. My income supports the mortgage and other expenses. My debt to cash flow ratio is fine. I am profitable. No funny accounting. Sounds like most Americans.
what, everyone here is so preoccupied with the artful dodging that they miss the big white lie?
"Our determination is to stay narrowly profitable....''
narrowly profitable? if zeeck's talking only about TNT, you can bet the farm it's profligately profitable, holding to that McClatchy goal of 20-percent-plus "profits" from the successful MNI newspapers.
TNT, like ADN and a few others, has been shafting readers with less news ever more poorly done to keep shipping big profits south to California to service McClatchy debt while whining about how their shrinking newspapers are all the fault of the recession.
right.
can you say liar, liar pants on fire?
the fundamental dishonesty at so many levels within this organization is far, far worse than any of its silly, well-meaning liberalism.
Post a Comment