Poynter on the Record

It is an unusual, perhaps unique, arrangement in the recent annals of American newspapers: having a consortium of local business and civic leaders take over a dominant metropolitan franchise.

And analysts say that the makeup of the new ownership group of The Inquirer and the Philadelphia Daily News brings with it a distinct set of strengths and concerns.

The obvious upside is that the local buyers have reason to care about journalistic content and figure to be less inclined than a distant, publicly owned corporation to maximize profits at the expense of the product.

Brian P. Tierney, chief executive officer of the new Philadelphia Media Holdings L.L.C., emphasized all of those points yesterday in announcing the deal to buy the paper and Philly.com.

He said that his "homegrown ownership" would take a longer-term perspective on profitability than would Wall Street investors. He called the newspapers "a civic trust."

Said Ben Bagdikian, a veteran editor and journalism educator: "Local ownership is always a plus. They pay attention to the paper; they care about what's in it."

The possible downside is that some of the new owners, who represent a diversity of interests, may try to influence news coverage when it has direct bearing on them. Or that readers will perceive such influence even when it doesn't exist.

Investors in Philadelphia Media Holdings include a major home-building executive, Bruce E. Toll; the pension fund of a powerful labor union, the carpenters; and CEO Michael Hagan of Nutri-System Inc. ...

...The potential for the exercise of influence, whether real or perceived, goes beyond the businesses the investors run. They serve as directors of other corporations, on the boards of local nonprofit and cultural institutions. They have histories of political involvement.

"This is ethical minefield territory," said Robert M. Steele, chief ethicist at the Poynter Institute for journalism in Florida. "It takes a real strong gut check by the owners at the front end in terms of what values, what principles, will guide them in both the business enterprise and the public-service role and responsibility."

Exactly how these various forces play out at 400 N. Broad St. is sure to be monitored closely by local interest groups and the national journalism community.
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