With Corporate's funding, the Gannett Foundation quietly set aside hundreds of thousands of dollars so top company executives could pretend to be generous -- without actually spending their own money. Lately, Gannett has been raising money for its charity arm by selling newspapers. Last year and in 2006, the company sold two, after first donating them to the foundation. CEO Craig Dubow wrote in his annual letter to shareholders that proceeds from last year's sale of the Chronicle-Tribune in Marion, Ind. -- which Gannett had owned for 36 years -- were "used to make grants to support our communities and to match employees' charitable gifts.'' The paper wound up in the icy grip of Paxton Media Group, a corporate chop shop in Paducah, Ky.[Image: yesterday's Chronicle-Tribune, Newseum]
Jim, as you and others who's eyes are open, know The Chronicle and other papers like it aren't sold to support the charity. The Chronicle's donation to the Foundation was just a ploy from upper management to keep the sale and it's removal from the negative line in the revenue books of the IN Group (the Gannett owned IN sites)from leaving a bad taste from the Kool-aid we were expected to swallow. Marion was sold because the area's economy had been declining for years, with the loss of several large manufacturing firms (jobs moved to Mexico and overseas). The Gannetteers who worked there, some for the full 36 years of Gannett's ownership, were abandoned in the name of wiping a revenue loss from the books of the IN Group and to maintain the pristine reputation of it's controlling Publisher, B. Henry.
ReplyDeleteThank you for your efforts to continue supplying the information that keeps our eyes open and the Kool-aid pitcher closed!
Thank you! There are likely some positive tax implications for the company as well, in selling these papers through the foundation. I fear/expect more of these newspaper sales, although they won't all be through the Gannett Foundation, of course. The company has made clear that it's evaluating all its papers for possible sale if they don't fit into the "clustering'' concept: papers close together that can share presses, publishers, trucking fleets, etc.
ReplyDeleteGannett only owned the Marion paper since the INI purchase, which includes The Indianapolis Star, so Gannett ownership was about 8 years.
ReplyDeleteD'oh! Interesting. Gannett's SEC documents say it owned the paper since 1971.
ReplyDeleteJim: You are right on Marion. Gannett has owned it since 1971. Long before Indy was a twinkle in Gannett's eye ... so to speak.
ReplyDeleteMuncie, not Marion, was part of the Central Newspapers deal.
ReplyDeleteA corrupt company with no vision for employees. Save your money and leave Gannett.
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